Jackson and the Bank

Second Bank chartered

1816

The Second Bank was chartered almost 20 years after the First Bank. The purpose of this bank, all banks perhaps, was to act as a depository for government receipts, to establish short-term loans to the government, and establish a currency. The newer territories resented this bank because it chose virtual monopoly over the country's credit and currency and represented the interests of the wealthy

Panic of 1819

1819

The Panic of 1819 was a serious economic crisis for many. A lot of people lost their jobs, agriculture costs plummeted, banks lost stability. The center of economics for the U.S., the Bank perhaps, was the reason for this according to many. Thats why people opposed it.

Jackson's Veto

Jul 10, 1832

Henry Clay, Daniel Webster and other opponents of Jackson passed a bill that would restore the bank. However, Jackson vetoed the National Bank of the United States in July of 1832.He would either sign or veto the bill in which he vetoed it even though the original charter didn't end until 1836. He declared it "unauthorized by the Constitution, subversive of the rights of the States". People were for and against Jackson's veto. In the end, Jackson won with a 219 to 14 electoral vote against Clay.

Pet Banks

1833

Jackson ordered the Secretary of Treasury to move government revenue and allocate it amongst seven state banks in attempt to remove the National Bank. These were called pet banks. However, the Senate to not follow through with Jackson's order. This led to the Senate declaring Jackson's act to be unconstitutional.

Jackson's Specie Circular

Jul 11, 1836

Any government owned land is required to be paid for by any gold or silver. This served as a way to prevent imprudent land speculation in the west, and to reduce the growth of paper currency. This affected private banks because their hard currency was diminishing, so they were closed out of business.

Panic of 1837

1837

The Panic of 1837, another financial crisis, unemployment and inflation was at an all-time high. The state went deeper into debt which would be hard to get out of. Even prices of goods fell. Buren was blamed for the panic of 1837 and suggested a system of for withholding governmental funds. There was a lot of opposition by the Whigs, especially Henry Clay.

Election of 1840

Nov 12, 1840

William Henry Harrison, a Whig candidate, would go against Martin Van Buren in the presidential election. Buren persuaded Congress to establish an unconventional treasury system. Harrison received more electoral votes from the electoral college which led to his victory against Buren. This marked the first of two victories of Whig candidates.