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Second Bank Recharter
Democratic-Republicans wanted to bring back some federalist principals. -
Panic of the Second Bank
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Jackson/Clay
Clay and his supporters and Adams supporters wanted to get Jackson out of office. -
Election of 1832
Jackson and Clay were running against each other. Jackson had majority of the votes and was elected for a second term. -
Biddle's Response
Biddle argued with Jackson about the national bank. He wanted to recharter the bank while Jackson wanted to eliminate it. The rechartering was passed by Congress, but was vetoed by Jackson -
Jackson's Veto
Jackson vetoed the bill to recharter. He believed that the bank’s charter was unconstitutional and went against the rights of the states. Jackson used his veto power to protect the rights of the people. -
1832 Bank Recharter Bill
The charter for the bank was up for renewal, and political parties argued about whether the bank was constitutional or not. Jackson believed that the charter interfered with with state's rights. -
Jackson's Pet Banks
A pet bank was a state bank were the money from the national bank went. Pet banks were an attempt to destroy the Second Bank of the United States by dissolving federal power over economics. Creates money shortage. -
Speculative Boom
A speculative boom is inflated or exaggerated expectations about future economic growth or prospects. Jackson’s mistrust of the B.U.S. led him to place money from the federal government and into pet banks. This caused a speculative boom. This led to the Panic Crisis in 1837. -
Jackson Removes Federal Deposits
Since Jackson wanted to get rid of the national bank, he needed to do something with the funds, so he dispersed the money to several state banks, also known as pet banks. -
Whigs
Jackson's supports who liked the bank, left Jackson and formed their own political party, the Whigs. Whig= national representatives and Jeffersonians. -
Specie Circular
The Specie Circular was an executive order issued by Andrew Jackson requiring payments of land be made in gold or sliver only. This caused a decrease in value of paper money. Also caused the Panic of 1837. -
The Panic of 1837
It was caused by inflation from the Specie Circular and the Banking crisis. As a result the bank of the U.S. failed, cotton prices fell, businesses went bankrupt, and there was widespread unemployment and distress. Many state banks collapsed as well. -
Election of 1840
Van Buren runs again, but runs against Whigs candidate (Harrison). Harrison wins. First time where a VP takes over when a president dies, or wins election (that's not really known). Relates to Panic, Specie Circular, and Pet Banks.