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Second Bank chartered
A second Bank of the United States was chartered for 20 years. This bank's purpose was to act as a depository for government receipts, create short-term loans for the government, and establish a currency. The newer states were not in favor of this bank. -
Jackson's Veto
Henry Clay, Daniel Webster, and other Jackson opponents in Congress passed a bill rechartering the Second Bank. Jackson was forced to sign the bill or veto the bill, upsetting people either way. Jackson decided to veto the bill. He declares that the bank was "unauthorized by the Constitution, subversive of the rights of the States, and dangerous to the liberties of the people." -
Jackson's Victory
In the presidential campaign of 1832, Henry Clay attempted to make a problem of Jackson's bank veto, but Jackson defeated Clay by 219 electoral votes to 49. -
"Pet" Banks
President Jackson ordered his Treasury secretary to divert federal revenues from the Bank to selected state banks, known as "pet" banks. The secretary did not obey and the Senate declared Jackson's actions unconstitutional. -
Jackson' Specie Circular
This required public land payments to be paid in gold and silver, rather than paper bills. Many private banks did not have enough hard currency and were forced to close which triggered the financial crisis. -
Panic of 1837
State debts rose and inflation increased. Prices increased 28 percent in three years. Cotton prices fell by half. In New York City, 50,000 people were unemployed and 200,000 lacked support. Mobs broke into the city's flour warehouse. -
Election of 1840
While the Panic of 1837 was starting to slow down, there still wasn't support from the government. The Whig candidate, William Henry Harrison, won the electoral college in the election of 1840. This led to the first two Whig Presidencies.