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Second Bank of the United States
It was created to circulate the national currency and states’ bank notes. However, many people opposed it due to political power, or the cause of economic problems like economic fluctuation and loan restrictions. -
Recharting proposed
Jackson’s opponents in Congress proposed the rechartering of the Second Bank of the United State to see if Jackson would support it or veto it. Jackson vetoed the bill. He said that the Bank was a way for rich people to get richer by Congress and it was a monopoly. He called it unconstitutional and that it took the people’s rights. -
Pet Banks
President Jackson asked his Secretary of Treasury to redirect the revenue of the National bank to state banks. However, the Secretary of Treasury refused and quit in order to not carry out his request. Jackson appointed another Secretary of Treasury and they carried out his order. His actions were seen as unconstitutional by the US Senate. This made many conservative businessmen support him. -
Destruction of Bank Notes
President Jackson hated all banks and decided to issue hard currency rather than bank notes. President Jackson did not allow banks to issue bills that had less than a $5 value. He also prohibited land to be purchased with anything other than gold and silver and took pet banks the ability to receive federal deposits. That money went to states that needed help with internal improvements. That was about $35 million dollars. -
Panic of 1837
The Panic of 1837 was when the nation was in a deep financial depression. Inflation caused prices to increase by 28 percent. Cotton prices decreased to half of the original price which cause many farmers in the South and West to go bankrupt. About 50,000 people lost their jobs in New York. A mob full of hungry people broke into a flour warehouse. -
Election of 1840
Until the 1840 election, Andrew Jackson and Martin Van Buren won the election with a great number of votes. However, because of the Panic of 1837, they lost lots of votes due to Van Buren having the same beliefs as Andrew Jackson. This gave the Whigs political party an opportunity to win the election. They did with 19 out of 26 states’ votes.