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Bank recharter Legislation
Nicholas Biddle's supporters in Congress, mainly Daniel Webster and Henry Clay, introduced the recharter for the Second Bank. The charter was not due to expire for another four years, but they felt Congress would recharter it. They did it with confidence, assuming that President Jackson wouldn't risk the loss of votes during his re-election for a veto. -
Jackson's Veto Message
To Jackson, the the bank symbolized how a privileged class of businessmen were oppressing the will of the common people of America. He vetoed the act for a re-charter and thought the act was suppressing the rights of every state and the rights of the American citizens -
Pet Banks
President Jackson decides to remove all federal funds from the Second Bank of the United States, and instead redistributes them to different state banks, which were eventually known as "pet banks." These banks received large deposits of government money. He also announced that the deposits to the banks wouldn't be accepting after October 1st. -
Specie Circular
This was an executive order issued by President Jackson requiring that any purchase of public lands had to be payed for in gold or silver In an effort to curb land speculation and to lower the growth of paper money, Jackson directed the "pet banks" and anyone else who received public money to accept only specie as a payment for land owned by the government after August 15. This was one of the major factor of the Panic of 1837 -
Panic of 1837
The Panic of 1837 was a financial and economic crisis in the nation following some changes initiated by President Jackson in the banking system. As profits, prices, and wages went down, unemployment went up. Still trying to recover from the Panic of 1819, America plunged into a 7-yr ling depression. Jackson also created his Specie Circular that dried up credit.