Jackson and the Bank by Ethan Yoder

By ethanyoder2004

  • the 2nd National Bank

    After the first national bank was dissolved in 1811, the war of 1812 caused a lot of national debt, pressuring Congress to declare another one. Many who felt the first was unconstitutional didn't like the new one any better.

  • Jackson's Veto

    Jackson's opponents in Congress tried to re-charter the Second National Bank, because they wanted to alienate Jackson's supporters for the upcoming election. Jackson vetoed the bill, and wrote a message declaring the bank as a monopoly and a monster.

  • The Election of 1832

    While Henry Clay ran against Jackson in the election of 1832, he tried to use the veto against Jackson, in order to split Jackson's supporters, and gain more votes for himself. This didn't work, and Jackson easily won the election.

  • Pet Banks

    Jackson saw his reelection as a symbol that he must keep pushing for the removal of the national bank. in 1833, he declared that the revenue received from the national bank will be distributed among state banks, which would be called "pet" banks by the opposition. After the resignation of the Secretary of the Treasury, Jackson found another secretary that would carry out this command.

  • Specie Circular of 1836

    Jackson tried to stop banks from issuing bank notes, since he saw it as useless if not backed up by real hard money. This law prohibited the use of bank notes when buying land, only allowing gold and silver payments. His supporters in the south only increased, due to his attacks on the rich and powerful.

  • The Panic of 1837

    After Martin Van Buren was elected president, the nation fell into a depression, and thousands of people were laid off. This was due to the banks lacking the gold and silver to back up all of the demand, leading to the bankruptcies of banks across the nation. Prices for goods, specifically cotton, dropped rapidly, and riots erupted after twenty thousand people didn't have enough money to support themselves. Many blame Jackson for his removal of the national bank, and the protections it gave.

  • The Election of 1840

    While the Panic of 1837 was starting to slow down, there still wasn't support from the government, due to Van Buren's Jeffersonian beliefs about the government's role in businesses. The Whig candidate, William Henry Harrison, dominated the electoral college in the election of 1840, which ushered in the first of two Whig Presidencies.