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The Chartering of the Second Bank
With the republican party adopting federalist ideologies and rising debt from The War of 1812. James Madison decided that chartering a Second National Bank would help to reduce debt and boost the crippled economy. This charter would last 20 years before it needed to be renewed. -
The Panic of 1819
Economic panic caused by loose restrictions on the amount bank notes allowed in circulation. This caused banks to close, employment to rise, and people to distrust banks. -
McCulloch v. Maryland
In summary the issue was whether states could tax government agencies. In the ruling it was decided that states could not tax the government as it was prohibited by the Constitution and would establish the constitutionality of a National Bank and implied powers for Congress. -
Nicholas Biddle Becomes President of the Second National Bank
After the failure of the two presidents before him William Jones and Langdon Cheves. Nicholas Biddle was elected President of the Second National Bank. -
Andrew Jackson is Made President
During the election of 1828 Jackson won by a 2/3 majority in the Electoral College and was sworn into presidency. Jackson being completely against the Second National Bank would later go on to refuse the renewal of it's charter. -
Jackson's Veto
In order to find a issue for the upcoming presidential elections, Biddle is convinced by Henry Clay and Daniel Webster (and other Anti Jackson opponents) to try to renew the Second National Bank's charter four years early, although, despite the bill making it's way through Congress. Jackson would veto the bill and in the process go against the Supreme Court Ruling of McCulloch v. Maryland. -
The Crippling of The Second National Bank
Jackson in a final effort to finish the Second National Bank would request the removal of all federal deposits from the National Bank. He would move these deposits to various state owned banks, In response to this Biddle would lower the amount of loans given out and leave less money in circulation to try and turn Jackson's actions against him. This would only backfire on Biddle leaving less people in favor of the National Bank. -
The Whig Party
Formed by political opposition of Andrew Jackson and their leader being Henry Clay. The Whigs were known for their support of the Second National Bank, higher tariffs, and passing bills to try and relive the Panic of 1837. -
Jackson's Specie Circular of 1836
Andrew Jackson in order to curb inflation and limit the amount of paper money in circulation would require land payments to be paid in gold or sliver, also referred to as hard currency. This order would play a major role in the economic crisis which would soon follow. -
The Panic of 1837
Due to a decrease in regulation after the National Bank became state owned in 1836, state banks would rapidly increase the amount of money in circulation leading to rapid inflation. This in combination with Jackson's Specie Circular of 1836 which made public land payments require hard currency led to many banks closing because they didn't have the hard currency to exchange into bank notes. These events would put the economy in a depression -
The Election of 1840
With the support from the Whigs and the first ever active campaigning, William Henry Harrison would be elected for president. Despite this he would die only 31 days into office. Leaving his Vice President John Tyler to become President.