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The second Bank of the United States was similar to the first bank and continued to be charted for 20 years. Newer states and territories didn't like the Bank. The bank was well managed and had rendered in value and was set to make one national currency. -
When Jackson was withdrawing the deposits in the national bank, Biddle, the president of the national bank, restricted the banks loans and tightened the country's money supply. Congress would vote to recharter the bank but Jackson would fight back and veto it. But this response did not work and instead caused finance distress. -
The charter of the Bank was ready for renewal and the question was whether to renewal it or not. Jackson rejected the renewal because he believed it just was in the way of state rights and believed it was unconstitutional. This would be a issue in the elections to come. -
Jackson decided to veto earn the banks supporters wanted renewal of its charter and to expand the charter. He thought the banks charter was just unconditional and wanted to veto it. Ultimately his effort to override the veto failed and gave his veto message to the nation on July 10th, 1832. -
The election of 1832 included the candidates Jackson and Clay which became heated. There was different viewpoints of the Bank, Clay was in support of it while Jackson want to get rid of it. The country was really divided and it would said it took more than a decade for the country to reconcile their differences. -
The Speculative boom was caused when Jackson placed the federal money from the national bank into pet banks. This would eventually lead to overspending money and the economic crash better known as the Panic Crisis of 1837. -
Jackson ordered to end deposing of government money and withdrew money that was in its custody. This was one of the ways Jackson tried to get rid of the national bank. This led to the government to deport the funds into selected state banks that would be known as "pet banks". -
The Pet banks were private state banks where Jackson deposited the federal money he withdrew from the national bank. Jackson used Pet Banks as a attempt to destroy the new national bank but it hurt the economy financially. -
The formation of the Whig party were against Jefferson and included many Republicans and Northerners. The term Whigs was British and signifying Jacksons "monarchial rule". They were also in support of the 2nd Bank of the United States. -
The Specie Circular was created by Jackson that required land to be bought in silver or gold rather than paper money. The purpose was to decrease the amount of paper money, and to stop land speculation occurring in the West. -
The Panic of 1837 was caused by inflation, from factors such as the banking crisis in general an the Specie Circular. During this panic the national bank failed, overspending, unemployment, bankrupt businesses are more happened. Even the state banks failed and many were left in financial distress. -
In the election of 1840 it included candidates, Martin Van Buren and William Henry Harrison. Harrison won since he was popular for being a hero of the War of 1812 and the conflicts with Native Americans. But soon after he died and his Vice President took the role of President.