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The Bank Recharter Bill
Daniel Webster and Henry Clay, introduced Bank recharter legislation. Even though the charter was not due to expire for four more years, they felt that the current Congress would recharter the Bank. Jackson vetoed the bill and ordered the federal government's deposits removed from the Bank of the United States and placed in state banks. -
Election of 1832
President Jackson ran against Henry Clay. Jackson's platform focused on getting rid of the national bank, while Clay supported the national bank. The opinions of the country were divided. Jackson was reelected by an overwhelming majority, and he was free to act on the bank issue. -
Biddle Response
Nathaniel Biddle, president of the national bank, began taking actions to recharter the national bank. He spoke out against Jackson's harsh actions and rallied a large group of supporters. When Jackson vetoed the recharter bill for the bank, Biddle and his supporters claimed that Jackson was abusing his executive power. -
Speculative boom
A speculative boom is the false notion that money is in abundance and the economy is growing. With federal money moved closer to home, people thought that they were becoming richer. This led to a period of overspending and abuse of money -
Jackson removes federal deposits
after vetoing the bank recharter bill, Jackson began by taking the money from national reserves and distributing it to state banks. He thought that getting rid of the bank's money would cause it to collapse faster. It worked. The national bank collapsed at a rate that would lead the country into an economic crisis. -
Jackson's Pet Banks
Pet Banks were state banks with US treasury funding. Banks were chosen through the spoils system which rewarded political allies with Andrew Jackson. -
Specie circular
An act created by Jackson, that required land be purchased in gold and silver rather than paper money or bank notes. This led to a drastic decline in the value of paper money. Inflation greatly hurt the economy, and people. -
Panic of 1837
A finacial crisis after changes in the banking system due to President Jackson and his Specie Circular drying up credit. Other causes included the failure of the wheat crop, a financial crisis and depression in Great Britain that led to restrictive lending policies. President Martin Van Buren proposed the system for the retaining government funds in the United States Treasury and its sub-treasuries to address the situation but met with strong opposition by the Whigs, led by Henry Clay.