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Election of 1832
An election between Jackson and Clay. Jackson's platform focused on getting rid of the national bank, while Clay supported. Jackson was reelected by majority and was free to act on bank issue. -
National bank fights back
Nathaniel Biddle, president of the national bank, began taking actions to recharter the national bank. He started speaking out against Jackson and rallied a large group of supporters. Congress voted to recharter the bank but Jackson vetoed against it and was accused of abusing his executive power by Biddle and his supporters. -
Removal of money from bank
Jackson removed all federal funds from the Second Bank of the U.S to various state banks, which was known as "pet banks." He thought that getting rid of the bank's money would cause it to fall faster, but it collapsed too fast causing an economic crisis. -
Specie Circular
An act created by Jackson but carried out by president Van Burren. This act required that land be purchased in gold and silver rather than paper money. This led to a drastic decline in the value of paper money Inflation greatly hurt the economy, and people, especially in the South, became angry with Van Burren rather than Jackson. -
crash of 1837
The fall of the national bank and overspending led to a period of deep economic recession. Prices of American goods fell, businesses went bankrupt, and state banks began to collapse without national support.