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In December of 1831, Henry Clay of Kentucky was chosen by the National Republicans as their candidate for the US presidency.
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Jackson rejected the renewal of the bank. He states the issue of the constitutionality of the bank and where the monetary power should be held.
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Bank bill renewing the charter of the Second Bank of the U.S. was passed through both houses of the U.S. Congress.
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Jackson and Clay were running for president. Jackson was re-elected. Jackson was to get rid of the national bank, while Clay supported it.
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Jackson vetoed the Bank Bill.
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Jackson took the money from national reserves and started to distribute it to "pet banks". He thought it would help the national bank to collapse. The fall of the national bank caused the country to fall into an economic crisis.
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This was a false notion that there was plenty of money for the United States and that the economy was growing. People though they were becoming richer. The overspending and abuse of money lead to the Panic of 1837.
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These were privately funded state banks that Jackson used to deposit federal money. It hurt the economy and destroyed the national bank. Money was being transferred from the federal level to the state level.
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The President of the national bank began taking actions to recharter the national bank. He was not a supporters of Jackson's decision. Congress voted to recharter the bank, but Jackson vetoed.
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The Whigs were divided and could not unite behind a single man. New York's Martin Van Buren, Jackson's vice president, won the contest.
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This was an act created by Jackson that required land to be purchased in gold and silver rather than paper money and bank notes.
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The national bank fell, inflation, and overspending lead to a economic recession. Prices of American goods fell, businesses went bankrupt, and state banks began to collapse without strong national support.
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The election found the country afflicted with hard times and low wages. The economic depression and the personality destroyed the merits of Van Buren.