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Bill to Renew the Charter of the Second Bank of the United States
A bill was put through Congress to renew the charter of the second national bank four years early. The Senate approved the bill on June 11, 1832 and the House of Representatives approved the bill on July 3, 1832. However, President Jackson vetoed the bill and returned it to Congress on July 10, 1832 along with a veto message he wrote that addressed everything he felt was wrong with the bill and the bank. After the bill was vetoed, Congress was unable to pass it again. -
Andrew Jackson's Veto Message
The House of Representatives and Senate passed a bill to renew the charter for the Second Bank of the United States four years early. The bill was then sent to President Andrew Jackson and he vetoed it and sent it back to Congress. He included a veto message with the bill, citing all the reasons why he did not approve the bill. After Jackson's veto, Congress could not pass the bill again once they altered it. The veto message summarized people's arguments against the second national bank. -
Andrew Biddle
Andrew Biddle, president of the Second Bank of the United States, tried to counter Jackson's actions against the National Bank in August of 1833. He thought he could gain support for renewing the bank's charter in 1836 by creating a financial crisis to show the need for a central bank. His efforts ultimately did not have the desired effect. Some people agreed that a financial crisis showed the need for a central bank and others said what Biddle was doing only highlighted the dangers of the bank. -
Jackson's Withdraw of Government Funds from the Second National Bank
Andrew Jackson ordered that all federal government funds would be removed from the national bank. He then distributed the funds among various state banks. These banks were often called "pet banks". Jackson also decided that after October 1 of the same year the Second National Bank would not accept any more deposits. -
Charter for the Second Bank of the United States Expires
The second national bank's charter expired in 1836. Despite efforts by some lawmakers and the president of the national bank, Nicholas Biddle, the charter for the bank was not renewed. This marks Andrew Jackson's victory in the conflict over the national bank. -
Specie Circular
This was an executive order issued by President Andrew Jackson. The act was meant to limit land speculation and the growth of paper money being circulated. It required that payments for the purchase of public land be made in gold or silver. This act contributed to deflation and was part of the cause of the Panic of 1837. Congress repealed the act on May 21, 1838. -
Panic of 1837
Financial and economic crisis caused significantly by Jackson's withdraw of money from the national bank and the Specie Circular. After the Specie Circular was issued, people rushed to withdraw funds from banks to pay off debts, but many banks didn't have the needed funds. 800 banks closed in 1837. Economic growth was suppressed, businesses went bankrupt, and 10% of American workers were unemployed. Economy didn't really start recovering until 1843. Led Democrats to lose election of 1840.