Jackson's Battle with the Bank

By chloe7463

  • Jackson opposes Second Bank of the United States

    Jackson vetoes a bill that would have extended the life of the Second Bank of the United States. Henry Clay, running against Jackson in the presidential election, proposes the bill to bring the issue of the Bank to the forefront in the election. Jackson's opposition to the Bank actually garners him additional popular support.

  • Force Bill

    Pressed by Jackson, Congress passes the Force Bill, authorizing Jackson's use of the army to gain compliance for federal law in South Carolina. Vice President Calhoun voices his dissent.

  • Jackson terminates national debt

    Jackson announces he will terminate the national debt, freeing the United States of foreign and domestic obligations beyond the reserves of the Treasury.

  • Jackson withdrawals federal deposits

    Viewing his reelection as a mandate to continue his war against the Second Bank of the United States, Jackson issues an order for the Treasury Department to withdrawal federal deposits from the Bank of the United States and place them in state banks. On March 28, the Senate, Calhoun and Daniel Webster, passes a resolution of censure admonishing Jackson. Jackson will continue to take action against the Bank which closes its doors in 1841.

  • Specie Circular

    Jackson, along with Treasury Secretary Levi Wood bury, introduces the Specie Circular, revealing that the government will accept only gold and silver for land payments. The act serves as an attempt to check rising inflation precipitated by unprecedented land speculation and irresponsible lending. Hand-picked by Jackson to be his successor, Vice President Martin Van Buren wins the presidential election, running against three Whigs.

  • Panic of 1837

    When Jackson was president, many state banks received government money that had been withdrawn from the Bank of the U.S. These banks issued paper money and financed wild speculation, especially in federal lands. Jackson issued the Specie Circular to force the payment for federal lands with gold or silver. Many state banks collapsed as a result. Bank of the U.S. failed, cotton prices fell, businesses went bankrupt, and there was widespread unemployment and distress.