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Bank recharter bill
Andrew Jackson rejected the renewal of the bank and the issue of the bank constitutionality and where monetary power should lie resurfaced -
Effects of Jackson's Veto
Many people started paying more attention of Jackson after this veto. His enemies became enraged and many felt he was abusing his executive power. -
The election of 1832
This was a heated election between Jackson and Clay. Jackson platform focused on getting rid of the national bank, while Clay promised to support it. Once again. But Jackson was reelected by majority and was free to act on bank issue. -
Jackson's removal of Federal Deposits
Jackson began taking money from nation reserves and started distributing it among the states banks. He thought getting rid of the banks money could cause it's fall faster but it collapsed too fast causing an economic crisis. -
National Banks 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. Again congress voted to recharter the bank but Jackson vetoed against it and was accused of abusing his executive power by Biddle and his supporters. -
Jackson's little pet banks
Pet banks were privately funded state banks where Jackson deposited federal money. These banks hurt the economy but the the system of transferring money from the federal level to the state continued and eventually destroyed the national bank. -
Specie circular
An act created by Jackson but carried out by president Van Buren that required that land be purchased in gold and silver rather than paper money or bank notes. Jackson believed in paying traditionally for land. 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 at Van Buren 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 strong national support.