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The Second Bank of the United States was created in 1816 and chartered for another 20 years after its creation. But while it was well managed and seen as a valuable service to the country, many new states and local banks did not agree with it because of the control it had over the country's credit and finances. Many other people believed it only represented the wealthy and did not give poor people any true representation.
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The Panic of 1819 was a time were finances were in ruin, unemployment rates were high, banks were failing, and agricultural prices fell by half the amount. Over fifty thousand people were unemployed in the Northern states, and some estimated over half a million were unemployed nationwide. Bankruptcy was being declared daily, and factories were constantly being shut down. It was caused by declining cotton prices, inflation from the bank, and many factories closing due to foreign competition.
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The Election of 1828 was between John Adams and Andrew Jackson, leaving the win to Jackson through a harsh debate with both sides' supporters spewing cruel things about both candidates. When elected, his distrust for the National Bank was clear. Later, because of his distaste for the Bank, he would issue a veto for the renewal of the Bank charter.
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In 1832, some of Andrew Jackson's opponents, Henry Clay and Daniel Webster, passed a bill to recharter the National Bank. It was not due for another four years, but the men wanted to make Jackson take a clear stance on whether he was for or against the bank. Both houses of Congress passed the bill, allowing the charter to be extended for another fifteen years.
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In the Election of 1832, Andrew Jackson was running against Henry Clay, but also an additional candidate, William Wirt. In the end, it mainly came down to Jackson and Clay, but Jackson ended up being the final winner. During the time of campaigning, members opposing Jackson brought up the topic of the Bank, forcing him to define his stance on the topic.
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One week after the recharter bill for the National Bank was passed by Congress, Jackson returned the bill unsigned and declared that the bank was not constitutional. Doing this, Jackson directly contradicted what was stated in McCulloch v. Maryland, which had stated that the National Bank was constitutional. Jackson argued that the bank gave too much power over the nation's finances.
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After Jackson's reelection of office, he decided to continue to show his distaste for and undermine the Bank. Jackson ordered the Secretary of Treasury to move federal funds to selected state banks - the banks being called "pet banks". Later, Jackson's actions would be deemed unconstitutional and he would be censured.
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In Andrew Jackson's second term as President, he was able to clear the national debt, setting it to zero, the only time in U.S. history that it was that low. Jackson had vetoed several spending bills and sold off much land in the West, gaining back the money to clear the U.S. debt entirely.
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Since Jackson had decided to veto the bill to recharter the bill for the Second National Bank, the bank came to an end. Jackson's beliefs - that it was unconstitutional, that it gave the government too much power over finances, and that it favored the elite - would soon lead to the Panic of 1837.
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In 1836, President Andrew Jackson enacted the Specie Circular Act, demanding that payment for public lands must be in silver or gold, not cash. Jackson thought that this would curb inflation, but led many Americans to resorting to trading in their cash for silver and gold. Because of this, many banks did not have sufficient funds to run, leading them to close, and money having heavily decreased value.
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With the charter of the Second National Bank ending, state banks started to print and lend money in large amounts. The high inflation and hard currency policy led to many banks closing. This became known as the Panic of 1837, leaving many Americans unemployed and some left to go hungry.
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The Election of 1840 was marked as the first election between two major political parties, leading to a large increase in voter turnout. Most of the voter turnout was against the Democratic Party, instead voting for the Whig Party. Henry Harrison of the Whig Party, with his running mate John Tyler, won the election. Within a month of inauguration, Harrison died, leaving Tyler to take his place. Tyler merely established that the vice president would take the role of president if he were to die.