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- The federal government chartered the creation of the Second National Bank to help control the money received by State Banks.
- Signed into law by President James Madison after the War of 1812
- Had a 20-year charter, which was then considered being expanded in 1832, but was not done due to President Jackson vetoing it.
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- After the War of 1812, America started facing economic problems due to the growth from the War of 1812 stopping.
- Businesses started becoming bankrupt, unemployment rates were going up, and people were going into debt due to property values going down.
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- Election between Andrew Jackson and John Quincy Adams.
- Helped form the Democratic and Republican parties.
- Andrew Jackson won, which led the Democratic Party to take charge.
- Jackson promoted the beliefs of state rights and a limited government.
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- Andrew Jackson gave his annual address to Congress.
- With this, he questioned whether the National Bank was unconstitutional or not.
- Jackson claimed that the bank could not enforce a stable currency in the United States.
- Jackson proposed an idea of his own National Bank, which would use government credit. This idea was received negatively by the people of America since they thought it would lead to political corruption.
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- Election between Andrew Jackson and Henry Clay.
- Andrew Jackson wins again.
- With his stance in office again, Jackson framed the National Bank as corrupt.
- The people believed Jackson's word over Henry Clay's
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- Congress passed a bill to extend the charter of the Second National Bank.
- Andrew Jackson vetoed the bill, as he deemed the bank unconstitutional.
- Jackson decides that the government will deposit the funds they gain into the state banks rather than the National Bank.
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- Daniel Webster was angered by Jackson's decision to veto the recharter of the Second National Bank.
- Webster believed that Jackson did not have the authority to claim the National Bank unconstitutional since the Supreme Court already had laws protecting it.
- Made Webster believe that if any president in charge could ignore bills passed by the Supreme Court.
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- Henry Clay formed a political party called the Whigs.
- Viewed Andrew Jackson as "King Andrew."
- Members of the party were against the cruel treatment of Native Americans, and they all supported the National Bank.
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- The new revenue for the National Bank was deposited into seven state banks.
- The money that remained in the National Banks was paid off in a natural course.
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- William J Duane, Jackson's Secretary of Treasury, refused to move the funds from the National Bank to the state banks.
- Even though the authority over funds for the bank is ruled by the Secretary of Treasury, Jackson still fires Duane.
- Jackson now believed that he could remove cabinet members without asking Congress.
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- Due to the economic growth and people believing the West was growing, economic panic broke out again.
- Banks no longer had enough gold or silver to turn into paper money, and many declared they had fallen into bankruptcy.
- Due to the economic growth and people believing the West was growing, economic panic broke out again.
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- Election between Whig nominee William Henry Harrison and President Martin Van Buren of the Democratic Party.
- William Henry Harrison won.
- Within a month of Harrison's presidency, he passed, leaving the role of president to his vice president, John Tyler.
- While he was still alive, Harrison introduced the idea of a new plan for the National Bank.
- When Tyler took over as President, it was soon known that he was not part of the Whigs, and he was removed from the party.