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After the War of 1812, the young nation was in financial debt and was in need of another central bank. After much debate and formulation, Congress decided to charter the Second Bank of the United States, established in 1816 and funded with $35 million dollars running for 20 years. -
It was the first economic depression, causing much struggle in employment, failing banks, and a decline in agricultural prices for cotton. Congress started to require hard currency for land payments, and the national bank restricted credit, bringing down businesses. -
Mayland started putting taxes on banknotes on the National Bank and was deemed unconstitutional, as it was a check on federal powers. The issue before the Supreme Court was the debate over whether the state had the constitutional right to tax an agency of the United States Government. It ended in favor of McCulloch, who was unable to tax the bank notes. -
In 1823, Biddle was elected, becoming the president of the Second National Bank during a time of recovery from the panic of 1819. He later restored the Bank, bringing it stability to America's finance, and he even funded state banks to avoid any national crisis. -
It was the presidential election between Democrat Andrew Jackson and National Republican John Quincy Adams in which ended with Jackson winning in his first election. He opposed the bank and used that along with his policies to elevate his support, portraying himself as a man of the people, leading to a rise of democratic power. -
Jackson was in strong opposition to the National Bank, believing that it was corrupt and evil, as it could prove to be harmful to the nation. He deemed the Bank unconstitutional and a tool for the elite to use, and so he removed deposits as well, which angered many businessmen, but supporters thought of him as fighting for the "common man". -
It was a presidential election between Democratic candidate Andrew Jackson and National Republican candidate Henry Clay. It ended with Jackson winning through most electoral votes, bringing the rise of the Democratic Party and also solidifying Jackson's resolve to take down the bank. -
In a final attempt to bring down the Bank of the United States, Jackson decided to withdraw all federal funds from the bank and distribute them to seven large state banks, gaining the nickname the "seven pet banks". -
Biddle responded to Jackson's removal of federal funds from the bank, the National Bank, in which Nicholaus Biddle was president at the time. To get back at Jackson, Biddle decided to limit the bank's notes and called in debts, which didn't turn out as successful as he had thought it would, leading to low chances of the bank being recharted once its charter ran out in 1836. -
Jackson signed an executive order that acted on requiring all transactions of land to be purchased using gold or silver instead of paper money. This act was intended to decrease land speculation and the paper money spread in the market. This eventually led to the Panic of 1837, which increased demand for hard currency. -
With the charter of the Second Bank of the United States expiring in 1836, state banks began printing money, resulting in high inflation along with Jackson's favoring hard currency led investors to panic, resulting in banks closing down, driving the Nation into a financial crisis. -
It was the presidential election between Whig candidate William Henry Harrison and Democratic candidate Martin Van Buren. The election ended with William Harrison winning with the most electoral votes in opposition ot the economic crisis, blaming it on Martin Van Buren.