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Bank Re-Chartered Early
Henry Clay and Daniel Webster set out to get the Second National Bank's charter renewed. They did this despite the fact that the bank did not need this for another 4 years. Clay was hoping that this would help him win the election, and thought (correctly) that Jackson would veto the charter. He knew that if Jackson vetoed this, he would anger northerners, thereby drawing the people to Clay's side. -
Jackson Vetoes the Re-charter
Jackson did end up vetoing the re-charter as Clay predicted. He didn't agree with many things, like foreign people creating and having monopolies. He believed that this ended up taking money away from American citizens, and posed as a threat. Jackson believed that the only people who should be stockholders were American citizens. Doing this meant that they could fight the corruption that had befallen them. -
Election of 1832
In the election of 1832, Jackson ran against Republican Henry Clay and easily won. This led to his second term in office. Even though Jackson vetoed the charter he knew that there was still a small chance it could be renewed, so he destroyed it. This election was important because it was the first election where candidates were nominated by nominating conventions. It was also important because it led to the emergence of the Anti-Masonic party. -
Biddle Tries to Save the National Bank
The president of the national bank, Nicholas Biddle, began desperately trying to save the bank. He took out every action possible, like speaking out against Jackson's actions, and eventually gathered a large group of supporters. He tried calling in loans, asking for notes of redemption, and contradicting the values of credit. Jackson continued to veto, and Biddle and his supporters claimed that Jackson was abusing his executive power. -
Bank Funding was Removed
Jackson knew that even though he vetoed the re-charter of the Second National Bank, there was still a chance for it to be re-chartered since the charter didn't run out until 1836. So, Jackson decided to stop funding the national bank and then put money in the state banks. He also stopped allowing banks to accept deposits. He tried to destroy the bank, which hurt a lot more than it helped. Inflation started to rise, and the economy began to decline towards the end of his term. -
Inflation/Money Losing Value
Now that national banks no longer had funding, money was now being invested in state banks. This led to the printing of paper money to increase, which consequently led to lots of people printing and spending more paper money. The dollar's value began to quickly decrease because everyone had access to more money. People at first thought this was a good thing, but as soon as they realized their money had less and less value, debt started to strike. -
Specie Circular
Andrew Jackson noticed that paper money was being overused, so he wrote an executive order called Specie Circular. This order decreed that large valued coins could be used for money, and required that government land be bought using gold and silver. Although this solved some issues like the overuse of paper money, the economy as a whole was not fixed. This foreshadowed the coming economic crash. -
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The Panic of 1837
The Panic of 1837 was a financial crisis that lasted for years. The economy reached a low recession point, unemployment rates went up, prices went down, and most people had trouble finding essential items. Jackson's term ended, leaving the next president, Martin Van Buren to have to deal with the mess. This crisis was mainly caused by the economic policies of Andrew Jackson.
