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-The Charter of the Second Bank, passed by James Madison during his presidency, lasted from 1816 to 1836. The bank allowed for federal deposits unlike state banks. -The Second Bank of the US was created following the War of 1812 to stabilize their economy, and allowed fiscal use of the government, and use of the people alike.
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-The Panic of 1819 is the first major economic crisis that the United States experienced. -The panic was caused due to inflation and purchase of land for speculation. This was largely in part due to the way the bank operated, as it allowed for easy loans, and printed excess amounts of paper money. The land that was being purchased rapidly in the West led to their prices becoming unstable. -The bank acted backwards in 1818 following the economic problems, only leading to more economic failure.
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-The McCulloch v. Maryland case decided that the United States Congress had the power to establish a national bank through the implied powers of the Necessary and Proper Clause, since the bank would allow for the collection of taxes. -This case also helped in firmly establishing the power the federal government had over the power of individual states. -This case also raised tensions in the US over the constitutionality of having a centralized state bank that controls a majority of US funds.
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-Nicholas Biddle would be seen as the main opponent against Jackson during his actions taken against the Bank. -Before Jackson's re-election, he argued for the recharter to be done in 1832 instead of 1836, so that Jackson's views on the bank would be seen before a reelection. -When the charter expired for the Second bank, Biddle ran the bank in Pennsylvania without federal support.
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-Andrew Jackson won the Election of 1828 against John Quincy Adams for office. -Jackson, who was a known enemy of the federal bank, would go on to take actions against the United States Second Bank.
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-Jackson was a large opponent of the idea of having a national bank, as he felt having one single central bank handling the funds of the country was a threat to the democracy and economic safety of the people. -When Congress voted for the Second Bank to be recharted, and had it sent off to be decided on by Jackson, he returned it with a veto. -He claimed: "The Bank was trying to kill me, so I will kill it!
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-In the Election of 1832 resulted in Andrew Jackson wins another term in office against Henry Clay. -This led to Jackson continuing to take actions against the Second United States Bank, such as removing funds from the federal bank. -
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-In 1833, President Jackson ordered for the removal of federal deposits from the federal government, and funds were instead put into certain state banks known as "pet" banks. These banks were based more on politic views rather than stability. -The system of pet banks was overall less safe than having the funds put into a federal government, since there were no safety measures to ensure people's money was protected. -The creation of pet banks led to lots of paper money, then economy failure.
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-The Second Bank Charter expired when Jackson vetoed the decision for the Second Bank to be rechartered for another 15 years. -The Bank would go on to operate for a little while longer, before eventually failing because of the lack of funding.
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-Specie Circular was an executive order enacted by Andrew Jackson that said land must be purchased using only gold and silver. -This was done in response to the amount of land speculation that was being done and being purchased. -This order led to the Panic of 1837 in the future, since the value of land was beginning to plummet, and banks suffered more damage.
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-The Panic of 1837 was caused due to many previous decisions by President Andrew Jackson against the bank, such as removing funds from the Second Bank and vetoing the recharter of it. -In the Panic, 40% of banks in the United States failed, leading to failed businesses, bankruptcies, and slowed the rate of westward expansion.
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-The Election of 1840 was between William Henry Harrison and Martin Van Buren. -Jackson had already made multiple detrimental and significant changes to the bank system of the United States, leaving it in the hands of the president who followed to clean things up.