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Election of 1832
The election of 1832 was between Andrew Jackson from the Democratic party, and Henry Clay from the Republican party, with Andrew Jackson winning the election. This allowed for Andrew Jackson to start his second term, as being the front for the common man, and being a supporter of a strict interpretation of the Constitution. Jackson was opposed to the national bank seeing it as unconstitutional and corrupted due to greed of those in power. -
Jackson's Bank Veto
The National Bank's charter was put up for renewal four years before it needed it, but Andrew Jackson rejected this stating that the bank was unconstitutional and filled with corruption. This caused many who supported the bank, mostly National Republicans to be outraged, but still had hope since the charter was not up for 4 more years. Andrew Jackson knew he had to limit the power of the National Bank before the renewal date came, so that a new president would not be able to save it. -
Pet Banks
After vetoing the renewal of the National Bank, Andrew Jackson called for federal fund to no longer be placed in the National Bank, but instead into State "Pet" Banks as a way to limit the power of the National Bank. In order to keep power, president of the Bank created a financial crisis, to show the need for a National Bank, which did not work out. The Pet Banks allowed for westward expansion by giving out many loans at a low interest rate, but was unstable for the country to rely on.
