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Congress charters the Second Bank of the United States for 20 years. The purpose of the bank was to stabilize the economy post-war of 1812. It was meant to stabilize the nation’s currency, foster economic growth, regulate state banks, and distribute federal money to pay off the nation's debt. -
First major U.S. financial crisis. It was primarily caused by overspeculation in the western lands. It caused unemployment, failed banks, mortgages foreclosed, and agriculture rate drastically decreased due to the Second Bank. Many people blamed the bank for the crisis happening in the nation, fueling with resentment.
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Andrew Jackson opposed the Second Bank claiming that it was unconstitutional and it will corrupt the institution that serves the wealthy people at the expense of the common people. -
President Jackson’s annual address, he states that the bank is undemocratic and that it holds to much power and will soon become a threat to the nation’s democratic institution.
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The Bank president, Nicholas Biddle and Andrew Jackson known political rival, Henry Clay, pass a bill through Congress to recharter the Second Bank four years ahead. They hoped to force Jacksons’s hand before the upcoming election of 1840.
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Andrew Jackson vetoes the recharter bill. In his veto message, he argues that the bank was unconstitutional and unauthorized by the Constitution, and dangerous to the liberties of the people He claimed the bank to be "monopoly”.
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After wining the re-election, Jackson orders his Treasury Secretary to withdrawal all of the federal funds from the Second Bank and place them in a selected state called “pet banks.” This action weakened the banks and its influence.
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The Senate, specifically Henry Clay and Daniel Webster pass a resolution of censure against Andrew Jackson for his actions he has caused following the Second Bank. They accused him of overstepping his constitutional authority by removing the federal deposits. -
The charter for the Second Bank officially expires. The bank then loses all of its national authority and it’s recharged as a private bank by the state of Pennsylvania.
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Andrew Jackson issues an executive order that required payments for the governments-owned lands to be made in gold and silver coins rather than paper bank notes. This policy had caused a land speculation but it soon led to a credit shortage.
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Another financial crisis it caused due to the economies instability which was created by President Jackson’s bank policies and the Specie Circular. The crisis then leads to the widspread of multiple bank failures and economic depression. -
Jackson’s use of policies and presidential power, he defeats the Democratic. His candidate, William Henry Harrison, ends up winning the election putting an end to Jacksons political battles during the Bank War.