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Congress, chartered the Second Bank of the United States under President James Madison due to the U.S. facing financial instability, having unreliable credit, and troubles with trade. Multiple state banks had been failing, and some had suspended specie payments. It consisted of a 20-year charter, and it was a quasi-private institution, which mean it had both federal and private ownership and had many branches in Philadelphia.
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The Panic of 1819 was a time of economic depression, many banks failed, debtors defaulted, credit tightened, and land speculation collapsed making it one of the first major crisis after the War of 1812 in the U.S. It happened due to the economic changes after the Napoleonic Wars, decrease in agricultural prices and availability of loans. And the Second Bank realized that they provided too many loans, so they became strict and demanded their money in gold and silver and was unaffordable to some.
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The election of 1828 was a campaign between Andrew Jackson and John Q. Adams in which they personally attacked one another, Jackson ended winning the presidential vote and in December Jackson delivered his first annual message, he spoke about the U.S. being free of national debt, removal of federal officeholders, policy about Indian Removal to western lands and proposed resettlement of Native Americans.
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Congress passed a bill to recharter the Second Bank before its previous charted granted in 1816 expired. Henry Clay, Daniel Webster and Nicholas Biddle wanted to present the Bank as a clear political issue in the 1832 presidential election. Hoping to get President Andrew Jackson to take a stand and approved of the recharter because they believed it was necessary for economic stability by controlling inflation, managing money, and helping with federal finances.
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President Andrew Jackson vetoed the recharter bill of the Second Bank which aimed to extend its expiration date to 1836. This veto meant that even though Congress passed the bill, it would still not be renewed under his authority. Jackson opposed of the Bank because he believed that it was unconstitutional to create it, and that it favored the wealthy and elites over the interest of common people
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In the election of 1832 Jackson won presidency against Henry Clay, Williiam Wirt, and John Floyd. Clay pushed for the early recharter of the National Bank and attempted to press Jackson about it. And later Jackson vetoes the bill to recharter the Bank. This election was one of the first to use the national nominating convention.
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President Andrew Jackson ordered for no federal deposits into the Bank and wanted them to be placed into state banks also referred to as "pet banks". The State of Treasury at the time quite due to opposing views on Jackson's decision and the bank became weak. The President of the Bank, Nicholas Biddle restricted credit and gave loans which made the economy suffer more than it already was.
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The Whig Party was created in opposition to Jackson and his Democratic Party, it consisted of republican, anti-masons, and upset democrats. They were upset with Jackosn's veto of the recharter, removal of federal deposits from the Bank, and his expansion of executive power. In addition to this they were suffering from economic issues such as the Bank, species, and land speculation.
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Jackson's decisions to veto, removal of deposits, and causing the bank legitimacy to destroy caused to Second Bank's renewal politically impossible. And he put federal funds into state banks and when the charter expired the bank was already weakened.
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The Specie Circular was an executive order issued by President Jackson which required that payment for public lands be paid only in specie, gold or silver. Jackson wanted to curb rampant land speculation because he believed gold or silver would help reduce inflation, increase financial stability, but overall, it reduced the demand for land.
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The Panic of 1837 was a financial crisis caused by excessive credit, economic turndown, Specie Circular, removal of federal deposits, price bubbles. In addition to this, the Deposit Act of 1836 which allowed surplus funds to be distributed, and British tightened its credit and reduced investments.
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The election of 1840 resulted in William Henry Harrison becoming the President of the U.S. and with his Vice President being John Tyler. In this election against Martin Van Buren, democrat and the Whigs ran a campaign that emphasized how Van Buren did not fix the problems caused by Jackson's banking policies. And the campaign was called 'Log Cabin and Hard Cider" that portrayed Harrison as a hardworking man and Van Burden as wealthy and out of touch with the public.