Jackson and the Bank

  • Whig Party Formed

    The Whigs were a political party and Andrew Jackson's political opponent. They believed Jackson had a "monarchial rule." The Party was largely led by Henry Clay and Daniel Webster. However, the Whigs were unable to unite during the Election of 1836.
  • Bank War

    The "Bank War" was a struggle over the Second Bank of the United States. Andrew Jackson was a key player in the war. He vetoed the Second Bank Bill and greatly reduced the Bank's power. The president of the Bank, Nicholas Biddle, was another key player. He tried to ruin the country's credit to create a financial crisis. He thought that a financial crisis would solidify the need for a bank.
  • Jackson's Bank Veto Message

    Andrew Jackson was strongly against the Second Bank of the United States. In this message, he included why he thought the bank was unconstitutional, how he thought it had potential for foreign conflicts, and how it challenged America's democratic policies.
  • Pet Banks

    After Jackson defeated Henry Clay in the election, he saw his victory as a popular vote against the central bank. In September 1833, he ordered that there be no more deposits in the bank and the money already in the bank be gradually transferred to state banks, known as pet banks. This led to the federal government having to deposit its funds to state banks rather than one central bank.
  • Specie Circular

    The Specie Circular was an executive order that only allowed people to buy federal land with gold or silver. At the time, there was high inflation, so President Jackson did not want to sell land for currency that was quickly declining in value. The order led to people in the West being unable to purchase land due to the lack of gold and silver. There wasn't enough gold and silver available to keep the country's economy functioning efficiently, so it led to the Panic of 1837.
  • Panic of 1837

    The Panic of 1837 was an economic crisis that caused a major recession, lasting until the mid 1840s. It was a time of major inflation and unemployment. There was also an unstable currency and financial system. The Panic was caused by the Specie Circular, United States banking making too much paper currency and causing inflation, and English Banks not buying from America.