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Jackson Presidential Campaign
In the presidential campaign that followed, the bank question revealed a fundamental division. Established merchant, manufacturing, and financial interests favored sound money. Regional bankers and entrepreneurs on the make wanted an increased money supply and lower interest rates. Other debtor classes, especially farmers, shared those sentiments. -
Jackson Bank Veto
The Senate and House of Representatives proposed a bill to renew the charter for the Second Bank of the United States, but Jackson vetoed this proposal due to his distrust of the Bank. This led to -
"Pet Banks"
President Jackson ordered an end to government money being deposited in the Bank. The government began to deposit their money in state banks that were known as "pet banks" to those against the idea of a National Bank. This caused the next generation to use an unregulated state banking system, which was beneficial to westward expansion. However, this sort of vulnerability caused periodic panic within the country. -
Panic of 1837
The Panic of 1837 was a financial crisis that happened due to economic policies passed by Andrew Jackson and his veto of the recharter of the Second National Bank.During this crisis, unemployment increased while revenue decreased.
