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Veto the Bank Bill
Jackson vetoed a bill calling for an early renewal of the Second Bank’s charter, but it was still possible when the charter expired in 1836. To prevent that he tried to reduce the bank’s economic power. He acted against the advice of congressional committees and over the opposition of several cabinet members, and after replacing two secretaries of the treasury with a more controlable one. -
Bank Recharter
Biddle's supporters in Congress introduced the Bank recharter legislation. The charter was not due to expire for four more years. They felt that the current Congress would recharter the Bank and Jackson would not risk losing votes in Pennsylvania and other commercial states by vetoing it. -
Splitting
The divisiveness led to a split in Jackson’s cabinet and the president vetoed an attempt by Congress to draw up a new charter for the bank. It all happened during Jackson’s bid for re-election. The bank’s future was the focal point of a bitter political campaign between the Jackson and Henry Clay. Jackson felt he had received a mandate from the public to close the bank once and for all, despite Congress’ objections -
Countermove
Nicholas Biddle, bank president, began a countermove and he started presenting state bank notes for redemption, calling in loans, and generally contracting credit. A financial crisis would dramatize the need for a central bank, ensuring support for charter renewal in 1836. Biddle’s campaign appears to have had less effect. -
No More Federal Funds
Federal funds would no longer be deposited in the Bank of the United States. Jackson will instead place them in various state banks. At the end of the year 23 ‘pet banks were chosen to recieve federal money. -
Censor
Jackson did not emerge untouched from the scandal. Congress attacked Jackson for what they viewed as his abuse of presidential power during the Bank War. -
Expired
The federal deposits were not returned to the Second Bank. The charter expired in 1836. President Jackson had won the Bank War.