The Second National Bank of the United States, established in 1816, was created to stabilize the country’s currency and spur economic growth. The bank’s charter expired in 1836, and President Andrew Jackson sought to defund the bank and remove federal deposits from it. Jackson argued that the bank was unconstitutional and favored the wealthy.

When Congress chose to re-charter the bank, Jackson vetoed the bill in 1832. The Senate failed to override the veto, and Jackson took executive action to remove government money from the bank. This decision caused a financial panic and left the country with a shortage of currency. Following the economic crisis, Jackson and his “kitchen cabinet” passed the Deposit and Distribution Act of 1836. This law transferred the nation’s funds to various state banks, ultimately ending the Second National Bank.

Jackson’s decision to defund the Second National Bank was heavily criticized, and the issue was central to the 1832 presidential election. Jackson’s opponent, Henry Clay, argued that Jackson’s policies would bring economic chaos to the country. However, Jackson won re-election in a landslide victory. This demonstrated that the American people trusted Jackson and his leadership.

President Jackson’s decision to end the Second National Bank was a controversial one. But by taking decisive action, Jackson was able to spur economic growth and support the American people. His legacy as a leader and a president lives on.