In the early 1830's, white settlers in western Illinois and eastern Iowa placed great pressure on the Native American people there to move west of the Mississippi River. A term used by Jackson's opponents to describe the state banks that the federal government used for new revenue deposits in an attempt to destroy the Second Bank of the United States; the practice continued after the charter for the Second Bank expired in 1836. Thousands of individuals, businesses and banks went bankrupt in the resulting Panic of 1837. Secretary of State under Monroe. The Bank War was the name given to the events initiated by Andrew Jackson to bring about the destruction of the Second Bank of the United States and transfer government money into selected state banks. A practice where a political party or candidate, after winning an election, gives government jobs to its voters as a reward for them voting. {{courseNav.course.mDynamicIntFields.lessonCount}} lessons Key Terms: "Self-Reliance" rendezvous ecological imperialism Ancient Order of Hibernians Molly Maguires Tammany Hall Know-Nothing party Panic of 1819: Definition. "To the victor goes the spoils"-- … Bank War, in U.S. history, the struggle between President Andrew Jackson and Nicholas Biddle, president of the Bank of the United States, over the continued existence of the only national banking institution in the nation during the second quarter of the 19th century. In response, the Jackson administration pursued different, contradictory policy by supporting the use of specie instead of paper money. Date: 1832. It strongly opposed Freemasonry, and was founded as a single-issue party, aspiring to become a major party; , (1832) - 1st third party in the presidential elections - against the Mason order of which Andrew Jackson was a part of (anti-Jackson group). The first Bank of the United In this lesson, you will learn about pet banks and why they were created. Did you know… We have over 220 college What was the historical significance of pet banks? Jackson wanted to weaken the Bank and Biddle, so he gradually stopped making deposits, instead stowing his money in his "pet banks." He took all of the money out of the central bank, and distributed it to many smaller state banks called pet banks. Distinguished senator from Kentucky, who ran for president five times until his death in 1852. The banks foreclosed on the properties, and thousands of businesses and individuals went bankrupt. Anonymous. 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Died before it was passed however. Log in here for access. When banks called in their loans demanding specie, landowners and business did not have the money to pay them back. Anyone can earn He was also known for his bribes. Outlined the Compromise of 1850 with five main points. Jackson's pet banks and policies contributed to what was known as the Panic of 1837, the worst economic depression the country had seen up to this point. This set covers the main ideas in APUSH Chapter 15 , The Ferment of Reform and Culture, 1790-1860. © copyright 2003-2020 Study.com. (1836) Final battle of the Texas Revolution; resulted in the defeat of the Mexican army and independence for Texas. APUSH Periods 1. Jackson issued the Specie Circular to force the payment for federal lands with gold or silver. pet banks State banks where Andrew Jackson placed deposits removed from the federal National Bank in an effort to destroy the bank. imaginable degree, area of 'Tippecanoe and Tyler Too' was a campaign slogan for William Henry Harrison and John Tyler in the presidential election of 1840. Pet banks are sometimes confused with wildcat banks . What Is the Rest Cure in The Yellow Wallpaper? Have you ever looked at a $20 bill? Erin has taught English and History. He began a quest to get rid of the BUS in what would be called the Bank War. 's' : ''}}. You can test out of the It required that the purchase of public lands be paid for in specie. Not sure what college you want to attend yet? A panic ensued (1837). The "Pet Banks" was a derogatory term used by the opponents of Andrew Jackson to describe state banks selected to receive large deposits of government money. The lesson will also discuss the effects of the pet banks on the American economy. Answer Save. Log in or sign up to add this lesson to a Custom Course. Specie Circular. The Bank War was a bitter and personal dispute between Jackson and his enemies. 487470964: Dorothea Dix: a reformer who worked hard to improve the treatment of the mentally ill. 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The bank had twenty-five directors, but only five of those were chosen by the government. 1844 -1877 6. The panic of 1837 followed. The Rise of a Mass Democracy. Services. Wildcat bank, unsound bank chartered under state law during the period of uncontrolled state banking (1816–63) in the United States.Such banks distributed nearly worthless currency backed by questionable security (e.g., mortgages, bonds) and were located in inaccessible areas to discourage note redemption. The value of these coins was determined by the value of the metal in the coins themselves. When banks started calling in their loans, many people could not pay their loans back. He served as sixth president. 9th President of the U.S.; was an American military leader, politician, the ninth President of the United States, and the first President to die in office. 1800 -1848 5. All other trademarks and copyrights are the property of their respective owners. In an effort to curb excessive land speculation and to quash the enormous growth of paper money in circulation, Jackson directed the Treasury Department, “pet” banks, and other receivers of public money to accept only specie as payment for government-owned land after Aug. 15, 1836. The banks had printed too much money, and the dollar had lost value. Original settler of Texas, granted land from Mexico on condition of no slaves, convert to Roman Catholic, and learn Spanish, United States politician and military leader who fought to gain independence for Texas from Mexico and to make it a part of the United States (1793-1863), Mexican general/dictator who tried to crush the Texas revolt and who lost battles to Winfield Scott and Zachary Taylor in the Mexican War (1795-1876). That's why we need to look at the Bank of the United States, or BUS. South Carolina also nullified the Force Act. His death created a brief constitutional crisis, but ultimately resolved many questions about presidential succession left unanswered by the Constitution until passage of the 25th Amendment. A term used by Jackson's opponents to describe the state banks that the federal government used for new revenue deposits in an attempt to destroy the Second Bank of the United States; the practice continued after the charter for the Second Bank expired in 1836. issued by President Jackson July 11, 1836, was meant to stop land speculation caused by states printing paper money without proper specie (gold or silver) backing it. You'll see President Andrew Jackson on the bill, but if Jackson were alive, he probably wouldn't be too pleased about it. Surplus federal funds were placed in several dozen state institutions—the so-called “pet banks,” chosen for their pro-Jackson sympathies; without a central bank in control, the pet banks and smaller “wildcat” banks flooded the country with paper money In order to understand pet banks, we need to look at why they were created, and what they were replacing. Relevance. The treaties enacted under this act's provisions paved the way for the reluctant—and often forcible—emigration of tens of thousands of American Indians to the West. In 1833, he ordered the Secretary of the Treasury to remove funds from the BUS and deposit them into twenty-three pet banks. "pet banks" State banks where Andrew Jackson placed deposits removed from the federal National Bank. Jackson vs. Bank & Biddle; Jackson begins taking out funds and putting them into pet banks, successfully "killing" the bank; leads to fluctuation in economy and eventual panic, Jackson believed the Bank of US had too much power and was too rich. Pet banks were state banks friendly to the Jackson administration. These wildcat banks were not pets, and they were involved in risky land speculation on the frontier. President Andrew Jackson succeeded in killing the central bank, which he viewed as too powerful and unconstitutional. He was a strong supporter of the American System, a war hawk for the War of 1812, Speaker of the House of Representatives, and known as "The Great Compromiser." [1] To him, the BUS symbolized elitism and had too much power over America and Americans. In the South, these tariffs raised the cost of manufactured goods, thus angering them and causing more sectionalist feelings. Jackson vs. Bank & Biddle; Jackson begins taking out funds and putting them into pet banks, successfully "killing" the bank; leads to fluctuation in economy and eventual panic; Jackson believed the Bank of US had too much power and was too rich. Jackson vetoed that bill, and when he was reelected, he saw it as an endorsement of his veto and quest to kill the BUS, so he took decisive action. Definition nicknamed "Czar Nicholas I," he was president of the Bank of the United States. 1945 -1980 9. Sauk leader who in 1832 led Fox and Sauk warriors against the United States (1767-1838). The "Corrupt Bargain" of 1824. 1865 -1898 7. 1 Answer. The war started in Illinois and spread to the Wisconsin Territory. 1824-1840 . Definition of pet bank. credit-by-exam regardless of age or education level. More than 4, 00 Cherokees died of cold, disease, and lack of food during the 116-day journey. 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The correct answer to this Bank of the United States APUSH question is (C). But actual settlers and bona fide residents of the state in which they purchased land were permitted to use paper money … Jefferson believed that it was unconstitutional for the federal government to establish a corporation. They traveled from North Carolina and Georgia through Tennessee, Kentucky, Illinois, Missouri, and Arkansas-more than 800 miles (1,287 km)-to the Indian Territory. Black Hawk lead a rebellion against the United States. It ended in August 1832 when Illinois militia slaughtered more than 200 Sauk and Fox people. Out West, even more banks sprang up. : any of a group of state banks selected as depositories of federal funds removed from the U.S. Bank during the first Jacksonian administration. As a result the American banking system buckled under the pressure from British creditors after 1839. All rights reserved. 1607 -1754 3. 1491 -1607 2. These banks were called pet banks. The BUS was also distrusted because it was privately owned. To learn more, visit our Earning Credit Page. Favorite Answer. Meanwhile, the Jackson administration wanted to make it easier and cheaper for people to buy land, so many banks began to follow this policy. She has a bachelor's degree in History, and a master's degree in International Relations. One such person who distrusted the BUS was Andrew Jackson. These pet banks were unregulated and had no power to regulate wildcat banks that sprang up in the West. the system of employing and promoting civil servants who are friends and supporters of the group in power; practice of rewarding supporters with government jobs. Chartered in 1817, the BUS was given a twenty-year charter and the mission to stabilize the currency, collect tax revenues, and regulate practices of the many smaller state and regional banks around the country. 1754 -1800 4. 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