The 2nd Bank of the United States, a private bank chartered by Congress to hold and print money for the federal government, was led by its president, Nicholas Biddle. Leading up to 1832, Jackson and the Democrats thought that the bank held too much unaccountable power. This led to the Bank Veto 1832, where the Senate had voted to re-authorize the bank's charter but was vetoed by Jackson. Following this decision, federal funds were moved to "pet banks," which were "wildcat banks" chosen to hold the money that had previously been held by the 2nd Bank of the United States. The "wildcat" banks had sprung up as states, who no longer had the use of the federal bank, began to charter their own banks. Due to the unreliability of the small wildcat banks, Jackson issued the Specie Circular in 1836. This required "hard money," silver or gold, to be used to buy land from the federal government.
The bank is represented as a hydra, which creates problems twice as fast as they are fixed.
WASHINGTON, July 10, 1832. To the Senate.The bill " to modify and continue " the act entitled "An act to incorporate the subscribers to the Bank of the United States " was presented to me on the 4th Julyinstant. Having considered it with that solemn regard to the principles of the Constitution which the day was calculated to inspire, and come to the conclusion that it ought not to become a law, I herewith return it to the Senate, in which it originated, with my objections. Andrew Jackson
The Specie Circular created a precedent for federal offices, such as passport office, to refuse cash as payment. The bank veto led to the eventual creations of the National Treasury and United States Mint.