U.S. Money Conflicts

Pet Banks were state banks chosen by President Jackson after the Bank Veto of the 2nd National Bank. The recharter of the 2nd National Bank was led by Nicholas Biddle, but due to Jackson's distrust for the National Bank, Jackson opposed the idea and made the final decision of vetoing it. While Jackson thought that the Pet Banks and Wildcat Banks (nonfederally chartered banks) were a good idea, they ended up causing great turmoil in the United States. These state banks produced excessive amounts of paper currency, not matching that amount with the correct amount of Gold and Silver. This caused a problem with the Specie Circular issued by Jackson which required land purchased with paper money to be backed up by hard money.

Primary Sources:

"In 1829, [Andrew Jackson] warned Congress in his first annual address that “both the constitution and the expediency of the law creating this are well questioned by a large portion of our fellow citizens.” With this statement President Jackson declared war on the Second Bank of the United States." - bank veto-Jackson "declares war" on national bank (he doesn't like national bank)

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