USA HISTORY

Detailed explanation-1: -The principal reason for Jackson’s implementation of the Specie Circular was high inflation. During the early 1830s, Jackson had attacked the Second Bank of the United States by withdrawing approximately ten million dollars in federal government funds from the bank.

Detailed explanation-2: -Pet Banks Defined Jackson hated the central bank of the United States, and in 1833, he killed it. He took all of the money out of the central bank, and distributed it to many smaller state banks called pet banks. These pet banks failed to regulate the economy and contributed to a massive economic panic.

Detailed explanation-3: -As president, Jackson actively worked against the Second Bank of the United States and vetoed the Bank Recharter Bill in 1832, which ultimately led to the Bank War of 1832. To kill the bank entirely, Jackson stopped depositing federal funds in the Second Bank, and placed the money in pet banks instead.

Detailed explanation-4: -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.