USA HISTORY

Detailed explanation-1: -On September 10, 1833, Jackson removed all federal funds from the Second Bank of the U.S., redistributing them to various state banks, which were popularly known as “pet banks.” In addition, he announced that deposits to the bank would not be accepted after October 1.

Detailed explanation-2: -Shortly after the election, Jackson ordered that federal deposits be removed from the second National Bank and put into state banks. Although Jackson’s order met with heavy criticism from members of his administration, most of the government’s money had been moved out of the Bank by late 1833.

Detailed explanation-3: -The stage was set for a showdown between Jackson and Second National Bank president Nicholas Biddle. Jackson had to weigh whether to kill the national bank because of his constitutional opposition to it and his fear that the bank was an engine of aristocracy.

Detailed explanation-4: -Pet banks was a nickname given to state run banks that were given more power because they were loyal to President Andrew Jackson. Through the Spoils System, Jackson killed the Second Bank of the United States (BUS) and place the money that was deposited there into the state banks.

Detailed explanation-5: -In 1832, Andrew Jackson ordered the withdrawal of federal government funds from the Bank of the United States, one of the steps that ultimately led to the Panic of 1837. The Panic of 1837 was a financial crisis that had damaging effects on the Ohio and national economies.