Art. I, sec. 7, par. 3.]

[Sidenote: Reelection of Jackson, 1832.]

309. Struggle over the Bank Charter.--The charter of the bank would
not come to an end until 1836, while the term for which Jackson had been
elected in 1828 would come to an end in 1833. But in his first message
to Congress Jackson gave notice that he would not give his consent to a
new charter. Clay and his friends at once took up the challenge. They
passed a bill rechartering the bank. Jackson vetoed the bill. The Clay
men could not get enough votes to pass it over his veto. The bank
question, therefore, became one of the issues of the election of 1832.
Jackson was reflected by a large majority over Clay.

The people were clearly on his side, and he at once set to work to
destroy the bank.

[Sidenote: The bank and the government.]

[Sidenote: Removal of the deposits, 1833. _McMaster_, 305-308.]

310. Removal of the Deposits.--In those days there was no United
States Treasury building at Washington, with great vaults for the
storing of gold, silver, and paper money. There were no sub-treasuries
in the important commercial cities. The United States Bank and its
branches received the government's money on deposit and paid it out on
checks signed by the proper government official. In 1833 the United
States Bank had in its vaults about nine million dollars belonging to
the government. Jackson directed that this money should be drawn out as
required, to pay the government's expenses, and that no more government
money should be deposited in the bank. In the future it should be
deposited in certain state banks. The banks selected were controlled by
Jackson's political friends and were called the "pet banks."

[Illustration: ANDREW JACKSON, 1815. "Our Federal union, it must be
preserved."--Jackson's toast at the Jefferson dinner.]

[Sidenote: Speculation in Western lands. _McMaster_, 309.]

[Sidenote: The specie circular, 1836.]

311. Jackson's Specie Circular, 1836.--The first result of the
removal of the deposits was very different from what Jackson had
expected. At this time there was active speculation in Western lands.
Men who had a little spare money bought Western lands. Those who had no
money in hand, borrowed money from the banks and with it bought Western
lands. Now it happened that many of the "pet banks" were in the West.
The government's money, deposited with them, tempted their managers to
lend money more freely. This, in turn, increas