so while i don't quite agree with that last line that disney video was obviously much more flattering of jackson and his presidency when congress failed to override the veto jackson set out to destroy the bank of the united states now he claimed the people gave him a mandate to do so in the 1832 election by re-electing him even though he hadn't actually run on that so he asked his first choice for secretary of the treasury to do this and he refuses he asked his second choice for secretary of the treasury and he refuses so finally jackson appointed roger b tawny as secretary of the treasury who signed an order removing all federal deposits from the bank of the united states in 1833 so by 1836 the bank had just become a private corporation jackson had killed the bank of the united states by defunding it jackson then moved all that federal money into his pet banks these are state banks controlled by loyal democrats loyal to jackson his pet banks critics called jackson a backwood caesar who abused his power so jackson won the bank war but he also left the impression that democrats played fast and loose with the nation's credit system without the bank of the united states to rein in all that wildcatting the economy overheated in jackson's second term and a speculative bubble grew in western lands jackson only added to this destabilizing effect by passing the species circular which said that people had to buy federal land in hard coin not paper money so people started turning in all those bank notes that he had let those state banks uh you know over print by not having the bank of the united states there to raise them in so people start turning in all these notes to get the gold or silver specie to buy the land in the west and those over-extended pet banks can't deliver so they failed resulting in the panic of 1837 and this is not like today when a bank fails but there's fdic insurance and you know if you had 200 in the bank and it failed then the us government would give you your 200 in a different account back then any money you had in a bank that failed you lost so people lost their life savings people lost their business accounts people lost everything when these banks failed and that leads to the panic of 1837. democrats were open to the charge of squandering taxpayer money by shifting federal deposits to these reckless state bankers who were part of this corrupt new alliance between government and private economic interests national republicans changed their name during jackson's second term to the whig party as they gathered everyone who hated jackson into one party so they've got people who don't necessarily want to be part of the democratic republican party who still don't like jackson and so basically they found a new party the whig party w-h-i-g they get everyone who doesn't like jackson into this party so for the next era of u.s history it will be the democrats led by jackson and van buren versus the whigs everyone who dislikes jackson and those policies so jackson's already out of office when the panic of 1837 hits often times with these economic things it takes three to four years for them to come to fruition so his successor democratic president van buren will be left to pay the political price for jackson's economic policies so there you have it how and why did jackson kill the bank how and why did the wic party develop what did they think and if you have all of that hit the next button at the bottom of the page and go take the king andrew jackson the first recap quiz