Changes

====The Elimination of the 2nd Bank of the United States==== During Jackson's presidency, his Jacksonians acolytes wanted to gain control of the economy and eliminate the nation's central bank, the Second Bank of the United States. This created a "bank war" when President Andrew Jackson vetoed a bill that would renew the bank’s charter and money policies. As a result, this caused many state banks to become insolvent due to their inability to access federal funds. Additionally, with President Andrew Jackson’s Specie Circular in 1836 all land purchases had to be made with gold or silver coins instead of paper money. This further limited the ability for banks to lend out money as they had less coins and gold in their vaults. This exacerbated the lack of capital and liquidity amongst state banks.

====The Bank Panic and Cotton Prices==== This caused a bank panic, where people pulled their money out of banks, fearing that the banks would not be able to cover the withdrawals. The panic was compounded by the own financial troubles of many banks, when English banks stopped lending money to American Banks. This made it difficult for American Banks banks to scale their loans and caused many Southern Banks to fail. As a result, there were massive runs on vaults of major banks and other financial institutions as people scrambled to withdraw their money from these sources. This banking crisis created a domino effect on the American economy, with other industries such as real estate crashing due to lack of liquidity in the market and lower monetary reserves for lenders. The crisis was further worsened by plantation owners who had been cultivating many crops but pumping money into land speculation instead of reinvesting in their plantations.