Question: What was the outcome of the Bank Veto? (scroll down for answer)

Answer:

1. Money is taken out of the bank and put into "pet" banks (state banks loyal to Jackson)

2. The money finds its way out into people's pockets which creates inflation.

3. To control the inflation, Jackson issues the Specie Circular order, which states that all federal land must be bought in hard money (gold and silver).

4. This made banknotes lose their value.

5. Economy spirals out of control and the Panic of 1837 takes place.

The next few decades would see a fight to put the government's money in an independent treasury, meaning, keeping the country's money safe in a place free from investors that does not function like a gigantic bank.

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