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PET BANKS

PET BANKS. An attempt by President Andrew Jackson to eliminate the Bank of the United States resulted in the rise of seven "pet banks, " state banks that received deposits of federal money on 1 October 1833. Use of the pet banks contributed to a national financial panic that year. By the end of 1836, there were ninety-one of these "pet banks, " so called by those opposing Jackson's fiscal policy. These banks issued notes far in excess of their ability to cover them with gold and silver coin, and many of the notes were issued for highly speculative ventures, particularly in stocks and land.

BIBLIOGRAPHY

Hammond, Bray. Banks and Politics in America, from the Revolution to the Civil War. Princeton, N.J.: Princeton University Press, 1957.

Remini, Robert. Andrew Jackson. New York: Twayne, 1966.

T. L. Livermore

Terri Livermore

See also Bank of the United States.