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Andrew Jackson announces that the government no longer is going to use the Second Bank of the United States, the country's national bank.  He then used his executive power to remove all federal funds from the bank, in the final salvo of what is referred to as the “Bank War."

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Abraham Lincoln’s Union government during the Civil War solved the problem of a chaotic currency and at the same time the more pressing problem of how to finance the war. The solution, introduced in 1863, was to get the federal government back into the business of chartering banks. The new national banks, like free banks under earlier state laws, would issue a uniform national currency printed by the government and backed by US bonds.

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As a result of Andrew Jackson's action state banks began to flourish everywhere. They mostly began to flourish in the Mississippi Valley.

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Many southerners would prefer their local banks instead of the United States bank. Andrew Jackson agreed and took act in it in 1836

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The Problem of a United States Bank Versus State Banks

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The Problem of a United States Bank Versus State Banks