President Jackson attempts in 1833 to begin removing federal deposits from the Second Bank of the United States, whose money-lending functions have been taken over by the legions of local and state banks that have materialized across America, thus drastically increasing credit and speculation, and that the money already in its custody be gradually withdrawn in the ordinary course of meeting the expenses of government.

Jackson's moves are greatly controversial.

He has removed Louis McLane from the Treasury Department, having him serve instead as Secretary of State, replacing Edward Livingston; he replaces McLane with William J. Duane.

In September, he fires Duane for refusing to remove the deposits, and, signalling his intent to continue battling the Bank, he replaces Duane with Roger B. Taney, his former Attorney General and the future Supreme Court Chief Justice.

Under Taney, who obeys Jackson, the deposits begin to be removed.

They are placed in a variety of state banks that are friendly to the administration's policies, known to critics as pet banks.