The charter of the bank would not come to an end until 1836, while the term for which Jackson had been elected in 1828 would come to an end in 1833. But in his first message to Congress Jackson gave notice that he would not give his consent to a new charter. Clay and his friends at once took up the challenge. They passed a bill rechartering the bank. Jackson vetoed the bill. The Clay men could not get enough votes to pass it over his vet·. The bank question, therefore, became one of the issues of the election of 1832. Jackson was reflected by a large majority over Clay. The people were clearly on his side, and he at once set to work to destroy the bank.

In those days there was no United States Treasury building at Washington, with great vaults for the storing ·of gold, silver, and paper money. There were no sub-treasuries in the important commercial cities. The United States Bank and its branches received the government's money on deposit and paid it out on checks signed by the proper government official. In 1833 the United States Bank had in its vaults about nine million dollars belonging to the government. Jackson directed that this money should be drawn out as required, to pay the government's expenses, and that no more government money should be deposited in the bank. In the future it should be deposited in certain state banks. The banks selected were controlled by Jackson's political friends and were called the "pet banks."