Government money was deposited into Jackson's state "Pet Banks". Instead, new funds were to be deposited in various state banks, which came to be known as “pet banks.” Within just a few months, federal deposits in the Second Bank of the United States dropped by half. Add new page. They were chosen among the big U.S. banks … Level. Unlock Content Over 83,000 lessons in … pet banks: were state banks; existed in the 1830's; state banks that received federal funds from Jackson. 31. These banks then loaned money and printed paper to increase spending, which lead to inflation. pet banks: Popular term for pro-Jackson state banks that received the bulk of federal deposit when Andrew Jackson moved to dismantle the Bank of America: 232864595: Specie circular (1836) U.S. Treasury decree requiring that all public lands be … 254 Pages. Favorite Answer. 14. Specie Circular, (July 11, 1836), in U.S. history, an executive order issued by President Andrew Jackson requiring that payment for the purchase of public lands be made exclusively in gold or silver.In an effort to curb excessive land speculation and to quash the enormous growth of paper money in circulation, Jackson directed the Treasury Department, “pet” banks, and other … These funds were from the removal of the deposits in the BUS in order to insure of the bank's demise when its charter ran out. Pet Banks were the banks created by Andrew Jackson within the states. 10th Grade. Unregulated Wildcat banks also emerged, especially in the frontier towns of the west, where there was extensive land speculation. 13. Instead of keeping the country's money in a national bank, Jackson selected 23 state banks, referred to as pet banks, to deposit the funds. In addition, no new government funds were to be deposited with the Bank. Tests. APUSH Chapter 11 Vocabulary. The panic of 1837 was caused by the financial sickness of the times, the speculation prompted by a mania of get-rich-quickism, Jacksonian finance, the Bank … Pet banks is a derogatory term for state banks selected by the U.S. Department of Treasury to receive surplus Treasury funds in 1833. Subject. 8 years ago. Anonymous. Total Cards. Question: What is the historical significance of the fact that Jacob expects other people to do his homework for him so he can cheat and not learn anything? Jefferson believed that it was unconstitutional for the federal government to establish a corporation. The Wildcat Banks were not backed by specie (meaning gold and silver) and distributed practically worthless currency backed by questionable securities. Chicago Essay Format; The wildcat banks had flooded the country with paper money and was ruining the economy. The significance of pet banks and “wildcat” banks was that pet banks held a surplus of federal funds from the Bank of the United states. Tests and Assignments. Such a move, he argued, created a vast conflict of interest that benefited an elite ruling class of politicians and bankers. Study Tips. Panic of 1819: Definition. Test 4 (Civil War and Post-War) Test 3 (Antebellum America) Test 1 (Colonial America) Midterm (Colonial to Gilded Age) Test 2 (American Revolution) Test 5 (1880s - 1930s) Test 6 (WWI, WWII, 20's, Depression) Assignments. ... National Bank chartered in 1816 to renew war debts but failed after 20 years: Term. APUSH Study Group Wiki. Pet banks are sometimes confused with wildcat banks.Although the two are distinct types of institutions that arose concomitantly, some pet banks were known to also engage in practices of wildcat banking. 1 Answer. APUSH Chapter 11 Vocabulary. ... Pet banks: Definition. On September 10, 1833, Jackson removed all federal funds from the Second Bank of the U.S., redistributing them to various state banks, which were popularly known as “pet banks.” Answer Save. The correct answer to this Bank of the United States APUSH question is (C). Relevance. History. Description. What was the historical significance of pet banks?