Add new page. APUSH Chapter 11 Vocabulary. These banks then loaned money and printed paper to increase spending, which lead to inflation. Study Tips. 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 … 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. Description. Unlock Content Over 83,000 lessons in … Unregulated Wildcat banks also emerged, especially in the frontier towns of the west, where there was extensive land speculation. They were chosen among the big U.S. banks … Government money was deposited into Jackson's state "Pet Banks". Answer Save. 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. pet banks: were state banks; existed in the 1830's; state banks that received federal funds from Jackson. 13. The Wildcat Banks were not backed by specie (meaning gold and silver) and distributed practically worthless currency backed by questionable securities. Subject. ... 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.” Relevance. Pet Banks were the banks created by Andrew Jackson within the states. 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. 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 … The wildcat banks had flooded the country with paper money and was ruining the economy. APUSH Chapter 11 Vocabulary. Favorite Answer. Jefferson believed that it was unconstitutional for the federal government to establish a corporation. 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. History. 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? Pet banks is a derogatory term for state banks selected by the U.S. Department of Treasury to receive surplus Treasury funds in 1833. Chicago Essay Format; Total Cards. APUSH Study Group Wiki. What was the historical significance of pet banks? 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. In addition, no new government funds were to be deposited with the Bank. 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. Tests. 31. 1 Answer. 8 years ago. Anonymous. Panic of 1819: Definition. 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