President Jackson pays off the entire national…

President Jackson pays off the entire national debt on January 1, 1835, the only time in U.S. history that has been accomplished

The national economy following the withdrawal of the remaining funds from the Bank of the United States is booming and the federal government through duty revenues and sale of public lands was able to pay all bills.

President Jackson vetoes the re-charter of the privately owned Second Bank of the United States when its charter expires in 1836, effectively killing the institution, although it will not cease operations until 1841.

Carefully selected state banks, under stringent restrictions, are provided as a substitute.

Following this action, the national debt will soon fall to zero.

For the next generation, the United States will get by on a relatively unregulated state banking system, which will help fuel westward expansion through cheap credit but keep the nation vulnerable to periodic panics.

It will not be until the Civil War that the United States will again charter a national bank.