Jackson and the Bank War

1. Jackson and the Bank War The Bank of the U.S. Jackson

2. Nicholas Biddle President of the Second Bank of the United States and made it prosperous

3. Opposition to the Second B.U.S. “Soft – Money” Advocates “Hard – Money” Advocates Wanted more currency in circulation – meaning they wanted more bank notes (not backed by gold or silver) to be issued Believed gold and silver were the only basis for money Condemned all banks who issued bank notes Stated the B.U.S. restrained state banks from issuing notes freely Were suspicious of expansion Believed in rapid economic growth

4. Battle for the Bank VS. JACKSON BIDDLE ROUND 1 Stated he would not favor the renewing of the Bank’s charter when it expired in 1836 Was influenced by Henry Clay & Daniel Webster to apply to Congress in 1832 for the Bank’s renewal WHY?? WHY?? • It would force the Bank to become a major issue in the 1832 election • Congress rechartered the Bank As expected, Jackson vetoed the bill; Congress was unable to overturn the veto

5. ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank I can’t wait until 1836 for that “Monster” Bank to expire!! Remove all the government’s deposits Ummm President Jackson, I am pretty sure that will destabilize the financial system so I can’t do that. Sec. of Treasury – Louis McLane

6. ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank YOU’RE FIRED!!!!! Sec. of Treasury – Louis McLane

7. ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank Congrats on the new position…by the way I want you to remove all the government’s deposits from the Bank of the U.S. Ummm President Jackson, I really can’t do that. It would be bad. New Sec. of Treasury – William Duane

8. ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank YOU’RE FIRED!!!!! New Sec. of Treasury – William Duane

9. ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank Attorney General Taney, my good friend and ally congrats on the new position in my cabinet…now about removing those government deposits??? You got it A.J.!!!!! New Sec. of Treasury – Roger Taney

10. One Last Effort by Biddle Ok Jackson…I’m not going away so easy. With the government’s deposits being removed to “pet banks”, Biddle called in loans This caused financial distress People went to Jackson for help but he stood firm and told them to “Go to Biddle” Biddle relented and due to his unpopular tactics lost support for rechartering the Bank

11. Do you agree with this political cartoon?

12. Goodbye Marshall; Hello Taney When John Marshall died in 1835, Jackson appointed his friend Roger B. Taney as the new Chief Justice of the Supreme Court This caused a shift from the previous ultra-nationalistic rulings during the Marshall Court Dartmouth College v. Woodward (1819) Charles River Bridge v. Warren Bridge (1837) Impact / Ruling: placed restrictions on the ability of state gov’ts to control corporations Impact / Ruling: supported Massachusetts right to issue the second charter SHIFT

13. “The object of government was to promote the general happiness, an object that took precedence over the rights of contract and property.”

14. The Changing Face of American Politics

15. Democrats and Whigs Emphasis on Opportunity Economic Union Fearful of rapid Territorial growth Defend the Union Embraced industry as the future of the country Rallied behind Jackson Anti-Masons Supported Jackson’s choice, Martin Van Buren, in the 1836 election Loyalties divided among the “Great Triumvirate”

16. And the winner is…

17. Thanks for your support A.J.!!!!!!!!!!! Van B Boys Martin Van Buren

18. What did Van Buren inherit?? There was a nationwide economic boom Speculators bought land in such bulk that the federal government paid off their debt and even had a surplus The federal government was selling Western lands in great amounts NOOOOOOO!!!!!!!! A. Hamilton What to do with the surplus??? Give it to the states – The Distribution Act

19. Specie Circular I loathe Paper currency!!!!!!!!! • Before leaving office, A.J. issued a presidential order, the “specie circular” • Only gold or silver coins for payment for public lands • A.J. thought it would curb land speculation • Led to the Panic of 1837

20. IRONIC???

21. Panic of 1837 Worst depression in the U.S. up to that point Unemployment rose Banks failed What role did the Distribution Act play in the crash?

22. Van Buren’s Response Uh what do you want me to do??? Van Buren did nothing because he strongly opposed government intervention The Panic of 1837 spelled disaster for Van Buren Van Buren was able to get the Independent Treasury passed U.S. Federal Gov’t Martin Van Buren Banks

23. Election of 1840 Vs. Martin Van Buren for the Democrats William Henry Harrison for the Whigs Whigs were more united Democrats had no answer to these campaign strategies Log Cabin Campaign

24. Election of 1840 Vs. Martin Van Buren for the Democrats William Henry Harrison for the Whigs 60 Electoral Votes 234 Electoral Votes

25. William Henry Harrison’s Inauguration Speech Shouldn’t he be wearing a coat??? IT’S FREEZING OUT!!!!!!!!!!!!

26. One month later…

27. William Henry Harrison

28. Tyler Takes Over • Was a former Democrat • Destroyed Van Buren’s independent treasury • Said no to Clay’s proposal to recharter the B.U.S. • Vetoed several internal improvement bills • Whigs broke ties with Tyler • His cabinet resigned (except Sec. of State – Daniel Webster) John Tyler The Caroline Affair Whig Diplomacy Webster-Ashburton Treaty Treaty of Wang Hya