Economic Issues and the Jackson Era: The Bank of the United States

1. Section 3-Polling Question • A • B • C • D Which presidential campaign slogan do you feel is most effective? A.A Chicken in Every Pot B.Tippecanoe and Tyler Too C.Are You Better Off Than You Were Four Years Ago? D.Ross for Boss

2. Chapter 11 The Jackson Era (1824-1845) Section 3 Jackson and the Bank

3. Essential Question How do economic issues affect the president and presidential elections?

4. The National Bank • Andrew Jackson hated the Bank of the United States • Jackson felt it helped the wealthy Easterners • The bank was a powerful institution that held the federal governments money • The Bank’s president, Nicholas Biddle, represented everything Jackson disliked • Jackson was a self made man while Biddle was born into a wealthy family

5. Section 3 • A • B • C • D Jackson attacked the Bank of the United States because A.it was being run by corrupt elected officials. B.it provided loans to all citizens. C.it financed foreign business deals that put Americans out of work. D.it was controlled by wealthy Easterners.

6. Campaign of 1832 • Jackson’s opponents, Henry Clay and Daniel Webster, were friends of Biddle • Clay and Webster planned to use the Bank to defeat Jackson • They persuaded Biddle to apply for an early charter (The old one did not expire until 1836) • Clay and Webster felt that if Jackson vetoed the charter it would lead to his defeat • Clay could then be elected president

7. The Bank’s Charter • When the bill to renew the Bank’s charter came to Jackson to sign, he was sick in bed • Jackson told his friend Martin Van Buren- “The bank…is trying to kill me. But I will kill it!” • Jackson vetoed the bill • Jackson felt the Bank was unconstitutional (Contrary to McCulloch v. Maryland) • “The laws… make the rich richer”

9. The Election of 1832 • The plan for gaining support for Clay backfired • Most people supported Jackson’s veto • Jackson was reelected • Jackson chose to “kill” the Bank ahead of the 1836 schedule • All money was withdrawn and put into smaller state banks • In 1836 he refused to sign a new charter for the Bank, and it closed

10. Election of 1836 • Jackson decided not to run for a third term and the Democrats chose Martin Van Buren • A new party, the Whigs, nominated three candidates (Each had a following in different parts of the country) • Jackson’s popularity helped Van Buren win easily • Shortly after Van Buren became president, the country entered a severe economic depression

11. The Panic of 1837 • The depression began with the Panic of 1837 • Land values dropped, investments declined, and banks failed • 1000s of businesses closed and people lost jobs • In the South, cotton prices dropped to record lows • Farmers went into debt and lost their land • In the cities, many could not afford food or rent

12. President Van Buren • Believed in laissez-faire (Like Jefferson) • Van Buren persuaded Congress to establish an independent federal treasury in 1840 • The government will not deposit money in private banks (Like they did under Jackson) • The private banks had used government funds to back their banknotes • The new treasury system would keep this from happening and avoid crises • Van Buren’s own party along with the Whigs criticized the act

13. The Whigs • The Whigs nominated William Henry Harrison, a hero of the War of 1812 • John Tyler, a planter from Virginia, was Harrison’s running mate • Harrison won national fame for defeating Tecumseh’s followers at the Battle of Tippecanoe • The Whig’s used the slogan “Tippecanoe and Tyler Too” • To win the election Harrison had to gain support from the laborers and farmers who supported Jackson

14. Section 3 • A • B • C • D What was the reason the Whigs won the 1840 election? A.They made a “corrupt bargain” with Henry Clay to steal the presidency. B.The Democrats split over Van Buren. C.They ended the Panic of 1837. D.They gained support from farmers and laborers rather than the wealthy elite.

15. The Log Cabin Campaign • Harrison and the Whigs chose a log cabin as their symbol • Harrison was rich, but wanted to look like a “man of the people” • The Whigs criticized Van Buren as “King Martin” that spent the peoples money on fancy furniture for the White House • The Log Cabin Campaign worked- Harrison won by a wide margin • Harrison became the first Whig president

16. Harrison’s Inauguration • Inauguration day 1841- bitter cold • Harrison insisted on giving his speech without a hat or coat • He died 32 days later • Served the shortest term of any American President • VP John Tyler became president

17. Tyler’s Presidency • John Tyler had once been a Democrat • The Whigs added him to the ticket with Harrison to attract Southern voters • Tyler vetoed many Whig sponsored bills (Including a recharter of the Bank) • His lack of party loyalty outraged many Whigs • Whig leaders in Congress expelled Tyler from the party • The Whigs could not agree on their party’s goals • They voted according to sectional ties • Henry Clay (Now a Whig) lost the election of 1844 to Democratic candidate James Polk

18. Essential Question How do economic issues affect the president and presidential elections? - Closing of the Bank - The Panic of 1837 - Economic depression

19. What did Henry Clay and Daniel Webster use to try to defeat Andrew Jackson in the 1832 presidential election? • a new law • veto power • Bank of the United States • Congress

20. President Jackson believed that the Bank of the United States • favored the poor. • favored the rich. • should be supported. • was corrupt.

21. Two months after President Martin Van Buren took office, the country went into • a severe depression. • economic prosperity. • a recession. • a period of inflation.

22. As their symbol in the election of 1840, the Whigs adopted the • donkey. • elephant. • log cabin. • bank.

23. Who was the first vice president to become president because the elected president died in office? • Andrew Jackson • Martin Van Buren • William Henry Harrison • John Tyler