“The Bank War” and Its Effects

1. Chapter 13 Section 4 “The Bank War” and Its Effects

2. The Bank of the United States • Jackson believed that the policies of the bank of the United States helped the rich at the expense of the poor. • The bank’s wealthy president, Nicholas Biddle, was seen as a villain by President Jackson. Biddle was one of the most powerful men in the country. Biddle owned a large amount of the bank’s stock, appointed it’s officials, set interest rates, and decided who got loans.

3. State Banks • State banks loaned money more freely than the bank of the United States. Money issued by the Bank of the United States was the most dependable. Biddle tried to force small banks to be more cautious by refusing to accept their paper money at branches of the Bank. Poor southerners and westerners who needed to borrow money to buy land hated Biddle’s policy toward smaller banks. Jackson felt that they were trying to keep wealth in the hands of few.

4. Jackson’s Veto • In 1832, Jackson vetoed the bill to renew the Bank’s charter and ordered the government to put all federal money in state banks. • Biddle did not have any fear. He was powerful and had powerful friends like Henry Clay. Clay, who ran against Jackson in the election of 1832, made the bank a major issue in his campaign.

5. Election of 1832 • Voters cared less about the Bank than Clay and Biddle had thought. Jackson easily won re-election, crushing Clay. Martin Van Buren became Jackson’s new Vice President.

6. The Whig Party • The “Bank War” resulted in the rise of the new Political Party. Bankers and unhappy Democrats joined the National Republican Party (the party of John Quincy Adams and Henry Clay) to form a new political party- the Whig Party. • The Whigs took their name from the Whig party from England, which stood for limiting the King’s power.

7. Election of 1836 • In the election of 1836, the Whigs were not strong enough to defeat the Democratic candidate, Martin Van Buren. • Martin Van Buren (8th POTUS) • Vice-President-Richard M. Johnson • Soon afterward, in the Panic of 1837, the nation plunged into an economic depression.

8. Martin Van Buren 8th POTUS

9. Election of 1840 • In the election of 1840, voters blamed Van Buren for the depression. Many turned to the Whig candidate, William Henry Harrison. Harrison appealed to the ordinary people everywhere. • William Henry Harrison (Whig) 9th POTUS • Vice-President-John Tyler

10. William Henry Harrison 9th POTUS “Old Tippecanoe”

11. Whig Campaign Slogan 1840 • “Tippecanoe and Tyler Too!” • The famous Whig Party Cry of the election 1840. William Henry Harrison, of Ohio, was a famous military hero. Harrison was the general that led American forces that defeated the Shawnee Indians at Tippecanoe in 1811.This earned him the name “old Tippecanoe”-John Tyler was his Vice President running mate.

12. The First President to die in office • Harrison was President from March 4 to April 4,1841. It is the shortest term of any President. • Harrison died of pneumonia which historians believe he caught reading his inaugural address.

13. Vice President to take over • Vice-President John Tyler became President. Tyler opposed his party on most issues. Angry Whig leaders kicked Tyler out of the Whig Party. They refused to nominate him to re-election in 1844.Tyler served 3 years and 11 months as President. • John Tyler 10th POTUS • Because he wasn’t elected some people who opposed Tyler nicknamed him “His Accidency”.

14. John Tyler 10th POTUS “HIS ACCIDENCY”