The Reemergence of a Two Party System

1. The Reemergence of a Two Party System • By Lauren Rizzi and Zoe Woloszko

2. How did two of the following contribute to the reemergence of a two party system in the period 1820 to 1840?-Major political personalities-Economic issues-States' rights

3. Thesis A distinct two party system began to form in the period of 1820-1840. This change began due to major political personalities as well as economic issues. Strong, conflicting personalities from politicians like Henry Clay, Andrew Jackson, William H. Crawford, and John Quincy Adams as well as juxtaposed positions on economic issues led to the division. Conflicts regarding these issues came up frequently during this time period and allowed for two distinct parties to be formed.

4. Major Political Personalities • ​Major political personalities such as Henry Clay, Andrew Jackson, William H. Crawford, and John Quincy Adams were all candidates for president in 1824. Andrew Jackson won the popular vote but failed to win the majority of the Electoral College. The top three candidates would be voted on in the House of Representatives so Clay was eliminated. Clay used his power as Speaker of the House to throw his support to John Quincy Adams. Shortly after Adams’ election, he placed Clay in the position of Secretary of State, a known stepping stone to the presidency. Jackson called foul play, and many of Jackson’s followers called the Election of 1824 a “corrupt bargain.” When election time came again in 1828, Jackson ran as a Democrat while Adams went as Republican. Jackson won the election by a landslide.

5. Jackson faced many crises during this time. The Tariff of 1828, which sought to drive up tariffs on many southern products, was widely disliked by the South but well liked by the North. John C. Calhoun advocated a complete nullification of the bill in South Carolina and later suggested that they should secede. Jackson responded by threatening to send in armed forces to collect the taxes if South Carolina’s actions demanded it. Jackson also made enemies with his Indian Removal Act. Jackson went directly against Supreme Court rulings. Even though Jackson made many enemies during his first term, he was re-elected to a second term and defeated Clay in the Election of 1932.

6. During Jackson’s second term, a new party developed, the Whigs. The Whigs stood for everything that was anti-Jackson. They despised the executive “abuse” of Jackson. The Whigs wanted reform and a national bank with paper currency. President Jackson did not run for re-election in 1936 because he was too old. However, by this point in time, two distinct parties had formed. On one side were the Democrats who glorified the individual, while still believing that the privileged belong in government. They also held onto the ideas of states rights and federal control in society and economics. The Whigs however, favored a natural balance in society as well as the community over the individual. Whigs also favored a national bank, tariffs, internal improvements, and moral reforms. Both had many similarities including having mass participation and remaining loyal to American ideals. However, a primary division of the two parties came because of economic issues.

7. Economic Issues The primary issue that arose and led to two political parties was the Bank of the United States. After Jackson was elected to a second term in 1832 a problem arose. The Bank of the United States was going to expire in 1936, so the Bank needed to be re chartered. A Bank war erupted in 1832 when two sectionalist leaders, Daniel Webster and Henry Clay, fought over the re chartering of the bank. Clay wished for Jackson to approve the bill since vetoing the bill would harm those in the East. However, Webster was not in favor of the Bank and wanted it to be eliminated. Jackson was also against the re chartering because he saw it as beneficial to a select group of the wealthy and kept the finances in one central unit. Jackson decided the Bank of the United States would not be re chartered.

8. Jackson decided the Bank of the United States would not be re chartered. Jackson removed funds from the Bank and placed them into smaller state “pet banks”. Several smaller “wildcat” banks also formed and issued their own paper money. This wildcat money led to overspeculation of land in the west and forced Jackson to issue an order, saying all land must be purchased with metallic money. Jackson left office shortly after this and left his successor Van Buren to deal with the aftermath.

9. The Panic of 1837 was caused by overspeculation of land to the west. This craze spread to every other sector of the economy. To stop the crisis, Van Buren had the Independent Treasury formed in 1840. The Independent Treasury would keep all government funds locked away in vaults. The Whigs, who took control after Van Buren in 1846, created the Federal Reserve System after repealing the Independent Treasury Act. The Federal Reserve System is used to control the amount of money in circulation and keep a certain amount in the central government. A major political party formed because of the Bank of the United States and the troubles precipitating from it. The Whigs believed in a strong national bank while Jackson and the Democrats believed in central government supervision of state banks. This became a primary distinction between the two political parties and led to the re-emergence of the two party systems in the mid 19th century.

10. Conclusion ​In conclusion, economic issues and political personalities led to the two party systems of the Whigs and the Democrats. The primary economic issue was the Bank of United States and those who supported the bank (Whigs) and those who favored Jackson’s states’ banks (Democrats). Major political personalities of the time included Andrew Jackson, Henry Clay, and John C. Calhoun. These leaders, who tended to be sectional leaders, led to distinct parties which ended up forming the two major political parties of the mid 1800’s. These parties were Jacksonian Democrats and the Whigs.