Chapter 10, Section 3 Jackson and the Bank California State Standards 8.8, 8.8.1

Looking Back, Looking Ahead In Section 2, you learned about the removal of Native Americans to Western lands. In this section, you will learn about Jackson’s fight with the National Bank and the election of the Whigs to power.

The Main Ideas President Jackson forced the National Bank to close, and the Panic of 1837 caused economic problems that split the Democratic Party. After Harrison’s death, Tyler took the presidency in a direction opposed to the Whigs’ goals, and the Whigs lost power after 1844.

People and Vocabulary to Know Nicholas Biddle Martin Van Buren William Henry Harrison John Tyler veto depression laissez-faire

Why Did Jackson Dislike the Bank? President Andrew Jackson had criticized the Bank of the United States as being an organization of wealthy Easterners over which ordinary citizens had no control. The bank’s president, Nicholas Biddle, represented everything Jackson disliked.

What Drama Was Part of the 1832 Election? In the election of 1832, Henry Clay and Daniel Webster planned to use the bank to defeat Jackson. They believed the bank had popular support and an attempt by Jackson to take away its charter would lead to his defeat. Martin Van Buren, a friend of Jackson’s, was with Jackson when he received the bill to renew the bank’s charter. Jackson vetoed, or rejected, the bill. McCulloch v. Maryland = Supreme Court case that found the Bank of the US to be legal under US Constitution

What Was the Outcome of the Election? Supreme Court ruled the bank constitutional, Jackson felt it was unconstitutional and publicly opposed the ruling. Clay and Webster’s plan to defeat Jackson backfired - most people supported Jackson’s veto. Jackson was elected president, and Martin Van Buren was elected vice president. After, Jackson ordered the withdrawal of all government deposits at the bank and placed the funds in smaller state banks.

What Happened in the 1836 Election? The Democrats chose Martin Van Buren as their candidate in the election of 1836, but he faced bitter opposition from the Whigs, a new political party. Jackson’s popularity and his support of Van Buren helped Van Buren win the election.

What Was the Panic of 1837? Two months after the election, the United States entered a depression, a period in which business and employment fall to a very low level, that began with the Panic of Panic of land values dropped, investments declined, banks failed President Van Buren believed in the principle of laissez-faire— that government should interfere as little as possible in the nation’s economy.

Who Started an Independent Fed Treasury? Van Buren persuaded Congress to establish an independent federal treasury in 1840 to guard against further bank crises. This decision received criticism from the Democratic Party.

Discussion Question What was Clay and Webster’s strategy to defeat Jackson? (Clay and Webster convinced the president of the Bank of the United States to apply for a charter early, knowing that Jackson would refuse it. They thought people would dislike Jackson for refusing the charter.)

What Happened in the Election of 1840? William Henry Harrison was the Whig candidate in the election of 1840, and his running mate was John Tyler. Harrison was portrayed as a common man even though he was wealthy, and he won the election.

How Did Tyler Become President? Harrison died about a month after his inauguration, and John Tyler became president. As president, Tyler backed states’ rights and vetoed several Whig- sponsored bills, including one to recharter the Bank of the United States. This lack of party loyalty angered the Whigs, and most of Tyler’s cabinet resigned.

What Happened to the Whig Party? The Whigs could not agree on their party’s goals, and in four years Tyler lost the election to a Democrat and the Whigs were out of power.

Discussion Question Why did Tyler anger his party? (Tyler backed states’ rights and vetoed Whig- sponsored bills.)

Section 3 Review - page List Jackson’s reasons for wanting to “kill” the Bank of the United States 2. What tactics did the Whigs borrow from Jackson’s campaign to win the election of 1840? 4. Why did President Van Buren do little to solve the nation’s economic problems during the depression?