Jackson & The Bank Chapter 12 Lesson 3

Learning Goal Students will be able to explain Jackson’s objections to the Bank of the United States

The Bank & the Election of 1832 Natural enemies Jackson always hated the national bank because it represented wealthy, private bankers taking advantage of the “common man”

Welcome, ladies and gentlemen, to THE BANK WAR! Henry Clay Daniel Webster Nicholas Biddle In the corner to my right, coming in with a combined total of 500 pounds, are… and Nicholas Biddle! Welcome, ladies and gentlemen, to THE BANK WAR! Henry Clay… Daniel Webster…

Henry Clay Andrew Jackson Daniel Webster Nicholas Biddle HEY! Introduce me already or I’ll fight you, too! and “King Andrew” to his detractors. Coming in at a lean, mean 155 pounds, may I introduce to you… And, in the corner to my left, the man known as “Sharp Knife” to the Creeks… “Old Hickory” to his admirers… the man who inspired the Democratic donkey… No, that’s okay. Introducing President Andrew Jackson! the man who… the pride of the common man…

Hello, gentlemen. I came as quickly as I could! Henry Clay and Daniel Webster, political enemies of Jackson, devised a plan to exploit Jackson’s hatred of the Bank of the United States to help weaken him before the 1832 presidential election. Well, first we need to get the president of the Bank of the United States, Nicholas Biddle in here. He’ll help us. He and Jackson hate each other! Hello, gentlemen. I came as quickly as I could! Hey, Daniel, I’ve got a plan that’s certain to hurt Jackson in 1832 and finally bring the Whig party into power! Okay, what have you got? Henry Clay Daniel Webster Nicholas Biddle

Yeah, the current charter isn’t even set to expire soon! Clay and Webster convinced Nicholas Biddle to submit his application to renew the charter for the Bank of the United States earlier than required. Yes, thank you for coming. Mr. Biddle, I would like you to submit an application to renew the charter for the Bank of the United States. Yeah, the current charter isn’t even set to expire soon! What would that prove? Henry Clay Daniel Webster Nicholas Biddle

I’m sure that’s exactly what he’ll do. I don’t know. Veto it? Don’t be so short sighted! What do you think Jackson will do when you apply to renew the charter? I’m sure that’s exactly what he’ll do. Henry Clay Daniel Webster Nicholas Biddle

By golly, I think it’ll work!! Clay, Webster and Biddle predicted that Jackson would veto the charter application, angering so many Americans that he would eventually lose his bid for reelection in 1832. Precisely! The American people will be furious with him. He’ll never win reelection in 1832! (By the way, did I mention that I’m going to run for president in 1832?) By golly, I think it’ll work!! Brilliant!! Henry Clay Daniel Webster Nicholas Biddle

VETO! Daniel Webster Henry Clay Andrew Jackson Yes! He fell for it! BANK CHARTER Nicholas Biddle Oh, really? Fat chance! Bring it on, Clay! Yes! The people will be furious and Jackson will never win reelection! Ha ha ha ha….(evil laugh) Oh, Mr. President! Here’s the application to renew the charter for the Bank of the United States! Fools! You know very well that I will never accept this! So, let me make sure not to disappoint you!

The Bank & the Election of 1832 New Charter Henry Clay & Daniel Webster wanted the president of the bank, Nicholas Biddle to apply for a new charter early so Jackson would have to make a decision on the bank Clay & Webster believed Jackson would deny the charter which would make people not vote for Jackson in the election Back fired Jackson vetoed the bill, Jackson was still re-elected

The Bank & the Election of 1832 A Step Further Jackson decided the veto was not enough, so he “killed” the national bank by withdrawing all of the government deposits and placing them in state banks In 1836, the Bank’s charter expired Jackson fights the Bank in 1832 (1833 print)

The Panic of 1837 1836 Whigs: new party which was anti-Jackson Jackson did not run for a third term Martin Van Buren ran (Jackson's VP) Whigs: new party which was anti-Jackson had three candidates which they hoped would keep Van Buren from getting the majority of the votes so the House would elect the president The plan failed Jackson's popularity shifted to Van Buren who was elected president

The Panic of 1837 Depression No national bank and little power of state banks caused a depression banks loaned money that many businesses did not take because they thought it had little value People lost jobs, homes, and barely had enough money to survive

The Panic of 1837 No Help Federal Treasury VIDEO Van Buren did little to help the depression Federal Treasury He did convince Congress to create a separate Federal Treasury in 1840 US would not deposit its money into private banks This Treasury split the Democratic party which gave the Whigs an opportunity to win in the 1840 election VIDEO

The Whigs in Power Democrats had held the office of the President for 12 years Election of 1840 William Henry Harrison, Whig Party, was elected as president

The Whigs in Power John Tyler’s Presidency Tyler was once a Democrat who opposed Whig policies Became President when William Henry Harrison died while in office within a month

The Whigs in Power Tyler’s biggest success: 1842 Signed the Webster-Ashburton Treaty which settled the Maine-Canada border as well as the US-Canada border all the way from Maine to Minnesota

Whig Downfall Against the Whigs Whig Downfall As president, Tyler vetoed many bills sponsored by Whigs All but one cabinet member resigned when he vetoed the new charter for the Bank twice Whig Downfall Whigs elected only one more president: Zachary Taylor, who also died in office Northern Whigs left the party to form what is known today as the Republican Party

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