The Panic of 1837 In 1840 Van Buren persuaded Congress to establish a Federal Treasury. The government would no longer make deposits in state banks. This helped guard against a further bank crisis.

The Panic of 1837 This new treasury did not sit well with Van Buren’s own party as well as the Whigs and it would cost him the election in 1840.

The Panic of 1837 This panic was made worse by a number of factors: large debts incurred by states due to over-expansion of canals and the construction of railroads;

The Panic of 1837 an unfavorable balance of trade as imports exceeded exports, resulting in a loss of gold and silver -- as opposed to paper currency and several crop failures in 1835 and 1837

The Panic of 1837 The major cause of the panic, however, was the economic impact of land speculation. It was a period of speculative mania. Between 1834 and 1836, sales totaled 37 million acres.

The Panic of 1837 state and wildcat banks grew rapidly during the 1830s with the demise of the United States Bank. Funds were more easily available, and investors borrowed money at an incredible pace.

The Panic of 1837 Not only the small Western farmer, but merchants, manufacturers and traders also borrowed heavily.

The Whigs come to Power The Whigs thought they could win the election in 1840 with the country still in a depression. The Whigs nominated Wm. Henry Harrison a War of 1812 hero. John Tyler was his running mate, a planter from VA.

The Whigs come to Power To win the election Harrison had to gain the support of laborers & farmers who had voted for Jackson. To help the election the Whigs came up with the slogan “Tippecanoe & Tyler too.”

The Whigs come to Power The Whigs adopted a log cabin as their symbol to show Harrison was a man of the people. This became the “Log Cabin Campaign” which seemed to work to defeat Van Buren.

The Whigs come to Power Wm. Henry Harrison was inaugurated on 4 March 1841 as the first Whig President. To that point he would be the oldest president sworn into office at the age of 68 until Ronald Reagan.

The Whigs come to Power On a cold & wet day without a coat or warm clothing, Harrison delivered a speech over 2 hours long. As a result he died 1 month later from complications arriving from pneumonia.

The Whigs come to Power His vice president James Tyler would then assume the presidency. This created a minor Constitutional crisis since there was no provisions in the constitution for succession to the presidency.

The Whigs come to Power Tyler was a strong supporter of states rights. He was not loyal to the Whig party and vetoed much of their legislation.

The Whigs come to Power The Whigs could not agree on party goals, but according to sectional ties-North, East, West & South. After Tyler, the Whigs were out of power again.