Jackson and the Bank War Jackson The Bank of the U.S.

Nicholas Biddle President of the Second Bank of the United States and made it prosperous

Opposition to the Second B.U.S. “Soft – Money” Advocates Wanted more currency in circulation – meaning they wanted more bank notes (not backed by gold or silver) to be issued Stated the B.U.S. restrained state banks from issuing notes freely “Hard – Money” Advocates Believed gold and silver were the only basis for money Condemned all banks who issued bank notes Were suspicious of expansion Believed in rapid economic growth

Battle for the Bank JACKSON BIDDLE VS. ROUND 1 Stated he would not favor the renewing of the Bank’s charter when it expired in 1836 Was influenced by Henry Clay & Daniel Webster to apply to Congress in 1832 for the Bank’s renewal It would force the Bank to become a major issue in the 1832 election Congress rechartered the Bank As expected, Jackson vetoed the bill; Congress was unable to overturn the veto

ROUND 2: The Knockout Punch Jackson could not abolish the bank He attempted other means to destroy the “monster” I can’t wait until 1836 for that “Monster” Bank to expire!! Remove all the government’s deposits Sec. of Treasury – Louis McLane Ummm President Jackson, I am pretty sure that will destabilize the financial system so I can’t do that.

ROUND 2: The Knockout Punch Jackson could not abolish the bank He attempted other means to destroy the “monster” YOU’RE FIRED!!!!! Sec. of Treasury – Louis McLane

ROUND 2: The Knockout Punch Jackson could not abolish the bank He attempted other means to destroy the “monster” Congrats on the new position…by the way I want you to remove all the government’s deposits from the Bank of the U.S. New Sec. of Treasury – William Duane Ummm President Jackson, I really can’t do that. It would be bad.

ROUND 2: The Knockout Punch Jackson could not abolish the bank He attempted other means to destroy the “monster” YOU’RE FIRED!!!!! New Sec. of Treasury – William Duane

ROUND 2: The Knockout Punch Jackson could not abolish the bank He attempted other means to destroy the “monster” Attorney General Taney, my good friend and ally congrats on the new position in my cabinet…now about removing those government deposits??? New Sec. of Treasury – Roger Taney You got it A.J.!!!!!

One Last Effort by Biddle Ok Jackson…I’m not going away so easy. With the government’s deposits being removed to “pet banks”, Biddle called in loans This caused financial distress People went to Jackson for help but he stood firm and told them to “Go to Biddle” Biddle relented and due to his unpopular tactics lost support for rechartering the Bank

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Goodbye Marshall; Hello Taney When John Marshall died in 1835, Jackson appointed his friend Roger B. Taney as the new Chief Justice of the Supreme Court This caused a shift from the previous ultra-nationalistic rulings during the Marshall Court Dartmouth College v. Woodward (1819) Impact / Ruling: placed restrictions on the ability of state gov’ts to control corporations Charles River Bridge v. Warren Bridge (1837) Impact / Ruling: supported Massachusetts right to issue the second charter SHIFT

“The object of government was to promote the general happiness, an object that took precedence over the rights of contract and property.”

The Changing Face of American Politics

Emphasis on Opportunity Defend the Union Rallied behind Jackson Economic Union Fearful of rapid Territorial growth Embraced industry as the future of the country Loyalties divided among the “Great Triumvirate” Supported Jackson’s choice, Martin Van Buren, in the 1836 election Anti-Masons

And the winner is…

Martin Van Buren Thanks for your support A.J.!!!!!!!!!!! Van B Boys

What did Van Buren inherit?? The federal government was selling Western lands in great amounts Speculators bought land in such bulk that the federal government paid off their debt and even had a surplus A. Hamilton NOOOOOOO!!!!!!!! Give it to the states – The Distribution Act There was a nationwide economic boom

I loathe Paper currency!!!!!!!!! Before leaving office, A.J. issued a presidential order, the “specie circular” Only gold or silver coins for payment for public lands A.J. thought it would curb land speculation Led to the Panic of 1837

Panic of 1837 Worst depression in the U.S. up to that point Banks failed Unemployment rose

Van Buren’s Response Uh what do you want me to do??? Van Buren did nothing because he strongly opposed government intervention The Panic of 1837 spelled disaster for Van Buren Van Buren was able to get the Independent Treasury passed U.S. Federal Gov’t Banks Martin Van Buren

Election of 1840 Martin Van Buren for the Democrats William Henry Harrison for the Whigs Log Cabin Campaign Whigs were more united Democrats had no answer to these campaign strategies

Election of 1840 Martin Van Buren for the Democrats William Henry Harrison for the Whigs 60 Electoral Votes 234 Electoral Votes

William Henry Harrison’s Inauguration Speech Shouldn’t he be wearing a coat??? IT’S FREEZING OUT!!!!!!!!!!!!

One month later…

William Henry Harrison

Tyler Takes Over John Tyler Was a former Democrat Destroyed Van Buren’s independent treasury Said no to Clay’s proposal to recharter the B.U.S. Vetoed several internal improvement bills Whigs broke ties with Tyler His cabinet resigned (except Sec. of State – Daniel Webster) The Caroline Affair Webster-Ashburton Treaty Treaty of Wang Hya