Jackson & The Bank Chapter 10, Section 3 Glencoe

The Bank War Pres. Jackson had always disliked the bank & thought it was too powerful Nicholas Biddle was the president of the Bank of the U.S. The Bank placed limits on the number of loans state banks could make –This angered farmers & merchants who needed them Jackson & Democrats saw the Bank as undemocratic because it was run by private bankers

The War Begins Nicholas Biddle & the Whigs want to make the Bank an issue in the next presidential election, so they move up the renewal date of the Bank’s charter Senators Henry Clay & Daniel Webster, friends of Biddle, planned to use the Bank to defeat Jackson in 1832 presidential election

Biddle & Friends Nicholas Biddle Senator Henry Clay Senator Daniel Webster

The War Continues The date for the renewal of the Bank charter is moved up Whigs know that Jackson will probably get rid of the Bank & they think this will help stop Jackson’s reelection

Jackson’s Veto Jackson vetoes the Bank’s charter and declared it unconstitutional, even though the Supreme Court said otherwise Most people supported Jackson’s veto of the bank charter bill Election of 1832 – Jackson reelected with 55% of Popular Vote & 219 Electoral Votes –Martin Van Buren was elected Vice President

The Monster

Pet Banks Jackson then decides to “kill” the Bank by ordering the withdrawal of all government deposits from the Bank & placing them in smaller state banks These smaller state banks were known as “Pet Banks” Some critics said the closure of the Bank led to future economic problems for the nation

General Jackson Slaying the Many Headed Monster

Economic Problems Martin Van Buren was elected president in 1836 Two months after his inauguration the country entered a severe economic depression –Depression -- a period in which business & employment fall to a very low level Panic of 1837 –Time when land values dropped, investments declined suddenly & banks failed –Many businesses closed & many lost their jobs –Many Americans couldn’t afford food or rent

Panic of Whig campaign poster blames Van Buren for hard times

Taking Action Van Buren believed in principle of laissez-faire (that govt. should interfere as little as possible in the nation’s economy) –Van Buren persuaded Congress to establish an independent federal treasury (1840) –This eliminated the state banks & the govt. would now store its money in the federal treasury –Hoped this would prevent future bank crises Criticism of the act split the Democratic Party & gave the Whigs a chance to win the presidency in 1840

Whig cartoon showing unemployment

The Whigs Come to Power Whig candidates William Henry Harrison & John Tyler win 1840 election easily Harrison was a military hero (Battle of Tippecanoe) –Used slogan of “Tippecanoe & Tyler Too” Harrison was supported by laborers & farmers 4 weeks after Harrison was inaugurated in 1841, he died of pneumonia

Harrison & Tyler John Tyler, 10th President of the United States ( ), was the Vice-President on Harrison’s Whig ticket in 1840 William Henry Harrison, 9 th President of the United States (1841)

President Tyler John Tyler became 1 st V.P. to become president because the elected president died in office Tyler was a former Democrat & didn’t support all the Whig-sponsored bill; Whigs expelled Tyler from party Democratic candidate James K. Polk won the presidential election of 1844