Jackson and the Bank War Jackson The Bank
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 Believed in rapid economic growth “Hard – Money” Advocates Believed gold and silver were the only basis for money Condemned all banks who issued bank notes Were suspicious of expansion
Battle for the Bank VS. JACKSON 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 WHY? ? As expected, Jackson vetoed the bill; Congress was unable to overturn the veto BIDDLE WHY? ? It would force the Bank to become a major issue in the 1832 election • Congress rechartered the Bank
ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank I can’t wait until 1836 for that “Monster” Bank to expire!! Remove all the government’s deposits Ummm President Jackson, I am pretty sure that will destabilize the financial system so I can’t do that. Sec. of Treasury – Louis Mc. Lane
ROUND 2: The Knockout Punch Jackson could not abolish the bank YOU’RE FIRED!!!!! Sec. of Treasury – Louis Mc. Lane He attempted other means to destroy the “monster”
ROUND 2: The Knockout Punch He attempted other means to destroy the “monster” Jackson could not abolish the bank 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. Ummm President Jackson, I really can’t do that. It would be bad. New Sec. of Treasury – William Duane
ROUND 2: The Knockout Punch Jackson could not abolish the bank YOU’RE FIRED!!!!! New Sec. of Treasury – William Duane He attempted other means to destroy the “monster”
ROUND 2: The Knockout Punch Jackson could not abolish the bank Attorney General Taney, my good friend ally congrats on the new position in my cabinet…now about removing those government deposits? ? ? New Sec. of Treasury – Roger Taney He attempted other means to destroy the “monster” 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) SHIFT Impact / Ruling: supported Massachusetts right to issue the second charter
“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
Democrats and Whigs n o s i as h p y t i Em n u ort p p O Rallied behind Jackson Def end Uni the on Supported Jackson’s choice, Martin Van Buren, in the 1836 election Fear Terri ful of rap id toria l gro wth Embraced indu stry as the future of the country ic m o n Eco on Uni Anti-Masons d e d i iv d t s a e i e t r l Loya g the “G ” n te amo iumvira Tr
And the winner is…
Thanks for your support A. J. !!!!!! Van B Boys Martin Van Buren
What did Van Buren inherit? ? There was a nationwide economic boom 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 NOOOOOOO!!!! A. Hamilton What to do with the surplus? ? ? Give it to the states – The Distribution Act
Specie Circular 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
IRONIC? ? ?
Panic of 1837 Worst depression in the U. S. up to that point Unemployment rose Banks failed What role did the Distribution Act play in the crash?
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 was able to get the Independent Treasury passed Martin Van Buren U. S. Federal Banks Gov’t
Election of 1840 Vs. Martin Van Buren for the Democrats had no answer to these campaign strategies William Henry Harrison for the Whigs were more united Log Cabin Campaign
Election of 1840 Vs. Martin Van Buren for the Democrats 60 Electoral Votes William Henry Harrison for the Whigs 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 Whig Diplomacy • 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 of Wang Hya
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