The Panic of 1819 CAUSES The Panic of

The Panic of 1819 CAUSES? ? ?

The Panic of 1819 • Over-speculation on Western lands • Imbalance of trade with Great Britain (drains country of gold) • Bank of US forces western satellite banks to foreclose on Western farms • Won’t allow payment in paper money • Demands payment in gold or silver (specie) • Farmers don’t have specie, lose farms, some sent to DEBTOR’S PRISON!!!! Consequences? ? ?

Missouri Statehood: The Tallmadge Amendment • All slaves born in Missouri after the territory became a state would be freed at the age of 25. • Passed by the House, not in the Senate. • The North controlled the House, and the South had enough power to block it in the Senate.

The Missouri Compromise and Slavery, 1820– 1821

What foreign power was the most threatening?

The Monroe Doctrine, 1823 1. What foreign policy principles are established? Monroe Doctrine 2. What warning is given to the European countries? 3. What would the US do if the warning was not headed?

The Election of 1824: The “Corrupt Bargain”

The Election of 1824: The “Corrupt Bargain” Popular Vote Electoral Vote Andrew Jackson 43% 99 J. Q. Adams 31% 84 William Crawford 13% 41 Henry Clay 13% 37 Candidate

The Age of Jackson

Voting Requirements in the Early 19 c

Voter Turnout: 1820 - 1860

Why Increased Democratization? 3 3 3 White male suffrage increased Party nominating committees/conventionsreplaced caucus system. Voters chose their state’s slate of Presidential electors—not the state legislature. Spoils system-what’s that? Rise of Third Parties-more choices, more democracy 3 Popular campaigning (parades, rallies, floats, etc. ) 3 Two-party system returned in the 1832 election: § Dem-Reps Democrats (1828) § Natl. Reps. (1828) Whigs (1832) Republicans (1854)

Canvassing for a Vote, by George Caleb Bingham, 1852

Jackson’s Birthplace

Jackson’s First Residence in Tennessee

First Known Painting of Jackson, 1815

Jackson’s Duels

General Jackson. War Hero

The Battle of New Orleans, January, 1815

The “Common Man’s” Presidential Candidate

Jackson’s Opponents in 1824 Henry Clay [KY] John Quincy Adams [MA] William H. Crawford [GA] John C. Calhoun [SC]

Results of the 1824 Election A “Corrupt Bargain? ”

Election of 1828 -Key Issues: • The Tariff—raised to 45% during the J. Q. A. ’s presidency. The South in particular is ticked off. • Jackson believed the Federal government a haven for the wealthy—detached from common folks • Jackon sought to reduce the role of government in favor of states rights • Jackson hated Henry Clay’s “American System. • Jackson thought the tariff was too high, but supported the federal government’s right to enforce it. • In spite of the above, Jackson was a strong unionist and nationalist—he ultimately supported federal supremacy over the states.

Jackson’s Faith in the “Common Man” 3 3 3 Intense distrust of Eastern “establishment, ” monopolies, & special privilege. His heart & soul was with the “plain folk. ” Belief that the common man was capable of uncommon achievements.

Rachel Jackson Final Divorce Decree

Jackson in Mourning for His Wife

1828 Election Results

Vice President John C. Calhoun

The Center of Population in the Country Moves WEST

The New “Jackson Coalition” 3 The Planter Elite in the South 3 People on the Frontier 3 Immigrants in the cities.

The Reign of “King Mob”

Andrew Jackson as President

The “Peggy Eaton Affair”

Peggy Eaton Floride Calhoun vs.

The South Carolina Expostion-1828 • What were Calhoun’s arguments and what were they really about? • What did he suggest South Carolina should do about the tariff?

The Webster-Hayne Debate-Jan. 1830 Sen. Daniel Webster [MA] Sen. Robert Hayne [SC]

Jefferson Day Toast-1830 Webster : Liberty and Union, now and forever, one and inseparable. Jackson : Our Federal Union—it must be preserved. Calhoun : The Union, next to our liberty, most dear.

1832 Tariff Conflict 3 3 1828 -->“Tariff of Abomination” 1832 --> New tariff reduces the 1828 tariff somewhat. 3 South Carolina’s reaction? 3 Jackson’s response ? 3 Clay’s “Compromise” Tariff?

What were long-term implications of the Nullification Crisis?

Indian Removal 3 Jackson’s Goal? 3 1830 Indian Removal Act 3 Cherokee Nation v. GA (1831) 3 Worcester v. GA (1832) 3 Jackson: * “domestic dependent nation” John Marshall has made his decision, now let him enforce it!

The Cherokee Nation After 1820

Indian Removal

Trail of Tears (1838 -1839)

Jackson’s Professed “Love” for Native Americans

Pros and Cons of the 2 nd B. U. S. Pro Bank 3 3 3 Anti Bank Trusted currency-paper money backed by “specie”. 3 Spurs economy by making currency and credit available 3 Safe depository for Federal funds collected from tariffs and taxes. 3 3 3 Unconstitutional-Jefferson was right. Favors the eastern financial and manufacturing elite. Does nothing for the South and West except foreclose on farms. Bank 4/5 privately owned. Private investors making profit on public $. Responsible for Panic of 1819.

The National Bank Debate Nicholas Biddle President Jackson’s main goal-divorce government from the economy. Essentially laissez-faire.

Jackson’s Use of Federal Power VETO 1832 Jackson vetoes the Bank of the US re-charter.

The “Monster” Is Destroyed! 3 3 3 “Pet Banks”-Jackson starves the B. U. S. of funds and puts U. S. money in smaller state banks, How does Biddle respond? 1832 Jackson vetoed the extension of thend 2 National Bank of the United States. 1836 the charter expired. 1841 the bank went bankrupt and dies!

The Downfall of “Mother Bank”

An 1832 Cartoon: “King Andrew”?

1832 Election Results Main Issue ?

Jackson’s Second Term. Economic Problems Continue

The Specie Circular (1836) 3 “Wildcat Banks” in the west were unreliable. Issued worthless paper money that caused rapid inflation. 3 Speculators use that money to buy land. Their ultimate goal? 3 Jackson ticked. Federal land being purchased with worthless $. Proclaims all future federal land can be bought only with gold or silver. 3 Jackson’s goal? 3 Slow down inflation by stabilizing the value of currency.

But then 1836 Election Happens. Jackson retires without seeing the effect of the Specie Circular.

Andrew Jackson in Retirement

Photo of Andrew Jackson in 1844 (one year before his death) 1767 - 1845

Jackson’s Legacy-Good or Bad? Good Bad • Strong executive leadership • “King” Andrew? • Champion of the common man-changes presidential politics • Spoils system? • Establishes the Democratic Party • Spoils system? • No BUS weakens the financial system • Ignores the Supreme Court with no consequence • Trail of Tears • Nullification Crisis increases sectionalism

The 1836 Election Results Martin Van Buren “Old Kinderhook” [O. K. ]

Don’t celebrate, Mr. President because of. . .

The Results of the Specie Circular $ Wildcat banks stop issuing paper money-call in loans to be paid in hard currency. $ Not enough hard currency available now that B. U. S. so weak. Wildcat banks close $ Credit not available-Federal deposits spread too thin in Pet Banks. $ Factories and businesses began to fail-can’t get credit. $ Unemployment rose. $ Tariff collections and land sales plummet. $ Businesses and individuals can’t repay bank loansmore banks, including Pet Banks, fail and close. $ Ultimate Outcome?

Panic of 1837 !

What Triggered the Panic of 1837? • Two big British banks failed, causing British investors to call in loans lent to American banks. • The American banks didn’t have the cash, so they closed, taking people and business’s deposits with them.

The Panic of 1837 Spreads Quickly!

Van Buren’s Response • The Independent Treasury System (Divorce Bill) – Convinced the Panic caused by federal $ being given to private banks. – Wanted to “divorce” the gov. from private business – Put federal deposits in “safe” banks in N. Y. and Philly-out of circulation – Result-credit dries up, depression worsens

DEMS -->Martin Van Buren • Favored the following policies: – weak central government – states’ rights – No tariffs=free trade – equal economic opportunity for white males • Opposed the following: – national bank, – protective tariffs, and – high land prices – monopolies • Supporters • Southerners • Westerners • small farmers • urban workers • Immigrants (Catholics in particular)

DEMS-->Richard Mentor Johnson, VP

WHIGS -->William Henry Harrison • Favored the American System, or a national bank, high tariffs, internal improvements • Opposed spoils system, immorality, vice, and crime, which it blamed on immigrants, particularly Catholics • Supporters • Wealthy northern industrialists and merchants • Protestants • Middle class urban professionals (lawyers, merchants, etc. ) • Southern states rightists angry at Jackson’s stand on nullification • Anti-Masonic Party types • Essentially anyone opposed to Jackson

WHIGS -->John Tyler, VP What was his background?

Van Buren Taking the Blame for His Own and Jackson's Monetary Policies

“Tippecanoe, and Tyler, Too!”

“Log Cabin” Campaign Pin, 1840

“Log Cabin & Cider” Campaign

“Stop That Barrel”

William Henry Harrison Campaign Song “Tip and Tye” (Words and Music by "A member of the Fifth Ward Club“, published 1840) What has caus'd this great com-mo-tion, mot-ion our coun-try through, It is the ball that's rol-ling on, For Tip-pi-ca-noe, and Ty-ler too, And with them we'll beat lit-tle Van, Van is a us'd up man, And with them we'll beat lit-tle Van.

1840 Election Results