Lesson 3 Jackson and The Bank

What were Jackson's vies on the Second Bank of the United States?

Like many other westerner's, Jackson viewed the bank as a monopoly that favored wealthy Easterners and limited western growth.

What happened after the formation of the Independent Federal treasury?

Members of Vans Buren's Democratic Party sided with the Whig's, this divided the Democratic Party and gave the Whig's a chance to win the election of 1840.

Nicholas Biddle

- president of the Bank of the United States; known for bribes and corruption, President Jackson disliked him because Biddle was from a wealthy family and grew up educated and experienced in financial matters. Jackson came from humble beginnings and was self-made.

Independent Federal Treasury

Van Buren persuaded congress to create this, This meant that the government no longer had to deposit its money in private banks, it would keep its money in the federal treasury instead.

What was President Van Buren's reaction to the Panic of 1837?

He did little to help the crisis. He believed in the principle of Laissez-faire- that government should interfere as little as possible with he nation's economy.

How did Jackson destroy the national bank?

He had government funds deposited in state banks.

What did Jackson do to "kill" the Second Bank of the United's States?

He ordered all government deposits withdrawn from the bank, and placed into smaller state banks. In 1836 he refused to sign a new charter for the Bank, and it closed.

Symbol

A word or object that stands for or represents something else

institution

An organization that has an important purpose in society.

Why did John Tyler's policies differ from those of the Whig party?

Because he had once been a democrat. He was put on the ballot with Harrison to attract Southern voters. He began to veto several bills sponsored by the Whig party and they became outraged. He was expelled from the Whig party.

Why did Congress set up the second Bank of the United States?

Congress set up the Bank in 1816 to hold the federal governments money and to control the nation's money supply. President Jackson disliked the Second Bank even before he was president. Private bankers ran the bank. Its President was Nicholas Biddle, he was not an elected official.

What was The biggest success of Tylers presidency?

Foreign relations, in 1842 the US and Great Britain signed the Webster-Ashburton treaty.

What was the strategy of the Whigs in the election of 1840?

Harrison versus Van Buren, Harrison needed the support of the workers and farmers who had previously voted for Jackson. The Whigs portrayed Harrison as a frontiersman like Jackson. The Democrats attacks played into the Hands of the Whigs and they used the log cabin as their symbol. They presented Harrison as a man of the people. And they portrayed Van Buren as a snob. They blames him for the depression and for spending the peoples money on expensive furniture for the White House.

What was the result of Jackson's' Veto of the renewal of the Second Banks charter?

Jackson vetoed the bill arguing that it was unconstitutional. Clay and Webster's plan had backfired. Jackson's veto of the bill actually was supported by the people and he was re-elected. He then decided to "kill" the bank even before its current charter ended.

How was the Second Bank of the United States connected to the Election of 1832?

Jackson's opponents planned to use the bank to defeat him in the 1832 presidential campaign. Senators Henry Clay and Daniel Webster were friends of Biddle. They persuaded Biddle to apply early for a new charter - a government permit to run the bank - even though the bank's charter did not expire until 1836, they though this would force him to take action against the bank.

John Tyler

On the Whig ticket in 1840 as Vice Presidential candidate to William Henry Harrison to attract the vote of the states' rightists, He became the youngest President of the US at that time at age 50, after taking office when President Harrison died.

Clay and Webster

Opponents of Jackson, They believed that the Bank had the support of the American people. They thought that if Jackson tried to veto, or reject, the renewal of the charter, he would lose support. Henry Clay wanted to run for president, he had Webster felt that Jackson's Veto would help Clay defeat Jackson in the 1832 election.

The Panic of 1837

Started as Van Buren had just taken office as the President of the United States. The panic was in part an effect of Jackson's victory over the Bank of the United States. State banks started issuing huge amounts of bank notes. The government stopped accepting them because they feared they had little value. People began to question the value of their banknotes and this started a panic.

How was the Second Bank of the United States an institution?

The Bank's assigned duties made it a powerful institution. Many western families depended on being able to borrow money from the bank in order to run their farms. The bank had strict policies that made it difficult to obtain theses loans.

William Henry Harrison

The Whig party candidate that ran against van Buren for his reelection, He was a hero of the War of 1812, Harrison gained fame with his victory over Tecumseh's followers at the Battle-of Tippecanoe. He was elected to office in 1840, gave his acceptance speech in the bitter cold without hat or coat, and died of pneumonia 32 days later.

What was the result of the Whigs tactics in the election of 1840?

The Whig's Tactics worked. A record number of voters turned out to vote for Harrison, making him the first Whig Party President.

The Log Cabin Campaign

The log Cabin was a symbol for Harrisons Campaign, it was a result of the Democrats accusing Harrison of sitting in front of a log cabin and collecting a pension.

What was the result of the Panic of 1837?

This led to a depression, a severe economic downturn. Land values dropped, and banks failed. Businesses closed, and workers lost their jobs and farmers lost their land. Many people could not afford food or rent.

What was the purpose of the new treasury system?

This new system prevented the state and private banks from using federal money to back their banknotes. It helped to prevent further bank crisis.

Veto

To reject a bill and prevent it from becoming a law

The Whig Party

grew from a coalition of Jackson's opponents, they also included former National Republicans. The Whigs controlled the House of Representatives and were trying to prevent Van Buren from getting the majority of the electoral vote.

The Webster-Ashburton Treaty dealt with the question of

the United States' boundary with Canada., The agreement settled a long dispute over the border between Maine and Canada. It set a firm U.S.-Canadian border from Maine to Minnesota

The Whig Party was least successful at

uniting behind a strong national leader, they often disagreed and voted by region instead of party. They were badley divided over the issue of slavery. This lead to the party to eventually disappearing by the early 1850's. Many Northern Whig's left the party and helped form a new political party- The Republican Party that we have today.