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
BIDDLE
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
As expected, Jackson vetoed the bill;
Congress was unable to overturn the
veto
It would force the Bank to become a
major issue in the 1832 election
• Congress rechartered the
Bank
ROUND 2: The Knockout Punch
Jackson could not abolish the bank
I can’t wait until 1836 for
that “Monster” Bank to
expire!! Remove all the
government’s deposits
Sec. of Treasury –
Louis McLane
He attempted other means to
destroy the “monster”
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
YOU’RE
FIRED!!!!!
Sec. of Treasury –
Louis McLane
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 and 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
Do you
agree with
this
political
cartoon?
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
Rallied behind
Jackson
Supported Jackson’s
choice, Martin Van
Buren, in the 1836
election
Anti-Masons
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
Give it to the states – The Distribution Act
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
Unemployment rose
Banks failed
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
Martin Van Buren
U.S. Federal
Banks
Gov’t
Election of 1840
Martin Van Buren
for the Democrats
Democrats had no
answer to these
campaign strategies
William Henry Harrison
for the Whigs
Whigs were more
united
Log Cabin Campaign
Election of 1840
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
• 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