Ch. 12, Sect. 4Jackson

and the B.U.S.

Jackson and the National BankJackson opposed the National Bank

– He had personally had problems b/c of banks

– Saw the bank as a symbol of Northern wealth and power

– Election issue in 1832– The “Common Man”

Jackson appealed to resented the banks

B.U.S. (Bank of the United States)• Biddle, Clay and Webster try to renew the BUS

charter• Jackson is suspicious of the BUS, sees it as a

threat to democracy b/c of its influence and its loans to “corrupt” politicians

• Jackson rouses anger of the people against BUS

• Jackson puts funds in “pet banks,” especially in the South and West

• Bank loses charter, eventually goes out of business.

B.U.S. (Bank of the United States)

HISTORICAL CONSEQUENCES:

1.Banking shifts from Philly to NYC and smaller banks (the “Pet Banks”)

2. Clay and Webster create a new political party, the Whigs, to oppose Jackson and the Democrats.

Jackson’s Legacy

• Jackson “anoints” Martin Van Buren to become president after him and to lead the Democratic Party.

• VP Martin van Buren becomes President in 1837– Won election with Jackson's support– Bank Problems

• Wildcat or “Pet” banks cause inflation• Panic of 1837

PANIC OF 1837 Causes and Effects

How much of the Panic of 1837 was

Van Buren’s fault?

Fed $ put in“Pet”

Banks

1836“run” on

BankNotes

Banks stop accepting

paper $

Bankclosings

Unemployment& Recession

Run-Away Inflation

results

http://ww

w.usconstitution.com

/william

henryharrison_campaignposter.jpg

WilliamHenry

Harrison

Whig Party Candidate

1840

“Complete Explanation:A crude satire on the obstacles facing Van Buren's reelection effort in 1840. Weighed down by a large bundle labeled "Sub Treasury," Van Buren follows the lead of Andrew Jackson toward the White House. His way is blocked by barrels of "Hard Cider" and log cabins, symbolizing the popular appeal of Harrison's candidacy. In the right distance the Capitol is visible, and in the left distance Van Buren's home at Kinderhook. A mischievous youth stands behind Van Buren thumbing his nose.” Website design © 2005 HarpWeek, LLC & Caesar Chaves DesignAll Content © 1998-2005 HarpWeek, LLC

The Whigs and the Democrats:How were the parties similar and different

in the Campaign of 1840?

Election of 1840Van Buren (Dem) vs. Harrison

(Whigs) Whigs steal Jackson’s political strategy:

Run an old war hero as a “man of the people”= William Henry Harrison,

Gov. of Indiana and “Hero” of Tippecanoe

IRONY= Harrison was the aristocrat, Van Buren had grown up in

poverty.

Harrison wins, then dies after 4 weeks in office.

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What is the significance of

the Western vote in this election?

John Tyler: a president without a Party

1841: Tyler assumes Presidency after Harrison’s death

Tyler turns out to be more of a Democrat than a Whig!