Chapter 11 The Jackson Era (1824-1845)Section 3 Jackson and the Bank

MAIN IDEA:

Economic issues affected the presidencies of Andrew Jackson & Martin Van Buren.

veto/vetar

To reject a bill an prevent it from

becoming a law.

depression/depresíon

a period of low economic activity and widespread unemployment

laissez-faire/laissez-faire

Policy that government

should interfere as little as

possible in the nation’s economy.

log cabin campaign /campaña de cabana rustica

Name given to William Henry Harrison’s

campaign for presidency in 1840, from the Whigs’

use of a log cabin as their symbol

How do economic issues affect the president and presidential elections?

The National Bank Andrew Jackson hated the

Bank of the United States Jackson felt it helped the

wealthy Easterners The bank was a powerful

institution that held the federal governments money

The Bank’s president, Nicholas Biddle, represented everything Jackson disliked

Jackson was a self-made man while Biddle was born into a wealthy family

A. A

B. B

C. C

D. D

Jackson attacked the Bank of the United States because

A. it was being run by corrupt elected officials.

B. it provided loans toall citizens.

C. it financed foreign business deals that put Americans out of work.

D. it was controlled by wealthy Easterners.

Campaign of 1832 Jackson’s opponents, Henry

Clay and Daniel Webster, were friends of Biddle

Clay and Webster planned to use the Bank to defeat Jackson

They persuaded Biddle to apply for an early charter (The old one did not expire until 1836)

Clay and Webster felt that if Jackson vetoed the charter it would lead to his defeat

Clay could then be elected president

The Bank’s Charter When the bill to renew the

Bank’s charter came to Jackson to sign, he was sick in bed

Jackson told his friend Martin Van Buren- “The bank…is trying to kill me. But I will kill it!”

Jackson vetoed the bill Jackson felt the Bank was

unconstitutional (Contrary to McCulloch v. Maryland)

“The laws… make the rich richer”

Does this cartoon support the President or the Bank?

The Election of 1832 The plan for gaining

support for Clay backfired

Most people supported Jackson’s veto

Jackson was reelected Jackson chose to “kill”

the Bank ahead of the 1836 schedule

All money was withdrawn and put into smaller state banks

In 1836 he refused to sign a new charter for the Bank, and it closed

Election of 1836 Jackson decided not to

run for a third term and the Democrats chose Martin Van Buren

A new party, the Whigs, nominated three candidates (Each had a following in different parts of the country)

Jackson’s popularity helped Van Buren win easily

Shortly after Van Buren became president, the country entered a severe economic depression

The Panic of 1837 The depression began with the Panic of 1837 Land values dropped, investments declined, and

banks failed 1000s of businesses closed and people lost jobs In the South,

cotton prices dropped to record lows

Farmers went into debt and lost their land

In the cities, many could not afford food or rent

President Van Buren Believed in laissez-faire (Like

Jefferson) Van Buren persuaded Congress

to establish an independent federal treasury in 1840

The government will not deposit money in private banks (Like they did under Jackson)

The private banks had used government funds to back their banknotes

The new treasury system would keep this from happening and avoid crises

Van Buren’s own party along with the Whigs criticized the act

The Whigs The Whigs nominated

William Henry Harrison, a hero of the War of 1812

John Tyler, a planter from Virginia, was Harrison’s running mate

Harrison won national fame for defeating Tecumseh’s followers at the Battle of Tippecanoe

The Whig’s used the slogan “Tippecanoe and Tyler Too”

To win the election Harrison had to gain support from the laborers and farmers who supported Jackson

A. A

B. B

C. C

D. D

What was the reason the Whigs won the 1840 election?

A. They made a “corrupt bargain” with Henry Clay to steal the presidency.

B. The Democrats split over Van Buren.

C. They ended the Panic of 1837.

D. They gained support from farmers and laborers rather than the wealthy elite.

The Log Cabin Campaign Harrison and the Whigs chose a log cabin as their symbol

Harrison was rich, but wanted to look like a “man of the people”

The Whigs criticized Van Buren as “King Martin” that spent the peoples money on fancy furniture for the White House

The Log Cabin Campaign worked- Harrison won by a wide margin

Harrison became the first Whig president

Harrison’s Inauguration Inauguration day

1841- bitter cold Harrison insisted on

giving his speech without a hat or coat

He died 32 days later Served the shortest

term of any American President

VP John Tyler became president

Tyler’s Presidency John Tyler had once been a Democrat The Whigs added him to the ticket

with Harrison to attract Southern voters

Tyler vetoed many Whig sponsored bills (Including a recharter of the Bank)

His lack of party loyalty outraged many Whigs

Whig leaders in Congress expelled Tyler from the party

The Whigs could not agree on their party’s goals

They voted according to sectional ties Henry Clay (Now a Whig) lost the

election of 1844 to Democratic candidate James Polk

How do economic issues affect the president and presidential elections?

- Closing of the Bank

- The Panic of 1837

- Economic depression