Effects of the War on the Bank

Review - Jackson and the Bank War

July 4, 1832 Bill for renewal came to Jackson on July 4, 1832 ◦ Jackson was sick in bed Jackson vetoed the bill that would give the bank a new charter Jackson vetoed the bill that would give the bank a new charter ◦ “The bank, Mr. Van Buren, is trying to kill me. But I will kill it!”

Jackson pulled govt. funds Jackson pulled govt. funds ◦ Deposited the money in state banks “pet banks”  Opponents called them “pet banks”  By refusing to sign a new charter of the bank in 1836, Jackson killed it. Nation prospered during Jackson’s last term Nation prospered during Jackson’s last term

Era of Van Buren Whig Party formed as opponentstoJackson Whig Party formed as opponents to Jackson ◦ (“King Andrew I”) Martin Van Buren, Jackson’s V.P., easily won the Election of 1836 Martin Van Buren, Jackson’s V.P., easily won the Election of 1836 Within months people feared for the economy ◦ Panic of 1837 exchanged paper money for gold or silver People exchanged paper money for gold or silver

Many state banks began issuing huge amounts of bank notes (paper money) Government refused to accept state bank notes for land sales ◦ Lead people to question their value Panic of 1837 lead to a depression Panic of 1837 lead to a depression ◦ Workers lost job, farmers lost land, people could not afford food or rent

Depression and Change Banks could not keep up Banks could not keep up & most went into default Some believed the gov’t should help Some like Clay & Webster believed the gov’t should help ◦ Van Buren believed the economy would improve on its own Van Buren blamed for the Panic Van Buren blamed for the Panic

Van Buren and the Panic of 1837

Rise of the Whig Party Whig Party named after the anti-monarchy party in England William Henry Harrison Supported William Henry Harrison (Ohio) for president in 1840 ◦ Hero of Battle of Tippecanoe and Battle of the Thames John Tyler John Tyler (Virginia) was tabbed as Harrison’s VP candidate

Election of 1840 Whigschose William Henry Harrison Whigs again chose military hero William Henry Harrison John Tyler as V.P., ◦ Virginian John Tyler as V.P., a former Democrat Made the most of his nickname “Old Tippecanoe” “Tippecanoe & Tyler too!” ◦ Whig campaign slogan – “Tippecanoe & Tyler too!” Whigs appealed to “common people Whigs appealed to “common people” Used the log cabin as symbol ◦ Van Buren blamed for the depression

The Election of 1840

William Henry Harrison and John Tyler Harrison’s speech in the cold led to his death Harrison’s long speech in the bitter cold led to his death one month after inauguration ◦ First time a president died in office Tyler became president ◦ Vice-President Tyler became 10 th president ◦ Webster-Ashburton Treaty ◦ Webster-Ashburton Treaty between US and Britain ◦ Border between US and Canada

William Henry Harrison

John Tyler