The Rise of a Mass Democracy

Jackson & the Bank Distrusted monopolistic banking (BUS) BUS chartered had to be renewed 1836 –Clay tried to renew charter in Senate in 1834 Clay’s plan –Get recharter bill through congress & send it to Jackson Signs it – alienated west Veto it – alienated wealthy & influential groups in the East –(“best people” were only a minority now)

Jackson’s Response to Clay Bank vetoed by Jackson –Supreme Court had already ruled bank was constitutional (McCulloch v. Maryland (1819) –Jackson acted as though he regarded the executive branch as superior to the judicial branch Viewed bank as anti-western & anti-American –Many stockholders were foreign Amplified the power of the veto –Vetoed because he personally believed it was harmful to the nation

BUS Anti-western –strong hostility to the “wildcat banks” that provided financial fuel for western expansion Nicholas Biddle – Pres. –lent funds where they would make influential friends Financial sound organization –Reduced bank failures –Issued sound bank notes –Made credit & currency reasonably abundant –Safe depository for gov’t funds

Election of 1832 Clay – National Republican Jackson – Democratic First 3 rd Party: Anti-Masonic Party –William Wirt –Opposed the fearsome secrecy of the Masonic order –Political support in New York & spread to middle Atlantic & New England states –Jackson was a Mason/ Anti-Jackson Party –Support from evangelical Protestant groups seeking to use political power to effect moral & religious reforms

Election conti. National nominating conventions to name candidates Platforms adopted by Anti-Masons & National Republicans –Publicizing their positions on the issues Clay had financial support from BUS & Jackson haters/ wealthy & elite Jackson won easily (219 – 49) –Poor easily outnumbered the rich

Biddle’s Bank Jackson decided to weaken the bank –Removed federal deposits No new deposits & gradually shrink existing deposits –Goal – bleed the bank dry & ensure its demise when its charter expired in 4 years Federal deposits placed in state banks “pet banks” “Biddle’s Panic” – called in loans hoping to force a reconsideration of the charter by Congress

Death of the Bank Jackson authorized the treasury to issue a Specie Circular –A decree that required all public lands to be purchased with “hard” money Brought hard times & hard feelings for the West

Political Parties 1828 –Democratic-Republicans of Jackson became known as the Democrats Jackson’s opponents – Whigs –Name chosen to show opposition to the monarchy

Birth of the Whigs First emerged in the Senate (1834) –Clay & Calhoun tried to censure Jackson for his removal of federal deposits from the BUS –Attracted groups alienated by Jackson Supporters’ of Clay’s American System Southern states’ righters offended by Jackson’s stand on nullification Larger northern industrialists & merchants Evangelical Protestants associated with the Anti-Masonic Party

Presidential Election of 1836 Strategy for Whig party –Run several prominent “favorite sons” & scatter the vote so that no candidate get a majority of the votes –Whigs might have a chance in the House of Rep –Leading “favorite son” was William Henry Harrison Democrat – Martin Van Buren –Hand picked by Jackson Democrats win

Problems for Van Buren Served one term & inherited Jackson’s enemies Problems during his term –Rebellion in Canada (1837) threatened a war with GB –Slavery & the Texas annexation –Panic of 1837 –Divorce Bill

Lone Star State Texas – owned by Spain (Florida Purchase Treaty of 1819) Mexicans won their independence 1823 – Mexico granted Stephen Austin huge tract of land –Bring 300 American families –Roman Catholic faith –Mexicanize the people

Texas Stipulations ignored Settlers remained American at heart –annoyed by the presence of Mexican soldiers 1835 – population - 30,000 Davy Crockett, James Bowie, Sam Houston Problems resulted over the issue of slavery –Mexico had outlawed slavery in 1830 –Texans wanted to keep their slaves

Remember the Alamo 1835 – Santa Anna wiped out local rights & raised an army to suppress Texans 1836 – Texans declared their independence –Sam Houston – leader –Santa Anna with 6000 men head for Texas Alamo – San Antonio –13 day siege/ 200 Texans – 6000 Mexicans –Commander – Colonel W.B. Travis –Texans were defeated but Mexico had heavy loses

Santa Anna Goliad –American volunteers defeated by 4000 Mexicans April 21, General Sam Houston –Wiped out invading force & captured Santa Anna near San Jacinto –Santa Anna signed treaties Recognized Rio Grande as the southwestern boundary of Texas Withdrawal of Mexican troops –Later went against treaties

Texas Federal gov’t should have helped Mexico –American helped out the Texans Jackson was torn –Admired the Texans –To recognize independence of Texas would touch off slavery issue Jackson recognized independence on the day he left office –Annexation petition // slavery issue

Jacksonian Legacy Bolstered the power of the executive branch Signaled a coming-of-age of the West Led the common people into national politics United them into the powerful & long lived Democratic Party Proved they could be trusted with the vote Encouraged the spoil system Deprived the nation of a sound central bank (BUS) –Thousands of bank failures resulted

Panic of 1837 Causes –rampant speculation –“Bank War” & Specie Circular –Failures of wheat crops –Failure of 2 prominent British banks – called in foreign loans

Panic cont. Results –American banks collapsed by the hundreds/ “pet banks” –Commodity prices dropped –Sale of public lands fell off –Customs revenues dried up –Factories closed & workers lost jobs

Help for the Panic Whigs suggested –Expansion of bank credit –Higher tariffs –Subsidies for internal improvements Van Buren’s answer: “Divorce Bill” –Gov’t should divorce from banking altogether Create an independent treasury –Never a popular idea

Election of 1840 Martin Van Buren (D) William Henry Harrison (W) – “Old Tippecanoe” –Issueless & enemyless / /John Tyler – VP running mate Whigs –Benefited from economical problems // No platform Democrats insulted the West –Harrison – impoverished old farmer (not true) Harrison wins “Tippecanoe & Tyler Too” 1 st massive voter turnout

Political Parties Democrats State’s rights & federal restraint in social & economic affairs Glorified rights of the individual On guard against “privilege” in gov’t Whigs Favored a renewed national bank, protective tariffs, internal improvements, public schools & moral reforms – prohibition & slavery Value of community Disliked leaders whose appeals to self-interest caused conflict Both commanded loyalties of all kinds of Americans; all social classes