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- Wanted more money in circulation - Gold and silver were the only basis for money
- Objected the Bank of the U.S. - Condemned all Banks that issued bank notes
- Rapid economic growth/ speculation - Embraced older ideas of “public virtue”
- Consisted largely of bankers and their allies - Jackson supported Hard Money
- Jackson had been involved in some grandiose land and commercial speculations based on paper credit
- His business had failed and he had fallen deeper into debt as a result of the Panic of 1797, after that he was suspicious of
all banks and all paper currency
- Jackson made it clear that he wouldn’t favor renewing the charter of Bank of the US, which was due to expire in 1836
- Biddle began granting financial favors to influential men who he thought might help him preserve the bank
- Congress passed the recharter bill; Jackson vetoed it
- Jackson defeated Clay with 55 percent of the popular vote and 219 electoral votes
B. The “Monster” Destroyed
- Jackson was now more determined then ever to destroy the “monster” Bank
- He decided to remove the government’s deposits from the bank
- His Secretary of Treasury believed it would destabilize the financial system and refused to give the order
- Jackson fired him and appointed a new one; new secretary similarly balked, Jackson fired him too
- Taney began placing the government’s deposits in a number of state banks called “pet banks”
- When administration began to transfer funds to the pet banks Biddle called in loans and raised interest rates
- He realized his actions were likely to cause financial distress, he hoped a short recession would persuade Congress to re-
charter the Bank
- Financial conditions worsened in the winter of 1833-34; supporters of the bank blamed Jackson’s polices for recession
- Biddle contracted credit too far even for his own allies in the business community
- To appease the business community, Biddle at last reversed himself and began to grant credit in abundance
> Ended his chances of winning a recharter of the bank
- Jackson had won a considerable political victory
- When the Bank of the United States died in 1836 the country lost a valuable financial institution
> left with fragmented and unstable banking system
C. The Taney Court
- Taney gradually helped modify Marshall’s vigorous nationalism
- Charles River Bridge v. Warren Bridge of 1837
- Decision reflected Jacksonian ideal: the key to democracy was an expansion of economic opportunity
V. Changing face of American Politics
- Jackson’s forceful tactics in crushing the nullification movement and the Bank of the US galvanized a growing pposition
coalition known as the Whigs
> Scholars now call it the “Second Party System”
A. Democrats and Whigs
- Democrats envisioned expanding economic and political opportunities for white males
> Role of govt. should be limited and it should remove obstacles to opportunity
>Meant defending the Union and attacking centers of corrupt privilege
- Jackson said in his farewell address “The planter, farmer, mechanic and laborer all know that their success depends on
their own industry and economy”
- Whigs favored expanding the power of the federal govt.
> Encouraged industrial and commercial development into a consolidated economic system
>Whigs embraced material progress, but were cautious about westward expansion (rapid growth = instability)
> Envisioned an industrial future as a commercial and manufacturing power
> Favored establishing banks, corporations and other modernizing institutions
- Whigs were strongest among merchants & manufacturers of NE, planters in the South, and farmers & rising commercial
class of West
> Advocated internal improvements, expanding trade, and rapid economic progress
- Democrats drew support from smaller merchants and workingmen of the NE
> Southern planters suspicious of industrial growth
> Westerners favored a predominantly agrarian economy
- Whigs were wealthier than Democrats > more aristocratic backgrounds & more commercially ambitious
- Religious and ethnic divisions played an important role in determining the constituencies of the two parties
> Irish and German Catholics tended to support the Democrats
> Evangelical Protestants gravitated toward the Whigs
- Whigs tended to divide their loyalties among three figures
> “Great Triumvirate”: Henry Clay, Daniel Webster, and John Calhoun
- Clay won support from those who favored his program for internal improvements and economic development,
> Called the American System
> He ran for president three times and never won
- Daniel Webster won broad support with his passionate speeches in defense of the Constitution and the Union
> His close connection with the Bank of the US and the protective tariff, his reliance on rich men for financial support
and his excessive fondness for brandy prevented him from winning the office
- John C. Calhoun never considered himself a true Whig
> He had tremendous strength in the South and supported a national bank
- Democrats were united behind Andrew Jackson’s personal choice for president, Martin Van Buren
- Whigs could not even agree on a single candidate, while Webster represented the party in New England
- In the end, Van Buren won easily with 170 electoral votes to 124 for all his opponents
B. Van Buren and the Panic of 1837
- Andrew Jackson retired from public life in 1837, the most loved political figure of his age
- Van Buren encountered economic difficulties that devastated the Democrats and helped the Whigs
- In 1836, Jackson issued the “specie circular”
> Payment for public lands would only be accepted utilizing gold or silver
- It provided a financial panic that began in the first months of Van Buren’s presidency
> Hundreds of banks failed, unemployment grew, and bread riots broke out in larger cities
- Prices fell, especially the price of land, railroad and canal projects failed
- It was the worst depression in American history to that point, and it lasted for five years
> A political catastrophe for Van Buren and the Democrats
- Van Buren did succeed in establishing a ten-hour workday, one of only a few of legislative achievements
- The most important was the creation of a new financial system to replace the Bank of the US
> Govt. would place its funds in an independent treasury in Washington
- In 1840, the administration finally succeeded in driving the measure through both houses of Congress
C. The Log Cabin Affair
- Whigs held the first national nominating convention and chose William Henry Harrison and John Tyler for VP
- Harrison was a renowned soldier, a famous Indian fighter, and a popular national figure
- Democrats nominated Van Buren
- Harrison won the election with 234 electoral votes and a popular vote majority of 53 percent
D. The Frustration of the Whigs
- Harrison died of pneumonia one month after taking office VP Tyler succeeded him
- Tyler was a former Democrat, but there were still signs of his Democratic past in his approach to public policy
- Refused to support Clay’s attempt to re-charter a Bank of the US
- Vetoed several internal improvement bills that Clay and other congressional Whigs sponsored
- Finally, a conference of congressional Whigs read Tyler out of the party
E. Whig Diplomacy
- Webster-Ashburton Treaty of 1842 established a firm northern boundary between the US and Canada
> Along the Maine-New Brunswick border
- During the Tyler administration, the US established its first diplomatic relations with China
- In the Treaty of Wang Hya, Cushing secured most-favored-nation provisions
- He also won the Americans the right of “extraterritoriality”
> the right of Americans accused of crimes in China to be tried by American, not Chinese, officials
- In the next ten years, American trade with China steadily increased
- In the election of 1844, the Whigs lost the White House