Andrew Jackson and the Bank War

• Disney Video on Jackson
  • Flattering portrayal of Jackson
  • Disagreement on some points

Jackson's Battle with the Bank of the United States

• Situation Overview
  • Congress failed to override Jackson's veto
  • Jackson aimed to destroy the Bank of the United States
• Actions Taken
  • Claimed public mandate post-1832 re-election
  • First two choices for Secretary of the Treasury refused to comply
  • Roger B. Taney appointed as Secretary of the Treasury
    • Signed order removing federal deposits from the Bank (1833)
• Outcome
  • By 1836, the Bank became a private corporation
  • Jackson effectively defunded the Bank
  • Federal money moved to Jackson's 'pet banks' (state banks loyal to him)

Criticism & Consequences

• Criticism of Jackson
  • Labeled "backwood Caesar"
  • Accused of abusing power
• Economic Impact
  • Democrats viewed as reckless with nation’s credit system
  • Economy overheated & speculative bubble in Jackson's second term
• Species Circular Policy
  • Required federal land purchases in hard coin
  • Led to mass redemption of bank notes for specie
  • Over-extended state banks failed
  • Resulted in Panic of 1837
  • No FDIC insurance; complete loss of deposits

Political Impact

• Failure Consequences
  • Loss of life savings and business accounts
  • Panic of 1837 ensued
• Democratic Party Image
  • Seen as squandering taxpayer money
  • Corrupt alliance with reckless state bankers

Formation of the Whig Party

• Emergence of Whigs
  • Successor of National Republicans
  • Formed to unite Jackson's opponents
  • Included diverse anti-Jackson factions
• Party Landscape
  • Democrats (Jackson & Van Buren) vs. Whigs
  • Whigs opposed to Jackson's policies

Political Legacy

• Van Buren’s Challenge
  • Inherits Panic of 1837
  • Pays political price for Jackson’s policies

Summary

• Essence: Jackson’s dismantling of the Bank led to significant economic and political shifts, giving rise to the Whig Party and the Panic of 1837.
• Quiz Prompt: Review understanding of Jackson’s policies and the development of the Whig Party.

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Next Steps

• Take the King Andrew Jackson recap quiz.

Key Terms:

• Bank War
• Pet Banks
• Species Circular
• Panic of 1837
• Whig Party
• Roger B. Taney

Quiz: Expected knowledge on Jackson's bank policies and the Whig Party formation.

[Next Button] – Proceed to quiz.

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Sources: Lecture and Disney Video on Jackson For further reading, revisit lecture notes or class materials on Jackson and the economic policies of that era.

Useful Links:

• Link to recap quiz
• Link to lecture slides
• Link to supplementary reading materials
  • Scholarly articles/Books on Jackson and the Bank War, Whig Party development.

Reminders: Next class prep, follow up questions, discussion boards.

End of Notes Summary

• Core Idea: Understand Jackson's impact on banking, and the origins of the Whig Party
• Preparation: Review these notes for better quiz performance.
• Contact: Reach out to lecturer for clarifications or further explanations. Leverage office hours or email as applicable.

Quote:

"Jacksonian Democracy redefined U.S. politics and its economic landscape, paving the way for new political battles and partisan divides."