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.
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.
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."