Andrew Jackson and the Bank War

Jul 24, 2024

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."