Transcript Andrew Jackson & the National Bank

Essential Question:
Champion of
the
“Common Man”?
OR
“King”
Andrew?
Jackson’s Faith
in the “Common Man”

Intense distrust of Eastern
“establishment,” monopolies, &
special privilege.

His heart & soul was with the
“plain folk.”

Belief that the common man was
capable of uncommon
achievements.
The Spoils System
• “Give common people a chance to
participate in Gov.”
• “Unless regular turnover of
personnel, officeholders would
become inefficient and corrupt”
• Gave jobs to many friends
• Kitchen Cabinet
• Fired Adams workers
The Reign of
“King Mob”
The Removal of Natives
• “Civilized Tribes” living in valuable land
in GA, NC, SC, AL, MS, and TN
• Indian Removal Act – law which
provided funds for Fed. Gov. to
negotiate with Natives to move west
• 1830 – pressured Choctaw to move from
MS
• 1831 – ordered US troops to forcibly
remove Sauk and Fox from IL and MO
• 1832 – forced Chicasaw to leave AL & MS
The Cherokee Nation
After 1820
Federal Court Cases
• Cherokee’s brought GA to court, John
Marshal refused to hear the case
• Samuel Austin Worcester stood up for
Indians in court since he was a citizen
• Worcester vs. Georgia (1832) – court ruled
Cherokees are a distinct nation that GA can
not regulate by law and land can not be
invaded
• Jackson refused to obey it “John Marshall
has made his decision now let him enforce it.”
The Trail of Tears
• Some Cherokees began to promote relocation
• US Fed agents heard of this group, had them
sign “Treaty of New Echota”
• Last 8 million acres of Cherokee land given to US fed
gov. in exchange for $5 mil and land in OK
• Later, Pres. Van Buren forced the removal of
the remaining Cherokees
• Oct. 1838 – Cherokees sent on 800 mile trip on
foot, many died on the way, had $ and livestock
stolen, and destination land was far inferior to
their previous land.
Indian Removal
Trail of Tears (18381839)
Jackson’s Professed “Love” for
Native Americans
1828 “Tariff of Abominations”
• South hurt by tariffs
– less British goods being bought by US
– less cotton sold to Britain
– also forced to buy expensive northern
goods
• South felt “North getting rich at
Southern expense.”
• Calhoun, normally a nationalist, spoke
up for his home hurting state
The Webster-Hayne
Debate
Sen. Daniel
Webster
[MA]
Sen. Robert
Hayne
[SC]
1830
Webster:
Liberty and Union, now and
forever, one and inseparable.
Jackson:
Our Federal Union—it must be
preserved.
Calhoun:
The Union, next to our liberty,
most dear.
South Carolina Rebels
• 1832 – Congress passed another tariff
• SC said “unauthorized by Constitution” and
threatened to secede from the Union if
customs officials tried to collect duties
• Jackson declared SC act treasonous and
threatened to hang Calhoun.
• Jackson Passed FORCE BILL
– Allowed fed gov. to use the army and navy against
SC if state authorities resisted.
• Henry Clay’s compromise – gradually lower
tariff over 10 years. Temporarily solved
problem.
1832 Election
Results
Main
Issue?
Andrew Jackson
& the National Bank
• Jackson’s hatred for the National Bank:
– had lost $ due to speculation early in his
life so skeptical of banks
– Felt conservative credit policies caused
Panic of 1819
– Symbolized Eastern wealth and power
– Felt it cared for wealthy, not for common
man
– Threatened American Democracy b/c its
influence on the economy
– Could bribe officials or buy elections to
control the gov.
Andrew Jackson
& the National Bank
• Promoted to public that the bank
served to “make the rich richer and the
potent more powerful.”
• Some basis for hatred:
– Fed. Taxes deposited in BUS rather than
state or local banks  gave BUS advantage
over other banks
– BUS stockholders earned interest on Fed.
Tax deposits, not taxpayers
– Bank President gave cheaper loans to
Congressman than average citizen
The “Monster” Is
Destroyed!

1832  Jackson vetoed the
extension of the 2nd
National Bank of the
United States.

HUGE EXPANSION OF PRESIDENCY
Jackson kills the BUS
• 1832 – Jackson pressures Sec. of
Treasury to withdraw gov. deposits from
the bank and put them in state banks
“pet banks”
• Sec. of Treasury refused, Jackson fired
him, replaced with new one
• To save bank, Biddle called in repayment
of loans  this hurt everyone, and he
lost support
The “Monster” Is
Destroyed!

1832  Jackson vetoed the
extension of the 2nd
National Bank of the
United States.

HUGE EXPANSION OF PRESIDENCY

PET BANKS

1836  the charter expired.

1841  the bank went bankrupt!
The Downfall of
“Mother Bank”
The Specie
Circular (1836)

“wildcat banks” – printed bank
notes wildly – made currency
worthless

Declared - Only could buy future
federal land only with gold or
silver  people rushed to Banks to
trade in

Banks stopped accepting paper
currency = PANIC of 1837
Results of the Specie
Circular
$ Banknotes loose their value.
$ Land sales plummeted.
$ Credit not available.
$ Businesses began to fail.
$ Unemployment rose.
The Panic of 1837!
Jackson’s use of the Veto
• Vetoed more bills than all the
previous presidents put together
(12x!)
• First to use the pocket veto
– a delaying tactic, President does
not sign a bill w/in 10 days of the
end of the Congressional term,
preventing it from becoming law.
The 1836 Election
Martin Van Buren
“Old Kinderhook”
[O. K.]
The Panic of 1837
Spreads Quickly!
King Andrew
• Many, even fellow democrats, felt
he acted more like a king than
President.
• Dubbed “King Andrew the first.”
• Creation of WHIG PARTY after
group in Britain who tried to limit
royal power.
Praising Andrew Jackson for his destroying the Second Bank of the United States with
his "Removal Notice" (removal of federal deposits). Nicolas Biddle portrayed as The
Devil, along with several speculators and hirelings, flee as the bank collapses while
Jackson's supporters cheer.