The Rise of a Mass Democracy

1. The Rise of a Mass Democracy 1830 - 1840

2. Jackson & the Bank • Distrusted monopolistic banking (BUS) • BUS chartered had to be renewed 1836 • Clay tried to renew charter in Senate in 1834 • Clay’s plan • Get recharter bill through congress & send it to Jackson • Signs it – alienated west • Veto it – alienated wealthy & influential groups in the East • (“best people” were only a minority now)

3. Jackson’s Response to Clay • Bank vetoed by Jackson • Supreme Court had already ruled bank was constitutional (McCulloch v. Maryland (1819) • Jackson acted as though he regarded the executive branch as superior to the judicial branch • Viewed bank as anti-western & anti-American • Many stockholders were foreign • Amplified the power of the veto • Vetoed because he personally believed it was harmful to the nation

4. Anti-western strong hostility to the “wildcat banks” that provided financial fuel for western expansion Nicholas Biddle – Pres. lent funds where they would make influential friends Financial sound organization Reduced bank failures Issued sound bank notes Made credit & currency reasonably abundant Safe depository for gov’t funds BUS

5. Election of 1832 • Clay – National Republican • Jackson – Democratic • First 3rd Party: Anti-Masonic Party • William Wirt • Opposed the fearsome secrecy of the Masonic order • Political support in New York & spread to middle Atlantic & New England states • Jackson was a Mason/ Anti-Jackson Party • Support from evangelical Protestant groups seeking to use political power to effect moral & religious reforms

6. Election conti. • National nominating conventions to name candidates • Platforms adopted by Anti-Masons & National Republicans • Publicizing their positions on the issues • Clay had financial support from BUS & Jackson haters/ wealthy & elite • Jackson won easily (219 – 49) • Poor easily outnumbered the rich

7. Biddle’s Bank • Jackson decided to weaken the bank • Removed federal deposits • No new deposits & gradually shrink existing deposits • Goal – bleed the bank dry & ensure its demise when its charter expired in 4 years • Federal deposits placed in state banks “pet banks” • “Biddle’s Panic” – called in loans hoping to force a reconsideration of the charter by Congress

8. Death of the Bank - 1836 • Jackson authorized the treasury to issue a Specie Circular • A decree that required all public lands to be purchased with “hard” money • Brought hard times & hard feelings for the West

9. Political Parties • 1828 –Democratic-Republicans of Jackson became known as the Democrats • Jackson’s opponents – Whigs • Name chosen to show opposition to the monarchy

10. Birth of the Whigs • First emerged in the Senate (1834) • Clay & Calhoun tried to censure Jackson for his removal of federal deposits from the BUS • Attracted groups alienated by Jackson • Supporters’ of Clay’s American System • Southern states’ righters offended by Jackson’s stand on nullification • Larger northern industrialists & merchants • Evangelical Protestants associated with the Anti-Masonic Party

11. Presidential Election of 1836 • Strategy for Whig party • Run several prominent “favorite sons” & scatter the vote so that no candidate get a majority of the votes • Whigs might have a chance in the House of Rep • Leading “favorite son” was William Henry Harrison • Democrat – Martin Van Buren • Hand picked by Jackson • Democrats win

12. Problems for Van Buren • Served one term & inherited Jackson’s enemies • Problems during his term • Rebellion in Canada (1837) threatened a war with GB • Slavery & the Texas annexation • Panic of 1837 • Divorce Bill

13. Lone Star State • Texas – owned by Spain (Florida Purchase Treaty of 1819) • Mexicans won their independence • 1823 – Mexico granted Stephen Austin huge tract of land • Bring 300 American families • Roman Catholic faith • Mexicanize the people

14. Texas • Stipulations ignored • Settlers remained American at heart • annoyed by the presence of Mexican soldiers • 1835 – population - 30,000 • Davy Crockett, James Bowie, Sam Houston • Problems resulted over the issue of slavery • Mexico had outlawed slavery in 1830 • Texans wanted to keep their slaves

15. Remember the Alamo • 1835 – Santa Anna wiped out local rights & raised an army to suppress Texans • 1836 – Texans declared their independence • Sam Houston – leader • Santa Anna with 6000 men head for Texas • Alamo – San Antonio • 13 day siege/ 200 Texans – 6000 Mexicans • Commander – Colonel W.B. Travis • Texans were defeated but Mexico had heavy loses

17. Santa Anna • Goliad • American volunteers defeated by 4000 Mexicans • April 21, 1836 - General Sam Houston • Wiped out invading force & captured Santa Anna near San Jacinto • Santa Anna signed treaties • Recognized Rio Grande as the southwestern boundary of Texas • Withdrawal of Mexican troops • Later went against treaties

18. Texas • Federal gov’t should have helped Mexico • American helped out the Texans • Jackson was torn • Admired the Texans • To recognize independence of Texas would touch off slavery issue • 1837 - Jackson recognized independence on the day he left office • Annexation petition // slavery issue

19. Bolstered the power of the executive branch Signaled a coming-of-age of the West Led the common people into national politics United them into the powerful & long lived Democratic Party Proved they could be trusted with the vote Encouraged the spoil system Deprived the nation of a sound central bank (BUS) Thousands of bank failures resulted Jacksonian Legacy

20. Panic of 1837 • Causes • rampant speculation • “Bank War” & Specie Circular • Failures of wheat crops • Failure of 2 prominent British banks – called in foreign loans

21. Panic cont. • Results • American banks collapsed by the hundreds/ “pet banks” • Commodity prices dropped • Sale of public lands fell off • Customs revenues dried up • Factories closed & workers lost jobs

22. Help for the Panic • Whigs suggested • Expansion of bank credit • Higher tariffs • Subsidies for internal improvements • Van Buren’s answer: “Divorce Bill” • Gov’t should divorce from banking altogether • Create an independent treasury • Never a popular idea

23. Election of 1840 • Martin Van Buren (D) • William Henry Harrison (W) – “Old Tippecanoe” • Issueless & enemyless / /John Tyler – VP running mate • Whigs • Benefited from economical problems // No platform • Democrats insulted the West • Harrison – impoverished old farmer (not true) • Harrison wins “Tippecanoe & Tyler Too” • 1st massive voter turnout

24. Democrats State’s rights & federal restraint in social & economic affairs Glorified rights of the individual On guard against “privilege” in gov’t Whigs Favored a renewed national bank, protective tariffs, internal improvements, public schools & moral reforms – prohibition & slavery Value of community Disliked leaders whose appeals to self-interest caused conflict Political Parties Both commanded loyalties of all kinds of Americans; all social classes