Andrew Jackson - President Jackson Attacks the National Bank lyrics

President Jackson Attacks the National Bank Lesson 3 Do Now: Answer the questions below. 1. Why did North Carolina want to nullify the federal law on new tariffs? (1-2 sentences) 2. What did John C. Calhoun believe about states' rights? (2 sentences) 3. The debate between John C. Calhoun and Daniel Webster over states' rights and federal power was most like the debate between (a) the Patriots and the Loyalists (b) the Antifederalists and the Federalists (c) England and France during the French and Indian War (d) the large states and small states during the Constitutional Convention BUILDING BACKGROUND President Jackson showed the authority of the federal government in the nullification crisis. He did not, however, always support the use of federal power. For example, he opposed the Second Bank of the United States, which was founded by Congress in 1816. The Second Bank of the United States was given a 20-year charter. This charter made the Bank the exclusive financial agent of America's federal government. The Bank held federal deposits, transferred federal funds between states, and dealt with any payments or receipts involving the federal government. It also printed paper currency (money). Around 80 percent of the Bank was privately owned, but Congress and the president supervised its operations. Many southern states opposed the Bank. Small farmers believed the Bank only helped wealthy businessmen. President Jackson believed the Bank was unconstitutional – that Congress did NOT have the power to regulate currency. Jackson believed the states should have the power to control the banking system. 1. Explain: Why did Jackson oppose the national bank? (1 sentence) Some states decided to take action. Maryland tried to pa** a tax that limited the Bank's operations. James McCulloch, cashier of the Bank's branch in Maryland, refused to pay this tax. The state of Maryland took him to court, and the resulting case went all the way to the U.S. Supreme Court. In McCulloch v. Maryland, the Supreme Court ruled that the national bank was constitutional. Congress pa**ed a law to renew the Bank's charter in 1832, but Jackson vetoed it when Congress sent it to him. 2. Identify: What power did the Supreme Court use in the paragraph above? (1 sentence) 3. Identify: What executive power did the Jackson use in the paragraph above? (1 sentence) Congress could not get the two-thirds majority needed to override Jackson's veto. Jackson also weakened the Bank's power by moving most of its funds to state banks. In many cases, these banks used the money to offer easy credit terms to people buying land. While this practice helped expansion in the West, it also led to inflation. In the summer of 1836 Jackson tried to slow this inflation. He ordered Americans to use only gold and silver – instead of paper state-bank notes – to buy government-owned land. This policy did not help the national economy as Jackson had hoped. Jackson did, however, improve the economy by selling government land and thus lowering the national debt. Still, many historians argue that Jackson's policies opened the door for future economic problems. 4. Evaluate: Jackson weakened the Bank's power. Were Jackson's actions effective? Explain why or why not. (2-3 sentences) While Andrew Jackson was still very popular with voters in 1836, he chose not to run for president again. Instead, Jackson and the Democrats nominated Vice President Martin Van Buren. Two years prior, in 1834, a new political party – called the Whig Party – had formed to fight against Jackson. The party's members called themselves Whigs, after an English political party that opposed the British monarchy. The Whig Party was making the point that Jackson was using his power like a king. The Whig Party wanted a president that did not use a great deal of power and a strong Congress. Unable to agree on a candidate, the Whigs chose four men to run against Van Buren. With the Whig Party's indecision and Jackson's support, Van Buren won the election. 5. Explain: Why did the Whig Party oppose Jackson? (1-2 sentences) Shortly after Van Buren took office, the country experienced the Panic of 1837, a severe economic depression. Jackson's banking policies and his unsuccessful plan to curb inflation contributed to the panic. But people blamed Van Buren even though it was Jackson's fault. In 1840 the Whigs united against the weakened Van Buren to stand behind one candidate, William Henry Harrison, an army general. Harrison won in an electoral landslide. The Whigs had achieved their goal of winning the presidency. 6. Cause & Effect: What caused the Panic of 1837? (2 sentences) 7. an*lyze: How did the Panic of 1837 affect the presidential election of 1840? (1-2 sentences) Primary Source: look at the political cartoon to answer the questions Jackson Against the Bank Historical Context: Andrew Jackson's fight with the Bank was the subject of many political cartoons, like this one. In this scene, Jackson is shown fighting a hydra that represents the national bank. The hydra is a mythological monster whose heads grow back when cut off. The heads of the hydra are portraits of politicians who opposed Jackson's policies. 8. an*lyze: Why did the cartoonist choose a hydra to represent the national bank? (2 sentences) Jackson's Bank War By 1832, the Second Bank of the United States had become the most important financial institution in the nation. Many Americans, however, hated the bank, especially farmers and land speculators who could not repay their loans after the agricultural market crashed during the Panic of 1819. Jackson himself had lost most of his money in 1819 and blamed the country's financial problems on the bank. Henry Clay, afraid that Andrew Jackson and the Democrats might not renew the bank's charter in 1836 – the year it was scheduled to expire –attempted to renew the charter several years early, in 1832. Clay also wanted to make the national bank a key issue in that year's presidential election. Congress pa**ed a law renewing the bank's charter, but President Jackson vetoed it, arguing that: o the national bank unfairly stifled competition from state banks and private banks o the national bank was unconstitutional – the Constitution says that only the federal government could regulate currency o the national bank encouraged speculation that caused panics and depressions o the national bank oppressed the poor while making rich financiers even wealthier. Jackson k**s the Bank Jackson interpreted his overwhelming victory in the presidential election of 1832 as a mandate from the American people to use his presidential power and destroy the Bank of the United States, and he did so by withdrawing all federal money and depositing it into smaller state banks instead. Afraid that the bank's d**h would encourage investors to over-speculate in western lands, valuing them more than they were worth, Jackson also issued the Specie Circular in 1836 that required all land to be purchased with hard currency (i.e. gold or silver). 1. Infer: Why did some Americans (including Jackson) hate the national bank? (1-2 sentences) 2. Infer: Which group supported the national bank: Democratic-Republicans or Federalists? Explain why. (1 sentence) Exit Ticket: 1. President Jackson weakened the Second Bank of the United States. What did this cause? (a) inflation and an economic depression (b) the nullification crisis and compromise (c) the rise of the Democratic Party and states' rights (d) increasing sectionalism and the Civil War 2. Which of the following statements would President Andrew Jackson most likely agree with? (a) The national bank is too powerful and it does not allow for competition from state and private banks. (b) The national bank effectively raises money to pay back the national debt from the Revolutionary War. (c) All Americans should invest their money in the national bank. (d) The national bank causes inflation and will lead America's wealthiest individuals to panic. 3. Congress pa**ed a law renewing the bank's charter, but President Jackson vetoed it because of everything EXCEPT: (a) the national bank kept all of the money it had. (b) the national bank was unconstitutional – the Constitution says that only the federal government could regulate currency (c) the national bank encouraged speculation that caused panics and depressions (d) the national bank oppressed the poor while making rich financiers even wealthier.