Set 4 — The Bank War and the Rise of the Whigs

Second Bank of the United States

A federally chartered bank that helped manage government funds and the national financial system.

Nicholas Biddle

President of the Second Bank of the United States and a leading opponent of Jackson during the Bank War.

Why did Andrew Jackson oppose the Second Bank?

He believed the Bank held too much power, favored wealthy and well-connected people, and threatened ordinary citizens and democracy.

Bank War

The political conflict between Jackson and supporters of the Second Bank, especially over whether its federal charter should be renewed.

Bank recharter bill (1832)

A bill to renew the Second Bank's charter before it expired; Jackson vetoed it.

Why did Jackson veto the bank recharter bill?

He argued that the Bank was unconstitutional and monopolistic and that it gave excessive economic power to wealthy elites.

Why was Jackson's bank veto significant?

It expanded the practical influence of the presidency and made the Bank a central issue in the 1832 election.

Election of 1832

Jackson defeated Henry Clay, reinforcing his political support and his opposition to the Second Bank.

Anti-Masonic Party

An early third party that opposed Freemasonry and political secrecy; it helped popularize national nominating conventions.

Why were national nominating conventions important?

They gave party members a more organized way to select presidential candidates instead of relying only on congressional party caucuses.

Removal of federal deposits

Jackson's administration moved federal money out of the Second Bank and into selected state banks, weakening the Bank.

Pet banks

State banks selected to receive federal deposits after Jackson removed them from the Second Bank.

Specie Circular (1836)

Jackson's administration required payment in gold or silver for many purchases of federal public land, partly to curb land speculation.

Why did Jackson's financial policies contribute to economic instability?

The removal of federal deposits, the Specie Circular, and other conditions affected credit and speculation; they contributed to instability but were not the only causes of the Panic of 1837.

Whig Party

A political party formed in opposition to Jackson. It included people who opposed his use of presidential power and often supported Congress, economic development, and internal improvements.

Why did Jackson's opponents call themselves Whigs?

The name recalled the Revolutionary-era Whigs who opposed monarchical power; they portrayed Jackson as acting like a king.

What united the Whig Party?

Opposition to Jackson, even though its members differed on some issues.

What policies did many Whigs support?

Internal improvements, a stronger role for Congress, a national bank or sound financial system, and policies to encourage economic development.

Who were important Whig leaders?

Henry Clay and Daniel Webster were major leaders; William Henry Harrison later became the party's presidential candidate in 1840.

What groups supported the Whigs?

Support varied, but included many northern industrialists, supporters of Clay's American System, some Southerners opposed to Jackson, and many evangelical Protestants.

American System

Henry Clay's program for strengthening the national economy through a national bank, protective tariffs, and federally supported internal improvements.