The Second Party System: The Whigs

• power of congress over the president

• modernization:

  • internal improvements

  • education reform

• a mixed economy

  • “the American System”

  • agriculture, trade, and industry

• avoided slavery question, but opposed its expansion

The Second Party System: The Democrats

• limited federal government

• broad political participation of white men

• westward expansion

• protecting white supremacy and slavery

The Panic of 1837

• 1837 financial collapse caused depression through the early 1840s

• main cause: overspeculation on western land

• contributing factors:

  • riskier lending/investment

  • the number of banks increased

  • amount of paper money increased

  • Jackson administration policies:

    • spread federal deposits across more banks

    • specie circular: required hard currency to buy federal land which led to drained banks

The Whig Presidential Ticket in 1840

• panic of 1837 gives Whigs an opportunity

• William Henry Harrison vs President Martin Van Buren

• Harrison campaigns as a frontier war hero like Jackson