Monday, November 17, 2008

November 17, 2008- Period 1 Notes

Jacksons Kitchen Cabinet

• an "informal" group of journalists that Jackson consulted with
• Jackson didnt rely or trust his "formal"cabinet, so created his Kitchen Cabinet

Abolitionist Postal Campaign

• a group of abolitionists that sent petitions to congress about antislavery
• 1830s, a radical minority of the protestant society wanted immediate abolition
• many found these antislavery movements hostile and annoying
• President Jackson wanted to stop these antislavery campaigns, so he passed the Censorship Law
• Callahan (southerner) did not support Jackson; he argued that states had the right to censor rights
• the postal system was federal
• Jackson allowed the post masters to break the federal postal system by letting them pull any antislavery mail out
• 1836-1844: the Gag rule was put into effect; it made any petitions talking about antislavery totally ignored

Bank War

• Jackson did not like banks; it made him uncomfortable that the US was economically dependent on bank notes
• the Second Bank of the United States tried to excercise central control of the US
• Government funds included several state bank notes from different banks that could be redeemed for species (hard money: gold or silver); this policy tended to keep lending in check
• the Second Bank of the United States began issueing its own bank notes, and supporters of the bank hope these bank notes would become national
• however, Americans were divided over the value of the bank
• Jackson heavily opposed the banks because he lost money in the 1819 depression, and questioned whether the bank was constitutional; he viewed the bank as a source of wealth and power
• the bank is constitutional according the the court case McCulloh Vs Maryland
• Clay and Webster planned a scheme to embarass Jackson; they were convinced that if they told congress that the bank needed to be renewed in 1832 (even though it didnt need to be renewed until 1836), congress and Jackson would renew it and he would look like a fool
• however, Jackson vetoes the recharter bill and said that the bank was unconstitutional, dangers, a monster, and that it threatened American rights
• 1832, Jackson wins elections and sets out to kill the bank
• Jackson deposits federal bank money in "pet manks" or selected state banks; Jackson still doesnt trust these banks either
• Deposit Act (1836) put federal funds in additional banks; this limited banks to making their own state notes
• Jackson created the Species Circular in 1836 that said speculators and investors could buy large amount of land if they pay in gold or silver (small amounts of land could still be bought through bank notes)

Panic of 1837

• Van Buren becomes president in 1836
• economy is crumbling
• Whigs blame the panic and depression on Jackson and his species circular
• 1836-Whigs make gains during the nonelection years
• democrats blame the depression on Whigs paper money and on the speculators
• 1836-Whigs demand a new bank
• Van Buren seperates the government from the bank and sets up an Independent Treasury that holds money; passed in 1840
• 1840-William Henry Harrison- (Whig, military officer, and indian fighter) becomes president; Log Cabin campaign-> made him look like he was a not well off westerner
• Harrison reestablished the 2 party system

Events from Bank Veto to Panic

• 1832: Jackson vetoes the bank recharter bill and removed the US Treasury funds of the Bank of the United States
• 1834: Paper money was scarce, species were unattainable, demand for credit increased
• 1835-1836: State banks begin to offer easy credit because of large gold and silver reserves, new money flows into land speculation, and land prices increase
• 1836: Jackson issues species circular; land rush comes to a halt and sales decrease; speculatores are stuck; banks dont make enough money off reclaimed land to convert their losses; commodity prices drop, but people are scared and try to withdraw savings in species; bank runs out of species

The Whig Party

• oppsed Jackson
• Clays National Republican PArty=anti Jackson
• others did not like Jackson handling national finances
• extreme states rightists did not like JAcksons stand on nullification
• some disliked Jacksons anti-intellectual and anti-scientific stance
• these seperate groups came together as Whigs; have no strong leader; only united on their strong dislike of Jackson