Name______Period______
Chapter 12, Section 4 – Prosperity and Panic
I. Mr. Biddle’s Bank
1. The Second Bank of the United States was the most powerful bank in the country because it held ______.
2. Its president, ______, set policies that controlled the nation’s money supply.
3. ______disliked the bank because of the loans Biddle gave to members of Congress to influence their decisions & the lending policies favored wealthy clients and hurt the average citizen.
4. Jackson took an enormous risk in 1832 when Biddle asked the federal government to renew the bank’s charter…
II. Jackson’s War on the Bank
1. Even though it was an election year for Jackson, he ______Congress’ passage of the bank’s charter because he felt the bank acted unconstitutionally!
2. He felt the bank favored the ______at the expense of the many.
“It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes…Distinctions in society will always exist under every just government…But when the laws undertake to make the rich richer and the potent more powerful, the humble members of society have a right to complain of the injustice of their government”….Andrew Jackson, 1832
3. Jackson’s war on the ______became the main issue in the presidential campaign of 1832.
4. ______won re-election in 1832 & set out to destroy the bank by the end of his 2nd term in 1836.
5. Eventually, the bank went out of business and Jackson had won, but the ______would suffer terribly.
III. Prosperity and Panic
1. The small banks had issued too much ______, which made the dollar worth less and created inflation.
2. To fight the effects of inflation, Jackson ordered all people to pay for future lands with ______.
3. Jackson left office in 1836 and his vice-president, ______was elected as president to replace him.
4. Unfortunately for Van Buren, a few months after he took office the ______happened.
5. People took all their paper money to banks & demanded ______for them.
6. Therefore, the banks could not pay the federal government for their debts & the country sank into a deep ______.
7. The Panic of 1837 & its depression left the country with terrible hardships.
8. 90% of ______in the Eastern states closed, people went hungry & homeless, and ______were hit the hardest.
IV. The Rise of the Whig Party
1. Many politicians wanted ______& the government to help the economy, but they refused.
2. Van Buren felt that the less ______interferes with private pursuits the better for general growth.
3. Unfortunately for Van Buren, many Americans blamed him for the ______, which made it almost impossible for him to get re-elected in 1840!
4. Van Buren also had to face a new political party, the ______, in the election of 1840.
5. The Whig Party opposed the concentration of power in the ______& the mockingly called Andrew Jackson, “King Andrew”.
6. In 1840, the Whigs chose Ohioan ______to run for president & ______to run for vice-president.
7. The Whigs used the phrase “______” for their election slogan.
V. The Election of 1840
1. Harrison was represented by the Whigs as an Ohio farmer, War of 1812 hero, westerner, and ______man.
2. ______won the close election of 1840 over Van Buren, but died of a cold only one month into his presidency!
3. Harrison was the 1st president to die in office & ______took over where Harrison left off, especially with the role concerning westward expansion.