US History

U.S. History Study Guide

©2018 of 194 10.11 The Rise of the Whig Party During Andrew Jackson’s second term in office, leaders of the National Republican Party and other opponents of Jackson allied to form the Whig Party. Led by Henry Clay, Daniel Webster, and John C. Calhoun, the Whig Party was made up of different groups: the Southern National Republicans, Northern Democrats, and social reformers. These groups were united in their hatred of Jackson, who many considered tyrannical. The name was taken from the BritishWhig tradition, which simply refers to the “opposition.” 10.12 The Election of 1836 By the election of 1836, the Whigs had become a national party with widespread popularity. On the strength of Jackson’s name, the Democrats maintained their hold on the presidency with Jackson’s chosen successor, Martin Van Buren, defeating William Henry Harrison and three other Whig candidates. TheWhig Party continued to grow in popularity and in 1840 won the presidential election backing William Henry Harrison. But the party lost its national prominence soon thereafter. The Whigs were divided on major issues, particularly slavery and protective tariffs. Southern Whigs could never wholly ally with the Northern Whigs on such matters. The Whig alliance began to fall apart and, by the 1850’s had completely collapsed. 10.13 Van Buren’s Administration 1837-1841 Martin Van Buren inherited all of the problems and resentments generated by his mentor. He spent most of his term in the office dealing with the financial chaos left by the death of the second bank. The best he could do was to eventually persuade Congress to establish an Independent Treasury to handle government funds. It began functioning in 1840. 10.14 The Panic of 1837 Van Buren assumed office in a severe economic depression. During 1835 and 1836, Andrew Jackson’s policy of removing federal deposits from the Second Bank of the United States and placing them in state banks promoted an economy of speculative buying, risky lending, and loose banking practices. Prices increased and land sales multiplied rapidly from 1835 to 1837. In an attempt to stabilize the currency, Jackson issued the Specie Circular in 1836 which required that land payments be made in gold and silver rather than in paper money or on credit. This move caused prices to drop and left speculators with enormous debt. Many banks failed and the economy fell into a depression called the Panic of 1837. Unemployment spread and wages dropped by one-third between 1836 and 1842. Van Buren spent his time in office trying to solve the nation’s economic crisis. He called for the creation of an Independent Treasury, which would hold public funds in reserve and prevent excessive Achieve Page 128