United States History Student Edition

The Whigs formed the opposition. The Whigs were a new party that included former National Republicans and other anti-Jackson forces. Jackson’s popularity and support helped Van Buren win both the popular and the electoral vote. Van Buren had barely taken office when a financial panic hit the nation. Caused largely by international concerns, the panic was also effected by the loss of the national bank. When the Bank ceased operations, it could no longer control or influence state banks. Some of these banks then began issuing huge amounts of banknotes, which they loaned to land speculators. The federal government became concerned that these notes had little value and stopped accepting them as payment for public land. Then the general public began to question the value of their banknotes, leading to an economic panic. The Panic of 1837 led to a depression , a severe economic downturn. Land values dropped, and banks failed. Thousands of businesses closed. Many workers lost their jobs, and farmers lost their land. In cities across the nation, many people could not afford food or rent. President Van Buren did little to ease the crisis. He believed in the principle of laissez- faire—that government should interfere as little as possible in the nation’s economy. However, Van Buren did persuade Congress to create an independent federal treasury in 1840. The government took its money out of private banks and stored it in the federal treasury instead.

This new system prevented state and private banks from using government money to back their banknotes. It did little, however, to help the ongoing economic depression at the time. 7 CHECK FOR UNDERSTANDING Identifying Cause and Effect What were the causes and effects of the Panic of 1837? The Whigs in Power GUIDING QUESTION What events occurred during the 1840s that led to the weakening of the Whig Party? When Van Buren ran for reelection in 1840, Democrats had held the White House for 12 years. Now, with the country still in the depths of a depression, the Whigs thought they had a chance to win the presidency. To run against Van Buren, the Whigs nominated William Henry Harrison, a hero of the War of 1812. Harrison had first gained fame with his victory over Tecumseh’s followers at the Battle of Tippecanoe in 1811. The Whigs made reference to this event in the campaign slogan: “Tippecanoe and Tyler, Too.” John Tyler, a planter from Virginia, was Harrison’s running mate. To help Harrison gain the support of the workers and farmers who had voted for Jackson, the Whigs portrayed him as a simple man from the frontier like Jackson. In reality, Harrison was a wealthy Ohioan. The Democrats attacked Harrison as good for nothing except sitting in a log cabin and collecting his military pension.

depression a severe economic downturn

This illustration is from a poster advertising a rally in support of William Henry Harrison during the presidential campaign of 1840. Analyzing Visuals What impression of Harrison is provided by this illustration? What details in the illustration give you this impression? How did this image of Harrison fit into his campaign strategy?

Fotosearch/Stringer/Archive Photos/Getty Images

Political and Geographic Changes 309