Learn on PengiIMPACT California Social Studies, Grade 8Chapter 10: The Jackson Era

Lesson 3: Jackson and the Bank

Grade 8 students in IMPACT California Social Studies explore President Andrew Jackson's campaign to dismantle the Second Bank of the United States, examining his veto of the Bank's charter renewal and his order to withdraw federal deposits. The lesson covers key concepts such as the Bank's role as a government-chartered institution, the political rivalry between Jackson, Henry Clay, and Daniel Webster, and the constitutional debate sparked by McCulloch v. Maryland. Students analyze how Jackson's actions during the Election of 1832 and beyond ultimately led to the Bank's closure.

Section 1

The Bank War and Popular Support

Key Idea

In 1832, Henry Clay and other opponents attempted to use the Second Bank of the United States to derail Andrew Jackson’s reelection. They pushed a bill through Congress to renew the Bank’s charter early, hoping a veto would cost Jackson popular support.

Jackson did veto the bill, but he successfully framed the Bank as a corrupt institution of privilege that favored the wealthy over the "common man" (the ordinary, non-elite citizens like farmers and laborers).

Section 2

Jackson's Bank Policies and the Panic of 1837

Key Idea

After Andrew Jackson closed the Second Bank of the United States, the economy grew unstable. Without the national bank's oversight, smaller state banks made risky loans that created a fragile economic situation.

This situation collapsed into the Panic of 1837, a severe depression that began just as Martin Van Buren became president. Banks failed, businesses closed, and many people lost their jobs and savings. Americans blamed Van Buren and his party for the economic crisis, which came to define his presidency.

Section 3

The Whig Response and the Election of 1840

Key Idea

Many Americans grew angry with President Jackson's powerful actions, such as his war on the national bank. In response, they formed a new political party to oppose him.

The Whig Party blamed the Democrats for the nation's economic problems and won the 1840 election with their candidate, William Henry Harrison. This victory marked the high point of their power.

Lesson overview

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Section 1

The Bank War and Popular Support

Key Idea

In 1832, Henry Clay and other opponents attempted to use the Second Bank of the United States to derail Andrew Jackson’s reelection. They pushed a bill through Congress to renew the Bank’s charter early, hoping a veto would cost Jackson popular support.

Jackson did veto the bill, but he successfully framed the Bank as a corrupt institution of privilege that favored the wealthy over the "common man" (the ordinary, non-elite citizens like farmers and laborers).

Section 2

Jackson's Bank Policies and the Panic of 1837

Key Idea

After Andrew Jackson closed the Second Bank of the United States, the economy grew unstable. Without the national bank's oversight, smaller state banks made risky loans that created a fragile economic situation.

This situation collapsed into the Panic of 1837, a severe depression that began just as Martin Van Buren became president. Banks failed, businesses closed, and many people lost their jobs and savings. Americans blamed Van Buren and his party for the economic crisis, which came to define his presidency.

Section 3

The Whig Response and the Election of 1840

Key Idea

Many Americans grew angry with President Jackson's powerful actions, such as his war on the national bank. In response, they formed a new political party to oppose him.

The Whig Party blamed the Democrats for the nation's economic problems and won the 1840 election with their candidate, William Henry Harrison. This victory marked the high point of their power.