Following the Panics of 1837 and 1839, America began rapidly expanding a new innovation: the railroad. While this would seem to have brought the country together, in fact, it increased sectionalism, creating more tension between the North and the South. Daniel Walker Howe, What Hath God Wrought: Transformation of America, 1815-1848, 569.
America’s economic development resulted in American workers being classified, creating tension between the classes.
Amidst the Panics of 1837 and 1839, the Whigs enjoyed significant gains in Congress, which led to Robert M.T. Hunter, a pro-states’ rights southerner, becoming Speaker of the House. Daniel Walker Howe, What Hath God Wrought: Transformation of America, 1815-1848, 506. Further, besides the changing composition of Congress, the federal government’s policies would change, as a result of the Panics.
Not long after the Panic of 1837 had set in and gripped America’s economy, a second shock came: the Panic of 1839.
In Martin Van Buren’s inaugural address, in March of 1837, he boasted of the prosperity and expansion of commerce that had occurred under his predecessor, Andrew Jackson. Just months later, the Panic of 1837 would begin. Daniel Walker Howe, What Hath God Wrought: Transformation of America, 1815-1848, 502.
In the aftermath of President Andrew Jackson’s destroying the Second Bank of the United States, there were ramifications throughout the country, from top to bottom.
President Andrew Jackson did not want banknotes in the American economy, as he was an adherent to the gold standard. Daniel Walker Howe, What Hath God Wrought: Transformation of America, 1815-1848, 376. He would be forced to confront Nicholas Biddle, the President of the Second Bank of the United States.
In 1816, with James Monroe as president, Congress agreed to “charter a Second Bank for twenty years.” Daniel Walker Howe, What Hath God Wrought: Transformation of America, 1815-1848, 374.
President Andrew Jackson had good fortune as his presidency began with a wave of prosperity. See Daniel Walker Howe, What Hath God Wrought: Transformation of America, 1815-1848, 360.
Both President John Quincy Adams and Henry Clay were of the mindset that much could be accomplished in developing the American economy with the help of the government. Martin Van Buren had different ideas, however.
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