Ch. 7, Sect. 4Jackson, States’ Rights, and the National Bank

HW: 9.1

“Tariff of Abominations of 1828”

• Tariff raised from 23%-37%.

• WHY DOES THE SOUTH OPPOSE TARIFFS?

Higher Tariffs Fewer Imports from Britain

Britain makes less $

Britain buying less cotton from South

“Tariff of Abominations of 1828”• Tariff seen as an encroachment on states’

rights, esp. in South Carolina• Calhoun’s “South Carolina Exposition and

Protest” calls for nullification, which also implied power of a state to secede from the Union– Leads to debate in Senate between Webster and

Hayne over the nature of the Union

Daniel WebsterMassachusetts

Robert HayneSouth Carolina

Liberty and Union, now and forever, one and inseparable."

Growing Sectionalism• Calhoun leaves Vice-Pres. & becomes

defender of sectionalism, embittered against Jackson & nationalism– Took Hayne’s seat in Senate and he ran for

governor of South Carolina• Webster-Hayne debates outlines future split

b/w North & South,

b/w Secessionists & Unionists• 1832: South Carolina declares Tariffs of 1828

and 1832 “null”- threatens to secede

South Carolina Rebels• 1832 Tariff slightly increased tariff of 1828• SC Declared the increase Null and Void• SC Threaten to secede Jackson was furious• Force Bill (1833)- Pres. Jackson authorized to

use military to enforce the Tariff • Henry Clay

– The Great Compromiser– The compromise is to gradually reduce the tariff over

several years– War was avoided, well at least for a few years– SC. Nullifies the Force Bill (Spite!!!)

B.U.S. (Bank of the United States)

• Clay and Webster try to renew the BUS charter• Jackson is suspicious of the BUS, sees it as a threat

to democracy b/c of its influence and its loans to “corrupt” politicians

• Jackson rouses anger of the people against BUS and its President Nicholas Biddle

• Bank loses charter, eventually goes out of business.

HISTORICAL CONSEQUENCES:

1. Banking shifts from Philly to NYC and smaller banks

2. Clay and Webster create a new political party, the Whigs, to oppose Jackson and the Democrats.

Jackson and the National Bank• Jackson opposed the

National Bank– Personal problems (corrupt

politicians, Biddle)– Saw the bank as a symbol of

Northern wealth and power– “Common Man”

• Pet Banks• Formation of “Whig”

Party– Jackson viewed as a king

(Veto!!)

Jackson v. The BUS and Nicholas Biddle

Jackson “anoints” Martin Van Buren to become President after him and to lead the Democratic Party.

PANIC OF 1837: Causes and Effects

What is history’s verdict of Van Buren?

How much of the Panic of 1837 was his fault?

Fed $ put in

WildcatBanks

SpecieCircular

1836“run” on

BankNotes

Banks stop accepting

paper $

Bankclosings

Unemployment& Recession

How would you evaluate Andrew Jackson’s presidency?

• GOOD:

• BAD:

• “UGLY:”

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henryharrison_campaignposter.jpg

WilliamHenry

Harrison

Whig Party Candidate

1840

Jackson’s Legacy

• VP Martin van Buren becomes President– Won election with Jackson's support– Bank Problems

• “Pet Banks” become “Wildcat banks”• Panic of 1837

• William Henry Harrison– Whig Party– Defeated van Buren

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The Whigs and the Democrats:Two-Party System Re-emerges, pp. 218-219

Election of 1840Van Buren (Dem) vs. Harrison

(Whigs) Whigs steal Jackson’s political strategy:

Run an old war hero as a “man of the people”= William Henry Harrison,

Gov. of Indiana and “Hero” of Tippecanoe

IRONY= Harrison was the aristocrat, Van Buren had grown up in poverty.

Harrison wins, then dies after 4 weeks in office.

Tyler: A President without a Party

1841: Tyler assumes Presidency after Harrison’s death

Tyler turns out to be more of a Democrat than a Whig!

Clay and Whigs clash with Tyler over creating BUS

(Bank of the United States) and then Tyler threatens to veto Tariff increases.