states’ rights and the national bank

States’ Rights and the National Bank

Section 7*4 pp. 230-235

Preview Questions

• What is the principle of nullification?

• How did President Jackson destroy the national bank?

• What was the Panic of 1837?

I. A Tariff Raises States’ Rights Issue

• “Tariff of Abominations” 1828

– Causes decreased trade w/ G.B.

– Southerners hurt financially

– Opposed by VP Calhoun

I. A Tariff Raises States’ Rights Issue• South Carolina opposes tariff

– Becomes states’ rights issue – Calhoun’s “S.C. Exposition”

• Sens. Hayne and Webster debate tariff – Webster: No “middle” course – Hayne: Will ruin the South – Calhoun resigns as VP in protest

I. A Tariff Raises States’ Rights Issue

• S.C. nullifies Tariffs of 1828 and 1832 – Threaten to secede from the union – Compromise arranged by Clay- Tariff

of 1833

II. Jackson Attacks the National Bank

• 1832: Jackson vetoes renewal of BUS – BUS has unfair advantage – Symbol of wealth & aristocracy – Too much federal power

• Jackson uses “pet banks” to kill BUS

• Jackson and the “bank war”

• Whig Party – Formed out of anger at Jackson – Favored:

• American System • Protective Tariffs• Federal control of banking

II. Jackson Attacks the National Bank

III. Van Buren & Jackson’s Legacy

• Van Buren wins in 1836 – Inherits Jackson’s inflation

• Panic of 1837 – Banks refuse to accept paper $

$$– Many banks collapse– People lose savings

III. Van Buren & Jackson’s Legacy

• Whig WH Harrison wins in 1840

• Tyler becomes president after WHH dies – Referred to as

“His Accidency” – Not devoted to

Whigs