STATES’ RIGHTS AND THE ECONOMY

1. STATES’ RIGHTS AND THE ECONOMY CHAPTER 10, SECTION FIVE

2. THE BANK WAR BUSINESS PEOPLE LIKE THE SECOND BANK OF THE U.S. SOME AMERICANS DID NOT LIKE THE SECOND BANK OF THE U.S. FEARED BANKS WERE MAKING TOO MANY LOANS DIDN’T LIKE RESTRICTIONS PLACED ON STATE BANKS LIMITED AMOUNT OF MONEY THAT COULD BE LENT—ANGERED FARMERS AND MERCHANTS • SAFE • MADE LOANS TO BUSINESSES • CREATED CONFIDENCE

3. ANDREW JACKSON WAS BANK’S MOST POWERFUL ENEMY • FELT THE SECOND BANK OF U.S. WAS “THE MONSTER” • FELT WEALTHY PEOPLE WERE ENRICHING THEMSELVES AT THE EXPENSE OF ORDIANRY PEOPLE • DIDN’T LIKE BANK PRESIDENT NICHOLAS BIDDLE

4. 1832 CONGRESS TRIED TO RENEW BANK’S CHARTERPRES. JACKSON VETOED RENEWAL BILL—HE WAS SUPPPORTED BY MANY VOTERSJACKSON WAS RE-ELECTED BY A HUGE MARGIN

5. NULLIFICATION CRISIS • ALWAYS AN ARGUMENT OVER STATES’ RIGHTS V. FEDERAL GOVERNMENT • 1828-CONGRESS RAISES TARIFF ON IRON AND TEXTILES—SUPPORTS BUSINESSES IN THE NORTH • SOUTHERNERS HAD TO PAY MORE FOR GOODS • V.P. JOHN C. CALHOUN (FROM SOUTH CAROLINA) ARGUED STATES HAD THE RIGHT TO CANCEL A FEDERAL LAW TO WHICH A STATE OBJECTED--NULLIFICATION

6. NULLIFICATION ARGUMENTS JOHN C. CALHOUN DANIEL WEBSTER HE’S A MASSACHUSETTS SENATOR U.S. WERE FORMED BY THE AMERICAN PEOPLE, NOT THE STATES UNION MUST BE PRESERVED • UNION GREW FROM AN AGREEMENT BETWEEN STATES • EACH STATE KEPT SOME POWERS • STATES’ RIGHTS OUTWEIGHED THE UNION

7. SOUTH CAROLINA THREATENS TO SECEDE—IT NULLIFIES THE TARIFFS OF 1828JACKSON PUT FEDERAL TROOPS IN SC ON ALERTCALHOUN RESIGNED AS VP1833 CONGRESS PASSES TWO LAWS: Jackson was allowed to collect tariffs by force A compromise bill that would lower tariffsSC REPEALS NULLIFICATION TARIFF–gained no support from other states

8. MARTIN VAN BUREN AN ADVISOR AND FRIEND OF JACKSON WINS ELECTION OF 1836 PANIC OF 1837—ECONOMIC SLUMP BASE ON FALLING COTTON PRICES 1840 BEAT BY WILLIAM HENRY HARRISON—”LOG CABIN” CAMPAIGN