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”

II. Jackson Attacks the National Bank • Whig Party • Formed out of anger at Jackson • Favored: • American System • Protective Tariffs • Federal control of banking

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

States’ Rights and the National Bank