U.S. History

1. U.S. History Objective 2.04 – continued #3

2. 2.04 • Assess political events, issues, and personalities that contributed to sectionalism and nationalism.

3. Jackson in office • Administration • Kitchen Cabinet • Jackson didn’t really have an advisory group… because he rarely listened to them • Instead he made decisions based on council with friends and his Secretary of State Martin Van Buren

4. Andrew Jackson in office • Jackson’s VP – John C. Calhoun of SC

5. Tariff Issue • Congress raised the tariff of 1816 in 1824 and 1828 – helped New England compete w/ Great Britain • Great Britain – After War of 1812, floods market w/ cheap goods • Calhoun calls the Tariff of 1828 the Tariff of Abominations

6. Nullification • Calhoun devises a theory of “nullification” • Questioned the legality of some federal laws • Each state had right to nullify (reject) any law that it deemed unconstitutional • KY and VA Resolutions

7. “South Carolina Exposition and Protest” • 1828 – written by Calhoun, laying out his nullification theory – did not sign name

8. SC rebels • SC declared tariff laws of 1828 and 1832 “null and void” • Threatened to seced from the Union • Jackson furious

10. “Our Union: It must be preserved • Calhoun resigns as VP • Jackson gets Congress to pass the Force Bill (1833) – allows use of army and navy against SC to collect customs duties

11. Clay steps in • “The Great Compromiser” – provides a plan for gradually lowering tariffs over 10 years

12. Webster-Hayne Debates

13. Clash over states’ rights • Webster – Mass. • Hayne – SC • January 1830 – debate tariff issue • Webster nationalist • Hayne – condemns tariff • Sectionalism?

15. Election of 1832 • Jackson easily defeats Clay

17. Jackson’s next issue: 2nd Bank of the United States • Jacksonians – against “privileged” institutions • A privileged few making money at taxpayers’ expense • Nicholas Biddle – extended low-interest loans to Congressmen • Jackson vetoes the Bank’s recharter in 1832

18. Clay and Webster want campaign issue • Clay and Webster wanted to recharter bank before 1836 (when original ran out) to make it a campaign issue (Knew Jackson’s actions would harm the nation) • Jackson’s Sec. of Treasury begins putting gov’t funds in “pet banks” – loyal to the Democratic Party • Wildcat banks- unstable state banks who distributed worthless currency

19. A Dying Bank • Biddle tries to save BUS by calling in loans • Buying the loans that the state banks bought but couldn’t pay • BUS eventually dies

21. Nicholas Biddle • Manager of the National Bank

22. Whigs

23. Whig Party • Forms in opposition to Jackson (1834) • Clay, J.Q. Adams, Webster • Backed ideals of American System • Backed federal control of banking system and nat’l currency

24. Divided Whigs in 1836 • Whigs run 3 regional candidates against Martin Van Buren, Jackson’s successor

25. Election of 1836

27. Panic of 1837 • Many of Jackson’s pet banks were unstable, “wildcat” banks • Issued more currency than they could redeem • People used these to purchase gov’t land

28. Panic of 1837 (continued) • Bank closings and collapse of credit system bankrupted many people, 1/3 of population out of work

30. Election of 1840 • Harrison (Whig) portrayed as a hero • Van Buren portrayed as aristocrat

35. Harrison dies • “Old Tippecanoe” dies 1 month after his inauguration