6.5 Finance & States’ Rights

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Notes on Chapter 6, Section 5

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6.5 Finance & States’ Rights

  1. 1. Finance & States’ Rights Andrew Jackson fought the Bank of the United States and stood firm against a state’s threat to secede.
  2. 2. The Bank War <ul><li>2 nd Bank of the United States established in 1816 </li></ul><ul><ul><li>1822 Nicholas Biddle appointed president of the bank </li></ul></ul><ul><li>The bank was owned by private citizens </li></ul><ul><ul><li>Federal government deposited all its gold and silver in the bank </li></ul></ul><ul><li>Jacksonians believed the bank to be a menace to the economy </li></ul><ul><ul><li>Wanted all money to be gold or silver coins. </li></ul></ul>
  3. 3. The Bank War <ul><li>Jacksonians believed Biddle had to much power and was corrupting Congress </li></ul><ul><ul><li>Jackson vows put the bank out of business </li></ul></ul><ul><ul><li>Jackson vetoes the bill to renew the bank’s charter </li></ul></ul><ul><li>Henry Clay & the Whig Party make the Bank the main issue in the Election of 1832. </li></ul><ul><li>Jackson removes all Federal deposits from the Bank of the United States </li></ul><ul><ul><li>Jackson wins reelection in 1832 </li></ul></ul><ul><li>Bank goes out of business in 1836 </li></ul>
  4. 4. Struggle Over States’ Rights <ul><li>Congress passes an extremely high tariff. </li></ul><ul><li>Northerners favored the tariff. </li></ul><ul><ul><li>Encouraged manufacturing & protection against foreign competition. </li></ul></ul><ul><li>Southerners opposed it. </li></ul><ul><ul><li>Calling it the “Tariff of Abominations” </li></ul></ul>
  5. 5. The Nullification Crisis <ul><li>Arguments for Nullification </li></ul><ul><li>John C Calhoun believed states could nullify any federal law that the state objects </li></ul><ul><li>States keep certain powers over the federal government. </li></ul><ul><ul><li>South Carolina votes to nullify “Tariffs of Abomination” </li></ul></ul><ul><li>South Carolina threatens to secede from the Union if force is used to enforce the tariff </li></ul><ul><li>Arguments against Nullification </li></ul><ul><li>Federal power supreme over state power. </li></ul><ul><li>Federal government derives its power from the American People </li></ul><ul><li>States can’t pick and choose what federal laws to enforce </li></ul><ul><li>Jackson threatens to use the military to enforce federal law. </li></ul><ul><ul><li>“ I will hang the first rebel from the first tree that I find!” Andrew Jackson </li></ul></ul>
  6. 6. The End of the Jackson Era <ul><li>Martin Van Buren wins Election of 1836 </li></ul><ul><ul><li>Promised to continue Jackson’s policies </li></ul></ul><ul><li>Panic of 1837: fall in cotton prices and slow economy caused many banks to bankrupt </li></ul><ul><ul><li>Economy ruins Van Buren’s Presidency </li></ul></ul><ul><li>William Henry Harrison (Whig) wins Election of 1840 </li></ul><ul><ul><li>Whigs run a “log cabin” campaign </li></ul></ul><ul><ul><li>Portrayed Harrison as a “man of the people” </li></ul></ul>

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