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

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

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

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

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

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

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

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

“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

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

Webster-Hayne Debates

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

Election of 1832 Jackson easily defeats Clay

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

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

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

Nicholas Biddle Manager of the National Bank

Whigs

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

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

Election of 1836

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

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

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

Harrison dies “Old Tippecanoe” dies 1 month after his inauguration