Nullification and the Bank War Things are getting testy.

Terms! Tariff- tax on imported goods Nullification- to make a law not a law….basically to overrule the law.

Murican Industry So American industry begins to take shape right after the war of 1812. To “protect” the baby industry, Congress passed a tariff in 1816. A tariff is a tax on imported goods.

Who’s mad? The South doesn’t like tariffs. England stopped exporting goods to America, which left the Southern states to buy more expensive American-made goods. The South was agricultural and didn’t produce much, so tariffs don’t help them.

John Calhoun He was Vice President under Adams and Jackson, and he came from South Carolina. South Carolinians really hated the Tariff, and John Calhoun had to do something if he wanted to stay in power. He develops his “Nullification Theory.”

Nullification Theory To “nullify” means to “cancel out” or to find something to be “invalid.” Calhoun’s theory was that the Constitution was an agreement between the Federal Government and 13 “sovereign” states. Thus, if the Federal Government passed a law that sovereign states did not want, they could “nullify” it.

What does Jackson think? The nation seemed divided over the issue. Most Southern states agreed with the nullification theory, most Northern states did not. Jackson clarifies his position as being AGAINST nullification. Calhoun resigns.

South Carolina threatens succession! In 1832 Congress passes a tariff that South Carolina did not like. They declared the tariff “null and void and no law.” This makes Jackson mad. South Carolina says, “well, we will just break away from this country then!”

Jackson’s reaction Calls South Carolina’s actions treasonous! Threatens to call in Federal Troops to rough them up! Threatens to hang Calhoun! This is awesome!

The Force Bill Jackson got Congress to pass the Use the Force Bill. It gave the Federal Government permission to use the Army and Navy against South Carolina.

This is crazy! In steps Henry Clay, the Great Compromiser. He is, somehow, able to get South Carolina to agree to a lower tariff, and a bloody confrontation is averted! (For now…..)

jmoran2 leesville

Ok, now on to the Bank Wars! It all starts when Andrew Jackson vetoes a bill to re-charter the Bank of the United States…..

Let’s sum this up… The Bank of the United States was created to hold the money the government got from taxes. It gave out loans to people as well, especially wealthy people. This makes it unpopular with the “common man,” the same people who support Jackson.

Jackson’s view/actions Jackson held a personal grudge against the bank, he thought they were responsible for some serious financial losses of his decades ago. He vetoes the bill to reinstate the charter. He directs federal funds into his loyal “pet banks,” banks who were loyal to the Democratic Party

Nicolas Biddle He was President of the Bank of the United States. He decided to retaliate by not lending money out to wealthy businessmen, which had a negative effect on the economy. Jackson calls his bluff, and eventually Biddle gives in.

The End of the Bank. The Bank’s charter expired in 1836 and it became just another bank.

Enter Martin Van Buren Jackson’s Vice President, MVB wins the election of 1836. The newly formed “Whig” party (John Quincy, Henry Clay, Calhoun) ran too many candidates and MVB won pretty easily.

MVB’s Presidency Due to Jackson putting all the federal money in his “pet” banks, the economy was in a downward spiral. The Panic of 1837 was the defining moment of MVB’s Presidency and most people blamed him and Jackson for the problems.

Here comes Harrison! William Henry Harrison, former war hero, fought Tecumseh, runs for the Whig Party in 1840. He wins pretty easily because people were unhappy with the economy of MVB’s Presidency. He portrayed himself as “the common man” and MVB as an elite.

His inaugural address It was held outside in the poring, cold rain. Harrison, ever the tough guy, didn’t wear a coat or a hat. He also spoke for 2 hours. Longest speech ever.

Harrison dies of pneumonia. Or so they said…….. One month later…. Harrison dies of pneumonia. Or so they said……..

Tyler becomes President The Whigs didn’t really want Tyler, at all. They just put him on the ballot to pick up Southern votes. He didn’t agree with the Whig’s plan to help the economy recover. He was basically one of the worst Presidents ever. Let’s go to the video.