States’ Rights and the National Bank

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Presentation transcript:

States’ Rights and the National Bank https://www.youtube.com/watch?v=beN4qE-e5O8 7.4 States’ Rights and the National Bank Andrew Jackson confronts two important issues during his presidency—states’ rights and a national bank. NEXT

I. A Tariff Raises the States’ Rights Issue https://www.youtube.com/watch?v=VNgIUUD7i-A 4 SECTION I. A Tariff Raises the States’ Rights Issue A. The Nullification Theory • Tariff raised 1824, 1828 • Vice-president John C. Calhoun calls 1828--Tariff of Abominations • Thinks South pays for North’s prosperity; cotton prices low • Calhoun devises nullification theory: - questions legality of applying federal laws to states - state can reject law it considers unconstitutional - states have right to leave Union if nullification denied Continued . . . NEXT

B. South Carolina Rebels 4 SECTION B. South Carolina Rebels SC declares 1828, 1832 tariffs null; threatens to secede Congress passes Force Bill: can use army, navy against S. Carolina Henry Clay proposes tariff that lowers duties over 10 years NEXT

II. Jackson Attacks the National Bank http://www.history.com/topics/us-presidents/andrew-jackson/videos/jackson-censured-in-bank-war 4 SECTION II. Jackson Attacks the National Bank A. Jackson Opposes the Bank Jackson vetoes bill to recharter Bank of the United States Presents bank as privileged institution that favors the wealthy – stockholders not the average taxpayer earned interest Congressmen given loans at lower rates than average citizen B. Pet Banks Jackson puts federal money in state banks loyal to Dem. Party BUS president Nicholas Biddle unsuccessfully tries to save bank C. Whig Party Forms People unhappy with Jackson form Whig Party NEXT

III. Van Buren Deals with Jackson’s Legacy https://www.youtube.com/watch?v=2MT1ZkfxEc8 4 SECTION https://www.youtube.com/watch?v=WT2oboEn8-Q III. Van Buren Deals with Jackson’s Legacy A. Jackson’s Legacy • Rush to exchange paper money for specie, banks stop taking paper • Panic of 1837 —bank closings, collapse of credit system: - people lose savings, businesses bankrupted - more than 1/3 of population out of work • Van Buren tries unsuccessfully to solve economic problems Continued . . . NEXT

http://www.history.com/topics/us-presidents/william-henry-harrison 4 SECTION B. Harrison and Tyler Whig William Henry Harrison beats Van Buren in 1840 election Dies one month later from pneumonia; succeeded by vice-president John Tyler “His Accidency” NEXT