Tariffs and Trade To understand the Nullification Crisis, we must first be able to answer the question: What is a tariff? http://www.youtube.com/watch?v=j_32DiftUUw

The Nullification Crisis As president of the U.S., Jackson faced one of the first major challenges to his authority (power as leader of the nation) with the Nullification Crisis. In 1828, Congress passed a law that raised the tariffs, or taxes, on imported goods (items brought into the U.S. from other countries). By passing these tariffs on foreign goods, manufacturers and factory owners in the United States would make more money—people would buy goods made in the U.S. because they were cheaper than foreign goods that had the tariff (extra tax on them).

Check your Understanding! Why did Congress pass a tariff on foreign goods?

North vs. South: Dramaaa! These tariffs helped factory owners in the U.S. to make more money—it was strongly supported by the North. In the South, however, people called this the Tariff of Abominations (terrible horror). For Southerners, this meant that if they wanted to buy foreign goods, they would have to pay more money! It also meant that this would hurt their trade with other countries, and many states in the South relied on trading their cotton to survive. Southerners were angry that this law only helped the North. They believed this was an abuse of national government power and it ignored their needs. VS.

Check your Understanding! Why were Southerners angry about the tariff?

Crazy Ol’ Calhoun and his States’ Rights John C. Calhoun, the Vice President, agreed with southern states. He believed in states’ rights—that states should have more power than the national government—and he suggested that southern states declare this law “nullified” or invalid (this mean that Southerners would not obey this new law on tariffs). To avoid more conflict, President Jackson agreed to lower the tariff. But Southerners in the state of South Carolina were still not happy—they wanted to get rid of the law.

To Secede or not Secede? That is the question! But Southerners in the state of South Carolina were still not happy—they wanted to get rid of the law. Led by Calhoun, the people of South Carolina declared their state’s right to “nullify” any national law that hurt their state. South Carolina even threatened to secede—break away from the United States—if the national government tried to enforce the new tariff law.

Check your Understanding! What did the people of South Carolina do when the President agreed to lower the tariff? Why did they do this?

Andrew Jackson Doesn’t Back Down! (well, only kind of…) President Jackson would not accept this threat—he asked Congress to pass the Force Bill which declared that he would use the federal (national) army to enforce the tariff. He also lowered the tariff even further to make Southerners happy. With the threat of the U.S. army, and with the lower tariff, South Carolina backed down and the nullification crisis ended.

A Tariff of Abomination! http://www.youtube.com/watch?v=0QVur0cRs7A

Andrew Jackson vs. The National Bank! President Jackson had always thought of himself as a defender of the people—the poor, less educated, simply people of the United States. He was not born into wealth, like most other politicians, he had worked hard to make a life for himself—he was a “self-made man.” Jackson believed that the national bank did not help the people, but instead helped only the wealthiest in America.

Check your Understanding! Why did President Jackson see himself as “defender of the people”?

The Multi-headed Monster! Jackson distrusted the national Bank—he believed it had become too powerful and that it was a “monster” that needed to be destroyed. Jackson hated the president of the bank—Nicholas Biddle. Biddle was everything that Jackson was not—a wealthy, well-born politician and banker. Jackson did not want to renew the national bank’s charter (keep the bank in business) because he believed that the bank only helped the rich get richer.

“I Killed (and by killed I mean vetoed) the Bank!” When it was time to renew the bank’s charter, Jackson vetoed the bill. He believed that the bank had become too powerful and was unconstitutional. This made Jackson an even more popular president—though many businessmen who relied on the bank were hurt by Jackson’s decisions, there were many more poor farmers in America who saw Jackson as a strong and fearless leader who stood up for their rights!

Video Clip! http://www.youtube.com/watch?v=zXjoAP7jm6Y 18:45 to 19:30

Check your Understanding! Why did Jackson become more popular when he vetoed the bill to renew the bank’s charter?

OPTIC Analysis Practice!