States’ Rights and the National Bank Section 7*4 pp

Preview Questions What is the principle of nullification? How did President Jackson destroy the national bank? What was the Panic of 1837?

I. A Tariff Raises States’ Rights Issue “Tariff of Abominations” 1828 –Causes decreased trade w/ G.B. –Southerners hurt financially –Opposed by VP Calhoun

I. A Tariff Raises States’ Rights Issue South Carolina opposes tariff –Becomes states’ rights issue –Calhoun’s “S.C. Exposition” –Calhoun resigns as VP in protest

I. A Tariff Raises States’ Rights Issue S.C. nullifies Tariffs of 1828 and 1832 –Threaten to secede from the union –Compromise arranged by Clay- Tariff of 1833

II. Jackson Attacks the National Bank 1832: Jackson vetoes renewal of BUS –BUS has unfair advantage –Symbol of wealth & aristocracy –Too much federal power Jackson uses “pet banks” to kill BUS Jackson and the “bank war”

Whig Party –Formed out of anger at Jackson –Favored: American System Protective Tariffs Federal control of banking II. Jackson Attacks the National Bank

III. Van Buren & Jackson’s Legacy Van Buren wins in 1836 –Inherits Jackson’s inflation Panic of 1837 –Banks refuse to accept paper $$$ –Many banks collapse –People lose savings

III. Van Buren & Jackson’s Legacy Whig WH Harrison wins in 1840 Tyler becomes president after WHH dies –Referred to as “His Accidency” –Not devoted to Whigs