The Jackson Era Jackson’s Administration Chapter 10, Section 2 Pages 326 - 331

Building Background Even though Americans had a new feeling of national unity, different sections of the country still had very different interests. The industrial North competed with the agricultural South and the western frontier. As Congress favored one section over another, political differences grew.

Sectional Differences Increase Regional differences had a major effect on Andrew Jackson’s presidency. There were three main U.S. regions in the early 1800s. North – economy based on manufacturing and trade South – economy based on agriculture (cotton and tobacco) West – frontier region, just beginning to emerge – free land encouraged people to move west

Tariff of Abominations Tariffs (taxes) became one of the major issues that President Jackson had to deal with. Northern manufacturers insisted on a tariff on imported woolen goods. This would protect their industries from foreign competition. Tariff of Abominations – a high tariff on imported goods – outraged Southern voters. This tariff added fuel to the growing sectional differences that plagued the young nation.

States’ Rights Debate In 1829 President Jackson was forced to respond to the conflict over tariffs. At the core of the dispute was the question of an individual state’s right to disregard a law that had been passed by the U.S. Congress.

Nullification Crisis Vice President John C. Calhoun (SC) strongly opposed the Tariff of Abominations. He voiced his disagreement in the South Carolina Exposition and Protest, stating that Congress should not favor one state or region over another. Calhoun’s states’ rights doctrine basically stated that since the states had formed the national government, state power should be greater than the power of the federal government.

Nullification Crisis Conflict between the supporters and the opponents of nullification deepened. As a result of the conflict, Calhoun resigned as Vice President and was then elected to the U.S. Senate. Martin Van Buren replaced Calhoun as Vice President when Jackson was re-elected as President.

Debates – States’ Rights There has always been debate about the rights of states: Thomas Jefferson and James Madison supported states’ power to disagree with the federal government in the Virginia and Kentucky Resolutions (1798-99). Hartford Convention supporters backed the right of states to challenge the constitutionality of laws. Senator Robert Hayne (SC) argued that nullification gave states a way to lawfully protest federal legislation. Daniel Webster (MA) argued that the U.S. was one nation.

South Carolina’s Actions Although deeply opposed to nullification, Jackson was concerned about economic problems in Southern states. In 1832 he urged Congress to pass another tariff that lowered the previous rate. South Carolina thought that the slight change was in adequate. South Carolina decided to pass the Nullification Act, which declared the 1828 and 1832 tariffs to be “null, void, and not binding.” South Carolina even threatened to withdraw from the Union.

Jackson Responds Jackson was enraged by South Carolina’s actions. Jackson strongly condemned nullification. He also declared that he would enforce the law in South Carolina. Congress passed the Force Bill, which gave Jackson the right to use the army if necessary. As a result of Jackson’s actions, no other state supported South Carolina. This conflict would continue for years, ending in a huge conflict.

Jackson Attacks the Bank Jackson didn’t always support greater federal power. He opposed the Second Bank of the United States. The Second Bank of the U.S. had a 20 year charter. Acted exclusively as the federal government’s financial agent. 80% of the bank was privately own, but it was supervised by Congress. Southern states opposed the bank. Many believed that the bank only helped the wealthy.

McCulloch v. Maryland Jackson questioned the legality of the Bank. He believed that the Bank was an unconstitutional extension of the power of Congress. Maryland passed a tax that would limit the Bank’s operations. This action resulted in a case going all the way to the U.S. Supreme Court. In McCulloch v. Maryland, the Court ruled that the national bank was constitutional.

“I will kill it.” In 1832, Nicholas Biddle, the Bank’s director, decided to push for a bill to renew the Bank’s charter. Jackson campaigned for the bill’s defeat. Having said that “I will kill it,” Jackson vetoed the legislation when Congress sent it to him to sign. Congress could not get the two-thirds majority needed to override Jackson’s veto. Jackson also weakened the Bank’s power by moving most of its funds to state banks.

Financial Crisis After Jackson moved government funds to state banks, the banks began to use the money to offer easy credit terms to people buying land. While this helped the expansion of the West, it led to inflation. In the summer of 1836 Jackson order Americans to use only gold or silver – instead of paper notes – to buy government owned land. This policy did not help the national economy as Jackson hoped.

Election of 1836 Jackson decided that he was not going to run for re-election. The Democrats nominated Vice President Martin Van Buren as their candidate. A new political party was formed in 1834 to oppose Jackson – the Whig Party. The Whig Party favored the idea of a weak president and a strong Congress.

Election of 1836 The Whig Party chose four men to run against Van Buren. Because of this indecision, and with the backing of Jackson, Van Buren won the election.

Panic 0f 1837 Shortly after Van Buren took office, the country experienced the Panic of 1837 – a severe economic depression. Jackson’s financial policies had contributed to the panic, but people blamed Van Buren. In 1840 the Whigs united against a weakened Van Buren and selected one candidate – William Henry Harrison. Harrison won in an electoral landslide.