Chapter 6, Section 5 Finance & States’ Rights p. 236-241 Andrew Jackson fights the Bank of the United States and stands firm against a state’s threat to secede.

President of the 2nd Bank of the U.S. The Bank War 2nd Bank of the United States established in 1816 1822 Nicholas Biddle appointed president of the bank The bank is owned by private citizens. Federal government deposits all its gold and silver in the bank Jacksonians believe the bank to be a menace (“monster”) to the economy Want all money to be gold or silver coins Congress renews bank’s charter in 1832 Nicolas Biddle President of the 2nd Bank of the U.S.

The Bank War (continued) Jacksonians believe Biddle has too much power and is corrupting Congress Jackson vows to put the bank out of business “I will kill it.” Jackson vetoes the bill to renew the bank’s charter. Henry Clay & the Whig Party make the Bank the main issue in the Election of 1832. - Jackson wins reelection Jackson removes all Federal deposits from the Bank of the United States Bank goes out of business in 1836 Jackson’s victory increases the power of the presidency. Political cartoon of Jackson vs. Biddle “The Bank War”

Struggle Over States’ Rights Debate over State v. Federal power goes back to the Constitutional Convention 1828 - Congress passes an extremely high tariff. Who is happy about this? Northerners favor the tariff. Why? It encourages manufacturing and protects against foreign competition. Southerners oppose tariff Call it “Tariff of Abominations” South has few factories, tariff just means higher prices p. 237 Political cartoon of “King Andrew” Who do you think made this?

The Nullification Crisis Arguments against Nullification Arguments for Nullification John C. Calhoun believes states can nullify federal laws they objects to. States keep certain powers over the federal government. South Carolina votes to nullify “Tariff of Abominations” South Carolina threatens to secede from the Union if force is used to enforce the tariff. Federal power is supreme over state power. Federal gov. gets its power from the American People (not from the states). States can’t pick-and-choose which federal laws to enforce. Jackson threatens to use the military to enforce federal law. “I will hang the first man that I can lay my hand on, upon the first tree that I can reach!” -A. Jackson Calhoun resigns as V.P. How was the tariff issue resolved? Compromise – but…. The battle over States’ Rights would continue into the 1860s (The Civil War). nullification – an action by a state that cancels a federal law

The End of the Jackson Era Martin Van Buren wins election of 1836 Promises to continue Jackson’s policies PANIC OF 1837: fall in cotton prices and slow economy cause many banks to go bankrupt Economy ruins Van Buren’s Presidency William Henry Harrison (Whig) wins 1840 election - Remember him? Whigs run a “log cabin” campaign Portray Harrison as a “man of the people” Andy’s era ends Martin Van Buren (Jackson’s pick) William Henry Harrison “Tippecanoe”

That’s the End of Unit 3 "Baby Steps” Unit Test Friday (144 pts.) C6 Study guide due before test (40 pts.) Unit 3 crossword Puzzle is OPTIONAL JEOPARDY Review tomorrow Take out your blue sheets!!!

Unit 3 Review Important topics to know: Washington’s presidency Political divisions (Hamilton v. Jefferson) Foreign relations (Britain & France) Jay’s Treaty, XYZ Affair, Alien & Sedition Acts Conflicts with Native Americans Fallen Timbers, Tecumseh, Indian Removal Jefferson’s “Revolution of 1800” The West (Louisiana Purchase, Lewis & Clark) War of 1812 (impressments) Supreme Court decisions Sectionalism (States’ Rights, tariff…) Monroe Doctrine The “Age of Jackson”