1. 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.

2. 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.

3. 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”

4. Struggle Over States’ Rights
Debate over State v. Federal power goes back to the Constitutional Convention
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?

5. 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

6. 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”

7. 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!!!

8. 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”