Jackson’s Administration Chapter 9, section 2 pages 288-293

Three regions emerge The West The North Emerging economy Supported internal improvements and the sale of public lands. The North Economy based on manufacturing. Supported tariffs-American goods could be sold at lower prices than British goods. The South Economy based on Agriculture. Opposed tariffs, which would increase prices on imported goods

Tariff of Abominations Northern manufacturers could not compete with cheaper British goods. They wanted a protective tariff passed to protect them. Southern farmers were afraid that this would hurt their economy. President Adams signs a bill that places a high tariff on imports. This was called the Tariff of Abominations. This created more sectional differences between the north and south.

States’ Rights Debate Southern States thought the tariff unfairly targeted them. They believed that they had the right to disregard federal law. This disagreement eventually led to the Nullification Crisis.

What is nullification? Nullification is a state’s decision to nullify, or reject a federal law it views as unconstitutional.

Remember John C. Calhoun? Calhoun was from South Carolina, which was hurt by the high Tariffs. He drafted the South Carolina Exposition and Protest which stated that the federal government shouldn’t favor one region over another. He also used it to advance the States’ Rights Doctrine: The belief that because states had formed the federal government, state power should be greater than federal power. Calhoun believed states had the right to nullify, or reject any federal law found to be unconstitutional.

The Nullification Crisis Opponents of Calhoun said the American people, NOT states made up the union. Conflicts between supporters and opponents to nullification deepened. The dispute became known as the Nullification Crisis. John C. Calhoun eventually resigned from the vice presidency because of the conflict.

Hayne-Webster debate The nullification crisis became a hot issue in the Senate. Senator Robert Hayne defended nullification, saying it was a way for states to protest unfair laws. Senator Daniel Webster argued that the welfare of the nation should override the needs of individual states.

South Carolina nullifies! In response to the high tariffs, the government of South Carolina passed the nullification act. The state government also voted to form it’s own army. President Jackson was outraged! “The tariffs of 1828 and 1832 are null and void and not binding to upon this State, it’s officers or citizens.

Jackson’s response Jackson condemns the nullification. Congress authorizes the use of the army to enforce the law. Eventually, Henry Clay helps create a compromise in which the tariff would be reduced and South Carolina would enforce federal law.

Jackson Attacks the Bank The 2nd bank of the U.S. was established in 1816 and was given a 20 year charter. Jackson supported federal power over states but thought the bank was unconstitutional Jackson believed states should have control over the banking system.

The Whig party The Whig party was established in the early 1830’s and opposed Jackson’s policies. The Whigs believed in a strong Congress and a weak president. Martin Van Buren was successful in defeating the Whig's candidates for president.

The Panic of 1837 After Van Buren took office, the country experienced the panic of 1837, an economic depression. The panic was caused by Jackson’s financial policies and high inflation. Van Buren was blamed and lost reelection to Whig candidate William Henry Harrison.