Pgs
John C. Calhoun called the Tariff of 1828 a “Tariff of Abominations” Because the tax was so high on British imports the South had to rely on the North to purchase cheaper goods. They felt that the North was getting rich at the South’s expense. Devised a nullification theory, which questioned the legality of applying some federal laws in sovereign states.
Calhoun said that since the Constitution was based on a compact among the states, then the states had the right to nullify any act of Congress. Make it illegal within their borders. Believed that if the federal government refused to permit a state to nullify a federal law, the state had the right to withdraw from the Union.
Debated the idea of how much power states had. Wanted to preserve the Union.
Declared tariffs of 1828 and 1832 unconstitutional. Said that they were null and void. Said that they would secede from the Union if anyone came to collect the duties. President Jackson was furious and said that if South Carolina continued with this behavior he would consider it treason. Said would hang Calhoun and send federal troops in the enforce the tariff.
Jackson urged Congress to pass the Force Bill Allowed the federal government to use the army and navy against South Carolina if state authorities resisted paying proper duties. Henry Clay stepped in and urged Congress to pass a bill that would reduce tariffs over a 10 year period.
Jackson didn’t like the BUS. Thought it might bribe officials and buy elections with intent of controlling the government and changing its character. Made the rich richer and the powerful more potent.
After his reelection in 1832, he tried to kill the BUS before its charter ran out in 1836 by pressuring the Secretary of the Tresury to withdrawal all the governments deposits from the bank’s branches and place them in certain state banks called “pet banks” because of their loyalty to the Democratic Party. Secretary refused to do this and Jackson fired him.
Nicolas Biddle decided to have the BUS demand repayment of loans to individuals and privately owned businesses. Refused to make new loans. Forced businessmen to go into bankruptcy and they pleaded with Jackson for help. Biddle eased on the loan policies National Bank became just a bank and closed its doors 5 years later.
New York became new financial capital of the United States. Pet Banks – state banks loyal to Jackson and held the federal money. People believed Jackson acted more like a King then a President. Many people broke from the Democratic Party and formed the Whig Party. Leaders: Henry Clay and Daniel Webster. Anyone opposed to excessively powerful chief executive.
Most of the pet banks didn’t have the gold or silver to back up the notes they gave. Became a huge problem. Panic of 1837 Many people wanted to trade in their notes for gold or silver and banks didn’t have enough gold or silver to give them. 1/3 of the population out of work and many businesses went bankrupt. Established a Treasury to help, but it hardly worked.
William Henry Harrison (Whig) ran against Tyler. Harrison claimed to have come from humble origins and said Tyler was an aristocrat. (actually vice versa) Harrison won and died a month later of pneumonia. John Tyler took over. Didn’t hold the same beliefs as the Whig party. Only put on the ballot to gain southern votes. Big mistake.
Appealed more to passion than reason. Political speeches became a part of entertainment. Average citizen became more politically aware and had more political involvement. Whigs and Jacksonian (Democrat Republicans) Not Federalists and Republicans.