Tariff of Abominations
South opposed because Britain had less money to by cotton and could not
sell the South cheap manufactured goods
Northern business liked it
John C. Calhoun's Nullification Theory
V.P. under Adams and Jackson
SC
VA and Kentucky Resolutions
States determine constitutionality of acts of Congress
Secession
Daniel Webster's response
Great speaker
Mass.
Union is more than a compact between states
National government supreme
Disputes settled by courts
Jackson sided with Webster
Jackson dropped Calhoun from 1832 ticket
South Carolina threatened to secede
Congress passed the Force Bill
1833
Federal troops would be used to keep SC from seceding
Henry Clay's Compromise
Tariff lowered gradually over 10 years
SC backed down but nullified Force Bill
Reasons for opposition to the bank
Symbolized Eastern wealth and power
Threat to democracy because of its power
State banks disliked competition
Farmers distrusted paper money
Had a monopoly on government business
Profits went to wealthy stockholders rather than taxpayers
Nicholas Biddle, the president of the bank was widely disliked
Election of 1832
Bank was the main issue
Andrew Jackson
Replaced Calhoun with Martin Van Buren
Henry Clay
Received $100,000 donation from the bank
Jackson won easily
Jackson withdrew all government deposits out of the bank and deposited
them in state banks
Biddle called in all loans
Panic
Biddle's plan backfired
People blamed him not Jackson
Bank expired in 1836
Results of the crisis
New York became financial capital
Picked up fallout from loss of National Bank
Whig Party formed
1834
Anti Jackson