In 1828, Congress adopted an especially high tariff. Southerners called it the Tariff of Abominations.Jackson’s Vice President, John C. Calhoun of South Carolina, violently opposed the tariff.

This episode convinced him that the future of slavery, which he supported, required a stronger defense of states’ rights. Toward that end, he began to champion the concept of nullification.

Calhoun had been a strong nationalist. But his opinion changed after the Missouri controversy of 1819 and 1820.

Nullification – Concept in which states could nullify, or void, any federal law

they deemed unconstitutional.

In 1832, the South Carolina legislature nullified the protective tariff and prohibited the collection of federal tariff duties in S.C. Further, the state threatened to secede from the Union if the federal government employed force against South Carolina.

Calhoun resigned the vice presidency and instead became a senator.In Congress, Daniel Webster of Massachusetts became the great champion of nationalism.In 1833, Webster led the way in pushing for passage of a Force Bill, giving Jackson authority to use troops to enforce federal law in South Carolina.

NullificationAndrew Jackson

John C. Calhoun

Opposed nullification Supported nullification

Opposed most tariffs Opposed all tariffs

Willing to use force to maintain the Union

Willing to secede

With Jackson’s support, Congress reduced the tariff. This reduced South Carolina’s militancy.

Historical Significance: The difficult question of nullification and secession, however, had been postponed rather than resolved.

The crisis had passed. Jackson and Webster could declare victory.

Jacksonian Democrats suspected that the new economy encouraged corruption and greed.

The Bank had many supporters in Congress. In 1832, they voted to renew the Bank’s charter. Jackson however vetoed the renewal.

To Jackson and his followers, industry seemed mainly to enrich wealthy people at the expense of everyone else.

The Bank’s supporters denounced Jackson as a power-hungry tyrant trampling on the rights of Congress.

The veto shocked them because the previous Presidents had so rarely used that power – only nine times in forty-two years.

Reasons for Chartering the Bank~To establish a national paper currency

~Manage Government finances

~Regulate private banks

Bank Supporters

Bank Opponents (Jackson)

~The Bank supplied a stable currency, which helped

economic growth.

~Important to regulate state banks.

~Imposes restraint on issuing credit.

~Bank favors rich investors

~Control of the banking is too far removed from the

public.

~Restrains private bankers.

Answers:

• Jackson wears a king’s clothing, including a cloak, crown, scepter.

• That Jackson is trampling U.S. law; that Jackson is above the law.

Led by Henry Clay and Daniel Webster, in 1832 the Bank’s friends formed a new political party known as the Whigs.

Historical Significance: The emergence of the Whigs renewed two-party politics in the United States. Whigs challenged Jackson’s Democrats in local, state, and national elections.

The Whig Party Forms

The Whigs were nationalists who wanted a strong federal government to manage the economy.Relying on a broad interpretation of the Constitution, they favored the American System of protective tariffs, internal improvements, and a national bank.

Jackson was able to undermine the Bank, but the destruction weakened the economy.

The face of value of bank notes exploded from:

$10 million in 1833 to

$149 million in 1837.

The inflation hurt the common people that Jackson had professed to help.

Relieved from federal regulation, state banks expanded, inflating prices with a flood of paper bank notes.

Economic troubles were plaguing the country when Martin Van Buren took office in 1837, the economy suffered a severe panic.A key trigger was Jackson’s decision, taken months earlier, to stop accepting paper money for the purchase of federal land.

Results:• Hundreds of banks & businesses that had

invested in land went bankrupt.• Thousands of planters and farmers lost their land.• 1 out of 3 urban workers lost their jobs.• Those who kept their jobs saw their wages drop

by 30%.• The Panic of 1837 was the worst depression

suffered by Americans to that date.

The depression in 1837 revived the Whigs. In 1840, they ran William Henry Harrison for President and John Tyler for Vice President.

Turning the political tables, the Whigs persuaded voters that Van Buren was ineffective, corrupt, and an aristocrat who threatened the republic.

The Whigs ran a campaign that was light on ideas but heavy on the sort of theatrics that would become common in American politics.

N

A month after assuming office, Harrison died of pneumonia. Vice President John Tyler of Virginia became the President.

Harrison won the Presidency, and the Whigs succeeded in capturing Congress.

Tyler surprised and horrified the Whigs by rejecting their policies. The Whigs would have to wait for a future election to exercise full control of the government.