War with the Bank

• Bank of the United States– Organized by

Congress– Run by private

banker• Nicholas Biddle

– Controlled loans made by state banks = powerful

• Why did Jackson dislike the bank?– Limited the amount

of loans to merchants and farmers

– Favored wealthy– Unconstitutional ?– Undemocratic ?Jackson’s ultimate plan was to destroy the Bank

of the United States

The Monster is Destroyed• Jackson’s plan: Veto the renewal of the

Bank of the U.S.• Whigs’ plan: Renew charter, which will

lead to a Jackson Veto, which will upset Americans, which will lead to a Jackson loss in1832

• What really happened: Renew charter, which led to a Jackson veto…But, Jackson was re-elected– The Second Bank dies– All federal money was put into pet banks

• State banks• Run by Jackson’s friends

Ironically, Jackson is on a US Bank

Note!

The Tariff of Abominations

• In 1828, Congress passed the highest tariff in the nation’s history–Southerners hated the tariff and called it

the “Tariff of Abominations”• Benefited the northern manufacturers by

preventing foreign competition– hemp, flax, molasses, iron and sail duck

• Hurt the Southerners who sold cotton to Europe and bought European goods–Passed a second tariff in 1832

• John Calhoun, Vice-President– Wanted to nullify the tariff in

South Carolina– Resigns as V.P.– S.C. holds state meeting and

votes in favor of Nullification Act

– Threaten: S.C. will secede from Union

The South Responds

The Solution: Compromise

• Henry Clay proposes a compromise tariff

• Both sides accept: Jackson does not use force, S.C. does not secede

• Threat of civil war is gone (for now)

• Tensions continue to develop between the north and south– …and now we will begin to see a

trend evolve!

Jerks!

Snobs!

The Tariff of Abominations

Indian Removal

• In 1830 Pres. Jackson and Congress pass the Indian Removal Act

• Forces Native Americans to sign treaties agreeing to move west of the Mississippi– Present day state of Oklahoma

• Trail of Tears–Marched Natives hundreds of miles with

little food or shelter– Thousands died, mostly elderly & children• Over 4,000 Cherokee (as high as maybe 8,000)

Worcester v. Georgia• Georgia: law requiring whites living in

Cherokee territory to obtain a permit from the state.

• 7 missionaries (Samuel Worcester, wife and 5 others) refused to follow the law:– GA convicted & sentenced them to 4years

hard labor.– Missionaries believed the state targeted them

because of their support of the Cherokee – Georgia attempting to drive the Native

Americans from the state (had stripped all rights from the Cherokee in 1828)

Worcester v. Georgia• Case reaches Supreme Court…• John Marshall’s Ruling:– Court stated the United States relationship to

the Cherokee was that of two separate nations– Barred Georgia from taking action against them• States can’t negotiate with other sovereign nations

– Government did not have the right of possession of Native American land, nor dominion over their laws

We, the Supreme

Court, rule that you, the

Cherokee, have the

rights to your land!

Jokes on you Marshall…let’s see

you enforce that law with your robes and

wig! Nobody tells Jackson what to do!

Tribes included…

• Choctaw, Seminole, Muscogee (Creek), Chickasaw, and Cherokee

Oklahoma (Indian) Territory

Indian Removal Act

Trail of Tears

Life After Jackson…• 1830’s: Bank of United States closed– State banks could lend as much money wanted– Government sold millions of acres of land• Farmers and speculators purchased land by borrowing $

from state banks

• Problem: paper money not backed by gold or silver– Jackson wanted all land to be bought in gold or silver– Speculators and others rushed to state banks to trade

in paper money for gold and silver (Panic of 1837)• Banks closed because they run out of specie

Martin Van Buren (1837-1841)

• The panic of 1837 was not Van Buren’s fault– But, he did nothing to

correct it (Laissez-Faire)• Effects of Panic of 1837– 90% of factories closed– Riots– Unemployment rose– Prices dropped– Wages dropped

William Henry Harrison (1841)

• “Tippecanoe and Tyler Too”

• Whigs finally win– Hope to revive bank

• Harrison dies one month after taking office

John Tyler

• Disagreed with Whigs and reviving of the national bank

• All but 1 cabinet member resigned

• Didn’t accomplish anything