7th Grade a changing Nation Notes Part V

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7th Grade A Changing Nation Notes

Part V
The Bank War

  1. The Second Bank of the United States

    • It held the federal government’s money and lent money to state banks.

    • It also issued paper money, which helped create a stable currency.

    • Many people blamed the Bank for the economic crisis of 1819.

    • In 1832, Jackson vetoed the bill to renew the Bank’s charter.

    • He won the 1832 election while opposing the bank, which closed when its charter ran out tin 1836.

States’ Rights and the Nullification Crisis

  1. States Rights

    • Americans had always debated about the balance of powers of the federal and state governments.

    • The Constitution gave the federal government many significant powers.

    • The Tenth Amendment limited federal power by stating that powers not given to the federal government belonged to the states or to the people.

    • Congress passed a law in 1828 raising tariffs.

    • It helped northern manufacturers, but southerners felt the law was unfair.

  1. Nullification

    • John C. Calhoun argued that states had the right of nullification, which means they could cancel federal laws that they objected to.

    • This theory was based on the idea that Union was formed from a voluntary agreement between states.

    • The clearest argument against nullification came from Daniel Webster.

    • He argued that the Union was formed by the entire American people, not the states.

    • After Congress passed another tariff in 1832, South Carolina voted to nullify the tariffs.

    • It threatened to secede if the federal government interfered.

    • Federal threats to use force to collect the tariffs as well as a lowering of the tariffs led South Carolina to vote to repeal its tariff nullification.

The End of the Jackson Era

  1. Martin Van Buren

    • Jackson’s choice to succeed him was Martin Van Buren, who won the presidential election of 1836.

    • However, soon afterward, an economic collapse, called the Panic of 1837, occurred.

    • As a result of the hard times that followed, Van Buren did not win reelection in 1840.

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