chapter 10 section 5 states’ rights and the economy vs

Chapter 10 Section 5 States’ Rights and the Economy

VS.

The Bank War

• New paper money is more stable form of currency

• Difficult for farmers/merchants to borrow money (loans)

• Easy for Businessmen to borrow money

• 1819 – southerners/westerners lost their farms

Jackson kills the bank

The Bank War

• Andrew Jackson hated the bank

• Believed only small group of wealthy people benefitted from banks

• “The Bank…is trying to kill me, but I will kill it!”

• No bank, increases power of president

• Economic crisis struck in 1836, After Jackson left office

Questions of States’ Rights10th amendment• “any powers not

specifically given to the federal government are reserved to the states respectively, or to the people.” ▫ Alien and Sedition Acts

Nullification CrisisCauses• 1828 – law passed that put

heavy tax on iron, textiles, and other products

• Helped northern Manufacturers, hurt Southerners who had to pay more for these goods

• John C. Calhoun wants Southern States to nullify law

Supporters of Nullification

• If federal gov. could enforce an unjust law, could it end slavery?

• Main part of our gov. is that when we disagree with a law, the people have the right to get rid of it!

• States’ rights are more important than saving the Union.

Against Nullification

• Daniel Webster• America not formed by

states, but by the American people.

• Keeping the union together is more important than States’ Rights

South Carolina Threatens to Secede 1832• South Carolina tries to

nullify tax law. • If Fed. Gov used force to

enforce law, S.C. would secede.

• Jackson puts soldiers on standby

• Calhoun resigns as Vice President

• The tax is lowered, settled with peace

The End of the Jackson EraMartin Van Buren • Son of N.Y Tavern owner • Helped Jacksons election • Secretary of state, V.P. • Received a majority of

both electoral and popular vote.

Panic of 1837

• Great Britain was having economic issues, buying LESS cotton from the U.S.

• Van Buren’s Presidency was ruined!

Election of 1840

• Van Buren ran for re-election against Whig Candidate, William Henry Harrison.

• Whigs had BBQ’s, parades to get ordinary voters

• Harrison wins! He is a “man of the People.”