The Tariff of Abominations, Jackson v. B.U.S., and Van Buren
After the War of 1812, British manufacturers tried to
destroy American competitors by flooding the U.S.
market with inexpensive goods.
A protective tariff was passed in 1816 to protect our
industry, and this was later increased in 1824 and 1828.
By 1828, the tariff had reached such an exorbitant
amount that it became known by many as the Tariff of
Abominations.
How did this tariff lead to major political debates, and
what state took a personal stance against this tariff?
John C. Calhoun, vice-president to Jackson, took a firm stance against the tariff due to its
effects on SC, his home state. Even though he had rallied behind the American System
which had proposed the tariff, the inflated rates pushed him to denounce it.
ROBERT HAYNE (SC)
DANIEL WEBSTER (MA)
Believed the tariff would split
the North and South.
 Also viewed the tariff as a
destruction of the liberty of
individuals.
 Supported the nullification
theory, that was drafted by
Calhoun, stating that the
Constitution is based on a
compact with the sovereign
states and the government.
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Webster differed in his view
of the tariff as a northerner.
 He viewed the nullification
theory as an outright
rebellion, and found that
there is never a “middle road”
between rebellion and
compliance.
 His beliefs stemmed from
seeing the need for the
protection of the needs of the
textile industry.
The issue of states’ rights and nullification came to a head
in 1832 when the Congress passed a new tariff that SC still
did not find satisfactory.
SC called the tariff “unauthorized by the constitution,” and
“null, void, and no law.”
They then threatened secession if customs officials tried to
collect duties. What was Jackson’s response as a fellow
southerner?
Jackson was infuriated by SC’s actions and threatened to
hang Calhoun and march federal troops into SC and
enforce the tariff. He then passed the Force Bill in 1833
which allowed the federal government to use the army
and navy against SC if they refused to pay.
Henry Clay, the Great Compromiser, stepped in and
proposed a tariff bill that gradually lowered duties over a
ten-year period.
Andrew Jackson began his attack on the BUS by vetoing the bill that was to recharter the bank.
Henry Clay and Daniel Webster had hoped to diminish Jackson’s reputation by putting him at
odds with the bank, but Jackson was a lot slyer than anticipated.
Jackson depicted the BUS as a “privileged institution,” especially since all federal tax revenues
were deposited in the BUS rather than state banks, and BUS stockholders, not tax payers,
earned interest from these deposits.
The Bank President, Nicholas Biddle, also
came under scrutiny for giving loans to
congressman at a much lower rate then
what he gave to common citizens.
Jackson used “pet banks,” (state banks
loyal to the Democratic Party) to place all
government funds.
Jackson’s “pet banks” forced Biddle to
scramble to save the B.U.S.
He demanded immediate repayment of
loans that were out and did not give out
new loans, hoping that this would lead
the frustrated people to recharter the
bank.
When businessmen traveled to
Washington, D.C. to beg for the B.U.S.
to be reopened, Jackson told them to,
“Go to Nicholas Biddle.”
Jackson successfully ended the Second Bank of the United States and another B.U.S.
would not be opened for 73 years. His maneuvering had consequences and caused yet
another rift in the political realm.
Jackson had angered several people including some
members of the Democratic Party.
In 1834, those angered which included Clay, Adams,
and Webster, formed the Whig Party.
Whigs backed the American System, the use of federal
money to construct roads and canals, and backed federal
control of the banks and national currency.
Martin Van Buren (Jackson’s V.P.) was chosen as the
Democratic candidate when Jackson refused to run
for a third term.
With Jackson’s help, Van Buren easily won the
election, but he inherited several issues caused by
Jackson’s war with the B.U.S.
The “pet banks,” where Jackson had deposited the
money were known as “wildcat” banks since they
printed large quantities of paper money. This money
was not backed by gold or silver. People used this
money to purchase land, therefore leaving the federal
government with the problem.
Jackson tried to stop this problem before leaving office by making an order that all land
had to be made for with specie, or gold and silver. Banks were flooded with requests to
cash in their paper money for specie. Banks had to suspend the redemption of bank notes.
The collapse of hard currency led to bigger problems then expected in 1837 when we faced
bank closings and the collapse of the credit system.
The Panic of 1837 led to
hundreds of businesses going
bankrupt and more than 30% of
the population becoming
unemployed.
Van Buren tried several
strategies to reverse the effects
of the panic, but they only
worsened the effects of this
economical crisis.
Van Buren ran for reelection against Whig
candidate William Henry Harrison. The Whig
party portrayed Van Buren as a pampered
aristocrat and Harrison as a common man.
Harrison won and immediately began the Whig
program to build the economy back up, but
died a month later of pneumonia leaving his
V.P., John Tyler in office.
John Tyler was not a firm Whig supporter and
was mainly put on the campaign as a way to get
Southern votes. His term ended without much
impact and he became known as “His
Accidency”
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HW: Begin review packet, due for Thursday.
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If your 3rd set of Note Cards are not in by Friday,
you will be on the Sunday Study Hall
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Note Card Corrections (if needed) are due
Tuesday 18th.
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If you had a class job, bring your sheets to me to
be signed.
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Have a great day!