What did the national bank do?
-controlled the nations money by giving out or holding back money to smaller banks
-loaned money to businesses
-government money was kept in the bank
What was the problem with the National Bank?
-it had tremendous power because it controlled the amount of money available for loans
-the bank was not owned by the government, but by private individuals. This put alot of power in the hands of few, non-elected, businessmen
-many people thought the bank was corrupt
-bank decisions were made in secret and at times it was inefficiently managed
Why did Jackson veto the charter renewal?
-congress voted to extend the charter of the bank, but Jackson vetoed Congress's vote and ended the bank in 1832
-jackson believed the bank was undemocratic because it had so much influence, was not controlled by people and only benefitted the wealthy
What happened after the veto?
-5 yrs. later: The panic of 1837-an econmic depression when many lost their savings, homes, businesses, and jobs
-many blamed Jackson for causing the economic turmoil
Why was this depression important?
-jackson set a pattern of limited government in the economy that would last untill the 1930s
What was the problem with the Nullification Crisis
-increasing tariffs had damaged southern trade with Britain
-South Carolina nullified of canceled the tariff law claiming states had the ultimate power to decide if a law was unconstitutional
How was the Nullification Crisis Resolved?
-jackson demanded south carolina enforce the tariff
-south carolina refused and threatened to secede the union
-jackson threatened military force and Henry Clay offered a compromise that reduced the tariff
-south carolina agreed to the compromise and remained in the union
Why was the nullicfication crisis important?
-people had to decide which was more important: states rights or the union. Jackson believed the Union was more important
-this crisis was a preview to the civil war when south carolina did leave the union
An American political party formed in the 1830s to oppose President Andrew Jackson and the Democrats, stood for protective tariffs, national banking, and federal aid for internal improvements