Chapter 12 Sect. 4 Prosperity and Panic
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9 terms
Terms | Definitions |
|---|---|
 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 |
| Whig Party | 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 |
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