Nullification Crisis and the Bank Battle

  • Tariff of 1824

    Influenced by Henry Clay, it was designed to protect Northern Industries from inexpensive British goods, raising taxes dramatically. Southern states disagreed with the tax because it raised rates on products almost 30%.
  • South Carolina Exposition

    Written unanimously by John C. Calhoun, it was a response to the tariff of abominations that reinforced the idea of nullification and claimed the tariff to be unconstitutional and that the states have a right to nullify the tariff.
  • the Bank Battle

    Andrew Jackson wins the critical election of 1828 via a wave of popular support.
  • Tariff of 1828

    Designed to protect industries in the North and western products from foreign competition by placing taxes on foreign goods; made living more expensive in the South. Many southern democrats angry, John C. Calhoun made the South Carolina Exposition and Protest calling for nullification of the tax.
  • the Bank Battle

    Jackson’s annual message to Congress outlines suggestions to reform SBUS and questions the constitutionality of the national bank.
  • the Bank Battle

    Treasury Secretary Louis McLain releases plan in favor of rechartering the SBUS amid various Jackson-favored reforms.
  • The Bank Battle

    Bank President Nicholas Biddle submits Bank Recharter Bill, four years before it is due to expire, without any of the requested reforms from Jackson. Jackson’s opponents convinced Biddle that Jackson would not veto the bill ahead of the 1832 presidential election.
  • the Bank battle

    Jackson wins reelection after defeating Henry Clay in a landslide. His reelection virtually ended all chances of the national bank recharter.
  • the Bank battle

    Bank Recharter Bill passed both houses of Congress. Jackson forcefully vetoed the bill on July 10 declaring, “The Bank… is trying to kill me, but I will kill it.”
  • Tariff of 1832

    Passed to reduce the existing tax rates to help solve and relieve the conflict of the tariff of abominations. Southerners till mad and angry because their economy was suffering from the high priced goods, still saw the tariffs as unconstitutional.
  • (1st) South Carolina Nullification

    South Carolina was the most upset of the tariffs being placed and in response to the increase in prices of goods, they declared they had the right to nullify the tariffs and any law passed by government.
  • Jackson's Proclamation Against Nullification

    In response to the South Carolina's nullification of the tariffs, Jackson responded by stating that states do not have the right to nullify a federal law that they believe is unconstitutional.
  • Hayne's Counter Proclomation

    In response to Jackson dismissing South Carolina's nullification proclamation, Hayne's claimed that if a state is being oppressed by a law, that state can deem the law unconstitutional and void. He countered Jackson's response to sending troops to South Carolina by continuing to nullify the federal tariffs due to the South's anger about these taxes.
  • Force Bill

    In response to South Carolina's claim for nullification, it allowed for President Jackson to issue federal troops to forcefully enforce any law, and in this case tariffs, in act of nullification in states.
  • the Bank battle

    Jackson instructs federal deposits to be removed from the national bank and deposited into various state banks referred to as “pet banks.”
  • the Bank battle

    In response Biddle purposefully stockpiled bank reserves and contracted available credit, beginning a mild economic panic that the US soon recovered from.
  • South Carolina Repeal of Nullification

    Still angry about the tariffs and their economy taking a hit, the South Carolina convention reconvened in response to their nullification ordinance being dismissed. They called for a repeal on their nullification of the tariffs that were placed to protect Northern industries to try to have power to nullify those tariffs.
  • the Bank Battle

    Jackson follows through on his election promise by eliminating the national debt.
  • the Bank Battle

    Congress passes the Deposit and Distribution Act which has the effect of transferring federal revenues from the east to the west, allowing rampant speculation, and decreased lending power from eastern banks.
  • the Bank Battle

    Jackson issued the Specie Circular requiring payment for public lands in gold and silver.
  • the Bank Battle

    The significant Panic of 1837 begins just as Martin Van Buren takes office. Jackson’s bank policies are largely to blame for the depression.
  • Clay's Compromise

    Issued by Henry Clay in order to seek a resolution for the conflict of the protective tariffs between the Northern and Southern sates. It claimed that tariff taxes would be removed by 10% each year. South Carolina was still upset that they could not nullify these tariffs. The compromise also included California entering the Union as a free state, the fugitive slave act was amended, the slave trade in D.C. was abolished, and a territorial government was created in Utah.