The act also provided that any federal surplus over 5

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ly came up w/the compromise Tariff of 1833, which reduced duties over a 9 year period. SC was satisfied and repealed its nullification law [but nullified the Force Act, which Jackson ignored]. - Although the crisis was over, neither side really had won a decisive victory. It took another crisis, this time over a nat’l bank, to make the thing clear… *The Presidential Election of 1832 and the National Bank Controversy* - First of all, in the Presidential Election of 1832, the main issue was the early removal of the Second Bank of the United States’ charter, which was due to expire in 1836. Jackson was all for the bank’s removal, attacking it as a center of special privilege and economic power; Clay wanted to recharter it. 102 - In reality, the Second Bank of the US held federal funds and was an important source of credit for businesses. It also kept state banks honest by not accepting notes w/o gold to back them – so state banks weren’t exactly the nat’l banks biggest fans [saw it as private institution unresponsive to local needs]. - Anyhow, Jackson was reelected easily [random note: this election first in nation’s history where candidates chosen by conventions] and quickly proceeded to take down the bank in 1833. Here’s what he did… *Jackson’s Second Term: Financial Crisis* - Basically, Jackson began by taking the $ in the nat’l bank and putting it in state-chartered banks – thereby shrinking the bank and making it just another private bank after 1836. - Then came the Deposit Act of 1836, which allowed the Secretary of the Treasury to choose one bank per state to do what the SBUS used to. The act also provided that any federal surplus over $5 million be given to the states starting in 1837. The surplus [from speculation in public lands] was then put into bank notes by state banks. This worried Jackson, who hated paper $, so… - He convinced Secretary of the Treasury Levi Woodbury to issue the Specie Circular, which said that after August 1836 only gold/silver could be used to pay for la...
View Full Document

Ask a homework question - tutors are online