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With the states and the federal government at an impasse, civil war seemed a real possibility. The next governor of South Carolina, Robert Hayne, called for a force of ten thousand volunteers ( [link] ) to defend the state against any federal action. At the same time, South Carolinians who opposed the nullifiers told Jackson that eight thousand men stood ready to defend the Union. Congress passed the Force Bill of 1833, which gave the federal government the right to use federal troops to ensure compliance with federal law. The crisis—or at least the prospect of armed conflict in South Carolina—was defused by the Compromise Tariff of 1833, which reduced tariff rates considerably. Nullifiers in South Carolina accepted it, but in a move that demonstrated their inflexibility, they nullified the Force Bill.

A portrait of Robert Hayne is shown.
The governor of South Carolina, Robert Hayne, elected in 1832, was a strong proponent of states’ rights and the theory of nullification.

The Nullification Crisis illustrated the growing tensions in American democracy: an aggrieved minority of elite, wealthy slaveholders taking a stand against the will of a democratic majority; an emerging sectional divide between South and North over slavery; and a clash between those who believed in free trade and those who believed in protective tariffs to encourage the nation’s economic growth. These tensions would color the next three decades of politics in the United States.

The bank war

Congress established the Bank of the United States in 1791 as a key pillar of Alexander Hamilton’s financial program, but its twenty-year charter expired in 1811. Congress, swayed by the majority’s hostility to the bank as an institution catering to the wealthy elite, did not renew the charter at that time. In its place, Congress approved a new national bank—the Second Bank of the United States—in 1816. It too had a twenty-year charter, set to expire in 1836.

The Second Bank of the United States was created to stabilize the banking system. More than two hundred banks existed in the United States in 1816, and almost all of them issued paper money. In other words, citizens faced a bewildering welter of paper money with no standard value. In fact, the problem of paper money had contributed significantly to the Panic of 1819.

In the 1820s, the national bank moved into a magnificent new building in Philadelphia. However, despite Congress’s approval of the Second Bank of the United States, a great many people continued to view it as tool of the wealthy, an anti-democratic force. President Jackson was among them; he had faced economic crises of his own during his days speculating in land, an experience that had made him uneasy about paper money. To Jackson, hard currency—that is, gold or silver—was the far better alternative. The president also personally disliked the bank’s director, Nicholas Biddle.

A large part of the allure of mass democracy for politicians was the opportunity to capture the anger and resentment of ordinary Americans against what they saw as the privileges of a few. One of the leading opponents of the bank was Thomas Hart Benton, a senator from Missouri, who declared that the bank served “to make the rich richer, and the poor poorer.” The self-important statements of Biddle, who claimed to have more power that President Jackson, helped fuel sentiments like Benton’s.

Questions & Answers

Which plan resolved the issue of representation for the U.S. Constitution?
Nichole Reply
Which of the primary features of grassroots Progressivism was the most essential to the continued growth
Ren Reply
who invented the comedy movie without soun
Sami Reply
Comedy in film ad early as 1895 in film by Louis Lumier. Utilized slapstick.
Victor
which of the following is not one of the tasks women performed during the revolution?
Donna Reply
Women were gen not involved in politics or combat
Victor
Which country etablished the first colonies in the americas
Alex Reply
which part of the America's? what year?
Kyle
Jamestown = England. if I had to guess that's the one you are looking for
Kyle
Spain. area of new Mexico I think.
Christie
the first encounter with Americans in this te Indian was Christopher Columbus from spain bt he not establish a colony and the first colony was Britain in Jamestown I think
Bernard
Spain, first settlement was La Navidad est on Columbus' first voyage and which was destroyed by natives by 1493. on subsequent voyages of Columbus and others, Spain colonized Carribean islands such as Cuba.
Victor
in what ways did westward expansion provide new opportunities for women and african americans?\
cavausier Reply
Women were involved in establishing communities. They did a lot of work in turning roughboomtowns into more civilized places that had all the benefits of such. The West was characterized by greater freedom for women e.g. women were first granted suffrage in Wyoming and other Western states.
Victor
What source did the Roman Catholic church have
robbie Reply
Please clarify: do you mean what sources do they made their authority on?
Victor
impact of coming of Portuguese in kenya
Brian Reply
impact of coming of portuguese
Brian
impact of coming of portuguese
Brian
introduced new crops, disrupted local trade and communication, introduced Christianity but had limited success converting locals
Victor
What was the first problem that Franklin Roosevelt dealt with during his "First Hundred Days"?
Bryan Reply
The Great Depression
wy
worst cover up! they should feel dumb! they we're trapped in, on both sides of the East and West borders of the Islamic forces, Columbus was desperate and started voyage due to the events of his time!
Abdul
The Banking Crisis
Victor
a better word for Columbus is "determined" not "desperate."
Victor
Which of the following protests was directly related to federal policies, and thus had the biggest impact in creating a negative public perception of Hoover presidency
Steven Reply
the Bonus Army
Victor
what mistakes did Britain mak the lost them the colonies
Victor Reply
tax without representation
JOE'S
they did not give the colinies any representation
Victor
they also imposed taxes ,such as the stamp Act, on those it is unwise to offend; lawyers, business men and other men of influence
Victor
the american revolution
Angelica Reply
what started the American revolution
Futuremfan
immediate cause: British tried to seize weapons stored by local militia which led to a confrontation
Victor
the British handling of the situation was quite inept and they allowed things to escalate out of control.
Victor
hi...can you state benefit of U.S constitution
Chimi Reply
bill of rights
Tom
it provided a political framework which provifed stability while at the same time permitting freedoms which allowed the American people to flourish
Victor
bill spelled out rights so there wpuld be no confusion
Victor
Among the major cause of American civil war, can I have a brief account on social cause?
Rinchen Reply
The issue of slavery between South America and North America that lead to the American Civil War
Sanusi
not sure what you mean by "social" causes. Do you mean things like differences between Northern ers & southerners?
Victor
The N & S developed very differently. This led to clashing outlooks and agendas. Slavery was the "irepressible conflict" that made compromise impossible.
Victor
what was the purpose of Operation Valkyrie?
Matthew Reply
I have no idea
Sanusi
that was the WWII attempt by German officers to overthrow Hitler.
Victor

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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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