Part 36 (1/2)

306. Nullification, 1832-33.--In 1832 Congress pa.s.sed a new tariff act. The South Carolinians decided to try Calhoun's weapon of nullification. They held a convention, declared the act null and void, and forbade South Carolinians to obey the law. They probably thought that Jackson would not oppose them. But they should have had no doubts on that subject. For Jackson already had proposed his famous toast on Jefferson's birthday, ”Our federal Union, it must be preserved.” He now told the Carolinians that he would enforce the laws, and he set about doing it with all his old-time energy. He sent s.h.i.+ps and soldiers to Charleston and ordered the collector of that port to collect the duties.

He then asked Congress to give him greater power. And Congress pa.s.sed the Force Bill, giving him the power he asked for. The South Carolinians, on their part, suspended the nullification ordinance and thus avoided an armed conflict with ”Old Hickory,” as his admirers called Jackson.

[Sidenote: Tariff of 1833.]

307. The Compromise Tariff, 1833.--The nullifiers really gained a part of the battle, for the tariff law of 1832 was repealed. In its place Congress pa.s.sed what was called the Compromise Tariff. This compromise was the work of Henry Clay, the peacemaker. Under it the duties were to be gradually lowered until, in 1842, they would be as low as they were by the Tariff Act of 1816 (p. 231).

[Sidenote: Second United States Bank, 1816.]

[Sidenote: Jackson's dislike of the bank.]

308. The Second United States Bank.--Nowadays any one with enough money can open a national bank under the protection of the government at Was.h.i.+ngton. At this time, however, there was one great United States Bank. Its headquarters were at Philadelphia and it had branches all over the country. Jackson, like Jefferson (p. 163), had very grave doubts as to the power of the national government to establish such a bank. Its size and its prosperity alarmed him. Moreover, the stockholders and managers, for the most part, were his political opponents. The United States Bank also interfered seriously with the operations of the state banks--some of which were managed by Jackson's friends. The latter urged him on to destroy the United States Bank, and he determined to destroy it.

[Sidenote: Jackson, Clay, and the bank charter.]

[Sidenote: Const.i.tution, Art. I, sec. 7, par. 3.]

[Sidenote: Reelection of Jackson, 1832.]

309. Struggle over the Bank Charter.--The charter of the bank would not come to an end until 1836, while the term for which Jackson had been elected in 1828 would come to an end in 1833. But in his first message to Congress Jackson gave notice that he would not give his consent to a new charter. Clay and his friends at once took up the challenge. They pa.s.sed a bill rechartering the bank. Jackson vetoed the bill. The Clay men could not get enough votes to pa.s.s it over his veto. The bank question, therefore, became one of the issues of the election of 1832.

Jackson was reflected by a large majority over Clay.

The people were clearly on his side, and he at once set to work to destroy the bank.

[Sidenote: The bank and the government.]

[Sidenote: Removal of the deposits, 1833. _McMaster_, 305-308.]

310. Removal of the Deposits.--In those days there was no United States Treasury building at Was.h.i.+ngton, with great vaults for the storing of gold, silver, and paper money. There were no sub-treasuries in the important commercial cities. The United States Bank and its branches received the government's money on deposit and paid it out on checks signed by the proper government official. In 1833 the United States Bank had in its vaults about nine million dollars belonging to the government. Jackson directed that this money should be drawn out as required, to pay the government's expenses, and that no more government money should be deposited in the bank. In the future it should be deposited in certain state banks. The banks selected were controlled by Jackson's political friends and were called the ”pet banks.”

[Ill.u.s.tration: ANDREW JACKSON, 1815. ”Our Federal union, it must be preserved.”--Jackson's toast at the Jefferson dinner.]

[Sidenote: Speculation in Western lands. _McMaster_, 309.]

[Sidenote: The specie circular, 1836.]

311. Jackson's Specie Circular, 1836.--The first result of the removal of the deposits was very different from what Jackson had expected. At this time there was active speculation in Western lands.

Men who had a little spare money bought Western lands. Those who had no money in hand, borrowed money from the banks and with it bought Western lands. Now it happened that many of the ”pet banks” were in the West.

The government's money, deposited with them, tempted their managers to lend money more freely. This, in turn, increased the ease with which people could speculate. Jackson saw that unless something were done to restrain this speculation, disaster would surely come. So he issued a circular to the United States land officers. This circular was called the Specie Circular, because in it the President forbade the land officers to receive anything except gold and silver and certain certificates in payment for the public lands.

[Ill.u.s.tration: A SETTLER'S CABIN.]

[Sidenote: Payment of the national debt. _McMaster_, 309-310.]

312. Payment of the Debt, 1837.--The national debt had now all been paid. The government was collecting more money than it could use for national purposes. And it was compelled to keep on collecting more money than it could use, because the Compromise Tariff (p. 248) made it impossible to reduce duties any faster than a certain amount each year.

No one dared to disturb the Compromise Tariff, because to do so would bring on a most bitter political fight. The government had more money in the ”pet banks” than was really safe. It could not deposit more with them.

[Sidenote: Distribution of the surplus.]

[Sidenote: Van Buren elected President, 1836.]