In 1828, Congress passed a high protective tariff that infuriated the southern states because they felt it only benefited the industrialized north. For example, a high tariff on imports increased the cost of British textiles.

The 1828 tariff was part of a series of tariffs that began after the War of 1812 and the Napoleonic Wars, when the blockade of Europe led British manufacturers to offer goods in America at low prices that American manufacturers often could not match.

Why did the South oppose higher tariffs? They sold their cotton to foreign buyers in exchange for foreign manufactured goods, and the tariff would make those goods more expensive. Because the money for these improvements would come from tariffs, and they didn’t want an increase in tariffs.

Eager for substitutes, Americans built their own factories in the Northeast. How did the Tariff of 1816 affect the North and the South? The inflated price for imports encouraged Americans to buy products made in the U.S. The tariff helped industry, but it hurt farmers, who had to pay higher prices for consumer goods.

How was the nullification crisis resolved? Having proclaimed the tariffs of 1828 and 1832 null and void within its boundaries, South Carolina threatened to secede from the union if the federal government attempted to enforce the tariffs. Henry Clay, “The Great Compromiser,” who stewarded the compromise tariff of 1833.

Pres. Andrew Jackson declared that states did not have the right of nullification and asked Congress for authority to collect the tariff by force if necessary. Congress responded with the Force Bill. The law allowed the president to relocate customs houses and to require that customs duties be paid in cash.

In response to the Tariff of 1828, vice president John C. Calhoun asserted that states had the right to nullify federal laws.

What problems resulted from weakening the Bank? Smaller banks began offering easy credit terms for buying land,which led to inflation. Why did Jackson veto the bill to renew the second bank of the United States?

John C. Calhoun

Andrew Jackson, generally in favor of states’ rights, saw nullification as a threat to the Union. In his view, the federal government derived its power from the people, not from the states, and the federal laws had greater authority than those of the individual states.

Calhoun and Jackson held separate views on many issues, including states’ rights. Jackson’s personal animosity for Calhoun seems to have had its origin in the Washington “social scene” of the time. Jackson’s feelings were inflamed by the Mrs. Calhoun’s treatment of Peggy, wife of Jackson’s Secretary of War, John Eaton.

Bank of the United States When the Bank ‘s charter expired, the Democratic-government refused to extend its charter, claiming it was unconstitutional. With no centralized banking system in place, the government found it difficult to finance the War of 1812.

In the election of 1828, Calhoun was reelected as vice president on a ticket with Andrew Jackson. At first Jackson and Calhoun seemed to work together more smoothly than Calhoun had with Adams, but that situation was short lived. They disagreed over policy, especially the policy of nullification.