The American system, and especially its prominent feature of a high protective tariff was put in issue, in the Presidential canvass of 1832; and the friends of that system labored diligently in Congress in presenting its best points to the greatest advantage; and staking its fate upon the issue of the election. It was lost; not only by the result of the main contest, but by that of the congressional election which took place simultaneously with it. All the States dissatisfied with that system, were satisfied with the view of its speedy and regular extinction, under the legislation of the approaching session of Congress, excepting only South Carolina. She has held aloof from the Presidential contest, and cast her electoral votes for persons who were not candidates—doing nothing to aid the election of General Jackson, with whom her interests were apparently identified. On the 24th November, 1832, two weeks after the election which decided the fate of the tariff, that State issued an “Ordinance to nullify certain acts of the Congress of the United States, purporting to be laws laying duties and imposts on the importation of foreign commodities.” It declared that the Congress had exceeded its constitutional powers in imposing high and excessive duties on the theory of “protection,” had unjustly discriminated in favor of one class or employment, at the expense and to the injury and oppression of other classes and individuals; that said laws were in consequence not binding on the State and its citizens; and declaring its right and purpose to enact laws to prevent the enforcement and arrest the operation of said acts and parts of the acts of the Congress of the United States within the limits of that State after the first day of February following. This ordinance placed the State in the attitude of forcible resistance to the laws of the United States, to take effect on the first day of February next ensuing—a date prior to the meeting of the next Congress, which the country naturally expected would take some action in reference to the tariff laws complained of. The ordinance further provided that if, in the meantime, any attempt was made by the federal government to enforce the obnoxious laws, except through the tribunals, all the officers of which were sworn against them, the fact of such attempt was to terminate the continuance of South Carolina in the Union—to absolve her from all connection with the federal government—and to establish her as a separate government, wholly unconnected with the United States or any State. The ordinance of nullification was certified by the Governor of South Carolina to the President of the United States, and reached him in December of the same year; in consequence of which he immediately issued a proclamation, exhorting the people of South Carolina to obey the laws of Congress; pointing out and explaining the illegality of the procedure; stating clearly and distinctly his firm determination to enforce the laws as became him as Executive, even by resort to force if necessary. As a state paper, it is important as it contains the views of General Jackson regarding the nature and character of our federal government, expressed in the following language: “The people of the United States formed the constitution, acting through the State Legislatures in making the compact, to meet and discuss its provisions, and acting in separate conventions when they ratified those provisions; but, the terms used in the constitution show it to be a government in which the people of all the States collectively are represented. We are one people in the choice of President and Vice-President. Here the States have no other agency than to direct the mode in which the votes shall be given. * * * The people, then, and not the States, are represented in the executive branch. * * * In the House of Representatives the members are all representatives of the United States, not representatives of the particular States from which they come. They are paid by the United States, not by the State, nor are they accountable to it for any act done in the performance of their legislative functions. * * *

“The constitution of the United States, then, forms a government, not a league; and whether it be formed by a compact between the States, or in any other manner, its character is the same. It is a government in which all the people are represented, which operates directly on the people individually, not upon the States—they retained all the power they did not grant. But each State, having expressly parted with so many powers as to constitute, jointly with the other States, a single nation, cannot, from that period, possess any right to secede, because such secession does not break a league, but destroys the unity of the nation, and any injury to that unity, is not only a breach which could result from the contravention of a compact, but it is an offence against the whole Union. To say that any State may at pleasure secede from the Union, is to say that the United States are not a nation; because it would be a solecism to contend that any part of a nation might dissolve its connection with the other parts, to their injury or ruin, without committing any offence.”

Without calling on Congress for extraordinary powers, the President in his annual message, merely adverted to the attitude of the State, and proceeded to meet the exigency by the exercise of the powers he already possessed. The proceedings in South Carolina not ceasing, and taking daily a more aggravated form in the organization of troops, the collection of arms and of munitions of war, and in declarations hostile to the Union, he found it necessary early in January to report the facts to Congress in a special message, and ask for extraordinary powers. Bills for the reduction of the tariff were early in the Session introduced into both houses, while at the same time the President, though not relaxing his efforts towards a peaceful settlement of the difficulty, made steady preparations for enforcing the law. The result of the bills offered in the two Houses of Congress, was the passage of Mr. Clay’s “compromise” bill on the 12th of February 1833, which radically changed the whole tariff system.

The President in his message on the South Carolina proceedings had recommended to Congress the revival of some acts, heretofore in force, to enable him to execute the laws in that State; and the Senate’s committee on the judiciary had reported a bill accordingly early in the session. It was immediately assailed by several members as violent and unconstitutional, tending to civil war, and denounced as “the bloody bill”—the “force bill,” &c. The bill was vindicated in the Senate, by its author, who showed that it contained no novel principle; was substantially a revival of laws previously in force; with the authority superadded to remove the office of customs from one building or place to another in case of need. The bill was vehemently opposed, and every effort made to render it odious to the people, and even extend the odium to the President, and to every person urging or aiding in its passage. Mr. Webster justly rebuked all this vituperation, and justified the bill, both for the equity of its provisions, and the necessity for enacting them. He said, that an unlawful combination threatened the integrity of the Union; that the crisis called for a mild, temperate, forbearing but inflexibly firm execution of the laws; and finally, that public opinion sets with an irresistible force in favor of the Union, in favor of the measures recommended by the President, and against the new doctrines which threatened the dissolution of the Union. The support which Mr. Webster gave to these measures was the regular result of the principles which he laid down in his first speeches against nullification in the debate with Mr. Hayne, and he could not have done less without being derelict to his own principles then avowed. He supported with transcendent ability, the cause of the constitution and of the country, in the person of a President to whom he was politically opposed, whose gratitude and admiration he earned for his patriotic endeavors. The country, without distinction of party, felt the same; and the universality of the feeling was one of the grateful instances of popular applause and justice when great talents are seen exerting themselves for the good of the country. He was the colossal figure on the political stage during that eventful time; and his labors, splendid in their day, survive for the benefit of distant posterity.

During the discussion over the re-charter of the Bank of the United States, which as before mentioned, occupied the attention of Congress for several years, the country suffered from a money panic, and a general financial depression and distress was generally prevalent. In 1834 a measure was introduced into the House, for equalizing the value of gold and silver, and legalizing the tender of foreign coin, of both metals. The good effects of the bill were immediately seen. Gold began to flow into the country through all the channels of commerce, foreign and domestic; the mint was busy; and specie payment, which had been suspended in the country for thirty years, was resumed, and gold and silver became the currency of the land; inspiring confidence in all the pursuits of industry.

As indicative of the position of the democratic party at that date, on the subject of the kind of money authorized by the Constitution, Mr. Benton’s speech in the Senate is of interest. He said: “In the first place, he was one of those who believed that the government of the United States was intended to be a hard-money government; that it was the intention and the declaration of the Constitution of the United States, that the federal currency should consist of gold and silver, and that there is no power in Congress to issue, or to authorize any company of individuals to issue, any species of federal paper currency whatsoever. Every clause in the Constitution (said Mr. B.) which bears upon the subject of money—every early statute of Congress which interprets the meaning of these clauses—and every historic recollection which refers to them, go hand in hand in giving to that instrument the meaning which this proposition ascribes to it. The power granted to Congress to coin money is an authority to stamp metallic money, and is not an authority for emitting slips of paper containing promises to pay money. The authority granted to Congress to regulate the value of coin, is an authority to regulate the value of the metallic money, not of paper. The prohibition upon the States against making anything but gold and silver a legal tender, is a moral prohibition, founded in virtue and honesty, and is just as binding upon the Federal Government as upon the State Governments; and that without a written prohibition; for the difference in the nature of the two governments is such, that the States may do all things which they are not forbid to do; and the Federal Government can do nothing which it is not authorized by the Constitution to do. The framers of the Constitution (said Mr. B.) created a hard-money government. They intended the new government to recognize nothing for money but gold and silver; and every word admitted into the Constitution, upon the subject of money, defines and establishes that sacred intention.

Legislative enactment came quickly to the aid of constitutional intention and historic recollection. The fifth statute passed at the first session of the first Congress that ever sat under the present Constitution was full and explicit on this head. It declared, “that the fees and duties payable to the federal government shall be received in gold and silver coin only.” It was under General Hamilton, as Secretary of the Treasury, in 1791, that the policy of the government underwent a change. In the act constituting the Bank of the United States, he brought forward his celebrated plan for the support of the public credit—that plan which unfolded the entire scheme of the paper system and immediately developed the great political line between the federalists and the republicans. The establishment of a national bank was the leading and predominant feature of that plan; and the original report of the secretary, in favor of establishing the bank, contained this fatal and deplorable recommendation: “The bills and notes of the bank, originally made payable, or which shall have become payable, on demand, in gold and silver coin, shall be receivable in all payments to the United States.” From the moment of the adoption of this policy, the moneyed character of the government stood changed and reversed. Federal bank notes took the place of hard-money; and the whole edifice of the government slid, at once, from the solid rock of gold and silver money, on which its framers had placed it, into the troubled and tempestuous ocean of paper currency.

The first session of the 35th Congress opened December 1835. Mr. James K. Polk was elected Speaker of the House by a large majority over Mr. John Bell, the previous Speaker; the former being supported by the administration party, and the latter having become identified with those who, on siding with Mr. Hugh L. White as a candidate for the presidency, were considered as having divided from the democratic party. The chief subject of the President’s message was the relations of our country with France relative to the continued non-payment of the stipulated indemnity provided for in the treaty of 1831 for French spoliations of American shipping. The obligation to pay was admitted, and the money even voted for that purpose; but offense was taken at the President’s message, and payment refused until an apology should be made. The President commented on this in his message, and the Senate had under consideration measures authorizing reprisals on French shipping. At this point Great Britain offered her services as mediator between the nations, and as a result the indemnity was shortly afterwards paid.

Agitation of the slavery question in the United States really began about this time. Evil-disposed persons had largely circulated through the Southern states, pamphlets and circulars tending to stir up strife and insurrection; and this had become so intolerable that it was referred to by the President in his message. Congress at the session of 1836 was flooded with petitions and memorials urging federal interference to abolish slavery in the States; beginning with the petition of the Society of Friends of Philadelphia, urging the abolition of slavery in the District of Columbia. These petitions were referred to Committees after an acrimonious debate as to whether they should be received or not. The position of the government at that time is embodied in the following resolution which was adopted in the House of Representatives as early as 1790, and substantially reaffirmed in 1836, as follows: “That Congress have no authority to interfere in the emancipation of slaves, or in the treatment of them within any of the States; it remaining with the several States to provide any regulations therein which humanity and true policy may require.”

In the Summer preceding the Presidential election of 1836, a measure was introduced into Congress, which became very nearly a party measure, and which in its results proved disastrous to the Democratic party in after years. It was a plan for distributing the public land money among the States either in the shape of credit distribution, or in the disguise of a deposit of surplus revenue; and this for the purpose of enhancing the value of the State stocks held by the United States Bank, which institution, aided by the party which it favored, led by Mr. Clay, was the prime mover in the plan. That gentleman was the author of the scheme, and great calculations were made by the party which favored the distribution upon its effect in adding to their popularity. The Bill passed the Senate in its original form, but met with less favor in the House where it was found necessary. To effectuate substantially the same end, a Senate Bill was introduced to regulate the keeping of the public money in the deposit banks, and this was turned into distribution of the surplus public moneys with the States, in proportion to their representation in Congress, to be returned when Congress should call for it; and this was called a deposit with the States, and the faith of the States pledged for a return of the money. It was stigmatized by its opponents in Congress, as a distribution in disguise—as a deposit never to be reclaimed; as a miserable evasion of the Constitution; as an attempt to debauch the people with their own money; as plundering instead of defending the country. The Bill passed both houses, mainly by the efforts of a half dozen aspirants to the Presidency, who sought to thus increase their popularity. They were doomed to disappointment in this respect. Politically, it was no advantage to its numerous and emulous supporters, and of no disservice to its few determined opponents. It was a most unfortunate act, a plain evasion of the Constitution for a bad purpose; and it soon gave a sad overthrow to the democracy and disappointed every calculation made upon it. To the States it was no advantage, raising expectations which were not fulfilled, and upon which many of them acted as realities. The Bill was signed by the President, but it is simple justice to him to say that he did it with a repugnance of feeling, and a recoil of judgment, which it required great efforts of his friends to overcome, and with a regret for it afterwards which he often and publicly expressed. In a party point of view, the passage of this measure was the commencement of calamities, being an efficient cause in that general suspension of specie payments, which quickly occurred, and brought so much embarrassment on the Van Buren administration, ending in the great democratic defeat of 1840.