Tariffs and Nullification

Different Economies–The North:• Fishing, shipbuilding industry and

naval supplies, trade and port cities • Skilled craftsmen, shopkeepers,

manufacturing (textiles, tools, metals, building materials, etc.)

–The South• Large farms/plantations, cash crops

(tobacco, indigo, rice, cotton), wood products, small farms • Slavery

More Tariff Issues• Congress passed a high tariff on goods import

from Europe–Manufactures, especially in NE, were happy–Made European goods more expensive;

wanted people to buy American–Southerners hated the tariff because they

traded cotton for manufactured goods• Would have to now pay more for these items

Nullification & Secession• Some Southerners called for

secession• Calhoun argued for nullification,

canceling a federal law a state considered unconstitutional– Claimed that states have rights

and powers independent of the federal gov’t

– States created the federal gov’t & should have the last word on decisions affecting them

Let the Debates Begin• Webster-Hayne

Debate–Hayne wanted

state sovereignty–Webster argued for

national sovereignty & that nullification would end the Union

The VP Steps Down• Jackson defends the Union; shocked Calhoun,

his VP• Calhoun won election to the Senate and

stepped down as VP

• The Nullification Crisis grew and the threat to the Union intensified

Nullification Act• Congress passed a lower

tax; Southerners were still not happy

• SC legislature passed the Nullification Act– Said that they would

not pay the “illegal” tariffs

– Threatened to secede if the federal gov’t interfered

Clay to the Rescue Again• Jackson supported a compromise bill by Clay– Would lower the tariff– AJ made sure that the South would accept it first

• AJ persuaded Congress to pass the Force Bill, allowed the president to use the military to enforce acts of Congress

• SC accepted the compromise tariff and put aside the Nullification Act

• Crisis between a state and the federal gov’t was over for the time being