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