United States in 1816 and Calhoun began making many tariffs. Along with the expansion of the economy, the growth of white settlements, trade in the west, and the creation of new states greatly reflected the rising spirit of nationalism in America. It all ended with the Panic of 1819 when credit policies by the Second Bank of the United
States were changed to be more conservative after the Federalist Party ceased to exist. Banks throughout the country failed; mortgages were foreclosed on, forcing people out of their homes and off of their farms. Unemployment increased immensely across the country due to falling prices that impaired agriculture and manufacturing. The economy hit rock bottom with the large quantity of foreign goods being imported into the country, along with the cotton market in the
South beginning to crash. Sectionalism began to appear as a result of the economic disaster.
Northern manufacturers believed the government needed to enact high tariffs that would protect them from foreign competition to save the economy. Southerners resented the tariffs and began a long campaign against them. They had hoped freer trade would revive the cotton economy.
Westerners directly blamed the bankers and speculators. It seemed…