Economics Academy 101
Western Reserve Public Media
PBS 45 & 49
 
   

Economic Causes of the Civil War

The common belief is that the Civil War was caused by moral indignation over the issue of slavery. While it is true that there was a concern over the oppression of human beings, it is only partially true that this caused the Civil War. A major cause of the war was economic in nature. Following are some factors that played a part in causing the Civil War.

 

  • In 1798, the Federalist-controlled Congress passed a series of laws called the Alien and Sedition Acts which, on the surface, were designed to control the activities of foreigners in the United States during a time when war was looming. Beneath the surface, however, the real intent of these laws was to destroy Jeffersonian Republicanism that promoted an agrarian or farming society. Ninety-two percent of the nation’s industrial resources were located in the North.

  • Concern for states’ rights and thoughts of secession were not exclusive to the South. As early as December 1814, a gathering of New England Federalists met in Hartford, Conn., to call for states’ rights. They drafted the Hartford Convention. The Constitutional amendments that were proposed reflected the delegates’ hostility toward the South and West, as the previous War of 1812 was very unpopular in commercial New England.

  • The Southern states had lost control of the House of Representatives because the population growth of these states was slower than the growth of the Northern states. The North had a population of 22 million. The South had a population of 9 million, of which 3.5 million were slaves. New territories in the North also gave an advantage to free states in the Senate.

  • Missouri asked to enter the Union as a slave state in 1819. A bitter debate arose that was not resolved until the following year when Maine requested entry as a free state. Senator Jesse B. Thomas offered an amendment that produced the Missouri Compromise.

  • The Missouri Compromise is the result of a battle in Congress to have an equal number of slave and free states. It brought about a power struggle to get control of Congress.

  • Missouri was admitted as a slave state (1821) after Maine was admitted as a free state in 1820.

  • From the beginning of the Union, individual states had conflicts with the federal government. Generally these were economic or philosophical in nature, where either the North or the South thought that the federal government was giving preference to the other side. The Tariff of 1828 was an example of this.

  • The Northern states wanted Andrew Jackson to win the presidency in 1828 over the current president, John Quincy Adams. Democrats, including Southern Democrats, devised a scheme to discredit the Adams administration by drastically raising the tariff rates. The plan backfired and Congress passed the bill. The Tariff of 1828 was also called the “Tariff of Abomination” and was widely protested in the South.

  • The Kentucky and Virginia Resolutions attacked the Federalists’ interpretation of the Constitution, which extended the powers of the federal government over the states. The resolutions declared that the U.S. Constitution only established an agreement between the central government and the states, and that the federal government had no right to exercise powers not specifically delegated to it. Should the federal government assume such powers, its acts under them would be void. It was the right of the states to decide as to the constitutionality of such acts.

  • The South saw tariffs imposed by the national government on foreign imports not for general revenue purposes but to help domestic manufacturing industries located mainly in the North. At the same time, there were depressed cotton prices and a reduced demand for raw goods from the South.

 

  Copyright©2007, Northeastern Educational Television of Ohio, Inc. All rights reserved.