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Nullification Crisis

The high rates of the Tariff of 1828 and the Tariff of 1832 angered many Southerners because they resulted in higher prices for imported goods. After the 1832 election, South Carolina held a state convention that declared the tariff rates of 1828 and 1832 to be nullified within the state, and further declared that federal collection of import duties would be illegal after January 1833. In response to this Nullification Crisis, Jackson issued his Proclamation to the People of South Carolina, which strongly denied the right of states to nullify federal laws or secede. He asked Congress to pass what became known as the Force Bill, which would authorize the president to send federal soldiers against South Carolina if it sought to nullify federal law.

Though Clay favored high tariff rates, he found Jackson's strong rhetoric against South Carolina distressing and sought to avoid a crisis that could end in civil war. He proposed a compromise tariff bill that would lower tariff rates, but do so gradually, thereby giving manufacturing interests time to adapt to less protective rates. Clay's compromise tariff won the backing of both manufacturers, who believed they would not receive a better deal, and Calhoun, who sought a way out of the crisis but refused to work with President Jackson's supporters on an alternative tariff bill. Though most members of Clay's own National Republican Party opposed it, the Tariff of 1833 passed both houses of Congress. Jackson simultaneously signed the tariff bill and the Force bill, and South Carolina leaders accepted the new tariff, effectively bringing the crisis to an end. Clay's role in resolving the crisis brought him renewed national stature in the wake of a crushing presidential election defeat, and some began referring to him as the "Great Compromiser."