The North and South had opposite views in the National Economic System, the North was more of capitalist. The North practiced the work of the Wealth of Nations, the North was more industrialized, they had more of a commercial agriculture. Thomas Jefferson was from the South (Virginia) and Alexander Hamilton was from New York. Jefferson was more about he concerned of the farming republic and the virtue of the yeoman farmer. He’d paid more attention to Commercial Agriculture. Whereas, on the other side you have Alexander Hamilton, the English industrial model, he believes in the National Bank such as the Tariffs and Internal improvements. Tariff was not favor by the South because it made buying their goods more difficult. The Compromise Tariff of 1833 Gradual reduction of tariff. The Southern planters and slave owners invoke rights of the state.

Dealing with the division of the States, the first adopted idea was the Mason- Dixon line of 1779, this line was the first dividing slave and free states. The division was the answer to the dispute about Pennsylvania and Maryland, these states were divided in the 40-degree parallel. The free states were North of the Dixon line and the slave states South of the Dixon line, the slave holding South was known as the “Dixie”.

Right after the Mason-Dixon line division, the United States took another step towards trying to solve the tension between the states, the Great Compromise of 1787. This was supposed to give an equal representation for the states for Congress, such as the Senate and for the House of Representatives. The equal representation was in great importance to the House mainly, because house based number amount of members on population of the States. Which was under the compromises 1 representative per 40,000 people. However, the conflict in the House was the fact that it was under a 3/5 clause which made the Southerners disproportional in power. After the Great Compromise the states were not equal in Congress, which led to Cold War. With the settling of new territories bought by the Louisiana Purchase in 1803, the United States started moving West. It came to question rather or not the new Western states bought by the purchase should be counted as free or slave states. Louisiana was thereby admitted as a slave state in 1812, slave territories were Arkansas and Missouri. When Missouri applied for statehood there was a concern that Missouri would u