Economic Panic of 1844

The Panic of 1844 was an economic recession in the Kingdom of America following the Texas Rebellion. Chancellor Daniel Webster argue among Congress that the emancipation of the slaves with the Constitutional Amendments was done without full due process of the law as explained in the 5th Amendment. Therefore, Webster argued that financial compensation for the former slaveholders was necessary. Though the National Bank did not have the sufficient reserves to compensate all holders, the plan went forth regardless, plunging the kingdom into significant debt. While the position is mixed among the Unionist Party and favorable among the Republicans, the Libertarians were greatly against it.
The issue was compounded by Webster lowering tariffs on imported goods in hopes to bolster the economy of his native New England. However, it had the effect of American domestic businesses suffering financially. This policy sees the support from the Unionists towards Webster greatly deplete.
Webster also reduced the territorial size of the Texas territory. This was done by granting the northern most portions above the Red River to Oklahoma, and splitting the remainder along the River into the states of Texas and Medina. While this was done to punish Texas weaken it financially with the intention of making it financially dependent on the federal government, the act not only worsened the economic panic, but increased the voting power of the Republicans, and later the Whigs.
With his support at an all time low, Webster eventually lost the 1845 election to the Chancellory to Libertarian John Hale. The Panic was subsided by financial loans from foreign investors and increasing tariffs in continuation of Henry Clay's American plan.

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Natural