The legality of abolition is argued at the Supreme Court. Proponents argue that it was a legal and valid vote as stated in the Constitution, while the opposing arguments point to the economic fallout of the decision. The vote is split 3-2, with Chief Justice John Marshall casting the tie breaker, in favor of abolition. In the words of Chief Justice Marshall, "The inadequacy of preceding planning does not negate the legal questioning of the law." Unionist and Libertarian lawmakers applaud the decision, but the Republicans use it as a rally. John C. Calhoun uses it as evidence of failure of the federal government to rule.
Chancellor William Short offers work incentives for the unemployed in the north to travel south to work fields. King Augustus II attempts to introduce European land reforms, but is stopped based on the Constitutionality of the effort, with domestic issues being under the Chancellor. The Libertarians in power prove to be stubborn, as the Secretary of the Homeland mostly ignores the suggestions. In the end, very few reforms pass, causing frustrations in all levels of American society.
Augustus II receives the terms from Tecumseh and the Huron Territory, but sends back a counter offer. Huron would be recognized as an unincorporated American territory, with Tecumseh as the executive, his council as the legislative, and his settlement of Prophetstown as the capital. Meanwhile, Canadian leaders work to undermine American efforts in the region, and Tecumseh growing in cooperation with them as supplies are more easily acquired.
All of these factors combined allowed for Short to lose re-election, and the Chancellery being won by Republican William H. Crawford.