Jefferson was famously against a strong central government, and this passage proves it. He hated the idea of a strong federal government becoming tyrannical, which is why he supported the occasional rebellion to keep it in check.
Texas was annexed in 1845, and Oregon was Spain's territory.
B abstraction is youre answer
The Gibbons v. Ogden court case in a nutshell:
Ogden had a monopoly on operating steamboats on the Lower Mississippi.
Gibbons, who had a federal liscence to operate steamboats, tried to start business there and was sued by Ogden.
The ruling was that Gibbons would be allowed to operate there, which gave precedent to federal law over state law.
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