The problem of how much power the federal government should have has been a problem in history for ages. This can be seen after the Revolutionary War with the Articles of Confederation. Many people were scared of the federal government obtaining power after the Revolutionary War, as a lot of people did not want to have what happened with Great Britain happen again.
Amendment X, or the Tenth Amendment, states that the "<em>powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the States respectively, or to the people</em>."
This statement limits the power of the federal government by granting all powers that are not already granted to the government to the citizens or the people. The federal government does not have all of the power to do everything and the power to do certain things are with the states and the people. This can be seen with local taxes, certain licenses, elections, and other things.
<span>The Panic was the worst economic crisis to hit the nation in its history to that point. Economic historians are not certain what caused it but point to several possible factors. First, too many people attempted to redeem silver notes for gold; ultimately the statutory limit for the minimum amount of gold in federal reserves was reached and U.S. Notes could no longer be successfully redeemed for gold. Next, the Philadelphia and Reading Railroad went bankrupt. Then, the National Cordage Company (the most actively traded stock at the time) went into receivership as a result of its bankers calling their loans in response to rumors regarding the NCC's financial distress. A series of bank failures followed, and the price of silver fell. The Northern Pacific Railway, the Union Pacific Railroad and the Atchison, Topeka & Santa Fe Railroad all failed. This was followed by the bankruptcy of many other companies; in total over 15,000 companies and 500 banks failed (many in the west). About 12%-18% of the workforce was unemployed at the Panic's peak.
hope this makes sense</span>
