This document provides an overview of economic and political developments in the United States following the War of 1812. It discusses how the war led to the first American Industrial Revolution as the embargo forced the country to produce goods domestically. It also describes the issues surrounding the national bank and resulting economic turmoil. The document outlines the growth of nationalism and sectionalism, including the Tariff of 1816, Henry Clay's American System, and the Missouri Compromise of 1820. It summarizes key Supreme Court cases that strengthened federal power and diplomatic efforts like the Monroe Doctrine. Finally, it discusses the election of 1824 and rise of Andrew Jackson and the Democratic Party.
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2. Economic Nationalism
An unexpected benefit of the War of 1812
Jefferson’s embargo forced Americans to look inward for the production of their finished goods. This led to the first
American Industrial Revolution and a surge of economic growth.
The Bank of the United States
The charter for the first Bank of the United States ended in 1811 and was not immediately renewed. Without the
financial control the central bank, economic turmoil ensued.
State chartered local banks with no control flooded the channels of commerce with bank notes
Initial economic boom
Runaway inflation
Bursting bubble caused deep recession
Banks stopped exchanging coins for paper money
National government could not float loans or transfer funds across the country
To stabilize the economy, a second bank was chartered, which would last for 20 years.
1816
Bank of the United States (B.U.S.)
3. Economic Nationalism
A protective tariff
Protect the fledgling American industrial sector from competing British imports, the Tariff of 1816 was
enacted.
North, where most of the manufacturing base was located, was for it,
South was against it.
The agrarian economy of the south depended on shipping goods abroad to agents who sold
them, purchased needed items, and shipped them back to America.
Southerners were upset because they were forced to pay the import tax.
Internal improvements
War of 1812 revealed several shortcomings of the United States.
Transportation infrastructure.
The first attempt to fix this problem was the construction of the Cumberland, or National, Road.
Canals
Railroads
4. Economic Nationalism
The American System
Internal improvements
Creation of an industrial infrastructure,
National Banking System
Stabilizing of the American economy after the War of 1812
Required a more active role of the federal government in the lives
of the citizens.
The first proponent of the American System was Henry Clay who
argued that properity depended on the federal government
assuming an active role in shaping the economy.
“Market Revolution”
5. Economic Nationalism
Clay’s American System
High tariffs to impede the import of European products and protect
fledgling American industries
Higher prices for federal lands
Proceeds to be distributed to states to finance internal
improvements to facilitate delivery of goods to markets
Strong national bank to regulate the nation’s money supply and ensure
sustained economic growth
6. Economic Nationalism
Opponents of Clay’s American System
Higher prices for federal lands would discourage western migration
Tariffs benefitted industrialists at the expense of farmers and “common
folk”.
B.U.S. a potentially tyrannical force, dictating the nations economic
future
Centralizing power in the Federal Government
Limiting States’ rights
Limiting individual freedoms
7. Good Feelings
James Monroe
Relations with Britain
After the War of 1812, the United States never fought another war with
Great Britain
close diplomatic ties.
Rush-Bagot Treaty of 1817, which ended the naval arms race on the
Great Lakes.
Both sides agreed to limit the number of warships in the lakes.
Convention of 1818,
Settled the northern limit of the Louisiana Territory at the 49th
parallel
9. Good Feelings
The extension of boundaries
1819
Financial Panic
Debate over extension of slavery to new territories
Concerns over Spanish sovereignty over Florida
Seminole Indians and Runaway slaves
1817 Americans burned Seminole settlement in Florida Panhandle; Seminoles responded with raids of their own against white
settlers
Secretary of War: John C. Calhoun appointed Andrew Jackson to take command of American troops
Orders: pursue attackers into Spanish territory but do not attack Spanish posts
1818 Jackson ordered troops to cross border and assault the Spanish fort at Saint. Marks, destroying Seminole villages
also.
Jackson ordered execution of two British traders accused of inciting the Seminoles to war.
Captured Pensacola and established a provisional American government then Jackson returned to Tennessee
Jackson’s actions strengthened American bargaining position with Spain over Florida purchase
Transcontinental Treaty of 1819
10. Crises and Compromises
The Panic of 1819
In 1819, Great Britain, still the chief importer of the South’s cotton, turned to its colony of India to obtain
cheaper cotton.
To enlarge their loans, state banks issued more bank notes than they could redeem with gold or silver coins.
Extensive fraud and embezzlement in the Baltimore Branch of the B.U.S. by Bank officials
Langdon Cheves: reduced bank salaries, dividends, reduced extension of credit and presented bank notes for
redemption.
These actions put pressure on the state banks who put pressure on their debtors, making it more difficult to renew old
loans or get new loans.
The Missouri Compromise
After the Revolution, the United States followed an alternating pattern when admitting states into the union:
one slave then one free state.
When Missouri requested admittance, there were twenty-two states—eleven free, eleven slave.
The Northwest Ordinance of 1787 had dictated that there were to be no slave states there
Missouri gained statehood under a compromise: no more slave states would be allowed north of the 36⁰ 30’
line.
12. Judicial Nationalism
John Marshall, chief justice
Strengthening the federal government
McCulloch v. Maryland (1819).
Did the Federal government have the right to create a bank when this was not
specifically mentioned as a power given to Congress in the Constitution.
Marshall ruled that a clause in Article I, section 8 was purposefully left vague to allow
Congress to create “necessary and proper” entities for them.
“To make all laws which are necessary and proper into execution of the foregoing
powers and all other powers vested by this Constitution in the government of the United
States or in any department or officer thereof.”
Gibbons v. Ogden (1824) , Marshall exerted the right of the nation to
regulate state commerce.
13. Nationalist Diplomacy
The Pacific Northwest
John Quincy Adams to Russia, “the American continents are no longer subjects for any new European
colonial establishments.”
Treaty of 1824
The Monroe Doctrine
The American continents are not subject to any further expansion of European colonial power
The political system of European powers is different from that of the United States who will consider any
attempt on their part to extend their system to any portion of the Western hemisphere as “dangerous
to our peace and safety”
U.S. would not interfere with existing European colonies
U.S. will keep out of the internal affairs of European nations and their wars.
Monroe Doctrine could not be unilaterally enforced and depended on naval supremacy of
Great Britain. European powers at the time did not acknowledge it.
14. One-Party Politics
Presidential nominations in 1824
Snatching defeat from the jaws of victory: with no political party to contend against, the Democratic-
Republicans turned on themselves and ran four candidates for the presidency.
No candidate won an electoral majority, and the election was sent to the House of Representatives.
The corrupt bargain
Each state got one vote, regardless of how its citizens voted.
John Quincy Adams won the presidency, though he had lost the popular vote and had come in
second to Jackson in the electoral vote.
He nominated his fellow candidate Henry Clay, the speaker of the house, to be his secretary of state.
Because most past presidents had served as secretary of state, Jackson took this as a “corrupt
bargain” struck by the two by which Clay would use his influence in the House to secure Adams the
presidency and thus would be made heir apparent.
15.
16.
17. One-Party Politics
John Quincy Adams
Bold programs which would expand power of federal government
Promote internal improvements
Set up a national university
Finance scientific explorations
Build astronomical observatories
Create a department of the interior
Praised the example of “the nations of Europe and of their rulers” which confirmed suspicions that the Adams’s were “closet
monarchists”
The election of Andrew Jackson
Jacksonian Democrats
The Sequester is NOT new! Presented an alternative tariff bill with such outrageously high duties on raw materials that the
manufacturers in the Mid-Atlantic states would join the South and the Southwest to defeat the tariff allowing Jacksonian supporters
in the North could still support the tariff and retain voter loyalty while Jacksonian supporters in the South could take credit for
opposing the tariff.
The tariff passed.
Doctrine of Nullification: John C. Calhoun changes sides and opposes a tariff
Jackson elected President in 1828
Jefferson’s embargo forced Americans to look inward for the production of their finished goods. This led to the first American Industrial Revolution and a surge of economic growth. The charter for the first Bank of the United States ended in 1811 and was not immediately renewed. Without the financial control the central bank, economic turmoil ensued. To stabilize the economy, a second bank was chartered, which would last for 20 years.
To protect the fledgling American industrial sector from competing British imports, the Tariff of 1816 was enacted. The north, where most of the manufacturing base was located, was for it, and the south was against it. The agrarian economy of the south depended on shipping goods abroad to agents who sold them, purchased needed items, and shipped them back to America. Southerners were upset because they were forced to pay the import tax. The War of 1812 revealed several shortcomings of the United States. One of these was the transportation infrastructure. The first attempt to fix this problem was the construction of the Cumberland, or National, Road.
The internal improvements, the creation of an industrial infrastructure, and the stabilizing of the American economy after the War of 1812 has been the American System. It required a more active role of the federal government in the lives of the citizens. The first proponent of the American System was Henry Clay.
After the demise of the Federalist Party, the Democrat-Republicans remained as the only viable party. This period of one-party rule is known as the Era of Good Feelings. Continuing the Virginia dynasty of early American presidents, Monroe followed Madison in the White House. Monroe had served as secretary of state and secretary of war under Madison. After the conclusion of the War of 1812, the United States never fought another war with Great Britain; in fact, the two nations formed closed diplomatic ties. One of the first steps in this process was the Rush-Bagot Treaty of 1817, which ended the naval arms race on the Great Lakes. Both sides agreed to limit the number of warships in the lakes. The next effort was the Convention of 1818, which settled the northern limit of the Louisiana Territory at the 49th parallel.
The United States now stretched from the Atlantic Ocean to the Rocky Mountains; only Spanish America kept it from straddling the continent. However, Spain still controlled the territory of Florida and a narrow bit of land from its panhandle to the Mississippi River. This area was a lawless zone where bandits and Indians set up headquarters because U.S. officials could not legally cross the border. To combat hostile Seminoles on the Florida border, Jackson was dispatched with 2,000 troops. There he discovered two British spies, whom he summarily executed before continuing to pursue the Seminoles into Florida. At the same time, Secretary of State John Quincy Adams was negotiating with Spain to purchase the territory. He used Jackson’s exploits to strengthen his hand in obtaining Florida and establishing the western border of Louisiana.
In 1819, Great Britain, still the chief importer of the South’s cotton, turned to its colony of India to obtain cheaper cotton. This revealed the fragility of the U.S. economic system. Although a depression did not occur, a panic most certainly did. After the Revolution, the United States followed an alternating pattern when admitting states into the union: one slave then one free state. When Missouri requested admittance, there were twenty-two states—eleven free, eleven slave. The Northwest Ordinance of 1787 had dictated that there were to be no slave states there, but no such policy existed for states formed from the Louisiana territory. Eventually, Missouri gained statehood and an agreement was reached that no more slave states would be allowed north of the 36⁰ 30’ line.
Chief Justice John Marshall extended the powers of the Supreme Court to provide a more nationalist role of the federal government in state affairs. In the landmark case Dartmouth College v. Woodward, Marshall’s decision removed the power of the states to modify contracts on a whim.
Continuing his diplomatic successes on land issues, John Quincy Adams completed a treaty with Russia in 1824 that defined the Oregon Territory’s southern boundary. During the French Revolution, Spain had ignored its Latin American colonies which had rebelled against their motherland. By 1823, when it became apparent that Europe was willing to go to war to retake these colonies, Monroe issued a statement, declaring that the New World was no longer open to colonization by Europe. The United States did not have the military power to back up the Monroe Doctrine, but Great Britain, who approved of the decision, did.
In the election of 1824, with no political party to contend against, the Democrat Republicans turned on themselves and ran four candidates for the presidency. No candidate won an electoral majority, and the election was sent to the House of Representatives.Each state got one vote, regardless of how its citizens voted. In the end, John Quincy Adams won the presidency, though he had lost the popular vote and had come in second to Jackson in the electoral vote. He nominated his fellow candidate Henry Clay, the speaker of the house, to be his secretary of state. Because most past presidents had served as secretary of state, Jackson took this as a “corrupt bargain” struck by the two by which Clay would use his influence in the House to secure Adams the presidency and thus would be made heir apparent.
As president, Adams supported bold internal improvements. Such a program, coupled with the unusualness of the 1824 election, resulted in the end of the Era of Good Feelings and the emergence of a new party, the National Republicans. Almost from the moment the Adams was declared president, the 1828 campaign began. Jackson and his followers launched attacks on the character of Adams, which the president’s supporters returned with equally blistering assaults. In the end, Jackson was elected to the presidency.