Brinkley, Chapter 8 Notes

Stabilizing Economic Growth Brinkley, Chapter 8 The end of the War of 1812 - US resumed Madison, an original opponent of the economic growth and territorial expansion 1st Bank of the United States, allowed but could not do it without a central bank & the charter to expire in 1811. Varieties of American Nationalism proper infrastructure.

To provide credit, merchants, artisans and farmers persuaded state legislatures to charter banks. Each bank issued vast quantities of banknotes, creating a variety of easily counterfeited currency with widely The War of 1812 underlined the need for another differing, and confusing values. national bank. Congress chartered The 2nd Bank of ** America the United states and it reopened in 1817 under the Re-Identifies administration of President James Monroe. The purpose of the 2nd Bank of the US was to issue public credit to both government and Itself ** private intersts for the purposes of internal improvements and economic development.

Promoting Manufacturing Postwar Economic Problems 1813 - Francis Cabot Lowell developed a power loom & founded the first mill in America to 1. By 1816 when Congress chartered the 2nd carry on the process of spinning & weaving under a single roof Bank of the US, there were 246 state chartered 1816 - Congress passed a protective tariff to eliminate foreign competition, particularly cloth banks with tens of thousands of stockholders and $68 million in banknotes in circulation. Farmers protested as they paid higher prices for domestically produced manufactured goods. 2. State banks were often shady operations that issued The nation's most pressing economic need was notes without adequate specie reserves and made ill- a better transportation system. advised loans to insiders. Question arose whether the government funds 3. During the Napoleonic Wars, European demand for American goods soared. After should be used to finance road construction. Napoleon's defeat, European demand drastically fell and prices dropped by 30%. In 1803 - Jefferson decided to use revenues from Charleston, the price of a pound of raw cotton fell from 34 cents to 15 cents. land sold in Ohio to finance a National Road 4. As their income plummeted, planters and farmers could not pay their debts to their suppliers from the Potomac River to the Ohio River. and banks. Many state banks went bust; those that were still solvent in 1821 had just $45 Madison, however, in 1816 vetoed a bill presented by John C. Calhoun that would use million in circulation. federal funds to improve internal roads. As a result, the postwar boom bust led to disastrous bust in 1819 leading to a 6 year State governments and private enterprises had to build the nation's infrastructure. economic depression.

Panic of 1819 Reasons for Westward Expansion The Panic was the early Republic's first experience with the boom-bust cycles common to Steam powered shipping was expanding rapidly. This economies. A decision to call in loans of the 2nd Bank of the US. stimulated the agricultural economy of the West and South by providing cheaper access to markets. The Panic was caused by the failure of Population growth drove many Americans West expansionary monetary policy. The Soil was exhausted in the East and Americans looked West US government borrowed heavily to for new sources of rich soil. finance the War of 1812, which caused tremendous strains on banks' reserves. Many settled in the (old) Northwest, & farther West. This caused a reverse in policy to contractionary monetary policy. This, White Settlers in the Old Northwest then caused bankruptcies, bank Built cabins Planted corn, hunted wild game failures, bank runs, bottoming out of prices, and unemployment. Had little contact with anyone around them Gathered at times to build barns, clear land, or harvest crops

Collapse was evidence that the US lacked basic institutions necessary to sustain growth Mobility was common. Settling in one place & Restored Log Cabin at the selling land to settle elsewhere farther West. University of Pittsburgh (1820)

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Plantation System in the Old Southwest Monroe's Goodwill Tour Monroe entered office under remarkably favorable circumstances.

The market for cotton continued Ran largely unopposed War of 1812 was over - no international threats to grow in the Old Southwest Tried to end partisan divisions with the selection of his cabinet. (Black Belt of the Deep South) John Quincy Adams (Federalist) chosen as Secretary of State. John C. Calhoun (Democratic-Republican) as Secretary of War. Wealthy planters bought land or cleared new land replacing old log Monroe made a Goodwill Tour through the country. Even in cabins with mansions and built a New England he was greeted with enthusiasm. A Federalist large slave workforce. newspaper in Boston, the Columbian Centinel, coined the phrase "Era of Good Feelings."

Reflected a spirit of nationalism following the War of 1812 Characterized by the dominance of the Democratic- The rapid growth of the Old Northwest and Southwest resulted in the admission of 4 new Republican party. states: Indiana (1816), Mississippi (1817), Illinois (1818), Alabama (1819), 2 of which permitted slavery in their state constitutions. The Federalist Party was nearly dead. One of the last remaining Federalists was Monroe's Secretary of State *Surge of American Nationalism* John Quincy Adams.

The Seminole War John Quincy Adams (JQA) & Florida Andrew Jackson commanded American troops in Florida. Calhoun JQA believed his most important task ordered Jackson to "adopt necessary 42nd was promoting American Expansion. measures" to stop Seminole Indian Parallel raids on American territory. The US already annexed West Jackson used the orders to Florida, but the claim was in dispute. invade Florida and seize Spanish Most Americans wanted the entire forts at St. Marks and Pensacola. peninsula. This became known as the Seminole War. JQA told the Spanish the US had the right under international law to Indian raids Slaves escaped Jackson's raid showed the US could easily take defend itself against threats from on the border to Florida Florida. JQA implied the US might be willing to do so. across its borders. Onis realized he had no choice but to negotiate. The Adam-Onis Treaty ceded all of Florida JQA began negotiations with Spanish minister Luis de Onis but, the Seminole War will force to the US and Spain gave up its claim to territory north of the 42nd parallel in the Pacific the hand of Onis. Northwest. In return, the US gave up its claims to Texas.

Monroe Doctrine The North / South Divide

The Monroe administration asserted nationalism in In the early-mid 19th century, visitors to America agreed that the North and the South had formulating foreign policy. distinct characteristics.

Observers noted that New England was home to religious fanaticism but the lower classes The US developed a policy concerning Latin America. of people were better educated and informed than those in the south.

By the 1820s nearly all native-born men and women in New England could read and Monroe Doctrine - The American continents are not to be considered subjects for future write, while less than 1/3 in the south were literate. colonization by any European powers. The US would consider any colonization efforts in Latin and South America as a threat to US sovereignty They also thought the South was more impoverished, the people had rude manners, heavy drinking and a weak work ethic. Planters plundered their wealth on extravagant The doctrine had few immediate effects but did express lifestyles while their slaves endured bitter poverty. the growing spirit of nationalism in the US, and established the idea of the US as the dominant power in Some southerners worried that slavery eroded their society and encouraged ignorance. the Western Hemisphere. Wealthy planters hired tutors for their children and thus public schooling was not widely available to many southerners.

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Defending Slavery American Colonization Society As northern states ended human bondage, the South's commitment to slavery became a These events prompted a group of influential white political issue. Americans to found the American Colonization Society in At the Constitutional Convention in 1787, northern delegates reluctantly accepted clauses 1817. According to Henry Clay - a society member, Speaker allowing slave imports for 20 years and the return of fugitive slaves. of the House, and a slave owner - racial bondage had placed his state of Kentucky "in the rear of our neighbors...in the Seeking even more protection for their state of agriculture, the progress of manufactures, the "peculiar institution," southerners in the advance of improvement, and the general prosperity of new national legislature sought ways to society." use the national government to protect the institution of slavery. Slaves had to be freed, Clay and other colonizationists argued, and sent back to Africa. Clay feared that Northerners hoped that as the tobacco emancipation without removal would prompt racial chaos. economy died slaves would be freed. Their Few planters responded to to the society's plea and, from hopes quickly faded as the cotton boom among the 1.5 million African Americans in the US in 1820, it increased the demand for slaves. resettled only about 6,000 in Liberia. The capital was named Monrovia after President Monroe.

Controversy over Missouri Controversy over Missouri The failure of colonization of set the stage In the ensuing debate, southerners advanced 3 constitutional arguments. for a major battle over slavery. 1. Invoking the principle of "equal rights" they argued that Congress could not impose conditions on MO that it had not imposed on other territories seeking statehood. In 1818, Congressman Nathaniel Macon of NC warned slave owners that radical members of the "bible and 2. They maintained that the Constitution guaranteed a state's sovereignty with respect to its peace societies" hoped to use the national government internal affairs and domestic institutions, such as slavery and marriage. to raise "the question of emancipation." And they did. 3. They insisted that Congress had no authority to infringe on the property rights of individual When Missouri (MO) applied for statehood in 1819 with slave holders. In their view, the US was a confederation of semi-sovereign states with limited a pro-slavery constitution, Congress James Tallmadge national powers. of NY intervened: He would support MO's constitution only if it banned the entry of new slaves and provided Beyond that, southern leaders reaffirmed their commitment to human bondage. for the emancipation of existing slaves. Abandoning the argument that slavery was a "necessary evil" they now championed it as a Missouri whites rejected the Tallmadge Amendment and the northern majority in the House "positive good." blocked admission. White southerners were horrified. To retaliate, southerners in the Senate blocked the admission of Maine as a free state. Controversy raged in Congress for 2 years before Henry Clay put together a series of arguments known collectively as the Missouri Compromise.

Missouri Compromise John Marshall & the Supreme Court 1. Maine enters as a free state (1820) 2. Missouri enters as a slave state (1821) Served as Chief Justice from 1801 - 1835 Federalist

3. The balance of free states and slave states remained, for the time, equal More than anyone but the framers themselves, he molded the development of the Constitution: 4. The rest of the the LA Territory above the southern border of MO would prohibit slavery (36, 30' parallel) * Increased the power of the Federal Government * Strengthened the Supreme Court 5. It set a precedent for future admissions to the Union. Slavery Cohens v. Virginia - The Supreme Court can review state court decisions and overturn was abolished north of the 36th them if deemed necessary (i.e. - the Federal Government is supreme to the States) parallel. * Advanced the interests of the propertied and commercial classes. 6. The Compromise avoided Dartmouth College v. Woodward - Expanded the contract clause of the Constitution. war - for the moment Government cannot violate a private contract. Benefits private businesses.

* Expanded the powers of Congress: Implied Powers and Regulating Interstate Commerce McCulloch v. Maryland Gibbons v. Ogden

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The Court and the Tribes Renewed Partisan Divisons

The nationalist inclinations of the Marshall Court were also seen in the verdicts regarding By the late 1820s partisan divisions were American Indian Tribes. emerging again.

The verdicts from the Marshall Court did not affirm US supremacy, but did carve out a distinctive The Democratic-Republicans had come to position for Native Americans within the constitutional structure. resemble early Federalists in their promotion of economic growth and centralization.

2 major court cases: The controversy did not surround whether or not Cherokee Nation v. Georgia the US government should be involved in economic growth and expansion, but how they Worcester v. Georgia should be involved.

Election of 1824 contributed to partisan divisions

"Corrupt Bargain" Until 1820 candidates for president were nominated by party caucuses in Congress. In 1824, "King Caucus" was overthrown. 4 candidates ran for president as Democratic-Republicans:

John Quincy Adams *William Crawford* Henry Clay Andrew Jackson 84 Votes 41 Votes 37 Votes 99 Votes

Jackson received more popular and electoral votes than any candidate. The 12th Amendment dictated the House of Representatives choose among the 3 candidates with the largest amount of electoral votes Crawford was ill and Clay was out of the running, although he was an influence in the result and a political enemy of Jackson. Clay endorsed JQA in exchange for Secretary of State - securing the win Jacksonians were enraged. They believed Jackson should win because of his majority of electoral and popular votes. They called the election the "Corrupt Bargain".

John Quincy Adams Jackson Triumphant

The "Corrupt Bargain" would haunt JQA's presidency. By the election of 1828, another 2 party system emerged.

JQA proposed an ambitiously nationalist program similar to Henry Clay's American System. Jacksonians in Congress blocked most Quincy Adams - Andrew Jackson - of his proposed legislation. National Republicans Democratic Republicans (Old Federalists) (Like Jefferson) Tariff of 1828 also hurt JQA's presidency

New England wool manufacturers wanted a tariff. But, to win support from middle and western states, JQA had to accept duties on other items that antagonized New Englanders because they Supported economic nationalism Opposed "economic aristocracy" had to pay more for raw materials.

Issues were relatively unimportant. Slanderous campaign. Jacksonians charged that Adams JQA signed the tariff that Southerners called the "Tariff of Abominations." was guilty of waste and extravagance. Adams called Jackson a murderer accusing Jackson to have shot American militiamen during the War of 1812. Also, the Adams' campaign called Jackson's wife a bigamist, that indirectly led to her death weeks later.

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Jackson Triumphant

Jackson's victory was decisive but sectional.

Jacksonians considered their victory as complete and as important as Jefferson's in 1800.

Once again, the forces of privilege had been driven from Washington. A champion of democracy would occupy the White House. 1828

A new 2 party system will emerge.

America entered the "Era of the Common Man"

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