Bell Ringer

Bell Ringer

Please explain what role you think a national bank plays in stabilizing an economy. If you don’t know, make an educated guess.

Varieties of American NationalismCHAPTER 8

Building a National Market

The War of 1812 led us into economic and territorial expansion again That same boom led us to a bust in 1819 We needed stability

Banking and shipping were in chaos and the inadequacies of our transportation and financial systems were exposed Because no national bank existed after 1811 many

local banks issued their own notes (currency) which lead to very unstable money

Our response was to create the Second Bank of the United States

Building a National Market

The Second Bank of the United States Was similar to Hamilton’s First Bank of the United

States Could not prevent state banks from issuing

currency It could however threaten to compete with the local

bank which typically convinced the smaller bank to stay in check

Manufacturing was just waiting for someone to start producing again… Hard to get manufactured stuff during the war

which people didn’t like

Building a National Market

The textile industry began to grow Everything had been

hand woven Francis Cabot Lowell

put a factory together where textiles could be produced under one roof

His mill set the pace for American cities to develop

Building a National Market

England—in an attempt to recover losses from the war—dropped tons of manufactured goods into our market Most were priced below their value This had a horrible impact on our economy

Little did many realize how this issue was become the basis for the Civil War America wanted to protect it’s “infant industries” It created protective tariffs which charged a tax

on all imports of goods coming into the country that would compete with these industries

Transportation

Should the federal government pay for internal improvements like roads? The American Plan suggested that “yes” it should

A system of canals and highways paved the way for manufactures to get raw materials and for finished goods to easily get from one part of the country to another Cumberland Road was our first National Road Using steam ships were they way to navigate hard to

reach areas by water They created better versions of these after the War

of 1812 because they realized how defenseless they were when the British began blockading

Transportation

James Madison vetoed the internal improvements bill He believed that building roads/canals was great

but he said Congress lacked the authority to fund improvements without a constitutional amendment

The states/local governments as well as private enterprise built the basis for the transportation system we have today

Westward Expansion

By 1820 Americans have moved beyond the Mississippi River in large numbers

Reasons for expansion: Pressures of the East—growing population

strained city resources and made living conditions rough

Attractiveness of the West—Natives were pushed out of the way

Factor System was established as agents who supplied Natives with necessities

Fertile lands and easy river navigation made moving West more feasible

Plantation System in the Southwest

Cotton had become the principle crop in the South

Farmers regularly sought new soil—MS, and AL were perfect areas called the “Black Belt” for their fertile lands These expansions led to four new states: MS, AL,

IN, and IL Most who moved to the wilderness to clear new

lands were wealthy but it didn’t guarantee success Very few people were able to move out and

maintain those areas as plantations

Trade and Trapping in the Far West

Most Americans knew little of the far West Trapping and trade did grow significantly for

those who moved out there When Mexico became independent in 1821 they

immediately opened up trade with the U.S. Many traveled the Santa Fe Trail to participate in

trade in the region

Trade and Trapping in the Far West

Fur trappers/traders predominantly settled in the Great Lakes region and then further into UT and NM Mountain men (those who were isolated as trappers)

had no companionship They relied on the people of the East to ship goods to

them They would often have rendezvous points to

exchange furs for food/goods Many lived peacefully with local tribes, some even

intermarried Stephen Long documented his trip westward,

calling the Great Plains the “Great American Desert”

Bell Ringer

What would America have to look like today for you to call it “the Era of Good Feelings?”

The “Era of Good Feelings”

American experienced a rising sense of nationalism after the war of 1812

Perhaps most notably in national politics Monroe would be the last of the Virginia Dynasty He was Secretary of State under Madison—which had

become the stepping stone to the presidency Monroe served during a time in which no

international threats existed He was able to focus on uniting the country which he

did on a “goodwill tour” in which he traveled the country meeting people

He would run in 1820 unopposed due to the dissemblance of the Federalist Party

The “Era of Good Feelings”

Monroe chose a very diverse cabinet with Southerners, Northerners, Westerners, and Easterners John Quincy Adams became his Secretary of State

while John C. Calhoun was the Secretary of War J. Q. Adams was a firm believer in expansionism

Florida was his first target as he negotiated with Luis de Onís for its annexation

Andrew Jackson, using orders from Calhoun as an excuse, invaded Florida

Calhoun had requested that Jackson “adopt necessary measures” to stop Seminole raids in the US

The “Era of Good Feelings”

Jackson seized St. Marks and Pensacola forts and hanged two British subjects for supplying and inciting Natives This became known as the Seminole War

Adams urged the government to take responsibility for Jackson’s actions The US had right to defend itself from border threats Adams implied that it will be easy for the US to simply

take Florida Realizing that it would lose FL either way, Spain ceded

all of it to the US in the Adams-Onís Treaty America gave up all claims on Texas in return—we’d

come back for that later…

The “Era of Good Feelings”

For all the success Monroe had in politics, he could not find that same luck in economics

The economy went into a panic in 1819 The Panic of 1819 was created by a change in loans

and bank failures The banks had loaned lots of money out to people, but

the Second Bank of the United States started making loans harder to get as well as foreclosing on defaulted loans

This, coupled with the land speculation of the previous decade, and banks closing lead to an economic disaster

The depression lasted 6 years—long enough to get people to question the 2nd B.U.S.

Sectionalism and Nationalism

For a brief moment it appeared that the “Era of Good Feelings” was to be interrupted by civil unrest between the North and South Missouri applied for statehood The Tallmadge Amendment was designed to go

with their statehood request saying that no new slaves could be brought into the state and that gradual emancipation would be expected

Admission of MO as a slave state would disturb the 11:11 ratio of slave:free states

Sectionalism and Nationalism

Henry Clay (The Great Pacifier) introduced the Missouri Compromise

Since Maine (a free territory) wanted to be admitted as well, he suggested tying the bills together and admitting MO as slave and ME as free

This kept the balance The MO Compromise also

called for all new lands that were above the 36°30´ parallel would be free, meanwhile lands below would be slave

Sectionalism and Nationalism

Chief Justice John Marshall was committed to strengthening the federal government He strengthened the judicial branch over the other

two, the federal government over the states, as well as the interests of business/propertied

Fletcher v. Peck: Court ruled that a land grant could not be repealed even if corruption was involved

Dartmouth College v. Woodward: Court ruled that the state could not convert Dartmouth into a public school since it was a land grant contract granted by the King of England in 1769

Cohens v. Virginia: federal court has the right to review state court’s decisions

Sectionalism and Nationalism

While Marbury v. Madison is the most famous Supreme Court case there are two others that also deserve honorable mention McCulloch v. Maryland: Upheld the

constitutionality of the Bank of the United States—therefore upholding “implied powers”

Gibbons v. Ogden: Court ruled that the federal government’s right to regulate interstate trade was “complete in itself”

Sectionalism and Nationalism

Marshall also ruled in the controversial Worcester v. Georgia Native Americans (Cherokees at least) learned

how to assimilate and yet the state was trying to force them off their lands

Marshall ruled that the Natives had property rights, and were sovereign

We will discuss this later…

Sectionalism and Nationalism

In 1815 America claimed neutrality while Spain fought to keep its colonies under control America wasn’t THAT neutral…we sold ships to

the revolutionaries We were also the first country to recognize Chile,

Peru, Columbia, and Mexico The Monroe Doctrine (written by J.Q. Adams)

declared that “the American continents are henceforth not to be considered as subjects for future colonization by any European powers.” We didn’t have much to enforce this—thankfully

no one really tested it during the Monroe President

The “Corrupt Bargain”

While the election of 1820 saw no contest against Monroe, the election of 1824 brought 4 candidates (2 of which were in a dead heat)

J. Q. Adams, being Secretary of State, felt he was a shoe-in Jackson, with little political experience managed

to take the popular vote No one won the electoral college with a majority

This caused the election to go into the House of Representatives

The “Corrupt Bargain”

Henry Clay was the Speaker of the House—therefore he carried a lot of influence over them The appearance that was given (and acceptance

of the story is widespread) that Clay would endorse Adams in exchange for a chance at Secretary of State

Adams won, Clay become Sec. of State Jackson and his followers cried foul calling this

the “corrupt bargain”

Adams as President

Not much on the foreign front occurred during Adams’ presidency

He did however manage to ruin our economy with the Tariff of 1828 Southerners nicknamed this the “Tariff of

Abominations” Adams would not get a second shot at making a

lasting impression After one term the people were eagerly awaiting

the next president—this time Andrew Jackson would not have to fear a tie