Stabilizing Economic Growth

The Government and Economic Growth

Following the War of 1812, many national systems such as transportation and finances were unstable and insufficient to sustain the nation. This led to new efforts to strengthen the development of the US’s economy. The US ended up chartering a second Bank of the United States after the expiration of the first chartered banks (created by Hamilton).

• Francis Cabot Lowell: Boston merchant who developed a power loom that improved upon hand looms. He also founded the first mill in the US and achieved spinning and weaving under the same roof

Transportation

Government gathered funds to connect new states and territories to more developed states. They used land sales to finance a National Road from the Potomac River to the Ohio River. Steam powered shipping also started to expand rapidly. This provided goods and transportation to the West more quickly. Debates in Congress and with the President occurred in deciding if the states and private enterprises or the federal government should build the transportation network of the US.

Expanding Westward

The Great Migration

A surge of white Americans moved westward, well past the Mississippi River, between 1800-1820. Reasons for such a major growth in western territory occupation were population growth, need for more agricultural lands, and the attractiveness of the “untouched land” to white settlers. However, this meant Native American tribes were being pushed farther and farther west.

White Settlers in the Old Northwest

Many settlers were isolated the farther out they traveled and settled. This meant they had to clear forested areas, plant crops, build cabins, and hunt or gather food virtually alone or with the small community of family and people they brought with them.

The Plantation System in the Old Southwest

During this time period, the Old Southwest (later called the Deep South) cotton crops were extremely profitable. The cultivation of the crop continued strong for decades, and was especially successful in fertile crops grown in a region known as the Black Belt, where dark and productive soil was available in Alabama and Mississippi. Wealthier planters bought up large tracts of land built bigger homes, bigger crop systems and clearings, and bought more slaves to support their plantations.

Trade and Trapping in the Far West

As Mexico gained independence in 1821, they opened their northern territory to trading and settlement with US settlers. However, they were soon displaced by American traders and their expansion even further west. Trappers, aka “mountain men” found a bounty of animals in the Far West, and were able to develop important commercial relationships with Native Americans and Mexicans in the Far West. However, certain tribes such as the Mojave clashed violently with white trappers.

Eastern Images of the West

Many eastern citizens of the US were unaware and largely uncaring of the conditions and occurrences in the Far West and expansion of the country. Stephen H. Long was a figure who reflected this view after his exploration through the Far West territory, claiming it was dismal and inhospitable, and naming the Great Plains region the “Great American Desert.”

• Stephen H. Long: ordered by the War Department, he journeyed through the Great Plains to survey and recount the territories, writing an influential report on his trip that echoed the dismissive conclusions of Zebulon Pike fifteen years before

The “Era of Good Feelings”

The End of the First Party System

Jefferson, Madison, and James Monroe, all succeeding each other as their secretary of state, served back to back terms, some Northerners dubbing them part of the Virginia Dynasty. As economy, white settlement, and new states all flourished, the divisions of the original Federalist and Republican parties grew blurry. The nation was facing stability and peace for a period unseen in the US’s tumultuous history. Monroe chose former Federalist John Quincy Adams to serve as his secretary of state in order to encourage peace between the old party divisions.

• John Quincy Adams: second president John Adam’s son, served as James Monroe’s secretary of state

John Quincy Adams and Florida

John Quincy Adams had led a life of service prior to his position as secretary of state, and continued to promote American expansion as a nationalist looking to secure peace and prosperity in the country. Florida presented a challenge, as West Florida had been annexed, but many Spanish strongholds still remained. However, pushes to take over the entire peninsula led to conflict.

• Seminole Wars: Jackson invaded Florida and seized Spanish forts at St. Marks and Pensacola, the first in a series of raids and operations to take over the peninsula

• Adams-Onís Treaty: Spain ceded all of Florida to the United States and gave up its claim to territory north of the 42nd parallel in the Pacific Northwest, while the US relinquished Texas (temporarily)

The Panic of 1819

Economic crises hit following the gain of Florida, where rising prices of farm goods stimulate a land boom in the western United States, and fueled by speculative investments, land prices continue to soar exponentially. The national bank began tightening credit, calling in lans, and foreclosing mortgages. Financial panic ensued, and six years of economic depression followed.

• Panic of 1819: an economic crisis following a period of high foreign demand for American farm goods, creating exceptionally high prices for American farmers

Sectionalism and Nationalism

The Missouri Compromise

Northern representatives of Congress proposed that Missouri would be limited from adding any new slaves in Missouri when it was admitted as a state, causing great uproar in such a Deep South area. Eventually, Congress agreed to admit Maine (a newly separated territory previously controlled by NY, VM) and Missouri as a free state and a slave state, respectively.

• Tallmadge Amendment: an amendment proposed by Rep James Tallmadge Jr. of New York, stating that Missouri’s statehood bill would prohibit the further introduction of slaves into Missouri and provide for the gradual emancipation of those already there

• Henry Clay: Speaker of the House in 1820, informed northern members that if they blocked Missouri from entering the Union as a slave state, southerners would block the admission of Maine

• Missouri Compromise: the settlement where Maine was admitted as a free state and Missouri a slave state, provided that every northern territory would remain free of slavery above the parallel

Consider the Source: Thomas Jefferson Reacts to the Missouri Compromise

Jefferson argues that the tensions over the Missouri Compromise could lead to deadly consequences in the future, and regrets that the life of the US as a nation could be cut short due to such a disagreement and further division of states and views. He writes that he does see a path forward for the emancipation of slaves, but that keeping the union of the states together is a first and foremost priority.

Marshall and the Court

John Marshall, who served as chief justice of the Supreme Court from 1801-1835, shaped the US and the powers of both the Constitution and the Judicial branch of government. Cases such as Fletcher v. Peck, Dartmouth College v. Woodward, Cohens v. Virginia, and McCulloch v. Maryland set precedents in financial, economic, and contractual cases.

• McCulloch v. Maryland: in a 1819 case, Marshall confirmed the “implied powers” of Congress by upholding the constitutionality of the Bank of the United States, despite its extreme unpopularity in the South and West at the time

• Gibbons v. Ogden: in a 1824 case, the Supreme Court strengthened Congress’s power to regulate interstate commerce

The Court and the Tribes

Many cases verdicts reflected a strong nationalist policy during the 1801-1835 period. This was also reflected in the treatment of the Native American tribes. Marshall claimed that Native Americans had a basic right to their tribal lands, he said, that preceded all other American law, and that only the federal government could buy or take land from tribes. This meant tribes were free from the authority of state governments, acting within themselves as a separate sovereign state or territory.

• Worcester v. Georgia: the Court invalidated a Georgia law that attempted to regulate access by U.S. citizens to Cherokee country, stating only the federal government could do so, and that the Native American tribes were sovereign entities in much the same way Georgia was a sovereign entity

The Latin American Revolution and the Monroe Doctrine

Both Supreme Court and Monroe administration were asserting nationalism within the US. Monroe’s administration did this by expanding foreign policy toward Latin America. The country sold ships and supplies to revolutionaries in Latin America during their war of independence against Spain, and became the first country to recognize the five new nations in 1822, La Plata (Argentina), Chile, Peru, Columbia, and Mexico.

• Monroe Doctrine: President Monroe declared that “The American continents are henceforth not to be considered as subjects for future colonization by any European powers,” while trying to placate Europe by claiming “Our policy in regard to Europe…is not to interfere in the internal concerns of any of its powers” This established the idea of the US as the dominant power in the Western Hemisphere

The Revival of Opposition

The “Corrupt Bargain”

A new two-party system had began to form, between Democrats (previously Democratic-Republicans) and Whigs (similar to Federalist ideals). Candidates were nominated by each party in new caucuses, instead of going through party causes in Congress or the “King Caucus.” The nominations in 1824 included Henry Clay, John Quincy Adams, and Andrew Jackson. Adams won with the support of Clay, however Jackson supporters strongly opposed this and resented Adams during his four-year term.

• American System: created by Henry Clay, proposed creating a great home market for factory and farm produces by raising protective tariff, strengthening the national bank, and financing internal improvements

The Second President Adams

Adams attempted to propose a nationalist program following Clay’s American System, however Jacksonians in Congress blocked most of it. Another unpopular move for the administration was when a new tariff on imported goods was introduced in 1828. It eventually even angered original supporters of the bill as it taxed raw materials as well, and southerners nicknamed it the “tariff of abominations.”

Jackson Triumphant

In the election of 1828, the new two-party system was fully established. John Quincy Adams was supported by the National Republicans, with strong nationalist policies. The opposition, Andrew Jackson, was supported by the Democrats, and he “appealed to a broad coalition that opposed the ‘economic aristocracy.’” While there was support for both sides, Jackson eventually won and some of his supporters claimed that a new era of of democracy, aka the “era of the common man” had begun.

Conclusion

Comprehension Questions

1. How did the War of 1812 stimulate the national economy?

2. What were the reasons for the rise of sectional differences in this era? What attempts were made to resolve these differences? How successful were those attempts?

3. Why was the Monroe Doctrine proclaimed?

4. What was the significance of Andrew Jackson’s victory in the election of 1828?