Chapter 8: Nationalism and Economic Development

Protective Tariff;Henry Clay's American System

* Congress raised the tariff (tax on imports) rates after the War of 1812 for the purpose of protecting U.S. manufactures from foreign competition. * Congress' tariff of 1816 was the first protective tariff in U.S. history. * American System was a comprehensive method for promoting economic growth; it consisted of three parts: 1) protective tariffs, 2) a national bank, and 3) internal improvements. * Protective tariffs would promote American manufacturing and also raise revenue which would help to build a national transportation system of federally constructed roads and canals. * A national bank would keep the system running smoothly by providing a national currency. * Internal improvements would promote growth in the West and the South, and the bank would aid the economics of all sections. Significance: The matter of internal improvements, both Madison and Monroe objected that the Constitution did not explicitly provide for the spending of federal money on roads and canals. Therefore, Monroe vetoed acts of Congress providing funds for road-building and canal-building projects, leaving individual states were left to make internal improvements on their own.

Fletcher v. Peck (1810); McCulloch v. Maryland (1819); Gibbons v. Ogden (1821)

* Fletcher v. Peck (1810) - First time the Supreme Court declared a state law unconstitutional * McCulloch v. Maryland (1819) - Marshall ruled that the federal government had the implied power to create a bank. * Gibbons v. Ogden (1821) - Ruling that the New York monopoly was unconstitutional, thereby giving the federal government broad control of interstate commerce Sig: To the dislike of many Republicans, all these cases under John Marshall's court consistently favored the central government and the rights of property against the advocates of states' rights.

Florida: Jackson's Military Campaign

* In 1818, General Jackson led a force of militia into Florida, destroyed Seminole villages, hanged two Seminole chiefs, captured Pensacola, drove out the Spanish governor, and hanged two British traders * Congress was afraid that Jackson's overzealousness would create a war with both Spain and Britain. * War did not erupt after President Monroe supported Jackson, and the British decided not to intervene. Significance: Rather than risk losing Florida to the U.S. by force, Spain decided to get the best possible terms for Florida and agreed to give it to the U.S. for $5 million and sole control of Texas.

Commercial Agriculture and Cotton

* In the early 1800s, farming became more of a commercial enterprise and less a means of providing subsistence for the family. * Canals and roads opened new markets in the factory cities of the East * Large areas of western land and easy credit allowed farmers to farm large areas of land using new technology like Eli Whitney's cotton gin Significance: Because of the cotton gin, southern planters found cotton more profitable than tobacco and indigo, so they invested money in more land and slaves so they could ship as much cotton to British textile factories.

Labor; Lowell System and Unions

* Lowell textile mills first recruited young farm women and housed them in dorms while they worked in the factory * The system was imitated and many factories also made extensive use of child labor. * Unions grew because workers were not pleased with the long hours, low pay, and poor working conditions. Significance: The primary goal of the early unions was to reduce the workday to ten hours, but they faced obstacles from immigrant workers replacing them, state laws that outlawed unions, and frequent depressions with high unemployment.

Missouri Compromise

* Population in the North grew more rapidly than in the South, so that by 1818 the northern states held a majority of 105 to 81 in the House of Representatives. * In the Senate, votes were divided evenly, since in 1819 there was an even balance of 11 slave and 11 free states. As long as this balance was preserved, southern senators could block legislation that threatened the interests of their sections. * If Missouri came in as a slave state, it would tip the political balance in the South's favor. * Compromise with Missouri was that it would be a slave state, Maine would be a free state, and slavery would be prohibited North of the 36'30" latitude line Significance: Although the sectional tensions about slavery quieted for thirty years following this compromise, Americans were torn between feelings of nationalism (loyalty to the Union) and sectionalism (loyalty to one's own region).

Era of Good Feelings

* The Federalist party had faded almost completely, and the Republicans dominated in every section of the country * Marked by spirit of nationalism, optimism, and goodwill * Actual period of "good feeling" lasted only from the election of 1816 and to the Panic of 1819. Significance: Harmony and unity oversimplifies the era, since there were still heated debates over tariffs, the national bank, internal improvements, and public land sales. Furthermore, the Republican party would soon split into two.

Monroe Doctrine

* Threat of European interference in the Western Hemisphere grew after Napoleon lost Europe and monarchies returned in those countries * Possibility of Spain returning to power in South America where a number of nations had declared independence. * Using their trading posts in Alaska as base, Russian seal hunters had spread southward and established a trading post at San Francisco Bay. * U.S. leaders decided they had a common interest in protecting North and South America from the possible aggression of a European power. Significance: The Monroe Doctrine had less significance at the time than in later decades when it would become the cornerstone of U.S. foreign policy of protecting Latin America.

Transportation: Roads and Canals

* Turnpikes (toll roads) encouraged more roads to be built which connected most of the major cities. * Construction of the canal, especially the Erie Canal, linked the economies of western farms and eastern cities. * The success of this canal in stimulating economic growth touched off a frenzy of canal-building in other states. * In less than a decade, canals joined together all of the major lakes and rivers east of the Mississippi. Significance: Improved transportation meant lower food prices in the East, more immigrants settling in the West, and stronger economic ties between the two sections, which will become essential during the Civil War.

Factory System; Samuel Slater

* When Samuel Slater emigrated from Britain, he brought with him the British secrets for building cotton-spinning machines, and he put this knowledge to work by helping establish the first U.S. factory in 1791. * The embargo and War of 1812 stimulated domestic manufacturing, and the tariffs enacted by Republican congresses allowed the new factories to prosper. * As the factory system expanded, it encouraged the growth of financial businesses such as banking and insurance. Significance: In the 1820s, New England emerged as the country's leading manufacturing center due to the region's abundant water power to drive machinery and ports for shipping goods. The manufacturing success spread to other nearby states such as New York, New Jersey, and Pennsylvania.

Rush Bagot Agreement (1817)

Definition: * During Monroe's first year as president, British and American negotiators agreed to a major disarmament pact. * Strictly limited naval armament on the Great Lakes. * The border between the United States and Canada was to become the longest unfortified boundary in the world. Significance: With the Rush-Bagot Agreement and another treaty signed the next year, Great Britain and the U.S. began a period of cooperation in North America that would benefit both countries economically.