Chapter 8

Causes of Panic of 1819:

- A dramatic incline in cotton prices - A contraction of credit by the Bank of the US designed to curb inflation - An 1817 congressional order requiring hard-currency payments for land purchases - The closing of many factories due to foreign competition.

Clay used his position as Speaker of the House to advance an economic program that he would call the "American System":

- According to this plan, the federal government would erect a high protective tariff to keep out foreign goods, stimulate the growth of the industry, and create a large urban market for western and southern farmers. - Revenue from the tariff, in turn, would be used to finance internal improvements of roads and canals to stimulate the growth of the South and the West.

What did manufacturing interests demand?

- Manufacturing interests called for increased protection from foreign imports, but a growing number of southerners believed that high protective tariffs were the root of their troubles. -- Many people clambered for a reduction in the cost of government and pressed for sharp reductions in federal and state budgets. -- Others, usually in the South and the West, blamed the Panic on the nation's banks and particularly the tight-money policies of the Bank of the US.

List all the cases that helped strengthen the power of the Supreme Court:

- Marbury vs Madison established the Supreme Court as the final arbiter of the Constitution and its powers to declare acts of Congress unconstitutional. - Fletcher vs Peck declared the Court's power to void state laws. - Martin vs. Hunter's Lessee gave the Court the power to review decisions by the state courts. - Gibbons vs. Ogden, the Supreme Court broadened federal power over interstate commerce.

Monroe Doctrine

- Monroe outlined his principles that became known as the Monroe Doctrine. - The US had defined its rights and interests in the New World. - Monroe announced that the Western Hemisphere was henceforth closed to any further European colonization -- European countries with possessions in the hemisphere -- Britain, France the Netherlands, and Spain -- were warned not to attempt expansion. - Monroe also said that the US would not interfere in internal European affairs.

In Dartmouth V vs. Woodward,

- The Court promoted business growth by denying states the right to alter or impair contracts unilaterally. -- This case involved the efforts of a New Hampshire legislature to alter the charter of Dartmouth College - The Court held that a charter was a valid contract protected by the Constitution & that the states do not have the power to alter contracts unilaterally.

What resolved the Panic of 1819:

- The Senate voted to admit Missouri as a slave state. -- To preserve the sectional balance, it also voted to admit Maine as a free state, and it voted to prohibit the formation of any further slave states from the territory of the Louisiana Purchase north of the 36'30 north latitude. - Henry Clay then steered the compromise through the House, where a handful of antislavery representatives threw their support behind the proposals.

What did the "Era of Good Feelings" witness in the US growth?

- The emergence of growing factional divisions in politics, including a deepening sectional split between the North and the South. -- A severe economic depression between 1819 and 1823 provoked bitter division over questions of banking and tariffs. -- Geographic expansion exposed latent tensions over the morality of slavery and the balance of economic power. Political issues arose.

What did the government do to finance the War of 1812?

- The government borrowed from private banks at high interest rates. -- As a demand for credit rose, the private bank issued bank notes greatly exceeding the amount of gold and silver. Inflation was a result, so prices rose to 40% in two years.

Panic of 1819

- The growth in trade that followed the War of 1812 came to an abrupt halt. -- Unemployment mounted, banks failed, mortgages were foreclosed, and agricultural prices fell by half. Investment in western lands collapsed. - For the first time in American history, the problem of urban poverty commanded public attention. - To address the problem of destitution, newspapers appealed for old clothes and shoes for the poor, and churches and municipal governments distributed soup. Baltimore set up 12 soup kitchens to give food to the poor. - The downswing also spread quickly throughout the nation. Bankruptcy occurred almost daily in some areas, and factories worth half a million dollars were idle.

What was one of the results of the end of the War of 1812?

- The war unleashed a rush of pioneers to Indiana, Illinois, Ohio, northern Georgia, Western North Carolina, Alabama, Mississippi, Louisiana, and Tennessee. -- Congress admitted 5 states to the Union: Louisiana in 1812, Indiana in 1816, Mississippi in 1817, Illinois in 1818, and Alabama in 1819.

What did supporters of the second national bank argue?

- They argued that it would provide a safe place to deposit government funds and a convenient mechanism for transferring money between states. - They also claimed that the bank would promote monetary stability by regulating private banks, strengthen the banking system by refusing to accept the notes issued by over speculative private banks, and insure that banknotes were readily exchangeable for gold and silver.

How did Congress respond to the flood of imports?

- They continued a tariff set during the War of 1812 to protect America's infant industries from low-cost competition. - The tariff promised to protect America's growing industries from foreign competition. Shipping and farming interests opposed the tariff on the grounds that it would make foreign goods more expensive to buy and provoke foreign relations.

Rush Begot Treaty Agreement

- This treaty removed most military ships from the Great Lakes. - Britain granted American fishermen the right to fish in eastern Canadian waters, agreed to the 49th parallel as the boundary between the US and Canada from Minnesota to the Rocky Mountains, and consented to joint occupation of the Oregon region.

During the Panic of 1819, what other type of crisis arose?

A crisis over slavery erupted suddenly. The crisis was ignited by the application of Missouri for statehood, and it involved the status of slavery west of the Mississippi River.

What was the second crisis that arose after the Missouri slave crisis?

A second crisis erupted when the Missouri constitutional convention directed the state legislature to forbid the migration of free blacks and mulattoes into the state. - This crisis was resolved by a compromise. Missouri agreed to shorten the constitutional rights of any US citizen -- without specifically acknowledging that free blacks were US citizens.

What threatened to undermine the local industries?

After the War of 1812, cheap British imports flooded the nation. Jefferson wanted to protect manufacturing industries.

Westward expansion also created a demand to expand and improve the nation's roads and canals. Who proposed some ideas in order to address these demands? What did he do?

Albert Gallatin (Jefferson's Treasury Secretary) proposed a $20 million program of canal and road construction. - As a result of state & sectional jealousies, as well as charges that federal aid to transportation was unconstitutional, the federal government funded only a single turnpike, the National Road.

What happened as a result of Captain Stephen Decatur's capture of Algerians?

All the North African states agreed to treaties releasing American prisoners without ransom, ending all demands for American tribute, and providing compensation for American vessels that had been seized.

What was a result of John Marshall's court decisions?

As a result of these decisions, it became more difficult to argue that the union was a creation of the states, that states could exert an independent check on federal government authority, or that Congress's powers were limited to those specifically conferred by the Constitution.

What did some of Monroe's cabinet members urge the president to do after Jackson attacked the Seminole Indians? Who called for Jackson's censure?

Because of Jackson's actions, a furor (outbreak of an angry public) broke out in Washington. Spain protested Jackson's acts and demanded that he be punished. - Secretary of War, John C. Calhoun, and other members of Monroe's cabinet urged the president to reprimand Jackson for acting without specific authorization. - Henry Clay called for Jackson's censure.

Why did Monroe have to settle old grievances with the British?

Britain and the US had left a host of issues unresolved in the peace treaty ending the War of 1812, including disputes over boundaries, trading and fishing rights, and rival claims to the Oregon region of the Pacific Northwest. The two governments moved quickly to settle these issues.

How did Congress try to make it easier for farmers to purchase homesteads in the West?

By selling land in small lots suitable for operation by a family. Congress reduced the minimum allotment offered for sale and minimum price per acre fell.

The Republicans adopted many of the nationalistic policies of the Federalists, such as:

Establishing a second national bank, a protective tariff, and improvements in transportation. Republican party adopted former Federalist positions on a national bank, protective tariffs, a standing army, and national roads. - The spirit of nationalism was apparent in a series of landmark Supreme Court decisions & established national supremacy over the states in a series of foreign policy triumphs that extended the nation's boundaries and protected its shipping/ commerce.

Congress adopted major parts of the nationalist neo-Hamiltonian economic program. What did this program do?

It established a second Bank of the US to provide a stable means of issuing money and a safe depository for federal funds** - It enacted a tariff to raise duties on foreign imports and guard American industries from low-cost competition. - It also instituted a new public land policy to encourage western settlement.

Who were the preeminent leaders of the second generation of American political life -- the period stretching from the War of 1812 to almost the eve of the Civil War?

Henry Clay, John C. Calhoun, and Daniel Webster - Each of them served in the cabinet as secretary of state or war. -- Henry Clay was the leader of the younger group of politicians & was a WAR HAWK -- John C. Calhoun served as Secretary of War under Monroe and as vice president under John Quincy Adams and Andrew Jackson -- Daniel Webster argued 168 cases before the Supreme Court; he opposed the War of 1812, the creation of a second national bank, and a protection tariff. He later became a defender of the national bank and a high tariff

What did Russia do in 1821?

In 1821, Russia claimed control of the entire Pacific coast for Alaska to Oregon and closed the area to foreign shipping. The development coincided with with rumors that Spain, with help from European allies, was planning to reconquer its former colonies in Latin America.

What did Philanthropists do for the first time in the Northeast?

In the Northeast, for the first time, philanthropists like Elias Boudinot from NJ succeeded in mobilizing public opinion against the westward expansion of slavery. -- Mass meetings convened in a number of cities in the Northeast.

Impacts the Panic of 1819 had on American politics:

It lead to demands for democratization of the state constitutions, an end to restrictions on voting and office holding, and heightened hostility toward banks and other "privileged" corporations and monopolies . -- The Panic also exacerbated tensions within the Republican Party and aggravated sectional tensions as northerners pressed for higher tariffs, while southerners abandoned their support of nationalistic economic programs.

How did the second bank of the US encourage land purchase?

It liberally extended credit. The result was a boom in land sales! For a decade, the government sold approximately a million acres of land annually.

Why was Florida a concern for the US?

It was a concern because pirates, fugitive slaves, and Native Americans used Florida as a sanctuary as a jumping off point for raids on settlements in Georgia.

What role did James Monroe have in the government during the War of 1812?

James Monroe was the Secretary of State and the Secretary of War

What did Adams do to try to convince Monroe to accept George Canning's offer?

John Adams II knew that the British would use their fleet to support the American position, so he convinced Monroe to make an independent declaration of American policy. Monroe outlined his principles that became known as the Monroe Doctrine

After Albert Gallatin didn't get much from the government for canal and road construction, who had an idea to build the roads and canals anyway?

John C Calhoun introduced a new proposal for federal aid for road and canal construction. Narrowly, Calhoun's proposal passed. But on the day before he left, Madison vetoed the bill on constitutional grounds.

McCulloch vs. Maryland

McCulloch vs. Maryland established the constitutionality of the second Bank of the US and denied the states the right to exert independence checks of federal authority. - The case involved a direct attack on the second US Bank by the state of Maryland, which placed a tax on the bank notes of all banks not chartered by the states. -- Marshall dealt with two questions when making his decision in the McCulloch vs. Maryland case. - Whether the federal government had the power to incorporate a bank (The Court said yes; the Constitution granted Congress implied powers to do whatever was necessary and proper) - Whether a state had the power to tax a branch of the Bank of the US (The Court said no)

What did Monroe do to end the incursions of pirates, fugitive slaves, and Indians using Florida as a sanctuary?

Monroe authorized General Andrew Jackson to lead a punitive expedition against the Seminole Indians who were in Florida. - Jackson attacked the Seminoles, destroyed their villages, and overthrew the Spanish governor. - He also court-martialed and executed two British citizens whom he accused of inciting the Seminoles to commit atrocities against Americans.

What did Monroe try to do in order to unite the country?

Monroe tried to appoint a representative of each section to his cabinet because he wanted to try to unite the country. He named John Quincy Adams, formal Federalist, as Secretary of State.

How did European intervention threaten the British and the US? What did the British do to try to fix it?

Not only did Britain have a flourishing trade with Latin America, which would decline if Spain regained its New World colonies, but it also occupied the Oregon region jointly with the US. -- In 1823, British Foreign Minister George Canning proposed that the US and Britain jointly announce their opposition to further European intervention in the Americas. -- Monroe regarded this favorably, but Quincy Adams opposed it. .

Who tried to provoke the slave crisis in Missouri? What did he do?

Representative James Tallmadge (Republican) provoked the crisis by introducing an amendment to restrict slavery in Missouri as a condition of statehood. - The amendment prohibited further introduction of slaves into Missouri & provided for emancipation of all children of slaves at the age of 25. - Voting along the ominously sectional lines, the House approved the Tallmadge Amendment, but the amendment was defeated in the Senate.

What political party was Monroe apart of? How was Monroe like Washington?

Republican party -- He was like Washington in the sense that he did not like political parties and wanted to try to get rid of them during his presidency. He also wants a country that would be governed by leaders chosen on their merits. He served for two terms as president.

Which cabinet member felt differently about Andrew Jackson than the rest of the members?

Secretary of State John Quincy Adams saw in Jackson's actions an opportunity to wrest Florida from Spain. - Adams did not apologize for Jackson's conduct, but he instead declared that the Florida raid was a legitimate act. - Adams told the Spanish government that it would either have to police Florida effectively or cede it to the US

Adams Onis Treaty

Spain ceded Florida to the US with the Adams-Onis Treaty of 1819. In return, the US agreed to honor $5 million in damage claims by Americans against Spain. - Under the Adams-Onis Treaty, Spain relinquished its claims to Oregon and the US renounced, at least temporarily, its claims to Texas.

Era of Good Feelings -- where did it get its name from?

The Era of Good Feelings began with a burst of nationalistic fervor -- A Federalist newspaper, reflecting on the end of party warfare and the renewal of national unity, called the times the "Era of Good Feelings" , which mostly describes JAMES MONROE'S (symbol of this time period) presidency because while he was president, there was little political strife and opposition.

What lead to the emergence of new political parties?

The Financial Panic of 1819

Successes of the Era of Good Feelings

The US: - Ended the attacks of the Barbary pirates on American shipping - Settled many of its disagreements with Britain, acquired Florida from Spain - Defined its western and southern boundaries - Convinced Spain to relinquish its claims to the Oregon region - Delivered strong warning that European powers were to not interfere in the Western Hemisphere

President Madison revealed the extent to which Republicans adopted Federalist policies by calling for a program of economic development directed by the central government, which included:

The creation of a second bank for the US to provide for a stable currency, a protective tariff to encourage industry, a program of internal improvements to facilitate transportation, and a permanent 20,000-man army. -- He recommended the extensive system of roads and canals, new military academies, and establishment of a national university in Washington.

What are some of the things that contributed to the growth of national unity in the country?

The economic program, including a national bank and a protective tariff, reflected the growing feeling of national unity. - The Supreme Court promoted the spirit of nationalism by establishing the principle of federal supremacy. Industrialization and improvements in transportation also added to the sense of national unity by contributing to the nation's economic strength and independence by linking the West and the East together

What was the critical foreign issue the US was facing after the War of 1812?

The fate of Spain's crumbling New World Empire. - Many of Spain's New World colonies had taken advantage of turmoil in Europe during the War of 1812 to fight for their independence. - These revolutions aroused intense sympathy in the US, but many Americans feared that the European powers might restore monarchical order in Spain's New World

Why did the Northern leaders argue that national policy committed the government to halt the expansion of the institution of slavery?

They said that the extension of slavery into the West would increase the pressures to reopen the African slave trade. (this wasn't the first congressional crisis over slavery; a debate once brokeout about whether or not the Congress should accept antislavery petitions; Federalists opposed ⅗ Compromise)

War of 1812 stirred a new nationalistic spirit in foreign affairs. What did this spirit result in?

This spirit resulted in a decision to end the raids by the Barbary pirates on American commercial shipping in the Mediterranean. - In March, 1815, Captain Stephen Decatur and a fleet of ten ships sailed into the Mediterranean, where they captured two Algerian gunboats, towed the ships into Algiers harbor, and threatened to bombard the city.

Why did farmers demand that Congress revise legislation?

To make it easier to obtain land. Originally, Congress viewed federal lands as a source of revenue, and public land policies reflected that view.

In 1820, Southerners won a huge victory, but it came at a price. What did this victory cost them?

While many states would eventually be organized from the Louisiana Purchase area north of the compromise line, only two (Arkansas and Oklahoma) would be formed from southern portion. If the south was to defend its political power against an antislavery majority, it had but two options in the future: -- It would either have to forge new political alliances with the North & West, or it would have to acquire new territory in the Southwest.