CH.

8: Nationalism and Economic Development

The Era of Good Feelings
Term to describe Madisons two terms in office Monroe years were marked by o Nationalism o Optimism o Goodwill Cause of this good vibe? o Victory in War of 1812 o Death of Federalist party o Dominance of Republican part The era also had its negative vibe o Tariff isssues (east and south opposed; west in favor) o National bank; Bank of U.S. (west and south opposed; eastern bankers in favor o Sale of public lands (east opposed; west and south in favor) o Sectionalist tensions over slavery o Factions in Republican party beginning to happen. Probably lasted from election of 1816 to Panic of 1819

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James Monroe a. Background i. Fought in Revolutionary War ii. Prominent in Virginia Republican party 1. President Jeffersons minister to Great Britain 2. Madisons Secretary of State iii. Continued the Virginia dynasty 1. 4 of the 5 initial presidents Virginian b. Election of 1816 and 1820 i. Defeated Federalist by overwhelming margin ii. Federalist party practically ceased to exist by 1820 election c. What he was known for i. Supported growing nationalism ii. Gaining the state of Florida iii. The Missouri Compromise iv. Monroe Doctrine Cultural Nationalism a. Rise of younger generation of Americans. They had a different mentality i. They were excited about westward expansion ii. They had little interest in European politics (Wars were over) iii. Believed they were entering an era of unlimited prosperity b. Rise of patriotism i. From paintings to schoolbooks 1. Heroes of Revolutionary war were enshrined in paintings

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2. Virtues of George Washington put in a fictionalized bio. 3. Public schools embrace Noah Websters blue-backed speller promoting patriotism III. Economic Nationalism a. Rise in support of the nationals economy i. Subsidizing internal improvements (the building of roads and canals) ii. The protection of U.S. companies just starting out from European competition b. Tariff of 1816 (tariff: tax on imports or exports) i. Purpose: 1. Protection of American manufacturing from British competition ii. After the war, Brits flooded U.S. with cheap goods, often below the cost so they could strangle infant U.S. industries 1. Americans perceived this as British attempt to crush U.S. factories. iii. First protective tariff in U.S. history 1. New England opposed such a higher tariff. a. Had little manufacturing at the time 2. South & West supported it for national prosperity a. Though they opposed them in past and in future. c. Henry Clays American System i. From Kentucky. A part of the House of Representatives ii. Three part plan for advancing the nations economic growth 1. Protective tariffs a. Would promote American manufacturing b. Would raise revenue for national transportation system 2. National bank (Bank of U.S.) a. This would provide a national currency to keep the American system running smoothly b. Lack of national bank during the war created a banking vacuum (added info for clarity) i. Local banks sprung up everywhere. (added) ii. Country was flooded by depreciated bank notes that hampered the war effort. (added) 3. Internal improvements a. Would promote growth in West and South iii. Implementation of plan 1. Two parts were already in place in 1816 a. Congress had adopted protective tariffs b. Congress had allowed for the Second Bank of the United States. 2. Internal improvements a. Monroe did not believe that the Constitution allowed for the spending of federal money on roads and canals. b. He refused all acts providing for those funds c. Result: states were left to themselves

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The Panic of 1819 a. Economic panic and depression set in 1819 i. First financial panic since the Constitution was ratified. b. Cause of 1819 panic: i. Second Bank had tightened credit in hopes to control future inflation. c. Result of 1819 panic i. Many state banks closed ii. Value of money fell iii. Large increases of unemployment, bankruptcies, imprisonment iv. Severe depression in West 1. Bank of U.S. foreclosed on large amounts of western farmland d. Overall result i. Nationalistic beliefs were shaken ii. Westerners were calling for land reform iii. Westerners expressing strong opposition to both the national bank and debtors prison Political Changes a. Federalist party was done with by 1820 i. They failed to adapt to the times. Main examples 1. Opposed war of 1812 2. Held a secessionist (to break away from) convention at Hartford b. Changes in the Republican party i. Party underwent strains as it adjusted to changing times 1. Some members held to old Republican ideas of limited govt and strict interpretation of the Constitution while most adopted the Federalist program a. They maintained a large army and navy b. They allowed for the Second Bank of the U.S. in 1816a national bank had been a Federalist idea. 2. Republicans changed their political principles a. Daniel Webster opposed tariffs then supported them. b. John C. Calhoun, a nationalist, began supported states rights. 3. Political factions and sectional differences a. After Monroes two-terms expired, four Republicans sought election resulting in splitting the party.

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Marshalls Supreme Court and Central Government Powers

Most important chief justice in U.S. History (1801 1835) Most of his decisions favored the central govt and rights of property over the advocates of states rights. Fletcher v. Peck (1810) a. First time the Supreme Court declared a state law to be unconstitutional and invalid Martin v Hunters Lease (1816)

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a. The Supreme Court had the right to review decisions of state courts if matters involved constitutional rights. (judicial supremacy over the states) Dartmouth College v Woodward (1819) a. New Hampshire wanted Dartmouth to go from a privately charted college to a public institution b. Ruling: Charter was a contract; states could not invalidate it according to the Constitution c. Significance: i. Positive: safeguarded business from domination by the states ii. Negative: set precedent giving corporations the ability to escape govt control. McCulloch v. Maryland (1819) a. Issue: Maryland tried to destroy Baltimore branch of the Bank of the U.S. by taxing its notes. b. Marshall declared U.S. bank constitutional by invoking Hamiltons doctrine of implied powers (powers not explicitly spelled out but can be assumed) i. Loose construction given major boost ii. Argued the Constitution derived form the consent of the people and thus permitted the govt to act for their benefit c. Denied Maryland (and any state) the right to tax the bank: the power to tax is the power to destroy and the federal laws are supreme over state laws. Cohens v. Virginia (1821) a. Significance: i. Marshall asserted right of Supreme Court to review decisions of the state supreme courts in all questions involving powers of the federal govt Gibbons v. Ogden (1821) a. Significance: i. Marshall ruled that the Constitution allowed Congress alone had the right to control interstate commerce. ii. States no longer could retrain transportation

Western Settlement and the Missouri Compromise

I. Population west of Appalachian mountains doubles 10 years after War of 1812 Interest in West created opportunities and new questions Reasons for Western Movement (during Madison and Monroe) a. Acquisition of Native Americans land i. General William Henry Harrison and Andrew Jackson win victories against Native Americans.In Florida and the South, & Indian Territory. ii. Native Americans are driven from their land. iii. Large areas are now open for settlement. b. Economic pressures i. Those in Northeast move west because embargos and the war caused economic difficulties. ii. Tobacco planters in South moved westward because they exhausted their soil and were in need of new land.

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c. Improved transportation i. New roads and canals, steamboats and railroads made travel easier d. Immigration i. Europeans came because of offers of cheap land. New Questions and Issues a. Western settlement was of great importance to the western states i. Cheap money (easy credit) from state banks rather than US Bank ii. Land made available at low prices by the government iii. Improved transportation b. Slavery. What to do about it?? i. Westerners could not agree ii. Southerners wanted it for economic reasons iii. North had no need for it iv. When Missouri Territory applied for statehood, it became an issue The Missouri Compromise of 1820 a. Background i. There was an even balance of slave state/free state (11 to 11) in Senate created by the sections of the North and the South. ii. With Missouris bid for statehood, the political balance would be tipped in favor of slavery. b. Initial solution: Tallmadge Amendment i. The amendment called for 1. No more slaves could be brought into Missouri 2. Gradual emancipation of children born to slave parents already there. ii. Concern of Southern states 1. Viewed Tallmadge Amendment as a threat to sectional balance 2. Didnt know how this would affect the future of slave system c. Clays proposal i. Henry Clay played a key role in mediating a compromise ii. Provisions 1. Congress agreed to admit Missouri as a slave state 2. Maine was admitted as a free state a. Balance kept at 12 to 12 3. Future slavery outlawed north of 36-30 line iii. Compromise was largely accepted by both sides d. Aftermath i. Preserved sectional balance for over 30 years 1. Equal representation of slave and free states in Senate (12 to 12) ii. Americans were torn between feelings of nationalism (loyalty to the Union) and feelings of sectionalism (loyalty to ones own region)

Foreign Affairs
After the War of 1812, the U.S. took a more aggressive nationalistic approach in its relations with other nations o Monroe wouldnt allow problems with Barbary pirates get worse.

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Canada a. Rush-Bagot Treaty (1817) i. Brits and Americans agree to major disarmament pact. ii. Severely limited naval armament on the Great Lakes iii. By 1870, U.S. & Canada shared the longest unfortified border in the world b. Treaty of 1818 i. Provisions 1. Shared fishing rights off the coast of Newfoundland 2. 10 year joint occupation of Oregon Territory 3. Fixed the American-Canadian border at the 49th parallel Florida a. Background i. Americans already claimed West Florida during War of 1812 ii. Revolutions in South America forced Spain to move its troops out from FL. 1. As a result: Indians, runway slaves, and white outcasts would pour across the boarder of Florida into American territory to steal and kill and then retreat south back over the boarder. iii. Monroe and General Andrew Jackson took military action in Spanish Florida b. Jacksons military campaign i. Jackson swept through central and eastern Florida 1. He exceeded orders a. Executed 2 Indian chiefs and 2 British aids b. Captured Spanish city and drove out Spanish Governor c. Florida Purchase Treaty (1819) i. Spanish gave up Florida as well as claims to Oregon ii. U.S. abandoned claims to Texas The Monroe Doctrine a. Background i. Americans were alarmed at European hostility to democracy in Western Hemisphere. ii. Monarchies in Europe began a backlash against republican and democratic movements. 1. European monarchs, Russia, Austria, Prussia, and FranceHoly Alliancewere alarmed at Latin American revolutions and European democratic tendencies 2. Saw democracy as a threat to absolute monarchy 3. They wished to restore newly independent Latin American republics to Spanish rule iii. Essentially: 1. President Monroe was concerned about Spain reclaiming sovereignty in the Western Hemisphere.

1815, Monroe sent Stephen Decatur with a fleet to force rulers of North Africa to allow Americans shipping free use of Meditteranean.

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2. It was a policy which aimed to limit European intervention in the affairs of independent countries of Western Hemisphere. 3. America had sole right of influence in that area. iv. Significance: Served as a cornerstone for American foreign policy. And it established them as a world power. British Initiative i. British Foreign minister George Canning suggested a joint venture with the U.S. to preserve the interests of both nations. American response i. John Quincy Adams argued against such a move. It would restrict U.S. expansion 1. Brits would stand behind U.S. policy anyway 2. Europeans were weak and Brits would take them out. The doctrine (December 2, 1823) i. Colonial powers could keep their existing colonies but gain no new ones. ii. Non-intervention in the Americas; let new republics govern themselves. Impact i. Foreign reactions 1. Brits didnt like it because they too couldnt colonize 2. European monarchies didnt like it but knew they British power would kill them if they tried to respond. ii. Immediate impact was small in America 1. Not until 1845 did Polk revive it and did it become more important iii. Long-term impact: 1. Monroe Doctrine became cornerstone of U.S. foreign policy during last half of 19th century and throughout 20th century.

National Economy
I. The Industrial Revolution brought about a movement away from a nation built upon independent farmers to one based upon a national economy. Population Growth a. Population growth was needed for laborers and consumers required for industrial development b. Growth Statistics i. 1800-1825, U.S. population doubled ii. 1825-1850, U.S. population doubled again. 1. High birthrate 2. Large influx of European immigrants from Germany and G.B. iii. Non-Whites-African Americans and Native Americans 1. Grew in size 2. But declined as a percentage of total population a. 20% in 1790 to 15% in 1850s c. One-third (1/3) of population lived west of Alleghenies (that is, the Appalachian Mountain Range) Transportation

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a. Development and efficiency of roads and canals was vital to the development of both the national and industrial economy b. Roads i. Pennsylvanias Lancaster Turnpike (1790) 1. Connected Philly with farmland around Lancaster 2. Promoted the construction of toll road that connected major cities a. These toll roads were short and privately built. ii. Lack of Interstate roads 1. Interstate roads were few a. Those who promoted states rights blocked the spending of federal funds on internal improvements. 2. Exception: the National, or Cumberland Road. (1811-50) a. Extended from Maryland to Illinois. i. Vital highway to the west for trade b. Used both federal and state money. c. States had ownership of particular segments c. Canals i. Erie Canal in New York State in 1825 1. Linked the economies of western farms and eastern cities 2. Its economic influence sparked canal building all over 3. Result: a. Lower food prices in East b. More immigrants settling in the West c. Stronger economic ties between the two sections d. Steamboats i. Mechanized, steam-powered travel began in 1807 ii. Clermont, first steamboat to travel successfully. 1. Built by Robert Fulton e. Railroads i. Were rapid and reliable links between cities. ii. Competed with other modes in 1830s iii. Changed small cities into booming commercial centers iv. Most significant contribution to transportation of distance. III. Growth of Industry o Through the 19th century, manufacturing grew to surpass agriculture in value. These are the reasons a. Mechanical inventions i. Eli Whitney 1. Most famous of Americans 2. Well known inventions: a. Cotton Gin in 1793: 50 times more effective than picking cotton by hand. b. Introduced principle of interchangeable-parts (1812) i. Parts were made separately, yet were put together to become a working model. (guns)

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ii. Became the basis of modern mass-production, assembly line methods Corporations for raising capital i. Corporation 1. Independent legal entity, separate from the people who own, control, and manage it. 2. They are fictitious persons, granting some protection to actual owners. ii. 1811. New York changes corporation laws to make it easier for businesses to incorporate and raise capital (money). iii. Selling of shares of stocks was the key factor. 1. Now, owners only risked the money they invested. Factory system i. The beginnings of factories in U.S. 1. Samuel Slater Father of the Factory System built the first efficient cotton spinning machine in America 2. Helped establish first factory built in 1791 ii. Growth of factories 1. 1820s. New England was the countries leading manufacturing center. Why? a. Abundant waterpower to run the machines b. Good seaports for shipping goods c. Decline in farming provided a labor force d. Money for ship building gave the support money 2. Influence a. More cities followed in N.E.s ways b. Encouraged Labor i. Manufactories had trouble finding workers. ii. Solution: The Lowell System 1. Textile mills in Lowell, Mass. attracted young woman and housed them in company dormitories. 2. Significance: change from manufacturing at home to manufacturing in factories Unions i. Organized in major cities beginning around 1790s ii. Reason for unions 1. Skilled workers went to work in factories since their work from home couldnt compete with lower-priced, mass-produced goods 2. In return, they got long hours, low pay, and poor working conditions. iii. Goals of unions 1. To reduce the workday to 10 hours iv. Obstacles 1. Immigrant replacement workers 2. State laws outlawing unions 3. Frequent economic depressions and high unemployment.

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Commercial Agriculture o Farming changed from a means of providing for the family to more of a commercial enterprise. o Reasons from the change to cash crops: a. Cheap land and easy credit i. Govt made large areas of western land available for cheap ii. State banks gave farmers loans at low interest rate b. Markets i. With the availability of railroads and canals, western farmers added new markets in the East in addition to the southern markets they had. Cotton and the South a. The principal (main) cash crop in the South was cotton b. Reason for status i. Cotton gin speed up process of separating fibers from seeds c. Result: i. More profitable than tobacco. ii. Bought more slaves and more land to handle to demand Effects of the Market Revolution a. Ended self-sufficient households and grew interdependence among people i. Specialization on the farm (farms grew particular items for sale) ii. Growth of cities (factories) iii. Industrialization (transportation, factories, ect) iv. Modern capitalism (need of share holders and buyers of goods) b. Interdependence i. Farmers fed the workers in the city, who gave farmers mass-produced items. Problems of impersonal, fast-changing economy c. Woman i. Work life of the woman changed 1. No longer worked beside their husbands on family farms 2. They worked as teachers or in domestic services (in the home) 3. Single woman worked 4. Married woman stayed home ii. Social life of the woman changed 1. More control over life a. Arranged marriages were less common b. Decided to have few children d. Economic and social mobility i. Wages improved but gap between poor and rich increased ii. Social mobility was possible iii. Economic opportunities greater than in Europe e. Slavery i. Some thought it was going to fade away 1. Constitutional ban on importation in 1808 2. Exhausted soils in Virginia and the Carolinas ii. Issue of slavery wasnt going away

1. Cotton industry grew the need