I. U.S. emerged from the War of 1812 with a heightened sense of nationalism
    A. Madison more popular when leaving office in 1817 than when he assumed it in 1809
    B. Causes
        1. Victories in War of 1812, especially Battle of New Orleans
        2. Death of the Federalist party; reduced sectionalism; reduced states’ rightsism
        3. Lessening of economic and political dependence on Europe
        4. Westward expansion and optimism about the future
    C. Americans coming to regard themselves as Americans first and state citizens second.

II. Henry Clay's American System: BUS, tariffs, internal improvements
    A. Second National Bank voted by Congress in 1816.
        1. Lack of national back during the War of 1812 created a banking vacuum
            a. Local banks sprung up all over the country
            b. Country flooded by depreciated bank notes that hampered the war effort.
        2. Modeled after the first National Bank but with 3 1/2 times more capital: $35 mil.
        3. Jeffersonians supported the revived bank.
            a. Used same arguments that Hamilton had used in 1791.
            b. Ironically, Federalists denounced it as unconstitutional.
    B. Tariff of 1816
        1. Purpose: protection of American manufacturing from British competition.
            a. After the war, Brits flooded U.S. with cheap goods, often below cost too strangle infant
                U.S. industries.
                -- Americans perceived this as British attempt to crush U.S. factories.
            b. First protective tariff in U.S. History
                i. Imposed roughly 20-25% duties on imports
                ii. Not really high enough to provide completely adequate safeguards
            c. Started a protective trend in U.S. trade.
        2. Sectional battle over the tariff represented by the three great Congressional leaders of the
            antebellum period: Calhoun, Webster, and Clay (the "Great Triumvirate")
            a. John C. Calhoun (from South Carolina) represented southern views.
                i. Recent war hawk and ardent nationalist.
                ii. After initially supporting 1816 tariff, he opposed it claiming it was enriching Yankee
                    (New England) manufactures
            b. Daniel Webster (from New Hampshire) represented northern views.
                i. Opposed the 1816 tariff.
                ii. Shippers in N.H. feared tariff would affect their carrying trade.
                iii. New England not completely developed in manufacturing yet.

        3. Henry Clay saw tariffs as a way to develop a profitable home market.
            a. Eastern trade would flourish under protection.
            b. Tariff revenues would fund roads and canals in the interior esp. Ohio Valley.
                -- Frontier folks cried for better transportation; poor-no roads existed.
            c. Foodstuffs & raw materials from the South and West would flow into the North &
                East

    C.    Internal Improvements (failure)
        1. Congress passed Calhoun's Bonus Bill in 1817; would have given $1.5 mil.
            to states for internal improvements.
            a. Madison vetoed it claiming it was unconstitutional
            b. His successor, James Monroe, followed suit.
            c. Jeffersonians hated idea of direct federal support of intrastate internal
                improvements; saw it as a states’ rights issue
            d. New England opposed federally constructed roads & canals; would
                drain away population and create competing states in the West.
        2. Prior to Civil War, most internal improvements (except railroads) were done at the
           expense of state and local governments.
            -- For example, Erie Canal in New York was completed in 1825 at state expense.

III. Era of Good Feelings (1817-1825)
    A. James Monroe elected President in 1816
        1. Continued the Virginia dynasty (4 of 5 initial presidents Virginian; 32 of first 36 yrs)
        2. Death of Federalist party resulted after the election.
            a. Federalist liabilities
                i. "Disloyalty" during the Wr of 1812
                ii. Became extremely sectional (interests of New England) and unable to accept new
                    nationalistic program
                iii. Jefferson had adopted many of their most important ideas (e.g. Hamilton’s financial
                    plan, expansion, loose construction in certain cases)
            b. Ironically, Federalists reversed many of their initial positions
                i. Originally nationalistic; now opposed to Republican nationalism
                ii. Many became strict constructionists esp. vis-à-vis internal improve
        3. "Era of Good Feelings" ushered in by Monroe's 1817 inspection tour of military bases
            from New England to Detroit (term coined by a newspaper man covering the tour)
    B. "Era of Good Feelings" moniker somewhat of a misnomer: Acute issues troubled the country.
        1. Crystallizing sectionalism (east, west and south)
        2. Tariff issue (east and south opposed; west in favor)
        3. Internal improvements (east and south opposed; west in favor)
        4. Bank of U.S. (BUS) (west and south opposed; eastern bankers in favor)
        5. Sale of public lands (east opposed; west and south in favor)
        6. Republican party enjoying 1-party rule began developing factions eventually leading to 2^nd
            Party System in the 1830s.
            -- Clay, Calhoun, Jackson, John Quincy.Adams
    C. Monroe's presidency oversaw two major events:
        1. Panic of 1819
        2. Missouri Compromise of 1820

IV. Panic of 1819
    A. Economic panic and depression set in 1819
        1. First financial panic since the "Critical Period" of the 1780s under Articles of
            Confederation.
            -- Henceforth, panics and depressions would occur approximately every 20 years.
        2. Causes of 1819 panic:
            a. Most immediate cause: Overspeculation on frontier lands by banks (especially BUS)
            b. Inflation from 1812 war + economic drop-off after war (especially cotton) =
                vulnerable economy
            c. Significant deficit in balance of trade with Britain = U.S. drained of vital specie
            d. BUS forced "wildcat" western banks to foreclose on western farms
                -- BUS stopped allowing payment in paper; now demanded payment in specie; state
                    banks affected & called in loans in specie; farmers didn’t have specie
        3. Resulted in calls for reform and pressure for increased democracy.
            a. Western farmers viewed the bank as an evil financial monster.
            b. Hard hit poor classes looking for more responsive gov't (beginnings of Jacksonian
                democracy)
            c. New land legislation resulted in smaller parcels being sold for lower prices.
                -- By the Civil War, western land would be given nearly for free.
            d. Directed attention to inhumanity of imprisoning debtors.
                -- Some states passed remedial legislation.
    B. Monroe reelected in 1820 with all but one electoral vote (nearly unanimous)
        -- Only president in history to be elected after a major panic.

V. The Growing West
    A. New states' characteristics
        1. No long-established history of states' rights
        2. More than other regions, depended on federal gov't where it had secured most of its land.
        3. Melting pot of a wide diversity of peoples immigrating from the east.
    B. 9 frontier states joined the union bet. 1791 & 1819
        1. Most had been admitted alternately free and slave.
        2. Maintaining a sectional balance in Congress was a supreme goal.
    C. Reasons for explosive westward expansion
        1. Westward movement had been significant significant since colonial era.
        2. Cheap lands in the Ohio territory attracted large numbers of European immigrants.
        3. Land exhaustion in older tobacco states drove people westward.
        4. Speculators accepted small down payments & made purchase of land easier.
        5. Economic
            distress of embargo years stimulated migration west.
        6. Crushing of Indians during the war cleared much of the frontier.
            a.    Battle of Fallen Timbers (1794) and Jay Treaty
            b.    Battle of Tippecanoe (1811)
        7. Transportation Revolution improved land routes to Ohio Valley.
            a. Cumberland Road built in 1811; ran from MD to Illinois.
            b. Emergence of the steamboat in 1811 made upstream travel possible.
            c. Canals beginning in 1826 allowed for increased trade between west and east.
    D. West still remained weak in population and influence
        1. Forced to ally itself with other sections when addressing national political issues.
        2. Demanded land reform & cheap transportation (got it slowly), cheap money and
            issued its own "wildcat" banks, & fought the powerful Bank of he US to get its goals

VI. Missouri Compromise of 1820
    A. Missouri asked Congress to enter the union in 1819
        1. Tallmadge Amendment passed by the House of Representatives in response.
            a. No more slaves could be brought into Missouri
            b. Gradual emancipation of children born to slave parents already there.
   B. Southern states viewed Tallmadge Amendment as ominous threat to sectional balance.
        1. Jefferson: The crisis rang as "a firebell in the night."
        2. Concerned by fast increase in northern population and economy and political balance in
            in the House of Representatives.
            -- Senate still balanced 11 free to 11 slave states; parity had to be maintained
        3. Future of the slave system caused southerners profound concern.
            a. Missouri first state entirely west of the Mississippi made from the Louisiana Territory.
            b. Tallmadge amendment might set a precedent for the rest of the area to be free.
            c. If Congress could abolish slavery in Missouri, it might try in southern states.
            d. Small group of antislavery agitators in the North used the occasion to protest
        4. The Senate refused to pass the amendment and as the crisis loomed
    C. Missouri Compromise of 1820
        1. Henry Clay played a key role in mediating a compromise
        2. Provisions:
            a. Congress agreed to admit Missouri as a slave state.
            b. Maine was admitted as a free-soil state.
                -- Balance kept at 12 to 12 for the next 15 years.
            c. Future slavery prohibited north of 36-30' line, the southern border of Missouri.
                -- Ironically, Missouri was north of the 36-30 line.
        3. Compromise was largely accepted by both sides
            a. South got Missouri
            b. North won concession that it could forbid slavery in the remaining territories above
                36-30 line
                i. Northern advantage because Spanish territory in southwest prevented significant
                    southern expansion westward.
                ii. Southerners not overly concerned of lands north of 36-30 as lands not condusive to
                    slave-labor cash crop agriculture.
    D. Legacy of the Compromise
        1. Lasted 34 years and preserved the union (until the Kansas-Nebraska Act in 1854)
        2. Henceforth, slavery became a dominant issue in American politics.
            -- Serious setback to national unity
        3. South began to develop a sectional nationalism of its own.
            -- Looked to the young West who was seeking allies as well.
        4. Clay criticized by subsequent generations as an "appeaser"
            a. Yet, nation was founded on compromise; no one section could dominate
            b. End of compromise in the 1850s resulted in civil war.

VII. John Marshall and Judicial Nationalism
    A. Marshall most important chief justice in U.S. history (1801-1835)
        1. Significantly strengthened the Supreme Court in Marbury v. Madison (1803) and other
            cases.
        2. His decisions greatly increased power of the federal government over the states.
            a. Strengthened the union and helped create a stable, nationally uniform environment for
                business.
            b. Checked excesses of the popularly elected state legislatures.
            c. Ironically, his decisions at times hampered democracy at a time when America was
                become much more democratic during the Jacksonian era.
        3. Examined cases from a Federalist philosophy and found legal precedents to support
            his Hamiltonian views.
            a. Jeffersonian attempts to balance the Court with Republicans failed.
            b. Republicans came to accept the Federalist ideal of strong central gov't.

    B. Fletcher v. Peck (1810) (protection of property rights against popular pressures)
        1. Issue: New Georgia legislature canceled a contract which had granted 35 million acres in
            the Yazoo River country (Miss.) to private speculators as a form of graft.
            -- Previous legislature had made the grant in what was called "Yazoo Land Controversy"
                during Jefferson’s presidency.
        2. Significance: Court ruled the Constitution forbids state from "impairing contracts".
            a. One of earliest examples of Court asserting its right to invalidate state laws.
            b. Court stated the legislative grant was a contract (albeit fraudulently secured)

    C. Martin v. Hunter’s Lessee (1816)
        1. Issue: Did Supreme Court (as provided for in Judiciary Act of 1789) have the right to
            review decisions of state supreme courts where federal statutes or treaties were involved
            or when state laws had been upheld under the federal Constitution?
            -- Virginia sought to disregard Treaty of Paris (1783) and Jay’s Treaty (1794) regarding
                confiscation of Loyalist lands.
        2. Decision: Supreme Court rejected "compact theory" and state claims that they were
            equally sovereign with the federal gov’t.
        3. Significance: Upheld Supremacy Clause of the Constitution and federal judicial supremacy
            over the states.

    D. McCulloch v. Maryland (1819) (Blow to states' rights)
        1. Issue: Maryland tried to destroy Baltimore branch of the BUS by taxing its notes.
        2. Marshall declared US bank constitutional invoking Hamilton's doctrine of implied
            powers (elastic clause of the constitution -- "necessary & proper").
            a.  "Loose construction" given major boost.
            b.  Argued the Constitution derived from the consent of the people and
                 thus permitted the gov't to act for their benefit.
        3. Denied Maryland the right to tax the bank: "..that the power to tax involves the
            power to destroy" and "that a power to create implies the power to preserve."

    E. Dartmouth College v. Woodward (1819) (protection of property rights from the states)
        1. Issue: New Hampshire had changed a charter granted to the college by King George
            III in 1769. Republicans sought to remove "private" aspect of school & make a state
            institution.
            -- Dartmouth appealed; defended by Daniel Webster, an alumnus.
        2. Ruling: Charter was a contract; states could not invalidate it according to Constitution.
        3. Significance:
            a. Positive: safeguarded business from domination by the states.
            b. Negative: set precedent giving corporations the ability to escape gov’t control.

    F. Cohens v. Virginia (1821) (Blow to states' rights)
        1. Significance: Marshall asserted right of Supreme Court to review decisions of
            the state supreme courts in all questions involving powers of the federal gov't.
            a.    Significant blow to states' rights.
            b.    Similar to Martin v. Hunter’s Lessee case (above)
        2. Issue: Virginia courts convicted Cohens for selling lottery tickets illegally.
            a. State supreme court upheld the decision
            b. Marshall overturned it.

    G. Gibbons v. Ogden -- 1824 ("steamboat case") (Blow to states' rights)
        1. Significance: Marshall ruled Constitution conferred on Congress alone the right to
            control interstate commerce.
        2. Issue: NY tried to grant a monopoly of river commerce between NY & NJ to
            a private company (owned by Ogden). Gibbons had congressional approval to conduct
            business on the same waters.
        3. Court ruled interstate streams were to regulated by Congress, not individual states.

    H. Daniel Webster became an important influence in Marshall’s decisions.
        1. Advocated strongly Federalist and nationalist views before the Supreme Court.
            -- He actually "ghost wrote" some of the Court’s opinions.
        2. Classic speeches in the Senate, challenging states' rights and nullification, were
            largely repetitions of arguments he earlier presented to the Supreme Court.

VIII.    Foreign Policy after the War of 1812
    A. Rush-Bagot Treaty (1817) – during Madison’s presidency
        1. Severely limited naval armament on the lakes.
        2. By 1870, U.S. & Canada shared longest unfortified border in the world (5,500 mi)
    B. Treaty of 1818 (Convention of 1818) with England (during Madison’s presidency)
        1. Negotiated by John Quincy Adams, one of the nation's great sec. of states.
        2. Provisions:
            a. Fixed the American-Canadian border at the 49th parallel from Lake of the
                Woods to the Rocky Mountains.
            b. 10-year joint occupation of Oregon Territory w/o surrender of claims of by either country.
            c. Permitted Americans to share Newfoundland fisheries with the Canadians.

    C. U.S. gains Spanish Florida
        1. Americans already claimed West Florida where settlers had torn down the Spanish flag in
            1810 and Congress ratified the conquest during War of 1812.
        2. Revolutions in South America forced Spain to move its troops out from Florida.
            a. Floods of Indians, runaway slaves, and white outcasts poured across the border
                into American territory to pillage and kill and then retreat south of the border.
            b. Monroe commissioned Andrew Jackson to punish the Indians and if necessary,
                pursue them back into Florida.
                -- He was to respect all Spanish posts.
        3. Jackson swept through central and eastern Florida during the First Seminole War  (1816-1818).
            a. Exceeded orders by capturing Spanish cities and deposing Spanish Governor.
            b. Executed 2 Indian chiefs and British aids to the Spanish cause
        4. John Quincy Adams convinced Monroe's cabinet to offer an ultimatum to Spain.
            a. Control the outlaws of Florida (which Spain was not equipped to do) or
                cede Florida to the U.S.
            b. Spain infuriated but realized it would lose Florida in any case; decided to negotiate.
        5. Adams-Onis Treaty(Florida Purchase Treaty) of 1819
            a. Spain Ceded Florida as well as claims to Oregon.
            b. U.S. abandoned claims to Texas (which was to become part of independent Mexico).

    D. Monroe Doctrine -- John Quincy Adams: Secretary of State
        1. European monarchs, Russia, Austria, Prussia, and France -- "Holy Alliance" -- alarmed
            at Latin American revolutions and European democratic tendencies.
            a. Saw democracy as a threat to absolute monarchy.
            b. Wished to restore newly independent Latin American republics to Spanish rule.
        2. Americans alarmed at European hostility to democracy in Western Hemisphere
        3. Great Britain sought an alliance with the U.S. to protect its interests in Latin America
            a. Benefitted, along with the U.S., with trade in Latin America.
            b. 1823, Br. foreign secretary, George Canning, proposed a joint declaration, warning
                European despots from to stay away from Latin American Republics.
        4. American reaction
            a. Former presidents Jefferson & Madison urged Monroe for a Anglo-American alliance.
            b. Secretary of State John Quincy Adams believed Britain wanted alliance to keep U.S.
                from taking Latin American territory and jeopardizing Britain’s possessions in the
                Caribbean.
                i. Believed alliance would hamper U.S. expansion and was unnecessary.
                ii. Realized Europeans did not really pose an imminent threat to region.
        5. Monroe Doctrine (1823) -- written by John Quincy Adams
            a. J.Q. Adams finally won President Monroe over to his way of thinking
            b. President's annual message to Congress incorporated stern warning to Europeans
                i.  Colonial  powers could keep their existing colonies but gain no new ones.
                ii. Nonintervention in the Americas; let new republics govern themselves
                iii. Directed primarily at Russia, whom the U.S. feared would threaten the Pacific coast
            c. Most famous expression of American nationalism during the era.
                i. Nationalistic Americans widely supported the proclamation.
                ii.Maintained Washington's tradition of avoiding an "entangling alliances."
           d. Foreign reaction
               i. British reaction mixed.
                  -- Canning concerned Monroe Doctrine aimed at Britain as well.
                  -- British press favored protection of Latin American markets.
              ii. European monarchs angered and offended at U.S. haughtiness
              iii. Latin American countries skeptical and saw  U.S. merely protecting its own interests.
           e. Immediate impact of Monroe Doctrine was small
               i. U.S. army and navy remained small and relatively weak
               ii. Not until 1845 did Polk revive it and did it become more important
           f. Long-term impact: Monroe Docrtine became cornerstone of U.S. foreign policy
           during last half of 19th century and throughout 20th century.
        6. John Quincy Adams one of most significant secretaries of state in U.S. history.
            a. Oversaw Convention of 1818 establishing U.S.-Canadian Border
            b. Adams-Onis Treaty resulted in acquisition of Florida from Spain
            c. Monroe Doctrine
 

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