Madison, Monroe, J.Q. Adams
1815-1829

• 13 yrs of Republican programs left key institutions weakened
– No army
– Banking system a mess
– Gov’t bankrupt
– Primitive transportation system
– Young manufacturing sector

• Improve nation’s financial, transportation,
& manufacturing sectors
• Active federal govt
• 1815 Madison speech (changing ideas)
– New Nat. Bank
– Protective tariff
– “Internal Improvements” (roads & canals)
• Calhoun & Clay – roads unite country
• Ok b/c LA purchase ok

• 1816 Tariff passed
• 1816 2 nd Bank of US created
• 1817 Madison internal improvements controversy
– Vetoed bill
– Dangerous idea w/o amendment
– Protect south

• Private, for profit corp.
• Issued paper $, collect taxes, paid debts
• Make sure paper issued by local banks had real value.
– Call in gold of silver for local paper
– If bank can’t produce they close

• MD tried to
• States can’t tax or destroy agency created by national. govt.
• Marshall declares bank constitutional
– “necessary & proper”
– Implied powers of congress
– “general welfare”

• 1816 Monroe runs as a “New Nationalist”
• Federalist Party destroyed
• 1 party should equal political harmony

• 1 st Seminole War 1817
• Acquire FL $5M

• Warn Russia & Spain to stay out.
• No new colonies
• Added to by future
Pres.
• Cornerstone of
Foreign Policy today

st
• Result of improvements in transportation and technology.
• Transportation
– Toll roads
– Canals
– Steamboats
• NE textile industry
• 20% non farm workers

• 1 st speculative boom
• Result of rising cotton prices & cheap credit
• People felt the demand would never end
• Speculation
– 160 acre blocks $320 only 20% down
– Resell higher - 1818 $150 acre
– $65 investment = $24,000 profit

• 1 st real financial panic
• Post-war speculative bubble burst
– European markets for cotton & grain
– Western land boom
– Easy credit (local & Bank)
• Bankruptcy, unemployment
• Popular distrust of banks
• Debtors vs. Bank

• Attempted to fix the “land bubble” problem
• Abolished the use of buying land on credit
• Homestead prices were also reduced by
60%.
• Expected business to improve soon

• Public felt economy would improve
• Nationalist policies popular
– American pride & purpose
• Federalists didn’t run anyone
• New paradigm firmly in place

• 1 st important sectional dispute
• Sectionalism
• ME would give north political edge (12-11)
• North wants to block MO (slave)
– Congressmen Robert Tallmadge (NY) proposal limiting slavery
– passes in House but stalls in Senate
• South threatens secession

• Henry Clay brokers compromise
– MO slave & no slavery above 36/30 th latitude
– ME free state
• Sectional problems on hold for generation

• Economy gets worse
– Republicans don’t know what to do
– 1 st period of hard times
• Republicans lose unity
• Disputes
– Tariffs, banks, internal improvements
• Party splitting

• Sectionalism
– 4 candidates (Jackson, Adams, Clay,
Crawford)
– Interests
– Economic policies
• Andrew Jackson 41% pop. vote
• John Q. Adams 31% pop. vote
– Clay makes House of Reps vote for him
– Clay chosen as Sec. of State

• Minority president
• Clay Sec. of State
• Calhoun Sec. of War
• “National Republicans

• American System
• World commercial power
• Activist national state
– Called for legislation on
• Agriculture, commerce, manufacturing
• Mechanical & elegant arts
• National university & observatory
• Naval academy
• Metric system

• Acceleration of internal improvements
• Steep tariff increase
– “Tariff of Abominations”- Lost South
• Went too far for many core Republicans

• “corrupt bargain”
• Starts campaigning immediately
• Appeal to the people
• Democrat Party (new)
• Expand suffrage
• 1828 56% pop. vote (record for 75 yrs)

• 13 yrs
• Programs look like Federalist
• Not a full-scale shift
– Until Adams they didn’t lose core beliefs
– States rights
– Against fed. internal improvements
– Limited govt
– Agrarian policies