NATIONALISM & ECONOMIC DEVELOPMENT

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UNIT IV – CH. 8
NOW WHAT? Let’s fix America!!!
• Goal of War of 1812 – resume American
economic success = AMERICAN SYSTEM
• Second Bank of the United States chartered 1816
– secure stable currency of state banks
• Tariff of 1816 – protection of American
industries
• Transportation –
– National Road (Cumberland) from Potomac River to
Ohio River
– Robert Fulton – advanced steamboat – didn’t have to
rely on current
• Revolutionized trade networks
The “American System”
Henry Clay
•
–
–
–
bank
Tariff
Internal
improvements
The American System
 WEST  got roads, canals, and
federal aide.
 EAST  got the backing of
protective tariffs from the
West.
 SOUTH  ??
ELECTION OF 1816
“Virginia Dynasty”
1800-1824
All Secretary of States
TJ – J. Madison
J. Madison – J. Monroe
James Monroe
Cabinet: State – JQA; War – John C. Calhoun
Toured nation
Columbian Centinel, Federalist newspaper in
Boston: “Era of Good Feelings” has arrived
Era of Good Feelings
• (1817 – 25) Period of U.S. national unity and
complacency
• Stimulated by two events of 1816
– first U.S. protective tariff
– second national bank
• Presidency of Monroe
– dominance of the Democratic-Republican Party and
the decline of the Federalist Party (By 1820 gone)
PANIC OF 1819
Panic = economic depression
1st major financial hurdle for American expansion
Caused by bank failures (states) in response to
harsh/tightening demands of 2nd B. of US
political issue of 1820’s – creates new faction (later)
Tariff of 1824 protected from foreign
competition
Marked beginning of the end of EGF
MARSHALL’S COURT
CJ 1801-1835 – only Federalist dominance left in
national politics
Advanced powers of courts at expense of branches and
states, advanced propertied and commercial classes
Cases that strengthened FEDERAL gov. over states:
Cohens v. Virginia (1821) – reaffirmed constitutionality of
federal review b/c states sacrificed sovereignty in
ratification
McCulloch v. Maryland (1819) – upheld constitutionality
of BoUS under “implied powers”
State banks cannot tax nat’l bank – power to tax = power to
destroy – Daniel Webster
Gibbons v. Ogden (1824) – Expanded “commerce clause”
Who Interprets the Constitution?
John Marshall
Judicial review
Thomas Jefferson
Nullification by states
Marbury v. Madison, 1803
• Issue
– Judicial review
– Partisan politics
• Background
– “Lame duck” Federalist Congressmen passed a new Judiciary Act in
early 1801
– Adams (F) appointed “midnight judges” but Jefferson (DR) refused
to deliver commissions
– Marbury sued for his job
• Outcome
– S.C. established its power of judicial review over president and
Congress
– Marbury didn’t get the job
– This case was the most important precedent (stare decisis = let the
decision stand)
Cohens v. Virginia, 1821
• Issue
– Federal jurisdiction over the states
• Background
– The Cohens were convicted in Virginia for selling illegal
lottery tickets
– The Cohens appealed the state convictions through the
federal courts
• Outcome
– Supreme Court asserted its power to review state court
decisions
Fletcher v. Peck, 1810
• Issue
– Contract law
• Background
– Corrupt Georgia legislature granted land to speculators in
exchange for bribes (“Yazoo Land Scandal”)
– After election, new Georgia legislature canceled the deal
• Outcome
– S.C. upheld land grants
– Sanctity of contracts (no matter how they were formed)
– Victory of “wealth and privilege” over “mob” wanting
wealth redistribution
Dartmouth College v. Woodward, 1819
• Issue
– Contract law
• Background
– Dartmouth was created by a royal charter from King
George III
– New Hampshire tried to place college under state
control
• Outcome
– S.C. ruled that the college charter stands
– Sanctity of contracts
– Laissez-faire (government shouldn’t interfere with
private enterprise)
McCulloch v. Maryland, 1819
• Issue
– National supremacy
– Interstate commerce
– National bank
• Background
– Maryland hated the national bank, so it imposed a tax on the bank’s branch
in Maryland
• Decision
– National bank is constitutional under the “necessary & proper”
(elastic) clause
– “The power to tax is the power to destroy”… therefore Maryland cannot be
given the power to tax the national government
– Established national supremacy over the states
Gibbons v. Ogden, 1824
• Issue
– Interstate commerce
• Background
– Gibbons and Ogden ran competing steamboat companies
that ferried goods from state to state
– Ogden, who had the exclusive NJ state monopoly license,
sued in order to shut down Gibbons, who had a federal
license
• Decision
– Only the federal government (not states) may regulate
interstate commerce
– National supremacy over the states
– Gibbons (federal license) won
Review: Main Ideas
•
•
•
•
National supremacy
Economic growth
Independence and power of judicial branch
Key Cases
– Marbury v. Madison: judicial review
– McCulloch v. Maryland: national supremacy,
national bank
– Gibbons v. Ogden: national supremacy, interstate
commerce
EXPANSION
John Quincy Adams – committed nationalist
Goal – promote American expansion
Negotiated w/ Spanish minister Luis de Onis
Resisted giving up entire FL peninsula
Seminole War - Andrew Jackson stopping raids
of Seminole Indians in FL – excuse to invade FL
and take it instead of negotiating
Adams-Onis Treaty (1819) – acquired ALL of FL
ADAMS-ONIS TREATY (1819)
EXPANSION = SECTIONAL
TENSION!
MISSOURI COMPROMISE
• Missouri applied statehood 1819 – slavery well
established
– Population: white – 50,000; slaves – 10,000
• Tallmadge Amendment
– Rep. James Tallmadge Jr. (NY) – proposed gradual
emancipation of slaves and prohibition of slavery
• 11 free; 11 slave – uneven upset balance b/t N &
S
• Social, political, economic arguments for and
against – depended on expansion west
MISSOURI COMPROMISE
• Maine applied for statehood
• Combine proposals:
– Maine – free
– Missouri – slave
• Balance maintained
– Thomas Amendment – prohibited slavery in rest of
LA territory north of 36/30
• Proposed by Henry Fing Clay
• Temporary fix to a MAJOR issue dividing the
nation
“MONROE DOCTRINE”
• “the American continents…are henceforth not
to be considered as subjects for future
colonization by any European powers.”
– Closed off American continent to Europe
• 1823 – authored by Sec. of State JQA
• Importance:
– Expression of the spirit of nationalism
– Concern about threat of European forces
– American hegemony
The Monroe Doctrine, 1823
 Referred to as
“America’s Self-Defense
Doctrine”
1. What foreign
policy
principles are
established?
2. What warning is given
to the European
countries?
Monroe
Doctrine
3. What would the
US do if the
warning was not
headed?
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