Western Settlement and
Eastern Capitalism
CHAPTER 8
The Western
confederacy
and Mad
Anthony
Wayne
• The treaty of Paris of 1783 left the Indian
Nations to the care of the American States.
Americans were going to expand Westward and
Even Extirpating the natives was not beyond the
scope of possible solutions to the Indian
Problem. Under the guidance of Miami Chief
Little Turtle, The Western Confederacy was
formed to block white expansion in the Ohio
River Valley. The Confederacy, consisting of
Shawnees, Miamis, and Potawatomis, They were
successful holding Americans back, Until George
Washington sent Mad Anthony Wayne In the
Battle of Fallen Timbers, to force them to cede
the land, and come under American Sovereignty.
• Even with the victory of Fallen Timbers, The
Confederacy was strong enough to force a
compromise. In the Treaty of Greenville 1795,
American Negotiators acknowledged the Indian
ownership of the Ohio River Valley, And Land was to
be purchased from the Indians, not taken. In Return,
the Indians agreed to be placed under the protection
of the United States.
• The conflict was only abated, and by 1805, a Shawnee
named Lalawethika , Who had been a victim of white
man’s drink, Sobered up, Called himself “Tenskwatawa”
(the one that opens the door) and preached to his
people to Shun American ways, denouncing alcohol, and
calling for a return to traditional dress and food. Along
with his Brother Tecumseh, They built a great
confederacy, to reclaim lands ceded by other chiefs, But
When the warrior Tecumseh left to persuade other
chiefs to join the Confederacy , William Henry Harrison
Marched on “prophets town”. Tenskwatawa told his men
that the Master of Life would keep them alive and he
attacked Harrison’s men at Tippecanoe River, but the
master of Life did not keep them alive and Tenskwatawa
lost his following. Tecumseh was later killed in the war
of 1812.
• The great mass of land had the advantage of creating
opportunity for farmers, but it also came with the
disadvantage of creating a barrier for getting crops to
market. It cost Pennsylvania farmers as much to send crops
fifty miles up the road to Philadelphia as it would to send it
from Philadelphia to London. State Governments
Chartered private companies to construct Turnpikes (toll
roads) and canals. Many Farmers remained Self sufficient,
making their own shoes and clothing, but staying poor.
• In the 1780s Owners of Textile Mills In
the Middle Atlantic and New England
Constructed their mills along creeks
and rivers to harness water power.
• Charters included Iron Mining firms,
Textile Manufacturing and even
Banks.
• From 1790 to 1820 Corporate charters
granted in the US Included Eminent
Domain provisions that allowed
companies building turnpikes bridges
or canals to force the sale of land that
it required for these transportation
routes.
• Critics of the Commonwealth system
that granted these charters,
complained that it restricted the
sovereignty of the people and gave
too much power to corporations.
Jefferson & the Pirates
• In the 1790s Barbary States of
North Africa systemically raided
American Merchant ships So
Federalist officials removed this
threat by paying an annual bribe,
“tribute” for “protection. Jefferson
refused to pay the tribute and the
“pirates” renewed their assaults. At
first he ordered the navy to
retaliate but to avoid an all out war
and prevent a bigger national debt,
Jefferson agreed to pay a reduced
tribute.
Napoleon’s Moves
• Napoleon Bonaparte seized power in 1799 in France and aggressively sought
empire in Europe and America, retaking Louisiana from Spain, and in violation of
Pinckneys’ treaty, he directed Spanish officials to restrict American access to New
Orleans, a vital port for Farmers using the Mississippi river. Jefferson had to
question his pro French policy. Jefferson instructed Robert Livingston The
ambassador to France to negotiate the Purchase of New Orleans. Fearing a French
plan to establish an empire in America, Jefferson said; “the day that France takes
possession of New Orleans… We Must Marry ourselves to the British Fleet and
Nation.” At the time, (1802) Napoleon was dealing with strong resistance in Haiti
and a new war threatening in Europe, So Napoleon offered to sell all of Louisiana
for $15 million, as he could not defend Louisiana and fight a European war at the
same time… and the cash would come in handy.
Strict vs Loose Construction
• In Contemplating The Louisiana Purchase, Jefferson
realized that the constitution did not grant the power
of the president to acquire territory and thought of
creating a constitutional amendment in order to uphold
his idea of “Strict Interpretation of the Constitution.
But Madison talked him out of it because by the time
the Amendment passed Napoleon could change his
mind… Jefferson had to abandon his idea of Strict
Interpretation and revise his view of Presidential
powers under the Constitution.
Meriwether Lewis & William Clark
• In 1804 Jefferson Sent his
Personal Secretary,
Meriwether Lewis to explore
the region with William
Clark, Theirs was a scientific
expedition, with objectives
to map the area, report on
the physical features as well
as plants, and animals from
the region and to find a
pacific water route. And
finally to make peace and
establish trade with the
Indians.
Northern Secession! A dastardly conspiracy!
• In response to the threat of a diminished power of the
Northern States caused by the Louisiana purchase
doubling the size of the country, Some Federalists
talked of seceding from the union….When approached
about leading this, Hamilton refused, so they turned to
Aaron Burr, an ambitious man who might very well
have gone along with this
plan, but When Hamilton
accused Burr of
participating, burr
Challenged Hamilton to a
duel and shot and Killed
him.
Trouble with the Brits
• The European War was good for American
business, but neither the French or the
British Respected American Neutrality (we
were trading freely with both sides) The
French seized American Ships that had
stopped in Britain, and the British set up a
blockade, also seizing goods on their way to
France. The British also searched American
ships for British Naval deserters impressed
them back into labor. Many of these
“deserters” were American Citizens. In
1807 the British attacked an American Naval
vessel, the “Chesapeake” Killing or
wounding 21 men and seizing 4 alleged
deserters, Jefferson asked Congress to pass
the EMBARGO ACT q12 p234
• As a result of the
Embargo act of
1807 the American
economy fell into a
slump, and by
1808,
exports had
• plunged to about
1/5 the pre-embargo
level. In 1809 Madison becomes President and reduces
the Embargo to the NON-INTERCOURSE Act Which Only
stops trade with Britain and France… Then he passes
Macon’s bill #2 which states that the first of the two
countries which agrees to respect our Neutrality, the
U.S. will restore trade with them and continue to
embargo the other. Napoleon Takes us up on this offer,
without intending to respect it.
Causes of War of
1812
British and French
refused to respect
the American
neutrality and both
countries seized
American ship and
confiscated goods
intended for the
other country .the
Brits would also
searched American
ships for British
Deserters and
impressed them
back into service….
Although many
were actually
American Citizens.
British are bigger offenders
• Not only are the British Impressing our soldier
and confiscating goods, but they are supplying
Indians with weapons and encouraging them
to attack American Settlements. Speaker of
the House Henry Clay and John C. Calhoun
Push for War against England and a divided
Congress barely passes the resolution for war
The Bank Of The United States (BUS)
• In the 20 years of the operation of the BUS since 1791, The
bank used its lending power carefully and still managed to
make an annual profit of 8%, but in 1811 President James
Madison chose not to renew the Bank Charter, and forced
Merchants Artisans,
and Farmers to turn to
State legislatures to
charter new state
banks. 3 years of
fighting a war where
Madison had difficulties
financing the war
effort brought new
thinking to Madison.
Madison’s War
• From the beginning, The war was a disaster for the
country and the Republicans . Federalists Banks In New
York and New England refused to lend Money to the
federal Government, so financing the war was a
Nightmare. Thus In 1816 Madison reversed his
Republican opposition to the National bank and
approved the charter for the 2nd bank of the US
• . In 1814 the British Overran the Americans in
Washington DC and burned the White House to the
ground.
• Some victories for Americans were located on the
Great Lakes Such As Commodore Oliver Hazard
Perry victory over a small British Flotilla, and
General William Henry Harrison’s triumph over a
British and Indian force At the Battle of the
Thames. Tecumseh, who was made a General in
the British army was killed here.
• Britain is still fighting the French and they are being
drained militarily and financially. They are ready to
negotiate an end. A Treaty is signed in January 1815
ending the war at a stalemate. The U.S. had Gained
nothing over what it had before the war.
At The Battle of
New Orleans
Jackson used a
traditional
deployment of
regular troops
including French
speaking Black
Americans and in
February 1815 the
Americans soundly
defeat the British.
ANDREW JACKSON BECOMES A GREAT
AMERICAN HERO
Federalists meet In Hartford Convention
• Before the conclusion of the War, Federalist meet in Hartford
Connecticut to discuss their opposition to the war and to the
Republican control of government. One Proposal that is entertained
is for the northern states to secede from the Union and form a new
confederacy.
• The Victory in New Orleans inspires a new sense of Nationalism,
which comes down hard on Federalists… the party is utterly
destroyed. In the election of 1818 Republican’s outnumbered
Federalists 37 to 7 in the Senate, 156 to 27 in the House.
• In 1816 James Monroe ( a Republican and Secretary of State under
Madison) becomes President and his Secretary of State is John
Quincy Adams (son of John Adams and a former Federalist).
Historians have dubbed this period The Era of Good Feelings because
the political system emerged as a one party, Republican Party system.
The Republican Party itself split, but that would not become apparent
PANIC! 1819
• By 1816 there were 246 state chartered banks with $68
Million dollars in Bank notes in circulation. Many of
these banks were issuing money without backing in
specie (gold) making bad loans to “friends of the bank”
a sharp drop in world agricultural prices creates a credit
crisis and farm income
falls by 1/3 … farmers
could not pay their
bills, causing
bankruptcies among
merchants, store keepers
and already over
extended banks.
John Marshall’s Supreme Court
• Marbury VS Madison: William Marbury is a recipient of
John Adams’ Midnight court appointments, But Jefferson
& Madison refuse to pass out these Appointments and
Marbury sues Madison to compel him to hand over the
appointment. Marshall determines that the Judicial act of
1789 which allowed Marbury to take the court directly to
the Supreme Court
without Appeal, is
Unconstitutional.
This Case establishes
the power to judge
the constitutionality
of laws
(AKA JUDICIAL REVIEW)
McCulloch vs Maryland
• In McCulloch vs Maryland (1819) The State of Maryland
imposes a tax on the BUS, primarily to assert States rights
and to preserve the competitiveness of State banks. The
BUS sues and State Lawyers make the Jeffersonian
argument that congress lacked the constitutional authority
to create a national bank, Marshall and the court rejected
the States arguments, asserting Article 1 sec 8 elastic
clause, and Marshall stated
“The power to tax involves
the power to destroy.”
meaning the tax would
render the federal bank at
the mercy of the states.
Fletcher Vs Peck
• The State of Georgia makes a Land grant to the Yazoo Land
company, citizens complained that this was a corrupt
giveaway and a newly elected State legislature canceled the
grant, alleging that it had been obtained through fraud and
bribery. Speculators who had bought the land appealed to
the supreme court
and Marshall ruled
that a contract was
a contract and
could not be
broken. The
speculators could
keep the land.
Dartmouth college vs Woodward 1819
• King George III granted a charter to establish Dartmouth
college as a private institution of higher education, But in
1816 Republicans in New Hampshire’s legislature tried to
convert the college into a public university. Trustees of the
School brought in Daniel Webster to argue for them before
the supreme court.
Marshall held to his
earlier ruling that a
contract was a
contract and even
the State could not
violate that.
Cohens v Virginia 1821
• The State of Virginia finds Cohens guilty of selling
illegal lottery tickets. Cohens appeals to Supreme
court, but John Marshall sides with Virginia’s
Supreme Court. But Marshall affirms the right to
review State court decisions.
• Cohens tries to sell National Lottery tickets In
Virginia, but Virginia has a state lottery and has
Outlawed the sale of other lottery tickets.
Cohens appeals to the Supreme court but
Virginia Representatives Claim the Federal Court
does not have the right to review state court
decisions. Marshall Agrees with Virginia’s
prosecution of Cohens but maintains the right to
review state court decisions.
Gibbons v Ogden 1824
The End