After War of 1812…How Bad Could Things Really Be? • 1815 • U.S. manages to keep nationhood after the potentially disastrous War of 1812 – We’re feeling pretty good about ourselves • U.S. entered a period of growth and prosperity – Monroe wins 1816 election easily Postwar Boom and Panic Chapter 6, Section 5 Growth and Prosperity • After the war, Americans began moving westward at an incredible rate. • Trade with Europe boomed, and banks lent an abundant amount of credit. • James Monroe and the Republican Party dominated American politics, as the Federalists faded out of existence. What the War Taught Us… • 1811-1st Bank of the United States expires • 1812-War starts • 1812- U.S. realizes they had no way to fund the war…since there is no bank… • 1814- U.S. somehow escapes the war with nationhood intact • 1816-U.S. promptly creates 2nd Bank of the United States – Credit from the bank funds westward movement – Also, with Jefferson and Madison gone, New England shipping was back on track But, What Goes Up… The Panic of 1819 • In 1819, America experienced its first depression, or severe economic downturn. – The depression, known as the Panic of 1819 • began when London banks demanded that banks in the United States pay money owed to them. – United States banks in turn demanded the money that they had loaned to the American public. • Many Americans who had borrowed too much money in previous years were financially ruined. The Missouri Compromise Chapter 6, Section 5 • • In 1819, Congress began debating the admission of the state of Missouri to the United States. – The basic issue at stake was slavery. • Many northern politicians wanted to phase out slavery, starting with Missouri • Argument over property rights • South believed the federal government had no right to tell the states what they could and could not do Several members of Congress from the North objected to Missouri’s admission as a slave state – fearing that this would upset the balance of free and slave states in the South’s favor. • A compromise known as the Missouri Compromise, engineered by Henry Clay, resolved the issue. – Under the Missouri Compromise, Missouri would enter the United States as a slave state • Maine would enter as a free state – all new states created above 360 30' N latitude (the southern border of Missouri) would have to be free states. • The economy soon improved, and politicians agreed to avoid the difficult issue of slavery. – However, the questions raised by these issues would soon be impossible to ignore. Growth of Nationalism • Prior to the 1820s – People were more likely to see themselves as citizens of their community or state – By 1820s • National citizenship was becoming important • A new generation of politicians sought to use the power of the federal government to unite the country • President Monroe – Toured the nation in 1817 – Encouraged Americans to think in nationalist terms – Encouraged people to put aside sectional differences and form a “more perfect union” Nationalism at Home •Chapter 8, Section 4 •Many Americans came to think of President James Monroe’s two terms in office (1817 1826) as the Era of Good Feeling. During Monroe’s terms, the Supreme Court, under Chief Justice John Marshall, made several important decisions that strengthened the federal government’s role in the national economy. •Protecting Contracts •In Dartmouth College v. Woodward, the Marshall Court ruled that states cannot interfere with private contracts. This ruling later came to protect businesses from regulation, stabilizing the national economy. •Supporting the National Bank •In McCulloch v. Maryland, Marshall ruled that Congress had the right to charter the Bank of the United States even though the Constitution did not specifically mention it. Marshall based his argument on the “necessary and proper” clause in the Constitution. •Regulating Commerce •In Gibbons v. Ogden, the Court declared that states could not interfere with Congress’s right to regulate business on interstate waterways. This ruling increased steamboat competition, helping open up the American West for settlement. Nationalism Abroad •Chapter 8, Section 4 • • • • President Monroe, together with Secretary of State John Quincy Adams, began a new approach to American foreign policy. One of Monroe’s main goals was to ease tensions with Great Britain, which remained high after the War of 1812. In 1817, the United States and Great Britain signed the RushBagot Agreement, which called on both nations to reduce the number of warships in the Great Lakes region. The following year, the two countries set the northern border of the United States at 49˚ North latitude. Monroe was also concerned that other European countries, recovering from several years of warfare, would resume their efforts to colonize the Western Hemisphere. The Monroe Doctrine •Chapter 8, Section 4 •In a speech on December 2, 1823, President Monroe established a policy that every President has since followed to some degree. The Monroe Doctrine had four main parts: •The United States •The United States would not become recognized the involved in the existing colonies and internal affairs of states in the Western European nations, Hemisphere and nor would it take would not interfere sides in wars with them. among them. •The United States would not permit any further colonization of the Western Hemisphere. •Any attempt by a European power to take control of any nation in the Western Hemisphere would be viewed as a hostile action toward the United States.