Banking, Currency, and
Protection














Transportation





The Great Migrations




Post war of The War of 1812:
Stimulated the growth of manufacturing by cutting off imports
Produced chaos in shipping and banking.
Exposed dramatically the inadequacy of the existing
transportation and financial systems.
Issues connected with the National economic development:
Reestablishing the Bank of the U.S
Protecting the new industries
Providing a nationwide network of roads and waterways.
Second Bank of the U.S. was chartered in 1816 and it was to
handle the problems of; Counterfeiting because there were
plentiful variety of notes differing in value in circulation
Textile Industry skyrockets going form 8,000 cotton spindles to
130,000
Francis Cabot Lowell developed a power loom that was better
than the ones in England
Boston Manufacturing Company of 1813 in Waltham, MA
founded the first mill in America to carry on the processes of
spinning and weaving all in one place.
National Roads were to be funded from land sales in Ohio (joined
the Union). Part of the agreement with Ohio joining the Union
was to make a road from Ohio to Wheeling, Virginia.
Pennsylvania funded $100,000 for the road to be extended to
Pittsburgh.
Steamboats began to spark after the war. They journey from
Mississippi to the Ohio River, and up the Ohio as far as Pittsburgh.
They enabled eastern manufacturers to send their finished goods
west at a greatly reduced cost.
John C. Calhoun promptly introduced a bill that would have used
the funds owed the gov by the Bank of the U.S. to finance
international improvements.
Congress passed Calhoun’s internal improvements bill, but
Madison on his last day vetoed it.
The westward movement helped the U.S. greatly. From political,
to economic, and even cultures.
The main reason for expanding to the west was the population
density…It was too much.
The federal gov kept pushing the tribes farther and farther west.
The factor system is when government factors or agents supplied
the tribes with goods at cost. (Made the Natives easier to control)
The Black Belt located in the Southwest, stretched a broad zone
within which cotton could thrive, a vast prairie with a dark,
productive soul of rotted limestone.
Ordinary people moved to the uncultivated region first then the

The Plantation System in
the Southwest



Trade and Trapping in the
Far West



The End of the First Party
System
The Panic of 1819
The Missouri Compromise




rich and experienced followed.
The rapid growth of the Northwest and southwest resulted in the
admission of four new states to the Union: Indiana (1816),
Mississippi (1817), Illinois (1818), and Alabama (1819)
Mexico gains its independence in 1821 so it opened up trade with
the U.S.
Missouri trader William Bechnell began in 1821 to offer American
manufactured goods for sale, priced considerable below the
inferior Mexican goods that dominated the market.
Fur traders did most of their business by purchasing pelts from
the Indians. But white trappers entered the region and began to
hunt beaver on their own.
Rocky Mountain Fur Company was founded in 1822 by Andrew
Henry and William Ashley.
Jefferson chose his secretary of state, James Madison of Virginia.
The Election of 1816 ended in a result of James Monroe receives
183 ballots and Rufus King only receives 34.
Cabinet:
Secretary of state: John Quincy Adams.
Secretary of war: John C. Calhoun
Monroe was re-elected in 1820 without opposition

Panic followed period of high foreign demand for US goods, rising prices
had stimulated land boom in western US. Availability for easy credit to
settlers and speculators- from govt, state and wildcat banks

1819 management at Bank of US tightened credit, led to series of state
bank failures, led to financial panic- those in West blamed it on bank

Depression for 6 years followed, but growth ultimately continued

Missouri applied for statehood 1819, although slavery already established
NY Rep James Tallmadge’s Amendment gradual emancipationcontroversial

Since beginning new states had come into Union in pairs (1 from N, 1
from S), Missouri entrance would increase power of North over South

Maine had also applied for statehood, Henry Clay threatened South
would block entrance in Missouri not permitted to be a slave state

Compromise in Maine-Missouri Bill, Senator Jesse Thomas’s
Amendment to ban slavery in rest of Louisiana Ter. north of MO’s 3630’
border also passed

John Marshall chief justice from 1801-1835. Strengthened judicial
system at expense of executive and legislature, increased fed power over
states, advanced interest of propertied and commercial classes
Marshall and the Court

Supported inviolability contracts in Fletcher v. Peck (1810) which held
GA legislature could not repeal contract acts of previous
legislature. Dartmouth College v. Woodward(1819) affirmed
constitutionality of federal review of state court decisions- states had
given up some sovereignty by ratifying Constitution, therefore their
courts must submit to federal jurisdiction

“Implied powers” of Congress upheld in McCulloch v Maryland (1819)
by upholding Bank of United States, attorney Daniel Webster argued
establishment legal under “necessary and proper” clause, power to tax
involved “power to destroy”. States therefore could not tax now-legal
Bank

Strengthened Congress’s power to regulate interstate commerce
in Gibbons v Ogden(1824)- Fed govt gave license to Thomas Gibbons for
ferry even transport btwn NY and NJ even though NY state had granted
Aaron Ogden monopoly- Marshall argued that Congress’s power to
regulate interstate commerce + navigation “complete in itself” + could
exercise to the utmost

Decisions established primacy of fed govt over states in regulating
economy, protected corporations + private economic institutions from
local govt

Marshall court decisions w/ Natives affirmed supremacy of US and
carved out position for Native Americans within the constitutional
structure

In Johnson v McIntosh (1825) Marshall described the basic right of
Natives to tribal lands that preceded all other American law. Individual
Americans could not buy or take land from tribes, only fed govt could do
that

Worchester v Georgia (1832) invalidated law to regulate citizen access to
Cherokee lands. Only fed govt had power to do that, tribes described as
sovereign entities w/ exclusive authority and territorial boundaries

Marshall court did what Const had not- establish place for Indian tribes in
American political system. Sovereign, but fed govt “guardian” over its
“ward”

US foreign policy mainly centered on Eur, but after War of 1812 Spanish
Empire in decline w/ new revolutions, US developing profitable trade w/
Latin America rivaling GB as principal trading pattern

1815 US proclaimed neutrality in wars btwn Spain and rebellious
colonies, 1822 President Monroe established diplomatic relations w/ 5
new nations

1823 Monroe announced policy (later known as “Monroe Doctrine”) that
American continent not be considered subject of future colonization by
European powers, any foreign challenge would be unfriendly

Monroe Doctrine developed b/c Americans feared Spanish allies (such as
France) would aid it in retaking lost empire, fear of GB taking over Cuba
The Court and the Tribes
The Latin American
Revolution and the Monroe
Doctrine
The “Corrupt Bargain”

In 1824 Republican caucus nominated William Crawford of Georgia for
presidency, but other candidates received nominations from state
legislatures

Candidates included: Sec of State John Quincy Adams had little popular
appeal, Speaker of the House Henry Clay had personal following and
strong program in the “American System” to strengthen home industry
and Bank, Andrew Jackson little political experience but a military hero
and TN allies

Jackson received more popular and electoral votes tan other candidates
but not majority, Twelfth Amendment (passed after contested 1800
election) required House of Reps to choose among top three candidatesClay threw endorsement behind Adams b/c Jackson a political rival in
West + Adams a nationalist and likely American system supporter

By 1828 presidential election new 2-party system had begun to emerge
from divisions between Republicans. National Republicans supported
John Quincy Adams and economic nationalism, opposing them was
Democratic Republicans of Andrew Jackson who called for assault on
privilege and widening of opportunity

Campaign of personal charges, Jackson’s wife Rachel accused of bigamy,
she was so upset that she ultimately died- Jackson blamed opponents

Jackson won decisive but sectional victory. Adams strong in New
England & mid-Atlantic. Jackson believed victory similar to Jefferson’s
1800 win
Jackson Triumphant