CH 12 Part 2 Notes POST WAR OF 1812 EXPANISON GOOD AND BAD 
****These notes are vital…to understanding many issues of today and to understanding how we
fight a Civil War….THE MOST sig. event in our HISTORY, issues still affect us today…
The Panic of 1819 and the Curse of Hard Times
Note: James Monroe win re-election in 1820, THE ONLY PRESIDENT TO BE RE-ELECTED WHEN A
MAJOR FINANCIAL PANIC OCCURS DURING THEIR 1ST TERM IN OUR HISTORY…
Note: Economic “panic”, depressions, recessions….etc.. are common throughout our history and occur
every 20 – 30 years…( We begin to study them in 1819) until the “big one” in 1929, when the Federal
Gov’t creates a slew of new policies that begin to even out the “ECONOMIC CYCLE”... OF UPS AND
DOWNS….From 1945 post WW2 there was an unprecedented cycle of growth …in the USA…some say the
highest growth period in the history of the World… until about 1970’s…then a stagnant period of even
growth AND then….A RETURN OF BOOM AND BUST CYCLES- in 1987 we had another meltdown…and
again in 2007 a BIG meltdown….and we are still recovering…. Interesting that these began to reoccur
again when conservatives began to regain power and began to eliminate the safeguards instituted by
liberals after the 1930’s and 40’s…believing that there were too many restrictions on the
economy…hmmmm.
ECONOMIC PANICS …occur in 1819, 1837, 1857, 1873, 1893, 1907, 1929, 1987, 2007……. What are
the causes: Generally speaking it is always one or both of these things….OVERSPECULATION OR
OVERPRODUCTION…. We will examine the causes individually…BUT I STRESS THIS POINT FOR A
REASON…. The EFFECTS OF THESE ARE CALAMATOUS…especially until after the 1930’s … there was no
SAFETY NET….no GOV”T Programs at ANY LEVEL (fed, state, local) People starve to death, lose
everything, when banks failed YOU LOST YOUR $..... Many economists today still debate the value of gov’t
support during these times…HOWVEVER, YOU are very fortunate to live now…due to the few programs
still in place that lessen the effects of these cycles on your lives…you may not realize it, but whew… when
you think about the consequences of the past BUST PERIODS…imagine how YOU and YOUR FAMILY
would have done if YOU had LOST EVERYTHING….and NONE OF IT WAS YOUR FAULT….that there was no
action(s) you could have taken before, during, or after to change the outcome of complete loss…. A truly
helpless feeling…
Enough of my History lesson on Economic Panics in General and back to the show 
The 1819 Panic – brought deflation, depression, bankruptcies, bank failures, unemployment, soup
kitchens, and overcrowded slums called DEBTOR’S PRISONS !
1819 PANIC is the 1st economic panic since GW took office in 1789, about 20 years before, Factors that
contributed to the CAUSE but one is pointed out in the text:
OVERSPECULATION IN FRONTIER LANDS…GAMBLING….attempting to get rich quick…
some say the TRUE AMERICAN DREAM….
The Bank of the United States made lots of loans to ****“Wildcat Banks” ***in the West (these are small
and typically underfunded banks who are created for a variety of purposes, THERE ARE NO
REGULATIONS, therefore ANYONE COULD OPEN A BANK) who in turn loan money to avg. citizens to
purchase collectively the huge amount of land available after the War of 1812 had moved most Native
American Tribes out of the way in the North and South WEST…. Besides avg. citizens were those
entrepreneurs who went west to make their fortunes…buying low and selling high….NO ONE anticipated
that the BOOM would bust….and when it did so…THE BANK OF THE USA CALLED IN ITS LOANS FROM
THE “WILDCAT BANKS”….then the WB’s called in its loans from avg. citizen farmers and the
speculators….none were in a position to pay back the loans… so WHAT HAPPENS… $$$ IS LOST
WILDCAT BANKS FAIL…. ALL INVESTORS LOSE EVERYTHING…..AND who is fit the hardest….as usual the
AVG CITIZEN-HIS FAMILY-HIS CHILDREN….HAVE NOTHING BUT HARD TIMES, not even their
fault…nothing they could do….Their mortgages were foreclosed on… land taken away…when the banks
close they lose their deposits….nothing, all that hard work for nothing….imagine the chaos. WHO WAS TO
BLAME !!!
The Bank of the USA was considered by most to be the BAD GUY… not the
speculator…hmmm…. A FINANCIAL DEVIL . This perspective of the avg.
western citizen will lead to a major conflict in the next chapter, 1830’s.
******HUGE******Debtor’s prisons…are full… this inhumanity will come under severe criticism and as
this period continues…states begin to ELIMINATE PROPERTY QUALIFICATIONS TO VOTE…. Unlimited
White Male Suffrage by 1840 increases the electorate from 300,000 total eligible voters in 1824 to over 3
million by 1840. As the “masses” begin to acquire the vote… changes occur…ending debtors prisons and
more “free” public education are two of the most powerful… that come as a result of politicians realizing
that they need to “campaign” to earn the vote of the “COMMON MAN.”
GROWING PAINS OF THE WEST
Free States v Slave States…Expansion WEST is our
MANIFEST DESTINY… GOD HAD GIVEN US THIS CONTINENT…
*****The debate over the expansion of Slavery into the West continues from this point until the
Civil War…it is THIS ISSUE which causes the Civil WAR !!!
-Between 1791 and 1819, 9 more “frontier” states join the UNION of the original 13… total = 22.
- to keep a BALANCE between FREE AND SLAVE states…they had been admitted in balance…
- *****The idea of Westward Expansion is a major theme as we progress through the next 100 years of our
history… the effects on the creation of a unique AMERICAN NATIONAL IDENTITY is tied to this long
process… and the many issues and debates associated with this journey…
We have been moving WEST since early in the Colonial period… CHEAP LAND/FREE LAND…. Is a huge
attraction… for those who were here and for IMMIGRANTS…
OHIO FEVER… MISSISSIPPI FEVER… immigrants begin to stream to our shores with the DREAM of
owning land and fulfilling their AMERICAN DREAM…after the WAR of 1812…The barriers of War itself
,the elimination of many Native American Tribes across the MISS. R., ROADS (Cumberland or National
ROAD which ran from Maryland to Illinois), steamboats, Canals, and eventually RR’s, allows for a HUGE
amount of GREAT LAND to be made available…ALL IT TOOK WAS A SMALL DOWN PAYMENT AND YOU
COULD ACQUIRE HUGE AMOUNTS OF LAND…
-The LAND ACT OF 1820- allows a buyer to purchase 80 acres of land for $1.25 per Acre…
THE WEST was slowly but surely gaining population… and influence in
Congress… and pressured the National Gov’t for 3 THINGS…1-CHEAP
LAND, accomplished above,2- CHEAP TRANSPORTATION (this debate over Internal
Improvements further ties the WEST to the NORTH due to the Southern Presidents and Congressmen
objecting to the Constitutionality of spending Federal money on these projects- mentioned
previously…Madison’s VETO…AND OTHER PRES’S FOLLOW… and 3-CHEAP MONEY- issued by
Wildcat Banks in the West…
BUT… it still needed to ally itself with either the North or the South usually to accomplish anything
politically.
-AT THIS POINT… The AMERICAN SYSTEM, developed by Henry Clay, which hoped
that raw materials from the West and South would be shipped to the Northeastern Manufacturing
centers…then the Manufactured Goods would be shipped back to the West and South…this MARKET and
the Subsequent Transportation and Communication Revolution… ******Changes the NATURAL
TIES THAT EXIST BETWEEN WEST AND SOUTH, due to the flow of rivers in the
west, AS THE ROADS, CANALS, AND RAILROADS ARE BUILT OVER THE COMING
DECADES, these ARTIFICIAL LINKS BEGIN TO TIE THE WEST ECONOMICALLY
and ,due the MARKETPLACE OF IDEAS that also travel along these artificial links,
COMMON BELIEFS AND VALUES are linking the WEST TO THE NORTH…. This is
a huge development as the time passes…
Slavery and the Sectional Balance – The Missouri Compromise of 1820***
The “FREE” North and the “SLAVE” South COMPETE FOR CONTROL OF THE WEST AND THE
CONTROL OF THE POLITICS OF THE NATION…(leads to the CIVIL WAR)
****This rivalry appears in 1819 when the lands of the Louisiana Purchase begin to gain enough
population to begin applying for Statehood (remember the process of “Temporary Tutelage”, the
Territory System established by the NW Ordinance of 1787)
-Missouri applies for Admission in 1819 as a Slave State.
-****the Northern representatives in the House…pass the TALLMADGE AMENDMENT
(defeated in the Senate by the Southern States)- which stated that no more slaves could be brought
into Missouri and provided for the gradual emancipation of children born to slave parent already there…
What is going to happen now…Southerners are ANGRY….This is a threat to their CHOSEN way of life…
With every passing decade more and more people were coming to the USA…The North was
becoming Wealthier and more populated….this gave the North an advantage in the House of REPs,
despite the 3/5ths clause… (IN THE SENATE IT WAS STILL EQUAL…11 STATES TO 11 STATES…THE
SOUTH COULD BLOCK ANY POTENTIAL THREATS AT THIS POINT)
Remember the “old northwest” had banned slavery a long time ago…
-The future of the Slave System caused Southerners profound concern…
-If the FEDERAL GOVERNMENT could ban Slavery as new states are coming in from the
Louisiana Purchase… it MIGHT SET A DANGEROUS PRECEDENT…and COULD THE
POWERFUL FEDERAL GOV’T IN THE FUTURE BAN SLAVERY ALTOGETHER???
-A small, but powerfully motivated, group in the NORTH began to raise an outcry against the EVILS OF
SLAVERY…ABOLITIONIST SOCIETIES, small but intellectually powerful began to form….
THIS STORY IS JUST BEGINNING…THE OUTCOME THOUGH IS PREDICTABLE…TWO DIVERGENT
SOCIETIES…ARE GOING TO CLASH…IS THE OUTCOME INEVITABLE?
DOC #2 –IS MANDATORY AND GOES INTO MORE DEPTH*****
The Uneasy Missouri Compromise
Note: Henry Clay begins to earn his nickname…”the great compromiser,” he
eventually “saves the nation,” 3 times… here in 1820, in the Nullification
compromise in 1833, and last, just before his death, with the Compromise
of 1850.
3 Compromises make up the “Missouri Compromise, 1820”:
1 Missouri is admitted as a Slave State
2 Maine (separated from Mass.) is admitted as a Free State
3 The 36-30 line is drawn east to west across the Louisiana Purchase territory…all future states
above the line would come in Free….all states below that line would come in as Slave… note; the only
exception was Missouri itself ….the 36 -30 line was its SOUTHERN boundary…
The majority of Southerners voted against the compromise… but it passed with some help from the
South.
The Balance between Slave and Free States was kept now at 12-12
This compromise will become “fixed” in the peoples minds… and lasts until the 1850s.
John Marshall and Judicial Nationalism & Judicial Dikes Against
Democratic Excesses (essay alert)
*****NOTE: Remember that Marshall is appointed by John Adams, he believes in
a strong national government, he affects the national judicial
system more than any other single individual…and his
“court” makes decisions that are still used as precedent
today  In a sense his nationalism was the most tenaciously enduring of
the era---he serves as 34 years as Chief Justice- all but a few months
during a period when the Democrat-Republicans controlled the other two
branches of Gov’t…He buttressed the Power of the Federal
Gov’t, helped to create a stable, nationally uniform
environment for business, checked the excesses of the
State Legislatures…he almost single handedly shaped the
Constitution into a conservative idea…
Please know the significance of the following cases: There are some great
stories associated with these cases… (extra credit opportunity) …
Marbury v. Madison, 1803 – Established the power of Judicial Review solidly with the Supreme
Court…ends the argument with JEFF that a state could judge the constitutionality of an act of the Federal
gov’t Nullification (Ky res) the Supreme Court from this point forward has the power of Judicial review.
****McCulloch v. Maryland, 1819 – “the power to tax is the power to destroy”… this case rules that
Maryland could not tax the paper $ issued by the 2nd Bank of the USA… the decision rules that the
federal gov’t’s use of “implied powers” created by the Necessary and Proper clause is
Constitutional-this ruling repudiates the radical states rights argument against “implied powers’
presented by TJeff when arguing this case originally…and that The “Supremacy” of the Federal
Gov’t is clear…based on the Supremacy Clause, “The sovereignty of the Federal Government lies with
the people not with the individual states,” No other opinion—has so profoundly defined the Power of
the Federal Government over the states.***this case happens just prior to the debates on the
Tallmadge Amendment---which gives Southerners further pause due to it proclaiming the “Supremacy” of
the Federal Government over the states…and is one reason so many “internal improvement” programs
are VETOED by Southern-Democratic Presidents…a FEAR of the growing power of the Federal
Government…
Cohens v. Virginia, 1821-Allows the Supreme Court to review state supreme court decisions in criminal
law matters… again the Fed. Gov’t is Supreme over the States.
***Gibbons v. Ogden, 1824 – “Steamboat Case”… Stated: “only the Federal Government has the
power to regulate interstate commerce.” Based on the “commerce clause”—the court ruled that
Congress had the power to regulate any aspect of commerce that crossed state lines, “Congress
may pass any law that regulates commerce, as long as that commerce is not wholly confined
within a single state…and that power to regulate “interstate commerce” is “plenary,” meaning—
that it is absolute and without limitation. More than any other case****Ogden set the stage for the
Federal Government’s overwhelming growth of Power into the 20th century*******
Fletcher v. Peck, 1810 –“Yazoo land case”…A contract was binding… and cannot be invalidated. Even if
illegally secured? The Court protected Contracts, thus, business, and INVALIDATED A STATE LAW… that
was in conflict with the Constitution…Georgia’s Legislature repealed a contract given to the “Yazoo” land
company to sell land, 35 Million acres in “Mississippi” Territory---building the “Cotton Kingdom”…as a
new legislature is elected they claimed FRAUD…and attempted to end the contract…THIS BECAME A
NATIONAL ISSUE DUE TO THE SIGNIFICANT INVESTMENTS OF BANKS AND THE WEALTHY FROM THE
NORTH… THUS MARSHALL’S DECISION BENEFITS THE “ORIGINAL” INVESTORS AND THE BANKS ARE
SAVED. 
Dartmouth College v. Woodward, 1819 – another Contract case…This case limits the ability of States to
impair a contract…specifically protects private institutions from state encroachment… A famous case for
Daniel Webster, Sen. From Mass. who argues often if front of the Supreme Court and along with Henry
Clay and John Calhoun are the “Great Triumvirate” of congressional leaders over the next 40
years…the NEW GENERATION OF LEADERS IN THE COUNTRY…
Worcester v. Georgia, 1832- Famous Cherokee Indian case… “only the United States, and not
the individual states, had power to regulate or deal with the Indian Governments.” Georgia passed a
series of laws in 1828 which had stripped the Cherokee Indians of their rights…and authorized their
removal from Georgia, The Congress in 1830 passes the Indian Removal Act…forcing all Native
Americans east of the Mississippi River to move to “Indian Territory” (present day Oklahoma). Marshall
dictates that Georgia cannot take their lands and that the Cherokee Indians constitute a Nation
holding distinct sovereign powers--- The Cherokee Win.. However, Pres. Andrew
Jackson does not enforce the decision and in 1838 the Cherokee are
forcibly removed in the Trail of Tears… Jackson states
famously…”Marshall has made his decision now let him enforce it.”
Barron v. Baltimore, 1833- John Barron filed a lawsuit against the city of Baltimore claiming a
violation of his 5th amendment rights based on the claim that the city had taken his property without just
compensation. Barron loses his case on appeal and the case is sent to the Supreme Court. MARSHALL
rules that Barron had no claim against the state based on the 5th amendment BECAUSE THE “BILL OF
RIGHTS” DOES NOT APPLY TO THE STATES.****************THIS IS NOT CHANGED UNTIL THE 14TH
AMENDMENT IS PASSED IN 1868, AFTER THE CIVIL WAR***** CALLED “INCORPORATION.”
Shaping Oregon and Acquiring Florida
-Foreign Policy is affected by the upsurge of Nationalism as well… we were feeling our strength..
James Monroe’s Secretary of State….is the amazing John Quincy Adams….maybe the best ever….
Treaty of 1818 with Britain- permitted the sharing of the Newfoundland fishing grounds..set the
northern limits of the Louisiana Purchase at 49 degrees Latitude (Oregon territory) across the Northern
boundary of Canada, and provided for a 10 year joint-occupation of Oregon Country…until it could be
settled later.
Adams-Onis or Florida Purchase Treaty of 1819 –
Background:
Latin American Revolutions had deprived Spain of many soldiers needed to protect Florida… General
Andrew Jackson after Horseshoe Bend in Northeast Alabama and New Orleans goes to Mobile…with the
intention of attacking Seminole Indians who were giving runaway slaves protection along with the
Spanish Gov’t… he hangs two indian chiefs, executes two British citizens for assisting the Indians, and
seized two Spanish forts at St. Marks and Pensacola…and there deposes the Spanish Governor…whew…
Then the SPANISH SIGN THE ABOVE TREATY… Spain cedes Florida, as well as claims to Oregon in
exchange for American relinquishing its claims to Texas…and clarifying the Louisiana Purchase
Border in the far West…
The Menace of Monarchy in America & Monroe and his Doctrine &
Appraised
Note: the MONROE DOCTRINE…immediately really not significant…. Becomes the
CORNERSTONE OF AMERICAN FOREIGN POLICY UNTIL WW 1.
Due to the revolutions occurring throughout the world after the end of the Napoleonic Wars… Latin
America and Europe…. The Monarchies of Europe ban together at the Congress of Vienna.. to ensure a
return to the “responsible conservatism of Monarchy.” “The world must be made safe from democracy.”
The concern of Britain was a possible united European Monarchies going around the world….esp. Latin
America where Britain had a number of new trading partners… and crush these “democratic revolutions.”
The United States was equally concerned about a possible European combined Fleet and armies who may
want to do the same thing in North America….and possibly keep the USA from fulfilling its MANIFEST
DESTINY to control the continent…
*****In August 1823…George Canning the British Foreign Minister suggests America with a proposition:
Would the USA combine with GB in a join Declaration renouncing any interest in acquiring Latin
American territory and to warn Euro Monarchs to keep their hands off Latin America?
John Quincy Adams writes the response to GB minister Canning in 1823, which Pres. Monroe gives
officially, it is called the Monroe Doctrine and it has two parts:
1 Non-Colonization- the era of colonization the Americas
had ended and was permanently closed. What the Great
Powers currently had they could keep BUT no country
could seize or acquire more
2 Non-Intervention – He warns the Euro Monarchs to keep
their armies and navies at home…and out of our
hemisphere…no excuse… and America would stay out of
Europe…
America gives this statement ALONE… to ALL COUNTRIES IN THE WORLD….
European Monarchies Response:
Anger…who were the Americans to make such claims..BUT…they were powerless to do anything about it
because GB the greatest of the powers wanted this as well and would fight to protect its access to the
newly opened markets…and their NAVY ruled the WORLD at this point… so America inadvertently
benefits from this protection…
The MD does not have much immediate impact…THE STRENGTH OF THE DOCTRINE HAS NEVER BEEN
GREATER THAN AMERICA’S ABILITY TO MILITARILY BACK THE IDEA…
The MONROE DOCTRINE was never law- domestic or international- IT WAS MERELY A
STATEMENT OF POLICY…THAT BECOMES A MANDATE FROM AMERICA AND
EVENTUALLY A KEY PIECE OF OUR FOREIGN POLICY PHILOSOPHY INTO THE
20TH CENTURY…AND DEEPENS THE IDEA OF ISOLATIONISM…WE WERE
SEPARATED BY TWO GIANT OCEANS… FROM ANY MEANINGFUL THREAT…