AN “ERA OF GOOD FEELING”AND AN “AMERICAN SYSTEM”

Passaic Falls at Patterson, NJ

MADISON PROPOSED NEW ECONOMIC POLICYAfter War of 1812

After the war Madison was much more popular.

Wanted to correct problems of national economy.

Began rethinking original Jeffersonian policies.

Proposed a new economic policy.Supported new Bank of USSupported higher tariffs

Encouraged states to take lead in transportation development.

Always strong believer in states rights.Co-author of VA & KY ResolutionsVetoed “internal improvements” bill.

James Madison

ELECTION OF 1816 CONFIRMED REPUBLICAN POWER

MONROE BECAME PRESIDENT 1816

James Monroe became president 1816.Statesman—diplomat—tried to calm

many political disputes.Distinguished soldier in Revolution

Wounded at Trenton 1776In Battles of Brandywine, Germantown and MonmouthWintered at Valley Forge

Monroe wanted to solidify control of N. America and US role in world.

Made significant appointments:John Quincy Adams—Sec. of StateJohn C. Calhoun—Sec. of WarWilliam Crawford—Sec. of Treasury

James Monroe

MONROE TOURED NEW ENGLAND 1817Many Americans See a President for First Time

Toured as patriot, not president.Visited important sites:

BaltimorePhiladelphiaTrentonNew YorkBoston (4th of July)

Bunker Hill“Old Ironsides”

Honored veterans.Met with old political rivals:

John AdamsTimothy Pickering

Boston paper coined term “Era of Good Feeling.”

THE “ERA OF GOOD FEELING”

Dissention of war period over.America ended the war on a high note

(New Orleans).Nearly single party politics.Federalist party virtually dead after

threat of secession at Hartford Convention in 1815.

Many patriotic symbols become popular.“Uncle Sam”Cadet Gray at West Point.

Capital rebuilt bigger and better.

MONROE REINFORCED COASTAL DEFENSESPart of Drive to Preserve US Independence

Ft. Monroe, VA completed 1819

Bedloe’s (Liberty) IslandFort Wood completed 1811

HENRY CLAY ADVOCATED AN “AMERICAN SYSTEM”

Henry Clay

Henry Clay was rising young Kentucky politician—”War Hawk” before 1812.

Took lead in sponsoring “American System.”

Wanted to free US from dependence on European goods.

John C. Calhoun (SC) and others supported idea.

Led drive to create national market economy.

Idea was to promote interdependent regional economies.

American System rested on 3 proposals

A SECOND BANK OF THE US WAS CREATEDBefore Madison Left Office

1816—2nd Bank of the US chartered by Congress.

Violation of previous Republican principles—they killed 1st BUS in 1811.

Needed to make “American System” viableInvestment in industry.Source of capital.Control money supply.

Local & state bank paper money was a problem.New BUS could control currency and money

supply.Congress provided 1/5 of capital and bank

directors—rest privateMain office in Philadelphia.

“MONEY” A CONTINUAL PROBLEMMuch “Money” Unregulated

Some People Don’t Want RegulationConstitution Says Only Gold and Silver

Could Be “Legal Tender”

REPUBLICANS PROPOSED PROTECTIVE TARIFFS[Republicans were the Party of Jefferson—Not Today’s

Reublicans]

John C. Calhoun

Protective tariffs were proposed by John C. Calhoun.

Another change in Republican policy.

Needed to protect fledgling American industry and promote national economy (internal improvements).

Wanted to protect against “dumping” by England after the war.

South and West still reluctant to support—raised consumer prices.

Tariff of 1816 became model for many later taxes—ever higher.

TRANSPORTATION IMPROVEMENTS NEEDED

Republicans proposed “perfect” system of roads and canals.

Wanted to bind nation together.Would promote national

economy.Would eliminate problems that

led to war and made war difficult.

Original idea to pay for with:Tariff money to states.Land sale profits in west.

Presidents and Congress opposed much public financing.

TURNPIKES PROVIDED THE FIRST GOOD ROADS

Typical turnpike toll house.Genesee Country Village. Mumford, NY

Transportation was poor in the early 1800s.

Roads were not much more than rutted trails.

Private companies built some early roads called “turnpikes.”

They were generally unprofitable—but many were built.

TWO EARLY TURNPIKES IN NY

NJ TURNPIKE PLANS

CAYUGA BRIDGE—A PRIVATE COMPANY TOO

A NATIONAL ROAD WAS BUILT

Calhoun proposed that Congress fund a Cumberland Rd.

Madison felt it was inappropriate for Congress to fund—state issue.

Calhoun took position that it was needed for defense and postal service.

$30,000 appropriated for road from Cumberland, Md. To Wheeling, Va.

Work began in 1815.Only federal road built.Very popular and expanded for

20 years.

CANAL BUILDING BEGAN 1785George Washington First President of Potomac

Navigation

Water transportation was the easiest and cheapest form of travel.

Until War of 1812—no government interest in US.

Europeans had developed canals.

Some short canals and “river improvements” built before war.Potomac Navigation—1785Western Inland Lock Navigation

Abandoned after C&O Canal built.

Lock #1 of Potomac NavigationNear Washington, DC

WESTERN INLAND LOCK NAVIGATION

1792--New York legislature chartered Western Inland Lock Navigation Company To open water communication along the Mohawk River Between the Hudson River and Lakes Ontario and Seneca. Lack of money—never completed.

Eliminated after 1825.

THE ERIE CANAL

DeWitt Clinton promoted Erie Canal for NY.

State financed.Construction 1817-1825.Connected Lake Erie and Hudson

River.Many engineering problems.Immediate success:

Cut time.Made huge amounts of money.Caused prosperity across NY.

Erie Canal stimulated a canal fever in PA, NJ, Ohio in particular.

Many branch canals built in NY.

THE ERIE CANALSeneca River Aqueduct near Montezuma

THE ERIE CANALClimbing the Niagara Escarpment at Lockport

NEW YORK BRANCH CANALS

ON THE PENNSYLVANIA CANALAllegheny Inclined Plane—Example of Other States’

Problems

NEW JERSEY ENTERS THE CANAL ERAStock Corporations Created to Build

Plan for Morris and Essex Canal 1827 NJ CANAL PLANS 1826

MORRIS CANAL EXAMPLE IN NJHad Many Inclined Planes

STEAMBOAT TECHNOLOGY DEVELOPED

1791—John Fitch received patent for steamboat. Worked—could find no backers—he died poor.

1807—Robert Fulton sailed the Clermont up the Hudson River.

Got financial support.Steam technology worked for

boats!

1816--Henry M. Shreve developed shallow draft paddle wheeled boats for use on western rivers.

EARLY STEAMBOATS

John Fitch’s steamboat 1791. Robert Fulton’s steamboat 1807

ECONOMIC PROBLEMS GREW AFTER 1819

Speculation in western land increased after War of 1812.

Congress changed land sale policy.Lowered amount to 160 acres.Lowered price to $1.64/acre.Allowed installment payments.

Many farmers borrowed money.Speculators bought large acreage.Banks offered liberal credit also.

Many banks private.Most banks unregulated.

Farmers began to have huge debt.

BOOM MARKET FELL APART

Europeans purchased less from US.Expanding colonies in Asia and Africa.Less gold and silver available from former Latin American colonies.

Congress tried to tighten credit—stopped installment buying—demanded cash.

Banks and speculators demanded cash and immediate repayment of loans.

“Panic of 1819” resulted.Many people out of work—much

bankruptcy.Much resentment of banks.

PANIC CAUSES SECTIONALISM

Panic of 1819 affected each section differently.

Much debate over solutions.Anger at banks popular.NE and Mid-west Congressmen

called for protective tariffs.South and west protested tariffs.South depended on Britain as source

and market—tariffs raised prices.Western people backed tariffs after

Congress changed land purchase laws and approved more money for Cumberland/National Road.

New high tariff—1824.Showed the effect of admission of

new states.

MISSOURI BECAME A PROBLEM IN 1819

Missouri applied for statehood—1819.

Northern and Southern Congressmen understood that Missouri could resemble one side or the other as state.

Deciding factor would be slave economy.

Clay proposed compromise—1820.Missouri admitted as slave state.Maine admitted as free state.Slavery prohibited in rest of La. Pur. north of Missouri.

Slavery became a focus:National power politicsMorality

Henry Clay

THE MISSOURI COMPROMISE

1820 ELECTION REFLECTED CONFIDENCE

PROBLEMS WITH BARBARY PIRATES ENDEDUSMC Officers Today Carry Copy of Tripoli Leader’s

Sword

Barbary Pirates continued to demand tribute payments during War of 1812.

Monroe sent Stephen Decatur with 10 ships to end the problem—1815.

He previously attacked pirates of Tripoli 1801-1805.

Decatur threatened to attack Algiers.Later threatened Tunis and Tripoli.Pirates ended tribute demands and

compensated Americans.

THE MONROE DOCTRINEReflected Desire to Protect American Interest in W.

Hemis.

US and Britain both concerned that European nations might intervene in Latin America.

Revolutions in Mexico and South America against Spain.

Adams convinced Monroe to make unilateral statement of policy.

Monroe Doctrine proclaimed—1823US prohibited meddling in

W. Hemisphere by outside nations.War against any nation would be

considered war against US.

Britain quietly backed up the doctrine.

AMERICAN SOVEREIGNTY RESPECTEDBy British in Canada

J. Q. Adams settled American boundary questions.

1817—Rush-Bagot AgreementUS and Britain agreed to cut down military use of Great Lakes.

1818—agreement to respect American fishing rights off

Newfoundland.Establish boundary at 49th parallel.Joint occupation of Oregon.

CONSTITUTIONAL QUESTIONS AROSESupreme Court (John Marshall) Made Significant

RulingsDuring Madison-Monroe Administrations

Questions arose about the Constitutional role of government in economy.Several important questions settled by Supreme Court:

1810—Fletcher v. PeckGeorgia legislature could not abrogate contracts.Contracts cannot be ended by state legislatures.

1819—Dartmouth College v. WoodwardConstitution protects sanctity of contracts.State legislatures cannot change contract relationships.

1819—McCulloch v. MarylandFederal law superior to state law.States cannot tax federal land or operations.Federal government is not a creature of the states.

1824—Gibbons v. OgdenNY law granting monopoly in NY harbor conflicted with federal right.Federal government controls interstate commerce.Federal law supreme.

FOUR-WAY SPLIT IN 1824 CANDIDATES

1824—Monroe retired from office.John Q. Adams seen as probably

Republican candidate.Northerner—not popular in Congress.Son of Federalist.

William Crawford got Republican Congressional caucus nomination.SouthernerStates rights advocate.

Henry Clay decided to run himself.Andrew Jackson—nominated by

Tennessee state legislature.Southern and western interests.Great war hero.Got many independent votes.

William Crawford

1824 ELECTION REFLECTED LACK OF CONFIDENCE

ELECTORAL VOTE A PROBLEM 1824

Jackson won popular vote.Got 99 Electoral votes—not enough.Had plurality—not majority of electoral votes.

Adams got 84 electoral votes.Crawford got 41 electoral votes.Clay got 37 electoral votes.

Crawford not considered by House of Rep. because he was disabled by stroke.

Election became choice of Jackson or Adams—with Clay voters making real choice.Clay endorsed Adams.Adams and Clay had similar views on tariffs, manufacturing, foreign affairs.

Jackson supporters angry at Clay—call it a “corrupt bargain.”Clay later named Sec. of State by Adams.“Era of Good Feelings” over.