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Chapter 8

Chapter 8. A Growing Economy. End of war allowed US to resume economic growth and territorial expansion. Postwar boom led to disastrous bust in 1819. War stimulated the growth of manufacturing- cut off chaos in shipping, banking and exposed the weakness in the transportation systems.

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Chapter 8

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  1. Chapter 8

  2. A Growing Economy • End of war allowed US to resume economic growth and territorial expansion. Postwar boom led to disastrous bust in 1819. • War stimulated the growth of manufacturing- cut off chaos in shipping, banking and exposed the weakness in the transportation systems.

  3. A Growing Economy • Political issues coincided with the economic development- reestablishment of the national bank, protecting the industries and a national system of roads and waterways.

  4. A Growing Economy • First National Bank- charter expired in 1811; large number of state banks began to operate. State banks did not hold enough gold or silver to redeem notes on demand.

  5. A Growing Economy • Second Bank of the US- chartered by congress in 1816, had more capital than its predecessor. Could not forbid state banks from practicing, but was more dominant than state banks.

  6. A Growing Economy • New factories could start operations virtually assured of quick profits. In 8 years (1807-1815) the number of cotton spindles increased 15 fold.

  7. A Growing Economy • Francis Cabot Lowell developed a power loom. Organized the Boston Manufacturing Company and, at Waltham- the first mill to spin and weave under the same room.

  8. A Growing Economy • British ships were determined to recapture their lost market. Swarmed American ports with British goods at lower prices. • Protective Tariff- 1816 passed a law that effectively limited competition from abroad on a wide range of items, most notably cotton cloth. Objections came from agricultural interests who would have to pay the higher prices.

  9. A Growing Economy • The transportation system was needed to transport materials to domestic markets. • Construction of the National Road began in 1811 at Cumberland, Maryland. By 1818 the National Road ran to Wheeling, Virginia on the Ohio River.

  10. A Growing Economy • Lancaster Pike towards Pittsburg moved stagecoaches, Conestoga wagons, private carriages and other vehicles. The road lowered transportation prices across the mountains despite high tolls.

  11. A Growing Economy • Steam-powered shipping was steadily expanding. By 1816 river steamers were beginning to journey up and down the Mississippi River to the Ohio River.

  12. A Growing Economy • British blockade of Atlantic shipping caused coastal roads to become crowded and choked. Ferries were the only means to cross rivers. Serious shortage of goods and high prices reached cities.

  13. A Growing Economy • Internal Improvements- John C. Calhoun introduced a bill that would use the funds owed to the government by the Bank to finance. Vetoed by Madison on his last day, claimed he supported the purpose but didn’t believe that Congress had authority to fund improvements without constitutional amendment.

  14. Expanding Westward • 1820 Census- settlers had pushed passed the Mississippi River. One out of every four white Americans lived west of the Appalachians. • Population nearly doubled (from 5.3 million to 9.6 million) • Great Migration- left the city due to crowding.

  15. Expanding Westward • The south spread of the plantation system limited opportunities for new settlers. The war of 1812 helped diminish Native American opposition

  16. Expanding Westward • “Factor” system- government factors (agents) supplied the tribes with goods at costs. Worked to drive Canadian traders out of the region. Created a situation of dependency which forced Native American cooperation.

  17. Expanding Westward • Cotton lands in the South were losing their fertility through over planting. • “Black Belt”- more fertile cotton land in Alabama and Mississippi. Migration to the west came with livestock, wagonloads, slaves and families. • New States: Indiana (1816), Mississippi (1817), Illinois (1818) and Alabama (1819)

  18. Expanding Westward • Mexico, continued to control Texas, California and other southwest regions, won independence from Spain in 1921. Almost immediately it opened northern territories to trade with the United States. Merchants from the United States quickly displaced Indians in the southwest and Mexicans.

  19. Expanding Westward • William Becknell- began to offer American manufactured goods for sale for remarkably lower prices; Mexico lost markets in its own colony. • Astor’s American Fur Company – Founded by John Jacob Astor and sold interests to the Northwestern Fur Company (British operation in Canada

  20. Expanding Westward • Henry and Ashley- founded the Rocky Mountain Fur Company and recruited white trappers to permanently hunt in the Rocky Mountains. The fur trappers in the west still depended on the eastern markets for material goods.

  21. Expanding Westward • Trappers, for the most part, lived peacefully with the Native Americans and the Mexicans. Jedediah S. Smith led a series of forays deep into Mexican territory, resulting in battles with tribes.

  22. Expanding Westward • Western settlers were a source of drama and popular stories for the eastern states.

  23. Expanding Westward • Stephen Long- dispatched by the government to chart the territories that they visited. Led nineteen soldiers on a journey up the Platte and South Platte River (Nebraska and Eastern Colorado). Failed to find the headquarters of the Red River, but wrote an influential report assessing the region’s potential for development and settlement. “Great American Desert.”

  24. The Era of Good Feelings • Virginia Dynasty- James Monroe received 183 ballots in the Electoral College. Opposed Rufus King of New York. • Monroe was a soldier in the revolution, a diplomat and a cabinet officer. His party faced no serious opposition.

  25. The Era of Good Feelings • Secretary of State- J.Q. Adams. Jefferson, Madison and Monroe had all been sec. of state, seemed to be a footstep towards ensuring the Presidency. Henry Clay declined an offer to be secretary of war (named Calhoun instead)

  26. The Era of Good Feelings • Good Will Tour- he was greeted everywhere with enthusiastic demonstrations. • 1820- Monroe was reelected without opposition.

  27. The Era of Good Feelings • 1817- began negotiations with the Spanish minister, Luis de Onis, in homes of resolving the dispute and gaining Florida for the US.

  28. The Era of Good Feelings • The Seminole War- Andrew Jackson was in command of American troops along the Florida frontier, had orders to “adopt the necessary measures” to stop raids on American territory. Used the order as excuse, invaded Florida and captured Spanish forts.

  29. The Era of Good Feelings • Adams-Onis Treaty- 1819, Spain ceded all the Florida territory to the United States, gave up claim to territory north of the 42nd parallel. In return American governments gave up claims to Texas.

  30. The Era of Good Feelings • Followed a period of high foreign demand for American farm goods (caused high prices for American farmers), stimulated a land boom in the western United States. • The availability of easy credit to settlers and speculators- from state and wildcat banks fueled the land boom. • American’s saw the Panic of 1819 as a warning that rapid economic growth and territorial expansion would devastate the nation and threaten its survival.

  31. Sectionalism and Nationalism • Missouri Compromise- Missouri (MO) applied for admission to the Union in 1819. Tallmadge (NY Representative) proposed an amendment which would prohibit further introduction of slaves into MO and provide for gradual emancipation of slaves already there. Maine was rallying for statehood as well. Congress was worried about throwing off the balance of free vs. slave states. Maine was added as a free state and Missouri was added as a slave state.

  32. Sectionalism and Nationalism “The American continents henceforth are not to be considered as subjects for future colonization by any European Powers…” James Monroe

  33. Sectionalism and Nationalism • John Marshall, Chief Justice from 1801 to 1835. Molded the development of the Constitution: strengthened the judicial branch, increased the power of the federal government and advanced the interest of propertied and commercial classes.

  34. Sectionalism and Nationalism • Fletcher vs. Peck- arose out of a series of land fraud in Georgia. Marshall yielded that land grants were valid contracts and couldn’t be repealed even if corrupt. • Dartmouth vs. Woodward- Republicans tried to revise Dartmouth’s charter to convert it to a private college. Marshall ruled in favor of Dartmouth, proclaiming that corporation charters were contracts and inviolable.

  35. Sectionalism and Nationalism • Cohens vs. Virginia- Marshall affirmed the constitutionality of federal review of state court decisions. • McCullough vs. Maryland- confirmed the “implied” powers of congress by upholding the constitutionality of the Bank of the United States • Gibbons vs. Ogden- strengthened the court’s power to regulate interstate commerce.

  36. Sectionalism and Nationalism • Johnson vs. McIntosh- sold parcels of their land to a group of white settlers but later signed a treaty with the federal government ceding the territory. Marshall’s ruling favored the United States. But eliminated private citizens from buying land from Natives. • Worchester vs. Georgia- the court invalidated Georgia laws that attempted to regulate access by US citizens to Cherokee country.

  37. Sectionalism and Nationalism • New Nations were forming in Latin America when the Spanish Empire weakened. American merchants were waiting to capitalize on the markets in Latin America. • The Monroe Doctrine- “The American Continents are henceforth not to be considered as subjects for future colonization by any European powers.” The US would challenge foreign powers in the nature of an unfriendly attack. • American’s feared that Spain and France would align to reclaim the lost land in Spain’s empire.

  38. The Revival of Opposition • Jackson received more popular votes and electoral votes than any other candidate, but not a majority. The House had to choose who the next president would be.

  39. The Revival of Opposition • Jackson and Clay were political enemies. Clay supported Adams. Jacksonians believe that Clay ensured Adams the votes in the House of Representatives in exchange for the position of Secretary of State.

  40. The Revival of Opposition • Adams proposed an ambitious national program reminiscent of Clay’s American System. Blocked by congress. • Appointed delegates to an international conference called by Venezuelan leader hosted in Panama in 1826. Congress opposed the idea of white delegates mingling with black delegates. American delegates didn’t arrive until the conference was over.

  41. The Revival of Opposition • 1825- Georgians extracted a new contract from McIntosh. Proceeded with plans for Indian removal. • Tariff of Abominations- 1828 high tariff on imported goods. Originated with demands in New England States who were suffering from Britain’s overflow in American markets. Southerners complained about the tariff- Britain’s goods were cheaper for them to purchase.

  42. The Revival of Opposition • Election of 1828- Adams vs. Jackson. Adams (National Republicans) ran on the platform of economic nationalism. Jackson (Democratic Republicans) called for an assault on privilege and a widening of opportunity. Jacksonians charged that Adams had taken advantage of his position in power.

  43. The Revival of Opposition • Jackson won 56% of the popular vote and an electoral majority of 178 votes to 83. Won New England and the Mid-Atlantic. America now had an “era of the common man.”

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