1815-1840 Chapter 8. The War of 1812 significantly jumpstarted American industry- after all- we didn’t have a choice. But peace brought renewed competition

1815-1840

Chapter 8

Era of Good Feelings

The War of 1812 significantly jumpstarted American industry- after all- we didn’t have a choice. But peace brought renewed competition from British manufacturers.

Henry Clay (and John C Calhoun) believed strongly that the government should provide protection for the American economy

Proposed: A new National Bank (1st bank’s charter expired 1811) a increased tariff, and the building of roads and canals to help commerce (funded by tariff-and that’s the part that didn’t go through, until civil war internal improvements built by states or private companies)

Controversial b/c it raised strict vs. loose construction issues again.

The American System

Lack of a bank during the war had been a problem for US- local banks issues their own paper currency, which devalued and hurt war effort

Went through in 1816 (even Jefferson supported)- with another 20 year charter and 3.5x more capital than 1st bank.

Controversial b/c it was a business as well as the government’s financial agent. Could issue $$- regulating the supply of paper currency in circulation to make sure it was backed by Specie, pay gov’t debts, and collect taxes.

Critics condemned b/c it was more accountable to it’s investors than to the people

Second Bank of United States

Death knell of the Federalists- they ran their last candidate (Rufus King) in 1816- cease to function as an opposition party

4 of 5 presidents had been from Virginia- governed 32 of 36 years of the republic

Last of the “Virginia Dynasty” James Monroe

Era of Good FeelingsPeriod from 1816-1824 known as “Era of

Good Feelings” b/c there is strong nationalism and Dem-Reps are the only political game in town. But the title is deceptive, as there were serious issues lurking under the surfaceSectionalism (which includes issues with tariff,

slavery, internal improvements, sale of public lands, Indian removal)

Dislike of BankPanic of 1819

2 party system will return in the 1830s

1st fiscal crisis since beginning of nation (have had econ probs, but this is more about cash flow) From this time forward we’ll have one about every 20 years until great depression- thanks Adam Smith

Caused by End of war created huge demand in Eng for US

cotton Land speculation (for cotton lands)- banks put

out too many risky loans- many of which end in foreclosure

Results of Rekindling political hostilities- est between

West (the farmers) who come to distrust National Bank and East (the bankers) who think farmers are greedy

Gov’t steps in and make getting western land easier (by the civil war they are giving it away!)

Panic of 1819

John Marshall (hey, there is still one federalist out there!) Chief Justice 1800-1835

Significantly increased the power of the federal government over the states – which is a big argument at the time- and hammers it until the Dem Reps are on board

Checked the excesses of the popularly elected state legislatures

Put limits on democracy at a time when democracy is growing significantly (age of Jackson) keeping it from running wild.

Judicial Nationalism

State of Maryland- which doesn’t like the National Bank passed a law taxing the Baltimore branch- which they hope will destroy it, and challenging its constitutionality.

Branch refuses to pay- so state sues manager- James McCulloch for failure to pay taxes

Supreme Court dismissed charges against McCulloch, and goes to the heart- is the bank Constitutional. Marshall says yes- and says the states cannot tax the federal government (est. the supremacy of Fed over State)

McCulloch v Maryland

Protection of property rights from statesDartmouth college (In New Hampshire) had a

royal charter issued in 1769. State wants to revoke charter and make it a state institution.

Ruling: the charter is a contract, and states cannot violate it (unless it goes against the law).

Significance: Safeguards private businesses, but also allows corporations to circumvent gov’t control

Dartmouth v. Woodward

Regulation of Interstate CommerceNY issued a monopoly on Hudson river

commerce (Between NY and NJ) to a private company owned by Ogden. Gibbons had congressional approval to conduct business in same area- whose contract is valid?

Marshall says Congress overrules states- b/c of supremacy and b/c it is “Interstate” commerce (which is specifically mentioned in the Constitution

Gibbons v. Ogden

New England and South have been arguing since the revolution- but expansion of country and new econ patterns have created an “us” and “them” mentality between North and South which will define national relations in the early 1800s

There will be consistent arguments, which will grow increasingly heated- and multiple compromises

Sectional Tensions

John Q Adams was Sec of State- ardent expansionist- and negotiated treaties to expand American Territory

Convention of 1818: settled border Canada along 49th parallel. Also agreed to joint occupation of Oregon territory for 10 years (renewed 1827)

Adams- Onis Treaty: Got Florida for US, defined the Southern boundary of the Louisiana Purchase, and Set Southern boundary of Oregon territory

Territorial Agreements

As the country grew- the number of slaves was growing too - even though importation of slaves was outlawed in 1808.

Tobacco had exhausted a lot of eastern land- and in hard times people tend to pick up and to a new area (“Go West Young Man”) Indians are out of the way

Still lots of territory out there suitable for cotton farming, and that means people buying land and settling will want to take slaves. Is that OK?

Expansion and Slavery

One way to balance sectional tensions was to ensure that there was an equal number of slave and free states

1819 Missouri applied for addition to the Union as a slave state- and Missouri is farther north than any other slave area (on same latitude as IL and IN)

Northern states propose Tallmadge Amendment: saying no more slaves brought to MO, and gradual emancipation of those there- South goes NUTS

Henry Clay Compromise: Balance with Maine as a free state, and no more slavery north of 36 30 line.

“Balance” becomes policy for 34 years (until K-N Act in 1854) Slavery becomes the dominant issue in American domestic policy- and South begins to increase their sectional nationalism

Missouri Compromise

When Napoleon was in power he conquered Spain. that disruption - as well as the inspiration of the American, French, and Haitian independence, led to a wave of revolutions around Latin America between 1810-1822. This was good for US b/c it opened trade with those areas (they had been subject to their own navigation acts)

Spain in no shape to reconquer- but there was concern that other European nations might try to step in

British were also trading with Latin America- and suggested a joint declaration warning European nations not to interfere with the newly liberated areas.

Monroe Doctrine – Latin American Revolutions

What British really want is to pull US in with them- so we are both bound by same restrictions etc… Sec of State John Q Adams sees through that.

President issues Monroe Doctrine:No more European colonization in New WorldWe will stay out of wars of Europe (neutrality)Let new countries alone

Important b/c it is another example of being our own boss etc… also stays (sort of) with Isolationist policies set by Washington- we are staying out of Europe, they should stay away from Americas

In the end, it works, not b/c anyone is scared of us (we weren’t scary then) but b/c Europe is busy, and they decide Americas are all played out anyway

Monroe Doctrine 1823

Dem – Reps were still the only “party”, but by this point they are no longer unified: 5 Dem-Rep candidates run in 1824 reflecting both regional and philosophical differences John Q Adams: Sec of State, MA, New Eng manufacturing John C Calhoun: Sec of War, SC (drops out)William H Crawford: Sec of Treas, GA Plantation

aristocracyHenry Clay: Speaker of the House, KY, Amer. System (west)Andrew Jackson: Sen from TN, War Hero, “Common Man”

No shock- no one gets majority of electoral votes (though Jackson gets plurality)- election goes to House of Reps

Election of 1824

Rules say you choose from top 3- and that is Jackson, Adams and Crawford. But candidate 4, Clay, is speaker, and therefore in control of election….and he HATES Jackson (who was is rival in the west)

So Clay uses his influence to make sure Adams becomes president… and low and behold a few days later, Adams announces Clay will be Sec of State.

Jackson and supporters FLIP- but in reality, there is no evidence of any wrongdoing…. Clay was well qualified for job, and Adams was ridiculously honest.

Casts shadow over Adams’ presidency- Jackson and supporters spend every minute trying to take him down.

Will led to breakup of the Dem-Rep party

The “Corrupt Bargain”

Presidential Rankings: C-Span Survey, 2009

1. Abraham Lincoln2. Franklin Roosevelt3. George Washington4. Theodore Roosevelt5. Harry Truman6. John Kennedy7. Thomas Jefferson8. Dwight Eisenhower9. Woodrow Wilson10. Ronald Reagan11. Lyndon Johnson12. James Polk13. Andrew Jackson14. James Monroe

15. Bill Clinton16. William McKinley17. John Adams18. George H.W. Bush19. John Quincy Adams20. James Madison21. Grover Cleveland22. Gerald Ford23. Ulysses Grant24. William Taft25. Jimmy Carter26. Calvin Coolidge27. Richard Nixon28. James Garfield

29. Zachary Taylor

30. Benjamin Harrison

31. Martin Van Buren

32. Chester Arthur

33. Rutherford Hayes

34. Herbert Hoover

35. John Tyler

36. George W. Bush

37. Millard Fillmore

38. Warren Harding

39. William Harrison

40. Franklin Pierce

41. Andrew Johnson

42. James Buchanan

A shift in thinking is happeningin 1820s politicians are making more and more effort to appeal to masses (as opposed to elite) Banners, Badges, Babykissing, parties and free drinks

Change from Jefferson (gov’t FOR the people) to Jackson (gov’t BY the people)

Universal white manhood suffrage mean more people have a voice- and when things go wrong (like panic of 1819) they are MAD and want solutions.

2 party system will re-emerge: Democrats and Whigs

The New Democracy

Nationalism and John Q AdamsAdams had a vision

for national greatness. (Embraced Clay’s American System- wanted tariffs, internal improvements, sound $$ policy) but accomplished almost none of it.

Too much his father’s son….obnoxious and disliked, round 2

Some saw him as too elitist. (harkening back to federalists)

Others thought American system unconstitutional- or sectionally biased

But in reality- he didn’t work well with others, so good ideas like a national university, astronomical observatory and Naval Academy get shouted down

Opposition to Adams

Big issues of Adams’ presidencyTariff of 1816 already taxed textiles, in 1824

Henry Clay proposed an increase from 23%- 37%, a popular move in New Eng (which is already the only areas that likes Adams) but very unpopular in South and West

Jackson and supporters are looking at election of 1828- and in a tricky political move- decide to support, and even expand tariffs (propose 45%) so southern and western voters will blame Adams for increased prices

Tariff Battles

So the tariff passes, and as predicted, New Eng happy (but they wouldn’t support Jackson anyway) West ok, (some parts are helpful to them) and South is MAD- swings them fully into the Jackson camp.

South is screaming about abuse of federal power and states’ rights (get used to it, you’ll hear it a lot) John C Calhoun writes “South Carolina Exposition” talking about nullification (like VA and KY resolutions)

Tariff of Abominations 1828

One more reason for West to dislike Adams and support Jackson. He tried to slow sales of public lands (fearing speculation etc..) and he supported Native American land claims.

1825 tried to save Creek and Cherokee land claims in Georgia. Governor went against him and took lots of land anyway.

Land and Indian Policies

Jackson and supporters plotted ceaselessly from 1824-28. Martin Van Buren in charge of campaign- and creates a new party to do it (old Dem-Rep of Jefferson dies) with the first modern “political machine”

Democrats: Andrew Jackson, “Old Hickory”- party of the Common Man (Irony- he owns a huge plantation and is filthy rich)

National Republicans: Adams. Refuses to “run”, which makes him even easier to beat

Election of 1828

Jackson supporters have plenty to say- call Adams cold, intellectual (as opposed to active) and out of touch with ordinary Americans

Adams doesn’t go negative- but others do (about Jackson) saying that his wife Rachel is an adulteress b/c her divorce might not have been finalized when she and Jackson married. She died about a month after election, and Jackson blamed her death on his opponents

Mudslinging

Supported Universal White

Suffrage, and elections organized by national parties

Wanted to reduce the role of the federal gov’t in people’s lives, however (to the surprise of many supporters) did NOT support state’s rights. Big veto man (he used it 12 times- first six combined had used it 10) his way or the highway

Opponents called him “King Andrew I”

“Jacksonian Democracy”

Jackson is the 1st president from the West, and whom did not grow up with an elite background (orphaned young, no college education)

Political views are complex and contradictory- don’t really fit into any mold but “Jacksonian”. He’s rich, but doesn’t like rich peopleHe loves democracy – but not for blacks

slavesHe likes federal power- as long as he has it

- but hates other federal institutions (the court, the bank etc..)

Andrew Jackson’s Presidency 1829-37




29. Zachary Taylor



32. Chester Arthur


34. Herbert Hoover

35. John Tyler

36. George W. Bush


38. Warren Harding


40. Franklin Pierce

41. Andrew Johnson

42. James Buchanan

The idea of “party machine” is that politicians trade votes for favors- and a big, plummy favor are gov’t jobs and contracts.

Spoils System- As soon as he becomes president Jackson sets out to reward his friends, and get rid of enemies. Packed gov’t jobs with party loyalists (up until now bureaucratic posts had not been part of party system)

Patronage- he rotated a number of people through jobs to make sure he got a chance to reward everyone

The Spoils System

Sometimes an issue that seems trivial leads to bigger stuff

Peggy Eaton was wife of Sec of War (John Eaton) and she was snubbed for being a woman of “loose virtue”- other cabinet wifes/gov’t officials refused to be with her or invite her to their homes esp. Mrs. John C Calhoun (wife of VP)

Jackson (remembering slanders on his wife) stood up for Mrs. Eaton- and fell out with VP Calhoun

The Eaton Affair

Jackson essentially stops meeting with his “official” advisors, and relies more an more on another “unofficial” group. Some are politicians, some business owners, some newspapermen (Jackson 1st pres interested in “spin”) some old friends.

Made Congress mad- b/c they had no say in these people, saw them as a threat to checks and balances. But not actually unconstitutional- presidents are free to consult with whomever they would like

Kitchen Cabinet

Southerners were annoyed with Jackson- he’s supposed to be one of them, and they don’t feel he begins by acting in their best interests.

Plus- Tariff of abominations still in place- and south is MAD 1832 Jackson offers to lower from 45-35%, not enough for them

Webster Hayne Debate: Sectional showdown between West/South and North/East over land sales. Sen Robert Hayne (SC) rep. states’ rights. Said New Eng was

selfish and disloyal (1812) said nullification a valid option. Sen Daniel Webster (now from MA) insisted the states had no

right to nullify- New Eng had to go along in 1812…Result- each side thinks they win, further entrench arguments

Nullification Crisis

South Carolina calls a state convention which declared all the tariffs of 1828 and 1832 null and void. Said SC would secede if gov’t tried to make them pay

John C Calhoun (still VP) secretly drafted ordinance (based on VA and KY resolutions) and argued that since states had ratified the Constitution, they had the final say in laws.

By challenging the authority of the law- SC directly challenged Jackson’s presidency- and he didn’t think it was funny. Threatened SC with martial law (supported by congress who thought SC off deep end)

Henry Clay comes through with a compromise which would lower tariff over 8 years - back to 1816

Stepping stone to Civil War

Ordinance of Nullification

Virginia held a Jefferson Day (birthday) celebration- and John C Calhoun devised a plan to try to trick Jackson into a State’s Rights commitment

Everyone was to go around the room and give a toast to Jefferson, and Calhoun planned it so toast would get more and more pro-south, he hoped Jackson would get caught into making a public statement.

Jackson heard about plan though- and refused to toast- which illustrated split between Calhoun/Jackson, and Jackson/southern aristocracy. Calhoun finally resigned 1832 (went back to senate)

Jefferson Day Toast

Since 1790s native American tribes had been treated as separate nations- but treaties were routinely violated when whites wanted land.

Lots of pressure to move all natives west of Mississippi- but a sticky situation were the “civilized” tribes (Cherokee, Chickasaw, Choctaw, Creek, and Seminole) But in 1828 GA decides they all have to go (there is gold on Cherokee land)- and Jackson agrees

Indian Removal Act of 1830- created Reservations in OK and KA guaranteeing land to tribes who would go voluntary – but Cherokee refuse and take case to Supreme Court….

Indian Removal

Cherokee offered their treaty in 1791 (signed by Washington himself!) and evidence of assimilation (written lang, a constitution, education system)

Supreme court recognizes Cherokee as a “domestic Dependent Nation” with some autonomy, but without full sovereignty. Chief Justice Marshall did condemn Jackson’s actions in his opinion.

Cherokee Nation v Georgia

Black Hawk WarsSeminolesCherokees aren’t the

only ones who don’t want to move. Sauk and Fox tribes, led by Chief Black Hawk, decide to fight- but get crushed (opens western Michigan territory)

Ordered to merge with Creeks- their long standing enemy. They refuse, and begin guerilla attacks on US troops in FL (and kill 1500). Most of the tribe ends up moved- but a good chunk just hide in the swamps

Jackson eventually sends in federal troops to supervise the relocation of Cherokee. 18,000 Native Americans are forced to abandon their lands and march over 1000 miles.

Over 4000 die of malnutrition, exposure and disease along the way

Similar problems for other tribes- 3500/15,000 Creeks, and 25% of Choctaws

Trail of Tears 1838

Alexander Hamilton had created the National Bank to create financial stability, which it did.Reduce bank failuresIssued sound banknotesMade credit and currency available nationallySafe depository for gov’t funds, and kept it from

being another sectional issue But by the time it was re-chartered in 1816 it

was becoming associated with elitism, and Jacksonian democrats came to symbolize econ tensions (Called it the “moneyed monster”)

The Bank War

President of the Bank was an aristocratic Philadelphian, Nicholas Biddle (distrust of “eastern elite”)

After Panic of 1819, the bank required all state and local banks to back paper with specie- hard currency (you had to have enough gold in your vault to cover all paper notes) Which made it harder for local banks to make loans- esp large risky ones- which is esp common out west with land speculation etc..

Actually sound monetary regulation- but not popular with Jackson’s voters

Biddle’s Bank

Charter to be up in 1836- Henry Clay (the National Republican candidate running against Jackson) put it up in 1832 to cause an issue for Jackson….If he signs, he alienates western electorateIf he vetoes, he alienates eastern business

Jackson: “The bank is trying to kill me, but I will kill it”. Vetoes- saying he must, it’s unconstitutional (Putting himself over supreme court) Galvanizes his detractors into create true oppositions to Jacksonian Democrats

Bank and Election of 1832

First time there is a 3rd party in an American election

Opposed the secrecy of the Masonic Order- accused them of prejudice b/c had to be “invited” to be a member- and therefore they were against the “common man”

Wanted to infuse politics with the reforms common during the early 18th century.

Never really gets anywhere, but holds the first actual nominating convention, which becomes the norm

Anti Masonic Party 1832

National Republicans dissolve- and are replaced by the Whigs.

(Nat. Reps fell apart in 1834 after failing at Bank War)

The Democrats support the “common man” theory- that those who work (producers) are better than those who own

Whigs are (sort of) the heirs to Hamilton’s federalists- supported by business elite, sought to reduce spoils system, wanted national gov’t stronger than states, and to create a strong business/econ climate

Whig Party

Democrats thought gov’t should be very laissez faire with econ- to allow the “little guys” to prosper (whigs disagree)

Kind of funny- b/c this is also Adam Smith’s thought for big business capitalism etc..

Liberal Capitalism

To make SURE bank died, even before charter ran out, in 1833 Jackson decided to remove all federal $$ from banks. Actually just made no new deposits, and existing $$ drained away on expenses (GO TO PET BANKS)

Without federal $$ Bank didn’t have enough currency to effectively regulate

Recognizing potential land speculation issues, Jackson required all land purchases be made in gold/silver (Specie Circular)- but there wasn’t enough, and that led to a financial panic as Jackson was leaving office. (spec not only problem, also crop failures and problems with British banks)

Panic of 1837

When Jackson stopped depositing funds in National Bank, he put them in 23 specific state banks- those that ran with ideas he agreed with .

However, without regulation, state banks failed to curb “wildcat” banks that sprang up and expanded the paper $$ in circulation from $10 mi in 1833 to $149 in 1837, resulting in runaway inflation

Pet Banks

New president Van Buren is convinced part of econ depression comes from federal funds being in private banks- so decided to “divorce” gov’t/banks.

Created an independent treasury system where funds would be deposited in large banks, but could not be used by those banks for loans etc… (which is kind of the point of $$ in a bank)

Condemned by the Whigs and repealed, the reenacted by Polk

Treasury Bill of 1840

John Marshall died in 1835- and Jackson appointed Roger Taney (whom the senate had turned down for the post of secretary of the treasury), Like Jackson, Taney did not like to see business protected/privileged above citizens- preferred state regulation to national regulation

Jackson’s Influence of the Supreme Court

Harvard had built a toll bridge (with a state charter) over the Charles River in the 1780s- which made good $$ for the college.

But Boston had grown and was busy, and in 1828 state legislature gave the Warren Bridge co a charter to build a new bridge 300 yards upriver – saying traffic needed it. And the trick is, once bridge is paid for- no more tolls (which will kill other’s profits)

The conflict is vested interests vs. rights of community.

Court decides in favor of new bridge- saying it promoted the general welfare. Beginning of end for monopolies in transportation and public facilities

Charles River Bridge Co v. Warren Bridge Co 1837

Charismatic and Controversial- you loved him or hated him.

Positive Contributions:Strong leadership. Champion of the people. Est

the actual Democratic partyLiabilities

Spoils system, Killing bank was a bad econ move in the short and long term, Indian Removal- blatant racism. Break with Calhoun increase sectionalism

Jackson’s Legacy

Martin Van Buren Jackson’s “Heir Apparent” Whigs (not fully organized) enter 4 sectional

candidates, 2 matter: Daniel Webster (NH), and William Henry Harrison (OH). Accused Jackson of violating Constitution with spoils system and increased executive power.

Grouped together Whigs pulled 49% of the vote- showing that there were many people unhappy with Jacksonian Democracy, but regionalism kept them from getting the votes they needed

Politics in the Post Jackson EraElection of 1836

Master political maneuverer, had created the idea of “Political Machines” back in New York, and applied them to national party- making Democrats very strong

But the “Little Magician” was unable to stack up to Jackson- in every way.

Saddled with Panic of 1837 - which he did not create, but he couldn’t fix

Caroline Incident: Rebellion in Canada in 1837 created ugly border disputes and threatened ANOTHER war with Britain

Martin Van Buren




29. Zachary Taylor



32. Chester Arthur


34. Herbert Hoover

35. John Tyler

36. George W. Bush


38. Warren Harding


40. Franklin Pierce

41. Andrew Johnson

42. James Buchanan

Whigs smelled blood- and planned for election of 1840. Threw their support behind war hero William Henry Harrison- “Old Tippicanoe” (prompting the first real presidential slogan: “Tippicanoe and Tyler too”)

Blamed Van Buren for everything possible, and called him an elitist -stealing a lot of Jackson’s moves from 1828- most of which had been created by VanBuren

Harrison wins- but dies after only a month in office (Wear a Coat buddy!) John Tyler is first VP to assume the office of President

Election of 1840- John Tyler

Documents

1815-1840 Chapter 8. The War of 1812 significantly jumpstarted American industry- after all- we didn’t have a choice. But peace brought renewed competition