Chapter 10-12

• The charter for the Bank of the United States ended, Congress did not renew it


  1811
• The American System


  Henry Clay's plan for: 1) a new national bank to foster commerce, 2) a tariff to protect and promote American industry, 3) federal funding for improved roads, canals, and "internal improvements"
• Opposition claimed funding for the American System was outside the national government's authority and unconstitutional
• Pres. Madison originally supported, then ended up vetoing the bill, but the Tariff of 1816 and Second Bank of the U.S. (1817) eventually passed
• Examples of internal improvements

  • the Erie Canal, The national road, The B & O Railroad
• The Era of Good feelings


  Era from 1815-1825 of perceived unity, nationalism, optimism, and goodwill after the War of 1812
• Election of James Monroe (D-R) over Rufus King (Fed.)

  1816
• Pres. Monroe won the Election without an opposing party candidate

  1820
• The Second Bank of the U.S.

  Established with a 20-year charter, private corporation that served as the government's financial agent, issued paper money, collected taxes, and paid government debts
• Bank notes (paper money)


  Issued by state/local banks promising payment of a specified amount of "specie" (gold or silver)
• The Panic of 1819

  After the War of 1812, trade with Europe and Westward expansion increased, causing land speculation and a demand for loans. Banks printed more money despite not having enough specie to back it up. By 1819, speculators lost millions as Western land value fell, crop prices dropped, and European demand for farm products decreased. Unable to pay back loans, foreclosure and unemployment followed. Lasting through 1822, this was first major depression in U.S. history.
• Supreme Court ruling on McCulloch v. Maryland

  1. Congress does have the power to create a national bank (Necessary and Proper Clause/"Elastic Clause")

  2. Maryland does not have the power to tax the bank (the power to tax = "the power to destroy")

  3. The national government is supreme to the states
• In 1819, Missouri requested to become a state. The issue was who should determine the issue of slavery: Congress or the state?
• The Missouri Compromise (1820)

  1. Missouri would become a slave state under its constitution

  2. Maine would be admitted as a free state

  3. Slavery would be prohibited in all remaining territories within the Louisiana Purchase north of Missouri's southern boundary (36 degrees 30')
• Rush-Bagot Agreement (1817)


  G.B. and the U.S. agreed to 1-2 naval vessels per country on each Great Lake - mutually wanted to disarm and focus on trade
• Convention of 1818


  Set the northern border of the Louisiana Territory at the 49th parallel between the U.S. and (British) Canada
• Adams-Onís Treaty (1819)


  The U.S. gained control of Florida (East Florida & West Florida) from Spain and assumed $5 million of damage done against Spain in West Florida by U.S. citizens
• The Monroe Doctrine (1823)

  No more European colonization of Western Hemisphere, U.S. will stay out of European wars, European powers should not interfere with newly independent countries of Latin America
• Election of 1824


  1. John Quincy Adams won over Jackson, Clay and Crawford in the House of Representatives after no candidate received a majority in the electoral college

  2. Henry Clay used his influence as Speaker of the House to support Adams
• Adam's progressive ideas


  Believed in expansive federal power, wanted increased spending on internal improvements
• Senator Martin Van Buren


  Believed national political parties could be used to overcome sectionalism and unify groups of voters, organized the Democratic Party with a national committee that oversaw state and local party units
• Election of 1828


  1. Andrew Jackson (Democrat) defeated John Quincy Adams ("National Republican")

  2. Campaigns turned ugly with insults and accusations on both sides

  3. Demonstrated the power of organized national parties, expanded democracy (universal white male voting), and intense campaigning
• Party machines


  Organized parties & campaigns led by professional politicians, national, state, and local organization, "Spoils System" (Patronage) - loyal party members rewarded with positions in govt.
• National Conventions


  State leaders gathered to determine a party platform and choose national candidates
• Property qualifications were no longer a voting requirement in most states, 90% of adult white men were eligible to vote by 1840
• Women and non-white males excluded from voting
• Tariff of 1828


  Helped northern manufacturers, Southerners hated it and called it the "Tariff of Abominations"
• John C. Calhoun


  Wrote the South Carolina Exposition and Protest, opposed the tariff and called for states to "nullify" or refuse to enforce acts of Congress
• Jackson, a supporter of state power, was forced into a position as president of defending federal authority


  Due to the divide between him and Calhoun (his VP)
• Tariff of 1832


  Reduced tax rates, South Carolina stood alone in declaring it null and void
• Jackson's Force Act


  Congress authorized him to use the army and navy to collect customs duties (taxes)
• The 2nd Bank of the United States


  Set to expire in 1836, Jackson strongly opposed it, believed in "hard money" (specie), not bank notes, felt the bank had too much economic and political power in the hands of a few (distrusted the wealthy elite)
• Jackson vetoed the bank bill in 1832, arguing it was unconstitutional and favored only the wealthy
• "Pet Banks"


  State banks with political connections to Jackson, used after Jackson ordered the transfer of money from the 2nd Bank of the U.S.
• Without regulation by the 2nd Bank of the U.S., state banks issued more paper money and loans, prices rose, and wages stagnated
• Specie Circular (1836)


  Jackson declared the govt. would only accept gold and silver as payment of public land
• Panic of 1837


  Economic downturn leading to a depression until 1843
• Thomas Jefferson's views on Native Americans

  1. Treaties used to gain territory and 2) gradual assimilation in order to "civilize" the Native Americans
• Andrew Jackson's views on Native Americans

  Need to remove Native Americans from their land to open up westward expansion for cotton cultivation in the south, viewed Native Americans as "savages"
• Indian Removal Act of 1830

  Provided funds for the displacement of 60,000 Native Americans living in NC, GA, FL, AL, and MS (Cherokee, Chickasaw, Choctaw, Creek, and Seminole)