Building a Nation’s Identity Chapter 10 … Section 1 Building a Nation’s Identity

Era of Good Feelings Republicans in control 1816: James Monroe (VA) becomes President Federalist Party begins to lose power Monroe wants to promote national unity Goodwill circuit to middle and northern states New sense of unity  “Era of Good Feelings” This described Monroe’s two terms in office (ran in 1820 unopposed)

Building National Economy Federal gov’t should increase economic prosperity in ALL regions  even Republicans agreed to this Three people in charge … Henry Clay (West): Wanted better roads and canals for transport John C. Calhoun (South): Wanted national unity but also strong states rights Daniel Webster (Northeast): Wanted high tariffs to support industry

Building National Economy First Bank of US stopped existing in 1811 Second Bank of US in 1816: Privately owned and had charter for 20 years. Boosted American business. Foreign competition was an issue  British imports were kept out (Embargo Act) and American industry was booming (textiles, iron, etc.).

Building National Economy After War of 1812, British wanted to sell in US again  Their products were cheaper than US, so they were able to put American businesses out of work. US manufacturing owners were upset  Went to Congress for an answer Tariff of 1816: Tax all foreign products (increased tax in 1818 and 1824) The North supported the tariff, but the South did not.

Building National Economy An answer to the problems … American System (Henry Clay): High tariffs on foreign goods and a federal program for public works High tariffs helped everyone, not just the North It gave more money to gov’t to build infrastructure (roads, bridges, etc.) to the South This system was NOT approved

3 Important Supreme Court Rulings McCulloch vs. Maryland 1819 This ruling protected the Second Bank of the US It strengthened the power of the federal gov’t Dartmouth College vs. Woodward 1819 The college was under a charter, and that was looked at as a private contract New Hampshire couldn’t change the charter Protected private contracts  Protected private businesses Promoted capitalism

3 Important Supreme Court Rulings Gibbons vs. Ogden 1824 Supported federal power New York couldn’t have a steamboat monopoly to carry passengers on the Hudson River Because the Hudson River was located in multiple states, only Congress could regulate it

VOCABULARY CHARTER: a legal document giving certain rights to a person or company DUMPING: selling goods in another country below market prices CONTRACT: an agreement between two or more parties that can be enforced by law CAPITALISM: economic system in which privately owned businesses compete in a free market INTERSTATE COMMERCE: trade between two or more states