Chapter 10.1 Building a National Identity With Peace restored after the War of 1812 the United States can go back to focusing on internal affairs like building national unity and improving the Economy

I. The Era of Good Feelings As war ended the Republicans took firm control of the government and James Monroe won the election in a landslide victory in 1816 This huge victory began the downslide of the Federalist party and soon it would be gone all together Monroe wanted to promote national unity and as he visited his country he called it “the era of good feelings”

II. Building the National Economy After the election many believed the national government should begin taking more action in the economy to get it right So to make change happen Monroe put some bright young talent in Congress. Henry Clay, John C. Calhoun, and Daniel Webster

Clay spoke for the people of the west and felt they needed better roads and canals to transport goods Calhoun spoke for people of the south and continued to push states rights over federal power Webster became the leader of the Northeast and at first was against tariffs and taxes but saw that the gov. could benefit from this and changed his perspective

A. The Second Bank of The U.S. The First National Bank charter or rights to stay running had run out and without a bank the economy suffered and state banks were loaning out too much money which caused a rise in prices So to fix this the federal gov. established the second national bank and this gave the government to power again to regulate and control money and national spending

B Tariff of 1816 Another major national problem was foreign competition in the market, because of the embargo act most British goods were kept out and this allowed American products to sell and companies to grow After the war the British looked to sell once again in the U.S. and started “dumping” or selling goods in another country below market prices so British goods were selling and U.S. Goods were not due to price Congress then created the tariff of 1816 which taxed all goods foreign? Why would this help the North but not the South???

C. Clay’s Henry Clay came up with his idea to help the country called the American System. He felt the tariffs would help the North who then would buy farming products from the south and the money made here also could help our country build and grow Westward However not many saw this as the best plan and it never became popular

III. 3 Important Supreme Court Rulings Led by John Marshall, the Supreme Court also supported economic growth and power for the U.S. 1. McCulloch v. Maryland- the court supported the second national bank and stopped the State of Maryland from taxing the bank for operating in their state This in turn strengthened the gov. power to control states and formed the opinion that states cant tell the Federal Gov. What to do!

2- Dartmouth v. Woodward- court ruled that the private college in New Hampshire was a private contract or an agreement by 2 or more parties by law and the constitution protects charter contracts so the state couldn’t change this. This showed that the federal gov. was willing to protect private businesses and that encouraged business owners all over the country to trust in their gov. this also promoted capitalism or the free market 3- Gibbons v. Ogden-this court case didn’t allow the state of New York to allow a steam boat company get a monopoly to be the only boat on the Hudson River. So once again the federal gov. showed their power over the states so things are changing again