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

2. 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)

3. 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

4. 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.).

5. 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.

6. 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

7. 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

8. 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

9. 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