1. Building a National Identity
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Building a National Identity

2. Objectives
Describe the feeling of national unity that followed the War of 1812
Explain how Congress tried to strengthen the national economy
Discuss how Supreme Court rulings supported federal power and economic growth

3. Focus Question
How was the power of the federal government strengthened during the Era of Good Feelings?

4. James Monroe wins the election of 1816
Landslide victory for Republicans
Defeated Rufus King (Federalist)
Federalist party began to lose power, and eventually disappeared

5. President Monroe Wanted to promote national unity
Old arguments of the War of 1812 (between the North and South) started to fade away

6. “The Era of Good Feelings”
While Monroe was in Boston, a newspaper described the sense of national unity as the “Era of Good Feelings”
The name stuck, and was used to describe Monroe’s two terms in office
When he ran in 1820, no candidate opposed him!

7. Building a National Economy
Even Republicans, who stressed state’s rights, saw the need to fund certain federal programs
Beliefs were expressed by a number of bright young members of Congress: Henry Clay, John C. Calhoun, Daniel Webster

8. Analyze Cause and Effect
Explain what Americans believed was needed to make national unity grow.
What would cause that growth to happen?

9. Clay, Calhoun, and Webster
Clay: spoke for the West; thought the country needed better roads to transport goods
Calhoun: spoke for the south; emphasized state’s rights
Webster: spoke for the Northeast; supported tariffs to protect industry
Which of the three leaders would you expect to be the strongest supporter of slavery?

10. The Bank Problem
The first bank ceased to exist in 1811: its charter had run out
What is a charter?
A legal document giving certain rights to a person or company
What happened without a bank?
The economy suffered
State banks made too many loans and issued too much money

11. What did Congress do to fix economic problems?
Established the SECOND Bank of the U.S. in 1816
Like the first bank, the second bank was privately owned
Had a charter to operate for 20 years
Lent money to individuals and controlled money supply

12. Foreign Competition
After the War of 1812, the U.S. faced foreign competition
After the war, the British looked to sell their goods to the U.S. again (previously, the Embargo Act kept them out)
What was the problem?
The British could produce more goods more cheaply in well-established factories

13. The British had the opportunity to drive Americans out of business by “dumping” their goods in the United States.
What is “dumping?”
Selling goods in another country below market prices
Dumping caused dozens of New England businesses to fail
Factory owners turned to Congress for help
What do you think Congress did?

14. The Tariff of 1816
Put a tax on foreign textiles, iron, leather goods, paper, and other products – eventually, more tariffs were made
Tariffs were popular in the North, where most factories were located
Why were the tariffs resented in the South?
Southerners had to pay more for their goods

15. Clay’s Plan Debate over tariffs RAGED…
… so Henry Clay came up with a plan that he believed would help the economy of each section of the country (northeast, west, south)
What do you think was his plan?

16. Clay’s American System
Believed that high tariffs helped all regions of the country, not just the North
CLAY’S PHILOSOPHY:
Wealth produced by tariffs would allow Northerners to buy goods from the West and South
Wealth would provide revenue for federal government
The government could use it to build roads, bridges, and canals in the South and West
Clay’s American System never fully became government policy.

17. On to three important Supreme Court cases…

18. McCulloch v. Maryland (1819)
Court protected the second Bank of the United States
Case grew out of an attempt by the state of Maryland to put a tax on the branch of the Bank operating in that state
The Bank refused to pay the tax
What do you think was the Court’s 1819 decision?

19. The Court’s 1819 Decision
States had no power to interfere with federal institutions
A tax was a dangerous interference because “the power to tax involves the power to destroy”
A state cannot pass any law that violates a federal law

20. Dartmouth College v. Woodward (1819)
The Court ruled that the charter of Dartmouth College in New Hampshire was a private contract
What is a contract?
An agreement between two or more parties that can be enforced by law
The Constitution protected private contracts, so N.H. could not change Dartmouth’s charter
In protecting private contracts, the Court was protecting private businesses
Helped to promote capitalism
What is capitalism?
The economic system in which privately owned businesses compete in a free market

21. Gibbons v. Ogden (1824) Court supported federal power
Ruled New York could not give a steamboat company a monopoly to carry passengers on the Hudson River
Under the Constitution, only Congress could regulate interstate commerce
The Court had (again) strengthened the federal government at the expense of the states
What is interstate commerce?
Trade between two or more states

22. Focus Question re-visited
How was the power of the federal government strengthened during the Era of Good Feelings?