1. Building a National Market
Objectives:
Understand the effects that the War of 1812 had on the American Economy.
Understand the ways that the government tried to protect American factories.
Was it the responsibility of the federal government to fund the construction of roads and canals –internal improvements?
Do Now:
President Madison’s 1917 veto of the public works bill in packet.
Homework:
Expanding Westward pg. 218

2. Banking, Currency, and Protection
War of 1812 stimulated manufacturing
War produced chaos in shipping and banking
Need for new Bank of the United States charter
After expiration of charter state banks offered different currencies at different values
Confusion and counterfeiting
Congress passed new charter for Bank of US 1816
Its size and power essentially forced state banks to issue safer currency

3. Banking, Currency, and Protection
Manufacturing had grown tremendously due to imports being cut off
textile industry increased exponentially between Embargo of 1807 and War.
Factories in NE no longer family operations.
Francis Lowell developed new loom 1813 in Boston Manufacturing Company
first process of both spinning and weaving
After war English ships swarmed American ports
Wanted to reclaim old markets with prices below cost.
1816 Congress passed tariff to protect “infant industries” from competition aboard
Farmers objected b/c paid higher price (mostly farmers in the south)

6. Transportation
Without transportation network manufacturers couldn’t access raw materials and send finished goods to markets in US
Big Government Question:
Should fed government finance roads?
1807 Jefferson’s Sec Treasury Albert Gallatin proposed revenue from Ohio land sale go to fund National Road.
Crucial Lancaster Pike built in PA
both allowed for the beginning of transport of commodities like textiles

7. Transportation
Steam-powered shipping (advancements of Robert Fulton) expanded on rivers and Great Lakes.
Steamboats on Miss. stimulated already agricultural economy of South & West b/c cost to transport products to market lowered.
Despite progress of turnpikes + steamships serious gaps in transportation between the North and the South.

8. Transportation
1815 John Calhoun introduced bill to use federal funds to finance internal improvements, “Bonus Bill”
Madison vetoed it in 1817 b/c believed unconstitutional
Remained to state governments + private enterprise to build needed transit networks