1. Ch 9 Emergence of a Market economy
The politics of nation building after the war of 1812

2. The beginning of Commercial Agriculture
Lower transportation costs meant greater income for the farmer, and greater participation in a complex system of credit
Switch from mixed farming & concentrate on a single crop, or staple
Ohio Valley-wheat producer
Cotton-”king” crop
Factors made the Deep South the world’s greatest producer
Great demand-rise of textile manufacturing
Effect of the cotton gin-cut labor costs
Availability of good land in the Southwest
Existence of slavery, provided a flexible system of forced labor
The desire to reduce the costs and increase the speed of shipping heavy freight over great distances laid the groundwork for a new economic system
The revolution in transportationi had a decisive effect on agriculture
Greatest profits went to those who could

3. Commerce and Banking New system of marketing Credit
Farmers sold their crops to local merchants
Who sold it to regional merchants
Who sold it to national & international traders
Credit
Farmers were paid for crops before they were planted
Farmer paid interest
Stimulated the banking system
After 1812, the number of banks grew as they competed to make loans
Congress created a second Bank of the United States to check irresponsible behavior of state banks
This added to the problem by making loans easy
1819-collapse of the money system
Commercial farming and regional specialization demanded
The greater use of credit stimulated…

4. Early Industrialism Most manufacturing was still done at home
Process was changed
“Put out” system
Merchants owned raw materials and gave them to farm families to put together at home
Textile industry
Developed factory system
Boston Manufacturing Co, in Lowell, MA.

5. Politics of Nation Building
Because of the absence of a two-party system after the War of 1812
Public accountability and the need for popular support diminished considerably
Except for the Supreme Court, the national government became almost irrelevant to the domestic economy

6. The Republicans in Power
The Republicans did not need to follow a strict party line
Republicans:
Enacted high tariffs
Established a national bank
Republicans like Henry Clay wanted to adopt measures that would..
Make the nation economically self-sufficient
American System
Ultimate result:
The two-party system was disrupted, leaving only an unorganized Republican Party

7. Monroe as President James Monroe was elected in 1816 & 1820
He was determined to preserve national harmony and awakened nationalism
Challenges
Panic of 1819, which brought an end to the postwar boom
Missouri Compromise

8. The Missouri Compromise
Missouri applied for statehood in 1817
They would be a slave state (already 11 & 11), which would make the South overrepresented
James Tallmadge of NY rejected unless MO. Abolished slavery
COMPROMISE
Missouri Slave State
Maine Free State
Congress banned slavery from any part of the Louisiana Purchase (except MO) above the latitude of 36 30’
Fundamental rift between the North and the South

9. The Marshall Court
John Marshall served as chief justice of the Supreme Court
In his court he strengthened the federal government by supporting a broad interpretation of its constitutional powers
He believed the Constitution existed to protect the industrious
Sought to protect individual property rights against government interference
Limited the power of the states

10. Nationalism in Foreign Policy
When Spain’s colonies in Latin America rose in rebellion, the US responded favorably toward the new nations
US empathized with nations because it reminded them of their quest for independence
Europe felt the rebellion might prove contagious
Grand Alliance
1814-monarchs of Europe joined together to protect “legitimate” governments
Assumed purpose was to confront Napoleon’s armies during their retreat from Russia
US and Britain were not a part because they found their own interests conflicted

11. The Monroe Doctrine
John Quincy Adams persuaded President Monroe that the US alone should guarantee the independence of Mexico & other Latin American states
Issued the Monroe Doctrine in 1823
Warns European nations to stay out of the Western Hemisphere.
It was primarily aimed at the Grand Alliance
It had no real effect when it was first proclaimed
Indicated:
America’s growing self-confidence