1. New Nationalism Madison, Monroe, J.Q. Adams 1815-1829

2. War Changes Madison 13 yrs of Republican programs left key institutions weakened –No army –Banking system a mess –Gov’t bankrupt –Primitive transportation system –Young manufacturing sector

3. American System Improve nation’s financial, transportation, & manufacturing sectors Active federal govt 1815 Madison speech (changing ideas) –New Nat. Bank –Protective tariff –“Internal Improvements” (roads & canals) Calhoun & Clay – roads unite country Ok b/c LA purchase ok

4. 1816 Tariff passed 1816 2 nd Bank of US created 1817 Madison internal improvements controversy –Vetoed bill –Dangerous idea w/o amendment –Protect south

5. Second Bank of US Private, for profit corp. Issued paper $, collect taxes, paid debts Make sure paper issued by local banks had real value. –Call in gold of silver for local paper –If bank can’t produce they close

6. McCulloch v. Maryland (1819) MD tried to States can’t tax or destroy agency created by national. govt. Marshall declares bank constitutional –“necessary & proper” –Implied powers of congress –“general welfare”

7. James Monroe 1817-1825

8. “Era of Good Feeling” 1816 Monroe runs as a “New Nationalist” Federalist Party destroyed 1 party should equal political harmony

9. Jackson Invades Florida 1 st Seminole War 1817 Acquire FL $5M

10. Monroe Doctrine 1823 Warn Russia & Spain to stay out. No new colonies Added to by future Pres. Cornerstone of Foreign Policy today

11. 1 st Industrial Revolution Result of improvements in transportation and technology. Transportation –Toll roads –Canals –Steamboats NE textile industry 20% non farm workers

12. Land Boom 1 st speculative boom Result of rising cotton prices & cheap credit People felt the demand would never end Speculation –160 acre blocks $320 only 20% down –Resell higher - 1818 $150 acre –$65 investment = $24,000 profit

13. Panic of 1819 1 st real financial panic Post-war speculative bubble burst –European markets for cotton & grain –Western land boom –Easy credit (local & Bank) Bankruptcy, unemployment Popular distrust of banks Debtors vs. Bank

14. Public Land Act 1820 Attempted to fix the “land bubble” problem Abolished the use of buying land on credit Homestead prices were also reduced by 60%. Expected business to improve soon

15. 1820 Monroe Reelected Public felt economy would improve Nationalist policies popular –American pride & purpose Federalists didn’t run anyone New paradigm firmly in place

16. 1820 MO Controversy 1 st important sectional dispute Sectionalism ME would give north political edge (12-11) North wants to block MO (slave) –Congressmen Robert Tallmadge (NY) proposal limiting slavery – passes in House but stalls in Senate South threatens secession

17. The Missouri Compromise 1820 Henry Clay brokers compromise –MO slave & no slavery above 36/30 th latitude –ME free state Sectional problems on hold for generation

19. Republicans Start to Divide Economy gets worse –Republicans don’t know what to do –1 st period of hard times Republicans lose unity Disputes –Tariffs, banks, internal improvements Party splitting

20. Election of 1824 Sectionalism –4 candidates (Jackson, Adams, Clay, Crawford) –Interests –Economic policies Andrew Jackson 41% pop. vote John Q. Adams 31% pop. vote –Clay makes House of Reps vote for him –Clay chosen as Sec. of State

21. John Quincy Adams 1825-1829

22. Adams Minority president Clay Sec. of State Calhoun Sec. of War “National Republicans

23. Nationalism of Adams American System World commercial power Activist national state –Called for legislation on Agriculture, commerce, manufacturing Mechanical & elegant arts National university & observatory Naval academy Metric system

24. Achievements Acceleration of internal improvements Steep tariff increase –“Tariff of Abominations”- Lost South Went too far for many core Republicans

25. Jackson “corrupt bargain” Starts campaigning immediately Appeal to the people Democrat Party (new) Expand suffrage 1828 56% pop. vote (record for 75 yrs)

26. Summary 13 yrs Programs look like Federalist Not a full-scale shift –Until Adams they didn’t lose core beliefs –States rights –Against fed. internal improvements –Limited govt –Agrarian policies