Ch 9

E M E R G E N C E O F A M A R K E T E C O N O M Y T H E P O L I T I C S O F N A T I O N B U I L D I N G A F T E R T H E W A R O F 1 8 1 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

Commerce and Banking

  New system of marketing    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

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.

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

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

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

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

The Marshall Court

  1801-1835-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

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

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