Chapter 8: Nationalism and Economic Expansion

--After war, Republicans = still firmly in power. Ex-War Hawks had visions of national growth, economic expansion and social progress requiring a more dynamic federal government.

The Triumph of Neo-Federalism

--The American System: In 1815, Madison urged expansion of military in defense of the nation. Said that national bank = worth consideration. Raised tariffs to counteract influx of cheaper British manufactures. Also called for centralization of power i nto Congress to effect this. Congress soon implemented this Neo-Federalism, which Clay dubbed the "American System." It = im of the system to make America industrially independent, and thus, stronger militarily and strategically. This = to be done through tariffs, internal improvements, and a national bank.

--Tariff of 1816: Raised duties an average of 20% to protect against flood of cheap British goods and to raise government revenue. Passed with overwhelming majority.

--Second Bank of the United States: Myriad of state banks created chaos of bank notes. Also, US govt did not have a place to put its money, market its securities, and to borrow. In 1816, 20-year charter = granted to 2nd Bank of the USA. Functions: ass isted government with $; regulated banknote currency of state banks; encourged business with sound paper currency; short-term credit. But since basically controlled the economy of the nation, Bank always had to be under direct federal control.

--Internal Improvements: Madison continued the National Road, but would allow no more construction.

--The Era of Good Feelings: Monroe elected in 1816 and 1820. Soon after 1820, Federalists died completely. American System made only limited progress during his administration. Country = in complaisant mood, abundant signs of national unity.

John Marshall and the Supreme Court

--Marshall's Role: first gave judiciary its power and prestige. Ardent and consistent nationalist. Resolute Federalist, suspicious of popular government.

--Judicial Review: Republicans = for state review of constitutionality. But Marshall gave right to Supreme Court in Marbury vs Madison.

--National Supremacy: Voided state law, saying federal law = supreme law of the land. One of most important cases = Gibbons vs Ogden, which stated that Congress' power over interstate commerce = absolute. "Necessary and Proper" clause. McCulloch vs Ma ryland: statement of the constitutionality of the Banks. But used N&P clause, and "loose construction," or "Let the end be legitimate, let it be..., are constitutional."

--Sanctity of Contracts: Yazoo land grants. Darthmouth College v Woodward.

The Monroe Doctrine

--Revolutions in Latin America: While Spain = busy with France in Napoleonic Wars, South and Central America got a liking for freedom, and revolted against Spain and Portugal. In 1820, revolt broke out in Spain and Portugal, and no hope of getting col onies back without European intervention. USA gave full recognition in 1822.

--The Fear of Foreign Intervention: Most of Europe would have liked, or = even committed to suppressing liberalism, and to interfere in internal affairs of any country that threatened European security. Time seemed appropriate for some policy to cover all contingencies. British proposed to make one with USA, but Monroe did not want USA to seem a cockboat in wake of British Man of War. Thus, Monroe decided to make unilateral statement of American policy.

--The American Reponse: Monroe Doctrine, 1823: 1) USA will not intervene in concerns of European powers when they involve matters relating to themselves. 2) USA will not interfere in existing colonies or dependencies in Western Hemisphere. 3) Any atte mpt to interfere in Latin American governments will be considered hostile to USA. 4) American continents will no longer be subject to European colonization. 5) USA will consider any European attempt to extend their political systems to American continent as dangerous to USA. Europe = irritated, but Americans = pleased.

The Westward Movement

--Advance of the Agricultural Frontier: From 1800 to 1840, great increase in agricultural productivity, from both increase in technology and increase in cultivated land. Improved trasnportation let farmers escape mere subsistence, and sell their produ cts at market. Money crops. More European immigrants.

--Factors Encouraging Migration: No hereditary ties to a single plot of land and in Europe. Looser social structure. Very fertile soil. Indians = mostly erased. Better roads, transportation, with government help: steamboats, canals.

--Life on the Frontier: Brutal life at first, but if survived, got better. But riches through farming = very slow. Real wealth = in land speculation.

Slavery and the Cotton Kingdom

--Southern Expansion: Most of southern settlers = pioneer farmers, just like notherern counterparts. Few brought slaves, but as got richer, many bought them. Cotton, rice, and sugar = cultivated with great efficienc. Cotton = best, though. As SW = mor e civilized, came to be associated with Old South.

--The Survival of Slavery: Uniqueness of South: fewer southerners = in market economy, had ready transportation. Wealth = less evenly distributed. Illiteracy higher. More rural economy, less diversified. But most important difference = slavery. Scatte ring of anti-slavery societies = forming in mid-America. But slavery = flourishing. Power over slavery legislation = in states.

--South's reasons for keeping slavery: to abolish would bring painful social change. blacks = inferior, so slavery = way of keeping them from becoming burden on society, and of maintaining purity of white race. slaves = enormous investment of $, and very profitable.

--The Nature of Slavery: Despite their large powers, masters treated slaves neither cruelly nor indulgently. Just made the system work. Some incentives for work, but slavery = essentially cruel. Slaves could not express their feelings. Often acted lik e a cheerful Sambo to protect themselves. Still, slaves = not totally dehumanized.

--Missouri and the Issue of Slavery Expansion: Rising tension over the slavery issue. By the time of Missouri's admission, had 11 each of slave and free states. As condition for admission, House proposed amendment prohibiting more slaves and requiring gradual emancipation of slaves there. This Tallmadge Amendment evoked fiery debate in Senate. First real attack on slavery, and a vigorous defense. Revealed real sectional issue. But by Henry's Clay's efforts, 1820, Missouri = admitted slave, and Maine f ree, preserving balance. Also, condition = made that no more slave states be made above the 36 30' line in Louisiana.

Another Frontier: Industry and Technology

--Beginnings of the Factory System: NE and Middle Atlantic pioneered the American Industrial Revolution. Essential features = mechanization, specialization, and trend from local to regional to national distribution. Much = copied from England. In Amer ica, labor = expensive, since alternative, agriculture, = very productive. Thus, incentive for mechanization = great. Also had cheap waterpower.

--NE's industrialization: large local markets w/ ready access to surrounding markets; superior entrepreneurial talent; well-educated labor supply; waterpower and coal; easy access to Southern cotton. Cotton, wool, shoes, iron, flour, guns, clocks = s oon mechanized. Expensive mills = financed with corporations, ie, Lowell. Better transportation across the Atlantic. Increasing interest in technonolgy.

--Capital and Labor: Increasing concern over paper-money speculations, urbanization, loss of virtue. 2 new social classes: industrial capitalists, who had $ and political clout, and workers, who depended solely on wages. But chronic labor shortage all owed for better working conditions than in Europe. But with inc. cost cutting and labor competition, real wages declined. Greater awareness of class identity, interests, and inc class tensions.

--Economic Crisis: Panic of 1819 = first depression. Land speculation inc. greatly, and Bank of USA joined in, extended credit generously. But European decline in demand for agricultural products decreased land prices. Bank called in loans, and called state banks to do the same. Bank's attempt to save itself precipitated a financial panic. Prices plummeted. By mid 20s, prosperity returned, but people blamed and hated the Bank as a souless corporation.