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After the war of 1812 and the Treaty of Ghent, the country was swept by a wave of
Economic Nationalism.
1. Population grew from 7.5 to 9.5 million between 1810 and 1820.
2. Four new states were added between 1815 and 1820 (Indiana, Illinois, Alabama
and Mississippi).
whereas in a market economy, people produce more to sell in the market (ruled
The process of growth wasn't smooth by any means. Market economies generally
provide a better standard of living for some but it can produce hardship for others. The
same was true for America. Some tried to resist the growth of the market economy but
they had little choice but to comply with the new trends.
Expansion of Transport Network:
Market economy implies the increased production and consumption of goods. This
expansion of market economy in the US, the transport network had to keep pace. Two
1. Canals - Canals are man made waterways where boats are towed by animal
Canal (EC) is 320 miles long and was completed in less than a decade by the State
of New York (1817 to 1825). The EC connects Hudson River to Lake Erie. EC was
unique because it used River Lock technology and the transportation was made
so efficient that transportation costs were reduced by 90% in some cases. The
2. Steam Boats - First documented use of steam boats in 1807 by Robert Fulton in
bigger and more placid southern states. By 1830s over 300 steamboats were
3. Railroads - Steam power was harnessed into railways which greatly facilitated the
Industrial Revolution:
This period also saw the beginning of significant industrial growth in the US. The
revolution was fueled by technological inventions (such as the cotton gin and
interchangeable parts).
Politically, the new economic expansion forced the new generation of Republicans to
rethink their party policies of benign neglect towards industry and seek to actively
promote the growth of domestic industry. Men like Henry Clay and John Calhoun were
at the forefront of this New Republican movement. Their policies constituted Economic
Nationalism.
1. Tariff of 1816 - First protective tariff to be imposed by the US. The intended aim
of this tariff was to push prices of foreign good higher so that consumers will
The tariff benefited only the industrialized north east (where abundant water
power drove industrial production) and had little benefit for the southern
economy (good weather made conditions ideal for agriculture). However, even
southerners like Clay and Calhoun supported the tariff even though it did not
2. Second Bank of the US, 1816 - The Republicans had allowed the charter for B.U.S.
to lapse in 1811. However, states began to charter their own banks and numerous
banks sprouted all over the country. Each state bank issued its own paper money
and followed its own monetary policies. Fairly soon, Congress was forced to
charter the Second B.U.S for 20 years with $ 35 million in stock. The B.U.S
3. Henry Clay's American System - Madison was reluctant to sign the Internal
Improvement bill and decided to abandon the issue to the states. Henry Clay
decided to combine the Tariff, Bank and Internal Improvement acts together and
call it the American System. The idea was to provide an integrated national
economic system: the bank provided capital for the industry, the tariff created a
market and internal improvements made the transportation (back and forth) of
Why can this be considered nationalism? Because Henry Clay wa from the south
program that he was thought was good for the whole nation.
Political Nationalism
The Republicans continued to win the presidential elections in 1816. Federalist power
In 1820, Monroe ran un-opposed and won every vote except one. The political
unanimity led some to call the era as "We are in an Era of Good Feelings." There was
Judicial Nationalism
The Federalist John Marshall continued to support the growth of national government
growth. One of his most significant decisions was the McCulloch vs. Maryland case in
1819.
The State of Maryland decided that the Second B.U.S. was unconstitutional under the
Compact Theory of constitution. They imposed a heavy tax burden on the B.U.S branch
in Maryland. The bank treasurer, McCulloch refused to pay the tax and the issue came
Maryland's claim) was wrong; it was the American people that created the
2. The Implied Powers in the constitution granted the government the power to
Diplomatic Nationalism
Florida territory was controlled nominally by Spain. The area was a safe haven for
Seminole Indians and runaway slaves. The area was very sparsely populated.
In spring of 1818, General Jackson invaded and conquered Florida. There was no formal
order from the government to do so, but no one attempted to stop Jackson either. While
in Florida, Jackson executed two British citizens and added diplomatic tension with
The Secretary of State at the time John Quincy Adams however successfully negotiated
with the Spanish. He offered to pull out American forces from Florida but suggested that
the fault lie with Spanish because they couldn't control the territory. Spain should
therefore relinquish control of the territory to someone who can govern the area and
Spain agreed to secede Florida in 1819 under the Transcontinental Treaty. The treaty
also drew a boundary between US claims and Spanish claims in North America. The
newly established boundary extended from the Gulf of Mexico to the Pacific Ocean (the
44th parallel).
2. Monroe Doctrine
By 1820s many of Spain's Latin American colonies were gaining their independence.
The US favored independence for the colonies and was afraid that Spain would reassert
control with help from other European powers and close free trade with the region to
the US merchants. The US and Britain found a common cause in weakening Spanish
In 1823, President Monroe issued the Monroe Doctrine which established two directing
powers.
By 1820s, the nationalist spirit and consensus began melting away. Two events
Also called the Panic of 1819. By 1819, Europe had recovered from wars and their
European demands had sustained high prices and encouraged over-production. Once
demand declined, so did prices. People were left with massive debts especially in the
Western territories. Since the bank was based in the East, people began to develop
Disagreement primarily over slavery which created the Missouri controversy. By 1822,
11 states had abolished slavery while 11 other states continued to retain slavery. The
precarious political balance led to the Southern fear of being dominated by the more
populated north.
In 1819, Missouri applied for admission as a slave state (the state economy was heavily
2. All slaves born in the new state would be freed after reaching 25 years of age.
These provisions would overtime convert Missouri into a free state. A big debate
1. Political - Overtime it meant the Northern free states would gain more political
3. Moral - For the first time in US history the controversy was elevated into the
Compromise.
In 1820, Maine became an independent territory and applied for admission as a non-
slave state. This maintained the political balance between slave and free states at 12 each
In addition, under the Missouri Compromise, all new states north of 36,30 parallel were
The moral nature of the slavery question became a major problem between northern
Protective Tariff:
The South began to protest the imposition of the protective tariff because it protected
only northern manufacturers. With the demise of nationalism the issue became more
Election of 1824:
By the election of 1824 sectionalism becomes so bad that four presidential candidates
emerge:
The popular vote is divided by regions with Jackson as the front runner (99 votes from
the South and West), Adams in second position with 84 votes (mostly from the
Northeast), Crawford in third position with 41 votes (from two southern states) and Clay
with 37 votes.
With no clear majority, the House of Representative had to decide whom to appoint as
the president. Clay at the time was the Speaker of the House--a very powerful position--
and he supports Adams. His support is ideological because they both support the
American System (internal improvements, the BUS, and protective tariffs).
Adams is elected to be the next president. Adams appoints Clay as his Secretary of State.
Jackson and his followers accuse Clay and Adams of collusion and label their deal as
"Bargain and Corruption." This provides Jackson with a platform for electioneering.
Jacksonian Democracy, 1824-1840
Jackson starts campaigning for the elections of 1828 almost immediately after his defeat
in 1824. A new political party emerges in the wake of this controversy.
Jackson supporters coalesce into the Democratic Republican party (the party members
later refer to themselves as simply Democrats). They retain the title Republicans in their
name just to emphasize their continuity with the former Republicans. But the party is
not formed around issues, instead the party membership consists of people who are
against Adam and Clay. Two prominent members are:
Both Van Buren and John Calhoun view the Democratic party as a stepping stone to
presidency.
After the break with the Democratic Republicans, the Republican party becomes the
National Republican party. Led by Adams and Clay, the party favors:
1. Protective tariff
2. American University
3. Investment in science and research.
Despite their ambitious platform, the National Republican party lost the mid-term
elections in 1826 and with it control of Congress.
Elections of 1828
The National Republican party nominate Adams and Rush as their candidates for
presidency and vice presidency respectively.
The Democratic party nominates Jackson for the presidency and Calhoun as the vice-
president.
The elections of 1828 are significant because it was the first time that modern
electioneering techniques (image and marketing) were used. Jackson and his followers
managed to steer attention away from real issues to personality based attacks. Lacking
any public record, Jackson was deliberately vague on issues and made "cleaning
corruption from Washington" his main campaign motto.
Jackson won by the biggest majority in the 19th century. Voter turn out was unusually
high during this election--a fact that is attributed to Jackson's anti-corruption message
and his brand of populist democracy.
1. Spoils System
Jackson started the tradition of hiring his party faithful to positions in the civil
government. He was convinced that the turnover of personnel was healthy for
democracy and was adamant that government employment was no one's God given
right. This was not very unusual at the time, but Jackson turned it into a democratic
principle.
The most famous and tragic episode is "The Trail of Tears" which was caused by the
removal of Cherokee Indians from their lands to Oklahoma. Under pressure from U.S.
citizens, Jackson decided to forcefully remove Indians from their land. He chose the
course because it seemed the most humane. His other choices included:
Jackson's vice-president Calhoun intends to run for presidency and therefore must face
the issue of Protective Tariff without harming his national standing. However, he is in
constant tension with his own base in South Carolina where the Protective Tariff is very
unpopular. He supported the imposition of the tariff in 1816, but gradually comes to
oppose the tariff in the 1820s.
In 1828 the Tariff was renewed by Congress. South Carolina continued to oppose the
tariff. Calhoun is forced to maneuver in order to save his national standing while at the
same time uniting his state base. He secretly draws up the "South Carolina Exposition
and Protest" document in 1828. The South Carolina legislature publishes the document
which contains the following points:
Calhoun stipulates that South Carolina should not do anything on the issue until the end
of the year (Calhoun anticipates the upcoming presidential elections).
Jackson and Calhoun won the election. Calhoun assumed that Jackson will support
nullification, but Jackson despite being rumors of strong support for state rights,
becomes a staunch supporter of national government once he becomes the head of the
national government.
Peggy Eaton was the daughter of an inn keeper in Washington D. C. She eventually
married John Eaton who was eventually appointed as the Secretary of War in Jackson's
cabinet. Peggy's marriage raised suspicion that John had a hand in the disappearance of
Peggy's first husband in the sea. Washington D. C. society showers scorn on Peggy since
she got married before the mourning period was over. Calhoun's wife is especially angry
at Peggy and spreads a lot of the rumors.
Jackson because of his own personal experience (his wife Rachel was the subject of
similar rumors while alive) is angry at the treatment of Peggy by the Calhoun's and
demands that he restrain his wife's behavior.
Eaton and Van Buren resign to resolve the issue. Jackson uses the opportunity to fire his
other cabinet members.
The break between Jackson and Calhoun is final when Van Buren runs for the vice
presidency in the next election. Eaton departs for Spain as ambassador.
This is the first time that a personal/social issue affected the policies of the country.
Lecture Date: April 4, 2008
Tariff of 1832:
Calhoun resigns from his position as the vice president and becomes a senator
representing South Carolina.
Jackson issues proclamation that declares nullification as treason. Jackson wins re-
election with Van Buren as his Vice President.
Nullification was due to run into effect by February 1833. The Congress passes a bill (the
Force Bill) allowing the president to use the army and navy to enforce the protective
tariff. The passage of the bill is intended to convince South Carolina that the other states
support the president (the power is already implied in the presidential powers).
However, Congress reaches a compromise in 1833 that announces the reduction of the
tariff in phases.
In a face saving gesture, South Carolina calls a convention and nullifies the Force Bill.
However, they accept the Clay compromise on the Tariff and the crises comes to pass
without serious consequences.
War with the Second Bank of the US
Nicholas Biddle is the head of the BUS during Jackson's presidency. Biddle reforms the
operations of the bank and makes it more efficient. He also forces state banks to comply
with the gold and silver standard set by the BUS to control inflation and restrain
irresponsible loans.
Jackson dislikes both soft money and banks. He is supported by many others who think
that the bank is an undemocratic institution sine it has too much political and economic
power.
Biddle is afraid that Jackson may veto he renewal of the charter for the bank when it
comes up for renewal in 1936. Biddle attempts to pass the renewal in advance in 1932 in
Congress. The bill is passed but Jackson promptly vetoes the bill. Jackson in response
composes a piece of propaganda to explain his vetoe, declaring:
Biddle anticipates the problem and wants to make it an issue in the elections of 1932.
Biddle and his supporters distribute Jackson's statement to show that Jackson does not
grasp the bank's true purpose. Their strategy backfires as people enthusiastically back
Jackson.
Election of 1832
Jackson runs against Clay in 1832. The election of 1832 is significant because it is the
first time delegates from different states gather to nominate a candidate for their party.
It is also the first time in US politics that a third political party "The Anti-Masonic Party"
contests the election on the platform of breaking up the Masonic monopoly of power
(most elite politicians were members of the Masons).
Biddle responded by recalling federal loans to businesses. This created a panic among
businessmen who tried to pressure Jackson to relent. Jackson evaded the issue by
intimidating the delegation. Biddle finally had to relent and the Second Bank of the US
died in 1836 without a renewal.
Jackson action towards the BUS can be seen as very risky or idealistic. On the one hand,
it set back the banking 70 years and economic growth slowed down significantly.
Furthermore, financial stability was hard to achieve without a central directing
authority. On the other hand, the bank wasn't a very democratic institution but it had
tremendous political and economic power.
Mid 1830s was also a period of economic crisis. English industrialization had sustained
an economic boom by driving the prices of raw materials and commodities higher.
Americans responded by producing more and soon speculation became rampant. The
boom inevitably went bust and caused another period of economic hardships.
Election of 1836
Jackson had enough clout by now to hand pick his successor in Van Buren.
The National Republican party dissolved and a Whig Party emerged (coalesced around
opposition to Jackson and not around any specific political platform). They drew their
name from the anti-monarchical Whig Party of Britain. The Whig Party nominated three
candidates to run against Van Buren. Candidates are from three regions and their main
intention is to divide the votes (they have no hope of winning).
1837 the economic bubble bursts as the price of cotton drops. Van Buren responded to
the crises by establishing an independent treasury under the Independent Treasury Act
of 1840 (this is not a bank). All federal funds are withdrawn from banks and deposited
into the Treasury. This further aggravates the financial and economic crises as money is
no longer in circulation.
Lecture Date: April 7, 2008
Panic of 1837:
The economic hardships led to the loss of popularity of Van Buren and the Democratic
Party. The Whig party gained from this experience.
Van Buren runs for presidency again on a platform of issues. But he is deeply un-
popular.
The Whig Party nominates a war-hero William Henry Harrison (his reputation from the
Battle of Tippecanoe) and John Tyler.
Harrison is derided by Democrats as a drunkard who would be content to sit before his
Log Cabin and while away his time. The Whig’s counter that nothing is more American
than a log cabin.
The elections are also significant because a third party – the Liberty Party – enters the
race. Typically, third parties tend to have one political issue around which they coalesce.
The platform for this party is the control of the expansion of slavery. This is the first
time slavery becomes an issue at the presidential election level. The Liberty Party
nominates James Birney (he is a former slave owner from Alabama who undergoes
conversion, renounces slavery and moves north).
The elections are an overwhelming victory for the Whig Party. The leadership had
nominated Harrison with the hope of being able to control him (he has a reputation of
being cooperative and malleable).
He delivers his inaugural address in cold well and subsequently falls ill. His illness
progressively worsens until he dies shortly thereafter.
Tyler becomes president and assumes the full powers of the office. This is the first time
in US history that a president dies while in office and sets an important precedence for
the future.
The Whig Party leadership did not want Tyler’s presidency (he was nominated only to
draw votes from the South). Tyler however has his own political ideas. He does not agree
with the policies of the Whig Party leadership. The leadership also refuses to cooperate
with him.
This leads to a period of political paralysis where the Whig Party despite their control of
Congress and the Presidency can not achieve anything. The episode is known as the
Whig Fiasco (1841).
Tyler does not like the bank. When the Whigs attempt to establish a third Bank of the
US, Tyler promptly vetoes the first major Whig legislation (setting the tone for the rest
of the political deadlock).
By 1842, the Whigs are convinced that nothing will be accomplished during Tyler’s
presidency.
Jackson exercised the powers of the president’s office to its fullest extent and became
one of the most powerful presidents in the US history.
This raises the question whether Jackson introduced greater democracy into the
American system. Consider two points:
1. Did he increase the franchise? (No, most of the states had already expanded the
right to vote. It was limited in nature but nonetheless it was becoming more
widespread without Jackson’s intervention).
2. Greater response to the will of the public? (Yes; for example, in the Indian affairs.
Furthermore, his brand of populism made politics more engaging and the voter
participation reached its highest levels during his campaigning).
Economically, during Jackson’s term the government withdrew entirely from the
economic and financial sphere. This is know as Laissez Faire policy.
During Tyler’s administration, the US underwent a major expansion drive. This was
momentous on two counts:
2. The question of slavery once again emerged in the national arena (because the
decision had to be made whether the new states were to be slave or non-slave
states).
Texas –
During the 1830s, Texas was sparsely populated (only 3,000 non-Indian settlers lived in
Texas). Spain could not control the territory but kept it as a buffer between US and their
valuable colonial possessions in Mexico. They wanted to do this by offering contracts to
settlers who would bring in Anglo settlers into Texas. The Spanish hoped to remain in
control of Texas through controlled migration. The first contract was given to Mosses
Austin and upon his death was transferred to his son Stephen F. Austin.
The new settlers were to be good, “Catholic” citizens of Spain. The settlers agreed to this
term but paid little heed to it.
During this period, Mexico became an independent Federal Republic. The Mexican
government continued with the program of settlement. Massive numbers of Anglo
settlers poured into Texas in search of cheap fertile land. By 1835 the demographics had
shifted drastically: 30,000 Anglo settlers, 5,000 settlers of Spanish descent and about
5,000 slaves that the Anglo settlers had brought with them.
2. Mexico was predominantly Catholic whereas the settlers were mostly protestants.
3. Administratively, Texas was included in the Coahuila y Texas province. This was
because Texas had had so little settlers. Under the original provincial set up, the
majority of the provincial representatives were drawn from Coahuila. The Anglo
settlers wanted more representation for themselves and Texas.
4. Mexico had anti-slavery laws but decided to look the other way as settlers began
to bring in slaves. The issue was a constant source of tension.
Lecture Date: April 9, 2008
Annexation of Texas -
Prior to their arrival in Texas, settlers forced their slaves to sign an indentured servitude
contract for the duration of 100 years. This was to provide the legal cover for their
transportation into Texas.
Mexican government was unstable at the time with simmering conflict between
Federalists and anti-Federalists. Most of the settlers are Federalists and want to be
Mexican citizens.
1830s Mexico attempted to assert control over the Anglo-Texans. The settlers called for
a convention and send Austin to Mexico City with the demands for a separate state and
more representation. Santa Ana became president and rejected Austin’s demand for
statehood. Austin is jailed while on his way to Texas.
Santa Ana abolished the provincial system (he wanted to model the Mexican govt. on
the French model).
A rebellion developed in Texas and all the Mexican soldiers were forced out of Texas
territory. The Texans demanded the restoration of the 1824 constitution.
Santa Ana marched to Texas at the head of a big army to crush the Rebellion.
The Texans appointed Sam Houston as their leader. Santa Ana sacked Alamo and
moved to crush Houston and his 1,200 militia
Santa Ana while in captivity agreed to grant Texas the status of an independent
Republic. However, Ana was not in Mexico City and under Mexican law he could not be
a president while outside Mexico City.
Texas at the time carried a massive debt (payment for the Revolution- 1835-36) and
could not raise revenues. At the same time, Texas had no security with Indian pressure
on the West and Mexican armies in the south (Mexican army had marched into Texas on
several instances).
As a solution to these problems, Texas wanted annexation with the US. Prior to
annexation by the US, the Texans attempted an alliance with the British (who were
interested in Texas cotton). But this was against US interest and made many in the US
Congress amenable to the annexation of Texas.
Texas’s standing as a slave state made the annexation problematic. Tyler attempted to
broker a deal. Daniel Webster, Tyler’s Secretary of State, resigned in protest (he was
from Massachusetts and a strong anti-Slavery advocate). Tyler replaced him with
Upshur who died in an accident. The position went to Calhoun who was a strong
advocate of Texas annexation. Calhoun worked on the annexation of Texas and
completed it by 1844. However, he needed a 2/3 majority in the Senate to ratify the
treaty, but the Senate opposed his decision.
Henry Clay and Van Buren as prospective presidential candidates agreed that both will
oppose annexation by Congress. However, James Polk wins the democratic nomination
(instead of Van Buren). He favored the annexation of Texas and also Oregon.
Polk was a strong believer in Manifest Destiny (i.e. the American duty to expand
Westward and spread the American way of life).
The Liberty Party also ran in the election and they opposed the annexation of Texas.
The 1844 election was a close one. 5,000 votes in NY decided the election in favor of
Polk. The vote was split by the Liberty Party (for Clay).
Annexation of Oregon –
Polk wanted to annex Oregon but reached a compromise with Britain. The 1846
Compromise extended the existing boundary (under the 1818 Treaty) along the 49th
parallel to the Pacific Ocean.
1. The US wanted a port on the Pacific Coast as the terminal point for the trans-
continental railway. The only viable port was San Francisco, which was governed
by Mexico.
2. Mexico did not relinquish its claims to Texas. Furthermore, the border was
undecided in the South and West.
Polk attempted to resolve the issue diplomatically and purchase California territory and
settle the Texas border issue. He offered 25 million $s for the territory.
Simultaneously, Tyler sent an army under Zachery Taylor to sit on the Oasis River.
Mexico rebuffed the diplomatic effort because of government instability.
Taylor moved his army from the Oasis to the Rio Grande River and war was declared.
The War with Mexico was very popular in the South. However, Northerners see it as a
war to support slavery. The call is issued for an American army; and 50,000 men
volunteer from Tennessee.
Lincoln opposed the Mexican war and proposed the “Spot Resolution” (demanded to see
the spot where the was fought on American soil).
Taylor advanced deep into Mexico with his forces. Polk promptly replaced him with
Winfield Scott. By September 1847, the US army reached Mexico City.
The war provided the training for many future players in the American Civil War.
Mexico negotiated the “Treaty of Guadalupe Hidalgo” in 1848. The US made huge
territorial gains in exchange of 15 million $s.
Emerson called the annexation of Mexican territory as “Dose of Arsenic” because of the
slavery issue.