Chapter 7 (1817-1840)
1-Regional Economies Create Differences
Northwesters started Industrial Revolution
¶ Eli Whitney – 1798-1801 inventor. Practiced interchangeability of parts to increase productivity. His muskets can be put together from
parts chosen at random. This increased production speed and improved reliability of goods. Made mass production (production of goods in
large quantities) possible in semi-mechanized factories.
¶Changes in manufacturing led to Industrial Revolution - change in social and economic organization (hand tools replaced by machines,
large-scale industrial production). Started in Britain 18th century with invention of streams generators, burning coal power generators and
power-driven machinery. Mass-production of textiles. Advances in diet, medicine, sanitation prolonged life. Country had more people than
jobs, making labor cheap. Merchants built factories that made labors even cheaper.
¶US had all resources for Industrial Revolution – rushing rivers, deposits of coal and iron, labor-immigrants. Embargo Act of 1807 and War of
1812 stopped international trade and turned Americans to invest in their own country, develop industries at home; produce goods to be sold
in US. This created US market for mass-production goods.
¶New England used to depend on shipping and foreign trade. Agriculture was not profitable. It was more ready to new form of manufacturing.
1793 Samuel Slater established first mechanized textile factory in Rhode Island, built cotton-spinning machines. 1813- BostonFrancis Cabot Lowell, Nathan Appleton, Patrick Tracy Jackson built a weaving factory in Massachusetts. All steps of manufacturing were
mechanized with power machinery. 1820s Lowell became manufacturing center; young women came for work.
Southern developed agricultural system
¶Northwest-north of Ohio River (Ohio, Indiana, Illinois, Wisconsin, Michigan) – established small farms, produced goods to sell sold locally.
Cities grew; farmers increased production of corn and cattle; sell in city markets; bought goods in stores. Production of corn was not very
profitable; it did not require much labor, so they did not need much slaves. Northeastern farms were smaller and self-sufficient, did not need
slaves. By late 1700s, slavery in North was dying out. People voiced religious and political opposition to slavery. 1804-Almost all northern
states voluntarily abolish slavery.
¶South-1793 -Eli Whitney invented The Cotton Gin-machine to remove seeds and clean cotton. In Southern farms - grow short-staple
(short-fiber) cotton for profit and sell them to British textile mills and New England. Long-staple (long-fiber) cotton grew in South Carolina
and Georgia. Poor and wealthier farmers were buying land to produce cotton for profit. Wealthier farmers bought huge areas of land and
enormous slave labor for cultivating. 1820 Louisiana, Mississippi, Alabama became Cotton Kingdom, accelerated expansion of slavery.
¶Slavery. Plantation owners wanted slavery to remain legal in South to make production of cotton more profitable than with paid workers.
Increase production of cotton led to increase of slaves. 1790-cotton produced 3,000 bales a year, slaves -700,000; 1810-cotton 178,000
bales, slaves-1,200,000. Some blacks in South bought freedom from wages they earned working on other plantation, after they finish work
for their owners. Others ran away, were freed in legal wills, or granted their freedom after long years of service.
¶1815. President Madison proposes to Congress plan to unite country and create strong economy. 3 major points:
● Establishing a protective tariff;
● Restore national bank (established by Washington’s administration and reduced under Jefferson)
● Developing transportation system and other internal improvements
Henry Clay (House Speaker-Kentucky) and John C. Calhoun (South Carolina) supported Madison’s plan and proposed American
System: North would produce manufactured goods that farmers in South and West would buy. South and West would produce grain, meat,
and cotton needed in North. American System would unite nation’s economic interests. National currency and transportation network would
help exchange goods. America will be economically independent of Britain and European nations.
¶Tariffs of 1816- Since War of 1812, British merchants priced their goods (iron, textile) far below American-made. No one wanted to
buy American products. James Madison proposed Tariff of 1816 (tariff on import) to increase cost of foreign goods, eliminate their price
advantage. Tariff revenue was also used for roads, canals and lighthouses. North supported Tariff of 1816 because they produced the same
goods as British, South opposed it because it eliminated cheap goods.
¶National Bank-Second Bank of the United States (BUS) benefited all regions. It was chartered by Congress for 20-year period in 1816.
Regional banks operated on their own currency, Second Bank currency became available nationwide.
¶Transportation system (roads and canals) was necessary to business and trade. It was expansive. States financed only their local roads
through collection of tolls at turnpikes. National Road (built 1811-1838) –the first highway- extended from Cumberland (Maryland) to
Vandalia (Illinois). Erie Canal –“Big Ditch” (built 1817-1825) linked Hudson River to Lake Erie (Atlantic Ocean-Great Lakes). New York
State made a lot of revenue from the canal. New York City become impotent port.
¶Country was pleased with development. 1716 James Monroe (Virginia) was elected as president. Monroe (Republican from Virginia) was
welcomed in Federalist Boston during his tour. Boston Columbian Sentinel declared that Americans entered “Era of Good Feelings”.
2-Nationalism at Center Stage
¶1808 Robert Fulton and Robert Livingston received exclusive right from Congress to built steam engine boat that can carry freight and
passengers. Boat “Clermont” – 150-mile trip up the Hudson from NYC to Albany in 32 hours. Boat Paragon- luxurious dining room and
bedrooms. Profit from this state charter gave them monopoly (exclusive legal control of a commercial activity)
Supreme Court under Chief Justice John Marshall boosts power of the federal government:
● Gibbons v. Ogden (1824 ) - Boats operators Aaron Ogden and Thomas Gibbons had an argument about who has exclusive rights to
run boats. Court ruled: interstate commerce regulated only by federal government. Gibbons v. Ogden decision ensure that federal
government regulate everything that crosses state lines (air traffic, television, radio waves, cell phones)
● McCulloch v. Maryland (1819) –State Maryland attempted to destroy local branch of Bank of US by heavy taxes. Court denied the
right of Maryland to tax Bank of US: “the power to tax is the power to destroy” – this strengthened government economic control.
● Court blocked state interference in business and commerce : Fletcher v. Peck (1810) –nullified Georgia law that violated
individuals’ right to enter contract. Dartmouth College v. Woodward (1819) – New Hampshire was denied the attempt to revise the
original charter it granted to college(because charter was a contract and Constitution did not permit states interfere with contract
Secretary of State John Quincy Adams shaped nationalism as Foreign Policy – National interest above regional foreign affairs
● Rush-Bagot Treaty(1817) - Great Britain and US to reduce the Great Lakes fleets – led to US and Canada to completely demilitarize
their common border.
● Convention of 1818 – border at the 49th parallel up to the Rocky Mountains – compromise with Gr. Brit. To jointly occupy Oregon
Territory for 10 years.
● Adams-Onís Treaty (1819) – Spanish minister Don Luis de Onís gave up Spanish owned Florida to US. (New Spain = Mexico)
Monroe Doctrine (1823): 1) Europe should not attempt to create new colonies or try to overthrow newly independent republics in
Western Hemisphere.
2) US would not involve in European affairs or interfere with existing colonies in Western Hemisphere.
Monroe Doctrine was in respond to : a) Portugal and Spain attempt to reclaim colonies in Latin America after defeat of Napoleon
(1815);
b) Russia 1821 claimed it’s Alaska’s southern boundary at 51st parallel (north of Vancouver) – threat to Northern
California and trade with China.
Nationalism Pushes America West – Northwest Territory (present Ohio, Indiana, Illinois, Wisconsin, Michigan)
Elias Pym Fordham wrote in “Personal Narrative of Travels” – “plain working farmer in the Northwest with $500 more independent then
English gentleman with $1000”, “No white man or woman will be a servant”.
Northwest Ordinance (1787) – territory become a state when its population 60,000. – State can petition the US for admission, draft state
constitution, elect representatives, become part of US after Congress approves.
Missouri Compromise (1820) – Missouri requested admission to US. It should have become 11th slave state to keep balance between
slave and slave-less states. But NY Congressman James Tallmadge amended Missouri statehood bill to gradually free its slaves. Southern
states interests were under fire. Congress under Henry Clay resolved this confrontation with Missouri Compromise – Main was admitted as
free state and Missouri as slave state, preserving sectional balance in the Senate. The rest of Louisiana Territory was split by dividing line at
36˚ 30’ north latitude. South of the line, slavery was legal. North of the line-except in Missouri-slavery was banned.
3-Andrew Jackson’s rise to power and his political views.
Andrew Jackson was a chief political opponent of president John Quincy Adams:
● Jackson won majority of electoral votes in congress, but Henry Clay (House Speaker) disliked Jackson and supported Adams.
Adams won popular votes.
● Jacksonians (followers of Jackson) accused Adams of stealing presidency, and corruption between Adams and Clay ( Adams
appointed Clay secretary of state). Jacksonians withdrew from Republican Party to form Democratic Republican Party (today’s
Democratic Party).
● Next 4 years Jackson sabotages Adams’s policies – opposed national bank and tariffs.
Jackson’s New Presidential Style:
● 1821, NY legislator Nathan Sanford – all taxpayers should votes (not only property holders) – all white mail citizens.
● After expansion of voting rights candidate must appeal to common citizens. 1828 elections – Jackson portrayed himself as man of
humble origins even he was wealthy; won elections by landslide
● Ability to gain power in the office – policy of “rotation in office” – his appointees to federal jobs serve maximum of 4 years terms to
prevent corruption. This gives him ability to fire earlier federal employees and give jobs to his friends. His administration practiced
spoils system of government – incoming officials throw out former appointees and replace them with their own friends.
● His advisors Jacksonians become his “kitchen cabinet” because they slipped into White house through the kitchen.
Removal of native Americans:
the reason – they occupied large valuable land in Georgia, NC, SC, AL, MS and TN.
Some whites favor displacement and dispossession of all Native Amer., others tried to convert them to Christianity. Some South tribes adopt
European culture (Cherokee, Choctaw, Seminole, Creek, Chickasaw) Cherokee created formal government with two-houses legislature and
constitution, published bilingual newspaper using alphabet by the Cherokee George Guess (Sequoya).
¶Jackson believed that assimilation will not work and to keep Native Amer in their land will require too many troops. Removal will end
violence between Indians and whites and needed for “progress of civilization”
¶ John Marshal believed in Cherokee’s rights to their land because of the past treaties
Indian Removal Act (1830) –federal government provided funds to negotiate treaties to force Native Amer move west
1830 pressured Choctaw to move form Mississippi
1831 forcibly (US troops) remove Sauk and Fox from Illinois and Missouri
1832 forced Chickasaw from Alabama and Mississippi
¶Cherokee Nation tried legally win, but Chief Justice John Marshall refused because he considered Native Amer with no federal standing
(neither foreign nation nor a state) – “domestic dependent nation”. Cherokee teamed up with Samuel Austin Worcester – missionary, jailed
for teaching Indians without a state license. Worcester v. Georgia (1832) – Court recognized Cherokee Nation as distinct political community
not to be regulated by Georgia. Jackson disagreed: “John Marshall made his decision; now let him enforce it”. Part of Cherokee Nation who
wanted to relocate were declared “true Cherokee Nation”.
¶Treaty of New Echota (1835)– gave last 8 mln acres of Cherokee land to federal government for $5 mln. – beginning of Cherokee exodus.
1838 President Martin Van Buren ordered forced removal of remaining 20,00 Cherokee from East.
¶Trail of Tears – 800 mile rout of relocation by steamboat, railroad by mostly by foot. In winter Cherokee died in route. Government officials
stole their money, outlaws stole their livestock. Cherokee buried more then 25% of their people.
4-Jackson, States’ Rights, and the National Bank
Previously 1816-Congress passed tariff to protect young American industries from cheap British goods. Tariff was increase in 1824 and 1828
¶From Southern point North was getting rich at expense of South. British sell less good, so they buy less cotton from South, South is forced
to buy expansive North American goods instead of cheap British goods.
¶Jackson’s VP John C. Calhoun called 1828 tariff a Tariff of Abominations. As a nationalist, he supported it in 1816. However, his
own state South Carolina economy could not recover from the depression with low cotton prices. Calhoun created nullification theory that
questioned legality of applying some federal laws in sovereign states (Sovereign states can nullify any constitutional law within its borders)
He believed that state has right to withdraw from US, if federal government refused to permit a state to nullify a federal law.
¶Hayne vs. Webster (1830) –Senator Robert Hayne, South Carolina debated tariff/state rights issue with Senator Daniel Webster,
Massachusetts. Key question: Union creation of state legislatures or of the people. Hayne: condemn the tariff. Webster:
¶ South Carolina Rebels – did not accept tariff law, threaten to nullify the low or withdrew from the Union if customs officials tried to collect
duties. Jackson declared SC actions treason, urged Congress to pass the Force Bill (did it in 1833).
¶ Force Bill – use army and navy against South Carolina if state resists to pay duties.
¶ 1833 Henry Clay, The Great Compromiser, proposed a tariff bill that gradually lower duties over 10-years period. For now crisis was
controlled, but it continued in 1840s and 1850s and was a major cause of Civil War.
¶ Jackson opposes the Bank of the United States (BUS) His reasons: lost money in financial speculations, believed that Bank responsible
for financial Panic 1819, too much influence on economy, threat to democracy, help rich, against common people, had unfair advantage
against other banks. Jackson used his power to set public against bank– Henry Clay and Daniel Webster wanted to renew Second Bank’s
20-year charter.
¶Jackson tried to kill Bank of the US by asking to move government deposits to state banks - “pet banks” loyal to a democratic party.
●
Secretary of Treasury was fired when he refused. New secretary made money transfer. Nicholas Biddle attempted to save BUS by asking
individual and businesses to repay their loans and refused to make new loans. His reason was - bank was not rechartered and aimed at
public opinion. Merchants and manufacturers went into bankruptcy and pleaded Washington for help. Pressure from Jackson and financial
leaders forced Biddle to loosen loan policies. Eventually Second Bank became just another Philadelphia bank. 5 years later it closed.
¶ Consequences of Jackson’s Policies – After Philadelphia BUS was destroyed, New York became new financial capital of US. Jackson’s
actions angered public and Democratic Party. He acted not as a president, but as a “King Andrew the First”. Henry Clay and Daniel
Webster acted by creating Whig Party. In Britain there was a group of called Whig that tried to limit royal power. “Whig” – anyone opposes
excessively powerful chief executive.
¶ Martin Van Buren – wins next election after Jackson refused to run. He inherited bank war. Many “pet banks” failed after people wanted
to redeem their currency for gold or sliver. People were buying land with worthless bank notes. Jackson issued Specie Circular – only gold
and silver could buy public lends. People rushed to exchange bank notes for gold and silver. May 1837-New York and other banks stopped
accepting all paper currency.
¶ Panic of 1837 – bank closings and collapse of credit system cost many people their savings, bankrupted businesses, third of population
jobless. Reasons: Jackson’s policies, hardship in Europe forced Britain to recall their loans to American banks. Because bank of US already
lend these money, they had to ask customers to repay their loans. Van Buren tried to reduce federal spending, but that further decline
prices. 1840 Congress established special treasury that use only gold and silver coins.
¶ William Henry Harrison (Whigs) – wins next election by portraying Van Buren as privileged aristocrat. (Van Buren was a son of tavern
owner). Harrison came from wealthy family but presented himself as a commoner. Democratic newspaper intended to insult Harrison- called
him an alcoholic. However “log cabin and hard cider” became Harrison’s campaign symbols. Harrison immediately took steps to improve
economy, but died in a month from pneumonia. ¶ John Tyler, Harrison’s VP and successor (Virginian) opposed Whig’s economic policies. It
was Whig’s mistake to include him on election ticket.
¶ In 1830 – 2 parties – Jacksonian Democrats (Democratic Republicans that had broken away from Republican party) and Whigs. Political
style changed from 1790s (Jeffersonian Republicans and Hamiltonian Federalists). New politicians appealed more to passion than to reason.
Average citizens become more politically involved.