James Monroe and Postwar Nationalism

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James Monroe & Postwar Nationalism
James Monroe and Postwar Nationalism
I. Economic Nationalism
A. Democratic – Republicans:
1. gained control of government by 1815:
a. considered problems from viewpoint of “national” interest
b. adopted Federalist ideas on national problems
B. Second National Bank:
1. charter of first bank expired in 1811
2. 1816 – Congress charters second Bank of the United States
a. Democratic – Republicans supported bank in national interest
C. Protective Tariff of 1816:
1. passed to counter threat of cheap British imports
a. increased tariff supported by all sections of America
b. Jefferson now considered industry as “necessary to our independence”
D. Internal Improvements:
1. 1811 – Congress approves construction of the National Road (also called the Cumberland Road)
a. ran from Cumberland, Maryland to Wheeling, Virginia
b. linked Potomac to the Ohio River
c. paid by Federal Government to develop the nation
E. Era of Good Feelings (1817 – 1823):
1. period of President Monroe and feeling of national unity
a. Federalists disappeared as a national party
b. Democratic – Republicans the only major political party
2. Monroe re–elected with every electoral vote but one
a. also supported in Federalist New England
F. Panic of 1819:
1. Causes:
a. Second Bank called in loans made by state banks to western land speculators
b. speculators could not repay and land prices sharply declined
c. European demand for American farm products and textiles also declined
d. many planters had invested in western land
2. Result:
a. banks foreclosed on many mortgaged farms
b. business firms filed bankruptcy
c. unemployment sharply increased and prices declined
d. many Americans blamed Bank of the United States for the economic depression
II. Foreign Affairs and Nationalism
A. Rush – Bagot Agreement (1817):
1. U.S. and Great Britain agreed to the following:
a. mutual naval disarmament on the Great Lakes
b. disarmament

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