Monroe and Adams

1. Monroe and Adams Becker US History

2. Aftermath of War • American markets flooded • Cheap foreign goods, mainly British • Same as Am Rev: fears of inflation • Tariff of 1816 sets 20-25% tax on imports • Sectionalism develops: N vs. S • “American System” gains popularity • Henry Clay’s idea to appeal to N, S, and W • Strong national bank and protective tariff (N) • Federal funded internal improvements (S, W) • (Madison vetoes internal improvements bill)

3. War of 1812 is over- now what? No resolution of problems w/ other nations Many argue US needs a friend/ally Others recall Washington’s Farewell Address Do we sign an alliance with England? Jefferson: YES Adams: NO Review Monroe’s Foreign Policy

4. Monroe Doctrine • Result: Monroe Doctrine written by Adam • 1- W. Hemisphere closed to colonization • 2- Governments in W Hemisphere separate from E Hemis • 3- US will not tolerate intervention in W Hemisphere • 4- US will not intervene in E Hemisphere

5. Monroe Doctrine

6. Era of Good Feelings • Protective tariffs have positive economic effect • Recall the Tariff of 1816 – 25% tariff • Industry expands as Dems become national • Textile mills in particular take off • LA territory gives plenty of land • Agricultural production expands • Cotton prices double- good times, N and S • Industrial Revolution comes to America • Samuel Slater defies British law to bring mills to US • Francis Cabot Lowell introduces Lowell System • All aspects of production under 1 roof • Uses less expensive female labor in factories

7. By 1819, however, all is not well… • $21M owed by land speculators • Overproduction of cotton causes glut • Cotton prices drop dramatically… • National Bank sees a recession coming • Call in all loans to state banks • What does this mean? • Where do state banks get the money from? • State banks call in loans to land speculators

8. Panic of 1819 • Land speculators can’t pay • All they have is land- basically worthless • State banks foreclose on loans • Speculators lose everything • Still, state banks can’t pay back their loans • State banks go bankrupt • Every consumer risks losing their money • Consumers pull their saving from banks • This guarantees bankruptcy- panic is underway

9. Who’s to blame? • National Bank? • Low Tariffs? • High Tariffs? • Land Speculators?

10. Monroe’s Second Term • Monroe beats Adams in 1820 Election • Term 2 will deal mainly with expansion • 1787 Northwest Ordinance • 1790 Southwest Ordinance • 1807 Banning of African Slave Trade

11. 1819 Missouri Applies for Statehood • Slaves currently exist in Missouri • Missouri plans to allow slavery as a state • James Tallmadge of NY adds amendment • Calls for • Ban on slave imports into Missouri • Gradual emancipation of slaves in Missouri • Southerners outraged • Northerners generally approve

12. Deadlock in Congress!! • South threatens to leave Union if it passes • North controls House of Reps- it passes • N/S evenly split in Senate • Need a majority vote to pass laws • Can’t pass Senate- tie vote every time • Nothing happens- Enter Henry Clay of KY

13. Missouri Compromise • Clay designs a compromise for N/S • Missouri is slave • Maine is free (balance) • No slavery North of South border of MO • (Except Missouri) • Official US policy toward slavery • Again, we put off the issue: too controversial