Chapter Six

THE FIRST ERA OF BIG CENTRAL GOVERNMENT

Chapter six

1.      What was “The Era of Good Feelings”? What positive aspects were its results? James Monroe took a “Goodwill” tour of the Northeast in 1816 which was then reported in a Boston newspaper initiating “The Era of Good Feelings”. Partisan bickering abated for a while thanks to President James Monroe purposefully downplaying differences. States reduced or waived property rights as requirement to vote, religious revivals caused people to renew their spiritual efforts, a single-party unity emerged.

*NOTES: Banking practices of the day:

*             Any state-chartered bank could print money as long as it was backed by gold or silver. During the War of 1812 most banks outside New England suspended specie payment even though they continued to print bank notes without the gold or silver backing.

·        Because congress had refused to renew the charter of the BUS in 1811 – this accelerated the need for money to fund the War of 1812.  Most banks kept 5% to 20% specie in their vaults but panic, war, etc. contributed to it increasing, generating inflation.

2.      What were the pros and cons of chartering the second BUS? How did it contribute to the Panic of 1819? Any similarities to the current Fannie Mae and Freddie Mac mess?  Funds were desperately needed to pay for war, etc. The $35 million capitalization was huge, a branch could be opened in any state and the state’s capacity could not compete, depository of federal funds dwarfed state bank deposits. SUSPICIONS: First, it was done out of panic and haste, “special privilege” was a vague term that led to conspiracies. Did the British really control it? What politicians had their hands in it? Is there a limit or a cap to “special privilege”?

*NOTES: BUS carried strong overtones of Hamilton’s Federalist beliefs.(wealthy, educated should lead the country, strong central government, loose interpretation of the constitution, favored BUS, and tariffs.) The bank dealt with economic fluctuations as it attempted to rein in inflation that had followed the Treaty of Ghent which ended the War of 1812. Calling in many outstanding loans, the BUS contracted the money supply, producing lower prices which gave people more expendable income, but caused falling farm prices and a widespread difficulty in obtaining new loans for agriculture or business. Cotton prices crashed and British buyers started importing Indian cotton. Even though the BUS was only partially to blame, the new bank president, Cheves, continued “credit contraction” “which left the bank with multiple mortgage foreclosures, and added to complaints that the BUS existed for the privileged elite.” People lost their jobs. “The bank was saved, but the people were ruined.”

The use of a credit contraction is normally associated with the desire to slow the rate of inflation in the general economy. By creating a state of recession, credit contractions help to slow or even possibly stop any growth of inflation for a period of time.

The use of credit contractions makes it harder for consumers to obtain credit. At the same time, credit contractions may also help to encourage saving money in standard savings accounts and Certificates of Deposit. A result is that banks and other financial institutions improve their capital ratios and carry less debt in the form of mortgages and loans.

3.      Supreme Court Justice, John Marshall, defined the constitutional powers of the United States. In the cases listed that he argued, (pg. 182-183) what powers did the Supreme Court hold? How did his decisions affect states’ rights? The case of McCulloch v. Maryland brought up two constitutional issues: Did states have the power to tax federal institutions within their borders? And since the BUS wasn’t even mentioned in the constitution in the first place, was it even legal? Judge Marshall turned to Article I, Section 8 which Hamilton had also used to justify the first BUS.  Congress has the authority to make all laws which shall be necessary and proper for carrying into execution the foregoing powers.” Referred to as the “necessary and proper” clause. This clause establishes the "implied powers," by which Congress has authority to pass legislation in areas not specifically listed in the Constitution.

·        NOTES: this vague clause would later be the justification for Social Security, welfare, funding for the “arts”, establishing scientific and medical agencies, Dept. of Energy, Education, and Commerce.

·        Marshall’s influential rulings reshaped American government, making the Supreme Court the final arbiter of the Constitution. Marshall's Court defined the constitutional standards of the new nation. The great work of the Marshall Court was done in a handful of great cases, especially Marbury v. Madison, McCulloch v. Maryland, Cohens v. Virginia and Gibbons v. Ogden.

·        Marshall slowly chipped away at states’ rights while maintaining that “the powers of the government are limited…. And its limits are not to be transcended.”

Pg 184 The Virginia Dynasty Cont.

4.     James Monroe – 1816: What was the Monroe Doctrine?  The Monroe Doctrine asserted that the Western Hemisphere was not to be further colonized by European countries and that the United States would neither interfere with existing European colonies nor meddle in the internal concerns of European countries. Its primary objective was to free the newly independent colonies of Latin America from European intervention and control (thus ensuring US dominance). The doctrine put forward that the New World and the Old World were to remain distinctly separate spheres of influence, for they were composed of entirely separate and independent nations.^[3]

·        Monroe – what was he like? Had a reputation for the highest integrity. Genial personality and willingness to work with others that inspired him to take a good will tour to the Northeast in 1816 initiating the “Era of Good Feelings”. He favored a weak executive, seeing the power as emanating from the people through the legislature.

·        Internal Improvements – Monroe was a strict constructionist who agreed to fund internal improvements if they related to national defense. If not, he would not allow funding without a Constitutional amendment.

5.      Define de Tocqueville’s view of America’s “Restless Spirit”. How did this relate to the American inventive spirit and the influx of industrial entrepreneurs? He felt that Americans were always on the move to improve or invent or develop a better way to do something. Daniel Boone, Davy Crockett, Gail Borden, John Deere – all entrepreneurs that embodied the “restless frontier spirit.”

·        Andrew Carnegie, J.P. Morgan, John D. Rockefeller, Levi Strauss, “There is not one who does not desire, even confidently expect, to become rich.” – reporter for Cincinnati newspaper.

·        People got greedy with land speculation and the move westward. Jim Bowie, who died with Davy Crockett at the Alamo, became a crook and swindled people out of money through fraudulent land grants.

·        Canal Era – Erie Canal – 363 miles, 40 ft. wide, 18 ft. deep. Goal was to link Lake Erie with other Great Lakes, and to the Atlantic. Dug with shovels and horsepower.

6.      Discuss the controversial acquisition of Florida. Spain, at this time, was in a political mess. They did not have the manpower to control their own borders. Monroe and Adams felt that the time was right to take Florida, but they didn’t want to outright seize it. Meanwhile, General Andrew Jackson had been sent to Florida to fight the Seminole Indians who had repeatedly crossed international lines into “Alabama and Georgia to attack planters and harbor escaped slaves.” TV MAP

(pg 192). Jackson seized Florida upon the orders of John C. Calhoun, Secretary of War. Though it was not clear whether permission was given for him to cross internatoinal lines, Jackson later claimed that he had the “go ahead” from the government which they denied. He even told Monroe that he would take Cuba too if given permission. When confronted later about the expansionist and crazy General Jackson, Monroe pleaded “ill health.”

    Jackson continued his raid on the Seminoles. He captured their leaders and two Englishmen whom he executed because he was convinced they had encouraged the Indian uprising. Though many demanded his punishment, Jackson was never censured by the government and almost applauded for what he gained for the American government through the Adams-Onis Treaty. . Facing the grim fact that he must negotiate with the United States or possibly lose Florida without any compensation, Spanish foreign minister Onis signed a treaty with Secretary of State John Quincy Adams. The United States agreed to pay Spain $5 Million for ceded Florida. Adams agreed that Texas was NOT part of the Louisiana Purchase, Spain relinquished all claims to the Pacific Northwest. TV MAP

  

7.      After the Adams-Onis Treaty, Monroe sent Major Stephen H. Long on an expedition to explore these “worthless and bleak Great Plains” that he described as “suitable only for a permanent Indian frontier.” However, with American ingenuity and hard work, this area turned out to be extremely valuable. In what ways? A trade route opened that would ultimately encourage Americanization of the Great Plains. After the Mexican Revolution in 1820, the Santa Fe Trail opened bringing traders from Missouri. They brought steamboats with cargo up from St. Louis up the Missouri River to Independence. There they outfitted Conestoga (covered) Wagons with goods like cloth, cutlery, and hardware. They returned with Mexican silver, fur and mules. (pg. 193)  They required military escorts because of the threat of the Kiowa and Comanche Indians. Slowly the Great Plains were settled and towns along the Missouri river that would later service pioneers and other immigrants traveling along the Oregon Trail. The American Fur Company established Fort Union on the Missouri River. “Mountain Men” from the Rockies pursued the fur trade between 1820-1830 mapping the Rockies and paving the way of the Oregon Trail.

·        Monroe leaves what seems to be a happy little environment for the incoming administration. There are no wars, no foreign entanglements, a robust economy, no party bickering. But, as always, he has managed to sidestep the “800 lb. elephant” in the room… slavery.

8.      Discuss the debate in admitting Missouri to the Union. Eleven slave states, eleven free states. What would Missouri be? It would threaten to shift the balance of power in the federal government, and set a precedence for the entire Louisiana Purchase territory. Congressman James Tallmadge and Senator Rufus King introduced legislation to prevent slavery in Missouri and to make prohibition a prerequisite for admission into the Union. Senator William Pinckney asserted that the US was a collection of individual sovereignties and that Congress lacked the constitutional authority over those sovereignties.

9.      Define the Missouri Compromise. What affect(s) did it have?

·        Constitution never said anything about territories. Even though the Northwest Ordinance dealt with slavery, it was written before the Louisiana Purchase and the frenzied move westward. Maine soon applied for statehood and would be a “free” state which would maintain balance of powers. The Missouri Compromise was an agreement passed in 1820 between the pro-slavery and anti-slavery factions in the United States Congress, involving primarily the regulation of slavery in the western territories. It prohibited slavery in the former Louisiana Territory north of the parallel 36°30' north except within the boundaries of the proposed state of Missouri. Prior to the agreement, the House of Representatives had refused to accept this compromise and a conference committee was appointed. The United States Senate refused to concur in the amendment, and the whole measure was lost.

http://en.wikipedia.org/wiki/Missouri_Compromise

·        Henry Clay was the Great Compromiser of this bill. Known for his being wishy washy, He tried to appease all sides of the issue but it just caused more hard feelings and emotion. Freed blacks could not go into slave states. Masters could not take their slaves into free states, etc. Slavery could have worked assuming: that the South could hold on to pro-slavery presidents, that the newly admitted states would not tip the balance of power, and that they could control the judicial branch through the pro-slavery president.

·         The ability of non-slave states would only grow and have more electoral clout and more power in both houses of Congress. Also, if slavery was evil in the territories, how could it be ok in the southern states? If morally acceptable in Mississippi why not in Minnesota?

10.   With Van Buren’s new Democratic party, most states had abandoned property requirements for voting, but voter turnout fell quickly. Why? Despite the heated and moral issues of the day, how does Van Buren put politics before the country? (include slavery, job creation, hypocrisy  bribery) Voter turnout was higher when tied to property rights because people felt a sense of pride. When you get “something for nothing” it loses its value. One of Van Buren’s main goals was to stick it to the Federalists and the hated John Quincy Adams for “stealing” the election. (After Henry Clay dropped out of the presidential race with too few electoral votes, opponents felt that he corroborated with Adams to “steal” the presidency. Corrupt Bargains, pg. 201) He knew slavery was immoral and evil, but more important to him was to win and gain power. His strategy was to simply not talk about slavery or bring it up in debate. He claimed he wanted to get rid of corruption but he was corrupt. His strategy was to “buy” votes with promising jobs “for the noble purpose of saving the nation.”

11.   HoWhat were the similarities and differences of John Quincy Adams and his father? Why was JQA’s presidency referred to as “stillborn”? Benefited from the family name, associated with his father’s Anglophobia, a feeling of distrust from the people, suffered from chronic depression, was very self-righteous, he abandoned the Federalists and became a Republican, excellent foreign policy, political astuteness, unable to admit to his faults. His presidency was “stillborn” because his opponents felt that he stole the election and would not allow him to pass any legislation. Plus Adams stuck his foot in his mouth when he said that Congress should not be “palsied by the will of our constituents.” The Tariff of Abominations was his baby.

12.    What did Henry Clay contribute to our nation’s legacy, if anything? Lincoln and JFK thought he was one of the most outstanding senators in US history. The American System, originally called "The American Way", was a mercantilist economic plan based on the "American School" ideas of Alexander Hamilton, consisting of a high tariff to support internal improvements such as road-building, and a national bank to encourage productive enterprise and form a national currency. This program was intended to allow the United States to grow and prosper, by providing a defense against the dumping of cheap foreign products, mainly at the time from the British Empire. He was the “Great Band-Aider”

13.   How did Andrew Jackson handle the “Indian” situation? Did that help or hurt America’s expansion westward? Explain. Jackson believed in “Manifest Destiny” which, he felt, guided him to break treaties with the Indians and expand westward. He called it a “just, humane, liberal policy” that would remove the Indians west of the Mississippi River. John C. Calhoun and James Monroe as well as others felt the same way. Louisiana Purchase led to the Homestead Act.

14.   Explain Jackson’s “thorn in the flesh” left for him by John Q. Adams. In 1828 the U.S. Congress passed a bill putting high tariffs (government taxes) on imported goods. The measure was intended to protect industries of New England, where numerous factories had opened during the first three decades of the century and the manufacture of finished goods defined the region's economy. Congress figured that by placing high taxes on goods from other countries, Americans would buy American-made products. But southern farmers had come to rely on cheaper imported goods. Believing the 1828 legislation was overly protective of the nation's industrial interests, southerners dubbed it the "tariff of abominations." Vice President John C. Calhoun (1782-1850), from South Carolina, openly and strongly criticized the tax, pronouncing that any state could declare null a federal law it deemed unconstitutional. In response, Congress took measures to lower the tariffs, but not eliminate them. South Carolina remained dissatisfied with the legislation, and in 1832 the state declared the tariff act null and void. Further, it threatened secession from the Union. President Andrew Jackson (1767-1845), unwilling to tolerate such rebelliousness and determined to enforce the federal law at all costs, asked Congress to pass the Force Bill-legislation allowing the nation's armed forces to collect the tariffs. Jackson's move inspired tremendous opposition in Congress. The Senate leader of the anti-Jackson contingency was Henry Clay (1777-1852) of Kentucky. Clay, who had earned himself the nickname "Great Pacificator" for his work in crafting the Missouri Compromise (1820), presented another compromise in 1833. He proposed that duties on certain goods could remain high but others should be gradually reduced over time. The Compromise Tariff authored by Clay averted an all-out conflict in the nation. The measure was passed and thereafter tariffs were adjusted depending on the prevailing economic conditions. But the fury over the Tariff of Abominations further revealed the North-South differences and the federal-government-versus-states'-rights issues that would inspire the southern states-led by South Carolina-to secede from the Union in 1860 and 1861, bringing on the American Civil War (1861-65).

15.   Define “Jacksonianism”. Promoted the strength of the executive branch at the expense of congress, Voters included ALL white males, not just property owners, broadened the public’s participation in government, Trail of Tears, Common Man, instituted two-party system Strongly avoided by the forefathers in the constitution. Favored westward expansion – Manifest Destiny

16.  What events can you (or have you seen) that foreshadow the inevitable Civil War? The Missouri Compromise, The Tariff of 1828 (Tariff of Abominations), Compromise of 1850 which addressed ceded states gained at the end of the Mexican War whether they would be slave or free states. California was free and Utah and New Mexico could choose.

2. Fugitive Slave Act – 1850The Fugitive Slave Act was passed as part of the Compromise of 1850. This act forced any federal official who did not arrest a runaway slave liable to pay a fine. This was the most controversial part of the Compromise of 1850 and caused many abolitionists to increase their efforts against slavery. This act increased the Underground Railroad activity as fleeing slaves made their way to Canada.

3. Uncle Tom's Cabin Was Released Uncle Tom's Cabin or Life Among the Lowly was written in 1852 by Harriet Beecher Stowe. Stowe was an abolitionist who wrote this book to show the evils of slavery. This book, which was a best seller at the time, had a huge impact on the way that northerners viewed slavery. It helped further the cause of abolition and even Ab

6. Dred Scott Decision In 1857, Dred Scott lost his case proving that he should be free because he had been held as a slave while living in a free state. The Court ruled that his petition could not be seen because he did not hold any property. But it went further, to state that even though he had been taken by his 'owner' into a free state, he was still a slave because slaves were to be considered property of their owners. This decision furthered the cause of abolitionists as they increased their efforts to fight against slavery. Abraham Lincoln recognized that this book was one of the events that led to the outbreak of the Civil War.

7. John Brown Raided Harper's Ferry

John Brown was a radical abolitionist who had been involved in anti-slavery violence in Kansas. On October 16, 1859, he led a group of seventeen including five black members to raid the arsenal located in Harper's Ferry, Virginia (now West Virginia). His goal was to start a slave uprising using the captured weapons. However, after capturing several buildings, Brown and his men were surrounded and eventually killed or captured by troops led by Colonel Robert E. Lee. Brown was tried and hanged for treason. This event was one more in the growing abolitionist movement that helped lead to open warfare in 1861.

8. Abraham Lincoln Was Elected President

With the election of Republican candidate Abraham Lincoln on November 6, 1860, South Carolina followed by six other states seceded from the Union. Even though his views about slavery were considered moderate during the nomination and election, South Carolina had warned it would secede if he won. Lincoln agreed with the majority of the Republican Party that the South was becoming too powerful and made it part of their platform that slavery would not be extended to any new territories or states added to the union.

17.   What current headaches do the national BUS present? Why did Jackson declare “War” on the BUS? Contrary to the long-held belief that Jackson was a “hard money” man and wanted to get rid of all paper specie, he declared war on the BUS because it presented a political threat to him. As he was against the BUS early on, he benefitted from the prosperity it brought. He then changed his mind, but used the “big evil bank” to his political advantage.

18.   What was the real cause of the Panic of 1837? (Hint: it was not Jackson’s BUS policies) Falling cotton prices resulted from the BUS calling in many of its outstanding loans. Loans were harder to get, and the British buyers started to import Indian cotton. Land prices fell which caused a mortgage mess. The BUS became an easy political target even though it had little influence. Large amounts of silver from Mexico coming across the Santa Fe Trail had dried up which caused the British to raise interest rates on American loans which caused inflation. “No matter how petty and ill conceived Jackson’s attach on the bank was, he must be absolved of actually causing much directly harm to industrial growth – although new research suggests that his redistribution of the surplus probably contributed to the damage in financial markets.

19.   What, in your opinion, is Andrew Jackson’s legacy? What did he leave us? Commander of American forces in the Battle of New Orleans,Manifest Destiny and the Indian Removal program, “Old Hickory” because he was so tough. First president to be associated with the American frontier.