all right! I'm out of school and now have the summer to relax, work, and enjoy A-H! I split this update, so there will be a part 3 prolly this weekend
The United States in the 1820s, Part II
Panic of 1820
The Panic of 1820 was the first major financial crisis in the United States, which occurred during DeWitt Clinton’s second term in office. The new nation faced a depression in the late 1780s (which led directly to the establishment of the dollar and, perhaps indirectly, to the calls for a Constitutional Convention), and another severe economic downturn in the late 1790s following the Panic of 1797. In those earlier crises, however, the primary cause of economic turmoil originated in the broader Atlantic economy. These crises and others that resulted from international conflicts such as the Embargo Act and the War of 1812 caused widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. However, things would change for the US economy after the Second Bank of the United States was founded in 1816, in response to the spread of bank notes across United States from private banks, due to inflation brought on by the debt following the war. In contrast, the causes of the Panic of 1820 largely originated within the U.S. economy. The panic marked the end of the economic expansion that had followed the Florida War and ushered in new financial policies that would shape economic development.
Proposed remedies included increase of tariffs largely proposed by Northern manufacturing interests, a reduction of tariffs largely proposed by Southerners, who believed free trade would stimulate the economy and increase demand, monetary expansion or restriction or suspension of specie payment, restriction of bank credit, direct relief of debtors, and public works proposals.
In the event, President Clinton, interpreting the economic crisis in the narrow monetary terms then common, limited governmental action to economizing and ensuring fiscal stability. He approved appropriations for internal improvements and suspended specie payments to bank depositors. Clinton would also aid the economy with laws like the Land Act of 1821 and the Relief Act of 1821.
By 1823, the panic had ended, just in time for the election of 1824. The end of the panic and return to normalcy would help gain support for the Federalist Party.
The Western Compromise
Due to the loss of the Indiana Territory after the War of 1812, Slave states controlled the entire length of the Mississippi, and all the trails west. Refugees from Indiana moved into Missouri after the War of 1812, and began to organize and begin to pressure for statehood as a free state. Pro-slavery residents began to put up stiff resistance to the anti-slavery residents, including armed resistance for a period. Throughout three months, dubbed ‘Bleeding Missouri’, the anti-slavery forces were victorious and were able to form Missouri as a free state. After Missouri statehood, a large debate began in Congress about the expansion of slavery west. Many were worried that any states to be formed west of the Mississippi would face the same unrest that was seen in Missouri. After some debate, It was finally agreed that any states formed below the southern border of Missouri would become slave states, and those above would become free states.
The Election of 1824
After the Florida War, the Federalists saw a surge of support. Many saw the victory over Spain as redemption after the defeat by the British. It was no surprise that the Federalist candidate won the election over the Democrat-Republican candidate. The Federalists put John Quincy Adams, Secretary of State under Dewitt Clinton, into the running as their candidate. The Democrat-Republicans put William Crawford on the ticket representing their party. Adams won the presidency easily after a stroke took Crawford out of the running in mid 1824.
The presidency of John Quincy Adams was marked by continued progress of Federalist policies, yet his inability to command public support and his lack of political sense. While building up the infrastructure of the United States, he was also trying to build up his support for a bid for reelection. Henry Clay, expected to run for the Democrat-Republican nomination, actively opposed Adams’ policies and blocked many of the Federalist Party’s major advances. At the end of his term, all the Adams administration had done was strengthen the base of the Democrat-Republicans.