Persistence duty to maintain the national dignity: those principles had been adopted by the Republicans. John Randolph was almost the only leader who continued to of Federalist stand by the Republican doctrine enunciated principles. by Jefferson when he became President. Jefferson himself had not scrupled to annex Louisiana, to lay the embargo, and to enforce it with a severity such as Hamilton would hardly have ventured on. Madison had twice received and used the power to discriminate between the commerce of England and of France; and during the war the nation had reimposed federal taxes and adopted Federalist principles of coercion. James Monroe, Secretary of State at the end of Madison's administration, and candidate for the Presidency in 1816, was in his political beliefs not to be distinguished from moderGain in na- ate Federalists like James A. Bayard in 1800. tional spirit. The Union arose from the disasters of the War of 1812 stronger than ever before, because the people had a larger national tradition and greater experience of national government, and because they had accepted the conception of government which Washington and Hamilton had sought to create. CHAPTER XI. SOCIAL AND ECONOMIC REORGANIZATION (1815-1824). 118. References. Bibliographies.-W. E. Foster, References to Presidential Administrations, 15-19; Justin Winsor, Narrative and Critical History, VII. 344, 345, 437-439; J. F. Jameson, Bibliography of Monroe (Appendix to Gilman's Monroe); Channing and Hart, Guide, §§ 174-178. Historical Maps. Nos. 1 and 5, this volume, and No. 1, Wilson, Division and Reunion (Epoch Maps Nos. 7, 8, and 10); Labberton, Atlas, lxvii.; T. MacCoun, Historical Geography; Scribner, Statistical Atlas, Plate 14. General Accounts. - H. Von Holst, Constitutional History, I. 273-408; R. Hildreth, United States. VI. 575-713 (to 1821); James Schouler, United States, II. 444-463; III. 1–335; Bryant and Gay, Popular History. IV. 244–281; J. B. McMaster, People of the United States, IV. (to 1820); Geo. Tucker, United States, III. 146-408; J. T. Morse, John Quincy Adams, 102-164; Ormsby, Whig Party, 129-172. Special Histories. Henry Adams, History of the United States, IX.; Carl Schurz, Henry Clay, I. 137-202; N. P. Gilman, James Monroe, 125-174; F. W. Taussig, Tariff History; J. L. Bishop, American Manufactures, II. 146-298; G. F. Tucker, Monroe Doctrine; Payne, European Colonies; E. Stanwood, Presidential Elections; H. L. Carson, Supreme Court, I. chs. xii.-xiv.; A. C. McLaughlin, Cass, chs. ii., iv. Contemporary Accounts. -J. Q. Adams, Memoirs, IV.-VI.; Josiah Quincy, Figures of the Past; Niles Register; T. H. Benton, Thirty Years' View, I. 1-44; Nathan Sargent, Public Men, and Events, I. 17-56; R. Rush, Residence at the Court of London; J. Flint, Recollections of the last Ten Years (1826); R. Walsh, Appeal from the Judgment of Great Britain (1819); D. Warden, Statistical, Political, and Historical Account of the United States (1819); S. G. Goodrich, Recollections, II. 393-436; The National Intelligencer; Fearon, Sketches of America, Fifth Report; works of Clay, Calhoun, Webster, Madison, Woodbury. - Reprints in F. W. Taussig, State Papers and Speeches on the Tariff; American History told by Contemporaries, III. -- 119. Conditions of National Growth (1815). THE population of the United States at the end of the war was about eight million five hundred thousand, and it was increasing relatively faster in the South and West than near the seaboard. The return of peace seemed also a return of prosperity. Short crops abroad reProsperity. vived the demand for American cereals, so that the surplus accumulated during the war could be sold at fair prices, and the exports in 1816 ran up to $64,000,000. In 1815, American shipping recovered almost to the point which it had reached in 1810. The revenue derived from taxation in 1814 was but $11,000,000; in 1816 it was $47,000,000. More than twenty thousand immigrants arrived in 1817. Wealth seemed increasing both in the North and the South. Another evidence of the quickening of national life was the beginning of a new national literature. In 1815 was National founded the "North American Review," and literature. in an early number appeared Bryant's "Thanatopsis." Already in 1809 had appeared the first work of an American which was comparable with that of the British essayists, Washington Irving's "Knickerbocker" History of New York. His quaint humor was not less appreciated from his good-natured allusions to the Jeffersonian principle of government by proclamation." The hold of the clergy had been much weakThe clergy. ened in New England; there had been a division of the Congregational Church, with the subsequent founding of the Unitarian branch; and the Jeffersonian principle of popular government was gaining ground. The people were keen and alert. 66 In two respects the war had taught the Americans their own weakness: they had had poor facilities for transportation, and they had lacked manufactures of military material. There was a widespread feeling that the means of intercommunication ought to be improved. The troops on the northern frontier had been badly provisioned and slowly reinforced Means of transportation. 1815.] Conditions of National Growth. 225 because they could not readily be reached over the poor roads. A system had been invented which was suitable for the rapid-running rivers of the interior and for lake navigation; in 1807 Fulton made the first voyage by steam on the Hudson River. Nine years later a system of passenger service had been developed in various directions from New York, and a steamer was running on the Mississippi. Steamboats. Manufactures had sprung up suddenly and unexpectedly in the United States. The restrictive legislation Rise of man- from 1806 to 1812, though it had not cut off ufactures. foreign imports, had checked them; and shrewd ship-owners had in some cases diverted their accumulated capital to the building of factories. In 1812 commerce with England was totally cut off, and importations from other countries were loaded down with double duties. This indirect protection was enough to cause the rise of many manufactures, particularly of cotton and woollen goods. In 1815, the capital invested in these two branches of industry was probably $50,000,000. On the conclusion of peace in England and America an accumulated stock of English goods poured forth, and the imports of the United States instantly rose from $12,000,000 in 1814, to $106,000,000 in 1815. These imForeign com-portations were out of proportion to the expetition. ports and to the needs of the country, and they caused the stoppage of a large number of American factories. Meanwhile, American ships had begun to feel the competition of foreign vessels in foreign trade. Without intending it, the country had drifted into a new set of economic conditions. 15 120. The Second United States Bank (1816). Banks and currency. The first evidence of this change of feeling was a de mand for the renewal of the bank which had been allowed to expire in 1811 (§ 110). The country had been thrown entirely upon banks chartered by the States; the pressure of the war had caused their suspension, and the currency and banking capital of the United States had thus been thrown into complete confusion. For example, the Farmers Exchange Bank of Gloucester, R. I., was started, with a capital of $3,000; accumulated deposits so that one of the directors was able to steal $760,000; and then it failed, with specie assets of $86.46. In 1811 there were eighty-eight State banks; in 1816 there were two hundred and forty-six. Bank bill of 1814. Since the re-charter bill of 1811 had failed by only one vote, Dallas, Secretary of the Treasury in 1814, again proposed a national bank. Congress accepted the principle, but an amendment proposed by John C. Calhoun so altered the scheme that upon Dallas's advice Madison cast his first important veto against it on Jan. 30, 1815. What Dallas desired was a bank which would lend money to the government; what Congress planned was a bank which would furnish a currency based on specie. In the next session of Congress Madi son himself urged the creation of a bank, and this time Calhoun supported him. The Fed. eralists, headed by Daniel Webster, remnants of the party which had established the first national bank, voted against it on the general principle of factious opposition. A small minority of the Republicans joined them, but it was passed without much difficulty, and became a law on April, 10, 1816. The Bank - The bank was modelled on its predecessor (§ 78), but the capital was increased from $10,000,000 to $35,000,000, |