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During the early nineteenth century, the sectional lines between the free north and the slave south were being gradually drawn. Slavery began to gain prominence as a national issue, and the South became solidly united behind the institution of slavery as it became more critical to their economic success. By , the United States was comprised of an equal number of free and slave states—11 of each.

In , Louisiana had entered the Union, and the balance of the Louisiana Purchase was organized into the Missouri Territory. As the population trickled westward, many Southerners and their slaves settled the region north and west of St.

In , the settlers petitioned the House of Representatives for admission of the state of Missouri as a slave state, since the population exceeded the required 60, Missouri was the first area west of the Mississippi to apply for statehood that was entirely part of the Louisiana Purchase.

Southerners were extremely concerned about the Missouri emancipation amendment and felt the future of the slave system might depend on it being vetoed.

They were aware that the amendment could set a damaging precedent for all of the Louisiana Purchase and any land west of the Mississippi. They also held concerns that if Congress abolished slavery in Missouri, they could attempt to do likewise in all of the southern states.

Population growth in the north had led to a majority for the northern states in the House of Representatives. However, because the Senate had equal representation from each state and there was an equal number of free and slave states, the Senate was split on the issue. The House of Representatives passed the Tallmadge Amendment on a strictly sectional vote, but the Senate rejected it, with some Northern Federalists joining the South to spite the Republicans.

Congress was deadlocked for some time over admission of Missouri as a slave state. The primary issues were political and economic balance. A secondary issue that was voiced by Northerner abolitionists was the moral question of slavery. However, the morality of slavery did not influence the solution to the problem at hand. This compromise preserved the balance between northern and southern states, as well as free and slave states.

This second part of the Compromise was rather ironic, considering Missouri was north of the designated no slavery line. The Missouri Compromise lasted for 34 years.

Both sides had yielded something in the compromise, but both felt they had gained something as well. Northerners were satisfied with the compromise because it kept the balance in the Senate between free and slave states. Southerners felt they won a victory with the Missouri Compromise because at that time most Americans felt it was unlikely that the area north and west of Missouri would ever be settled.

The Missouri Compromise avoided the slavery question, but it did not resolve it. Despite the growing division over the issue of slavery in America, Chief Justice John Marshall and the Supreme Court worked to reinforce the feelings of nationalism that developed after the War of Marshall was a Revolutionary War survivor, and his experience led to strong feelings of national loyalty.

Several of the most famous cases involved three major principles: contract rights protection, the supremacy of federal legislation over the laws of the states, and regulation of interstate commerce. In , the contract rights case of Fletcher v. Peck came before the Supreme Court. Members of the Georgia legislature were bribed in to sell 35 million acres in Mississippi for a small amount to private speculators.

The following year, a new Georgia legislature rescinded the sale. The case was taken to the Supreme Court, and Marshall, speaking for the Court, ruled that the original sale was a legal contract—regardless of whether or not it was fraudulent—and therefore protected by the Constitution. In the case of Dartmouth College v. A New Hampshire court ruled that Dartmouth was to be changed from a private to a public institution.

Dartmouth appealed the case to the Supreme Court, where Marshall ruled that the original charter must stand because it was a contract and could not be altered or canceled without consent of both parties. The Marshall Court ruled that the Constitution protected contracts against state encroachments.

Unfortunately, the case also set the precedent for giving corporations the ability to skirt governmental controls. Once the states became aware of this dilemma, they generally wrote into charters the ability to make changes so that it was part of the contract. A case in which the Marshall court upheld the power of the federal court over that of the states was the case of Martin v. Virginia granted David Hunter acres of the confiscated lands, and Fairfax brought suit against Hunter for return of the land.

The Supreme Court and Justice Marshall overruled the Virginia court, declaring that the land belonged to Fairfax and voided the grant to Hunter. This ruling was significant because it enforced the rights of the Supreme Court, which held appellate jurisdiction over state courts. McCulloch v. Two years later in the case of Cohens v. In , President James Madison named him secretary of state.

In August , the British captured Washington, D. Returning to the wrecked capital after a British retreat, the overwhelmed Madison, whose cerebral temperament left him ill-prepared to lead in wartime, handed Monroe a second title: acting secretary of war.

He took charge of the war effort, reinforcing Washington and Baltimore, ordering Andrew Jackson to defend New Orleans, and convincing state governors to send more militiamen to the battle zones. Federalists in New England had largely opposed the War of Many gathered at the secret Hartford Convention of , where the most radical delegates called for New England to secede from the Union. Like Washington, he believed that political parties were unnecessary to good government, but he was also furious at the wartime Federalist secessionist movement.

But publicly, Monroe made no partisan comments, instead appealing to all Americans on the basis of patriotism. He spent all summer touring the nation, traveling by steamboat and carriage and on horseback.

Like politicians today, he shook hands with aging veterans and kissed little kids. He toured farms, hobnobbed with welcoming committees, and patiently endured endless speeches by local judges.

But Boston seized the chance for reconciliation, greeting Monroe with boys clothed in mini-versions of Revolutionary attire and 2, girls in white dresses, decorated with either white or red roses, to symbolize the reconciliation of the Federalists and Democratic-Republicans.

To his surprise, other guests included John Adams, the Federalist ex-president, and Timothy Pickering, the former Federalist secretary of state who had recalled Monroe from his diplomatic post in Paris in Boston swooned.

Recognizing the danger of intraparty rivalries, Monroe attempted to include prospective presidential candidates and top political leaders in his administration.

His cabinet comprised three of the political rivals who would vie for the presidency in John Quincy Adams, John C. Calhoun, and William H. A fourth, Andrew Jackson, held high military appointments. Monroe felt he could manage the factional disputes and arrange compromise on national politics within administration guidelines.

His great disadvantage, however, was that amalgamation deprived him of appealing to Republican solidarity that would have cleared the way for passage of his programs in Congress. The end result was a loss of party discipline. Old Republican critics of the new nationalism, among them John Randolph of Roanoke, Virginia, had warned that the abandonment of the Jeffersonian scheme of Southern preeminence would provoke a sectional conflict between the North and the South that would threaten the Union.

Old Republicans feared such an outcome was inevitable if universal adherence to the precepts of Jeffersonianism was absent.

Maryland reanimated the disputes over the supremacy of state sovereignty and federal power. The Missouri Crisis in made the explosive political conflict between slave and free states open and explicit. The Panic marked the end of the economic expansion that had followed the War of and ushered in new financial policies that would shape economic development. The first major economic crisis after the War of was due, in large measure, to factors in the larger Atlantic economy.

It was made worse, however, by land speculation and poor banking practices at home. British textile mills voraciously consumed American cotton, and the devastation of the Napoleonic Wars had made Europe reliant on other American agricultural commodities such as wheat. This drove up both the price of American agricultural products and the value of the land on which staples such as cotton, wheat, corn, and tobacco were grown.

Small merchants and factory owners, hoping to take advantage of this boom time, also sought to borrow money to expand their businesses. When existing banks refused to lend money to small farmers and others without a credit history, state legislatures chartered new banks to meet the demand.

As loans increased, paper money from new state banks flooded the country, creating inflation that drove the price of land and goods still higher. This, in turn, encouraged even more people to borrow money with which to purchase land or to expand or start their own businesses. Speculators took advantage of this boom in the sale of land by purchasing property not to live on, but to buy cheaply and resell at exorbitant prices.

During the war, the Bank of the United States had suspended payments in specie. When the war ended, the bank continued to issue only paper banknotes and to redeem notes issued by state banks with paper only.

The newly chartered banks also adopted this practice, issuing banknotes in excess of the amount of specie in their vaults. This shaky economic scheme worked only so long as people were content to conduct business with paper money and refrain from demanding that banks instead give them the gold and silver that was supposed to back it.

If large numbers of people, or banks that had loaned money to other banks, began to demand specie payments, the banking system would collapse, because there was no longer enough specie to support the amount of paper money the banks had put into circulation. But this new institution only compounded the problem by making risky loans, opening branches in the South and West where land fever was highest, and issuing a steady stream of Bank of the United States notes, a move that increased inflation and speculation.

The Panic was also partially impacted by international events. After the Napoleonic Wars came to an end, European demand for American foodstuffs decreased as agriculture in Europe began to recover.

In , to make the economic situation worse, prices for American agricultural products began to fall both in the United States and in Europe; the overproduction of staples such as wheat and cotton coincided with the recovery of European agriculture, which reduced demand for American crops. Crop prices tumbled by as much 75 percent. In addition, war and revolution in the New World destroyed the supply line of precious metals from Mexico and Peru to Europe.

The inflated economic bubble burst in , resulting in the Panic of Because it was the first economic depression experienced by the nation, the American public panicked as they saw the prices of agricultural products fall and businesses fail.

The Second Bank of the United States was forced to call a halt to its expansion and launch a painful process of contraction. There was a wave of bankruptcies, bank failures, and bank runs; prices dropped, and wide-scale urban unemployment occurred. This dramatic decrease in the value of agricultural goods left farmers unable to pay their debts. As they defaulted on their loans, banks seized their property. However, because the drastic fall in agricultural prices had greatly reduced the value of land, the banks were left with farms they were unable to sell.

Land speculators lost the value of their investments. As the countryside suffered, hard-hit farmers ceased to purchase manufactured goods.

Factories responded by cutting wages or firing employees. President Monroe, interpreting the economic crisis in narrow monetary terms, limited governmental action to economizing and ensuring fiscal stability. He acquiesced in suspending specie payments to bank depositors, setting a precedent for the Panics of and Although he agreed to the need for improved transportation facilities, he refused to approve appropriations for internal improvements without a prior amendment of the Constitution.

In an effort to stimulate the economy in the midst of the economic depression, Congress passed several acts modifying land sales. The Relief Act of allowed people from Ohio to return land to the government if they could not afford to keep it. The money they received in return was credited toward their debt. The act also extended the credit period to eight years. States, too, attempted to aid those faced with economic hard times by passing laws to prevent mortgage foreclosures so buyers could keep their homes.

Americans made the best of the opportunities presented in business, in farming, or on the frontier, and by the Panic of had ended. Another stage of U. The Missouri Compromise was an agreement passed in between the pro-slavery and antislavery factions in the U.

Congress, involving primarily the regulation of slavery in the western territories. Prior to the agreement, the House of Representatives had refused to accept this compromise and a conference committee was appointed.

Missouri Compromise line : This map of the United States, circa , shows the line between free and slave states that was established by the Missouri Compromise of The Missouri territory had been part of the Louisiana Purchase and was the first part of that vast acquisition to apply for statehood.

By , tens of thousands of settlers had flocked to Missouri, including slaveholders who brought with them some ten thousand slaves. When the status of the Missouri territory was taken up in earnest in the U.

Admitting Missouri as a slave state also threatened the tenuous balance between free and slave states in the Senate by giving slave states a two-vote advantage.

In , a bill was drafted to enable the people of the Missouri Territory to draft a constitution and form a government preliminary to admission into the Union, and the bill was brought before the House of Representatives on February Debaters of the amendment were largely divided along sectional lines, rather than party lines. With only a few exceptions, northerners supported the Tallmadge Amendment regardless of party affiliation, and southerners opposed it despite having party differences on other matters.

The House adopted the measure and incorporated it into the bill, which was passed on February 17, The Senate, however, refused to concur with the amendment, and the whole measure was lost. The crisis over Missouri led to strident calls for disunion and threats of civil war. Missouri and Maine which had been part of Massachusetts would enter the Union at the same time: Maine as a free state and Missouri as a slave state.

The balance between free and slave states was maintained in the Senate, and southerners did not have to fear that Missouri slaveholders would be deprived of their human property. Slavery could exist south of this line but was forbidden north of it, with the obvious exception of Missouri. The debate leading up to the Compromise raised the issue of sectional balance.



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