Source: Harlow Giles Unger. The Last Founding Father -
James Monroe and a Nation’s Call to Greatness (2009)
James Monroe and a Nation’s Call to Greatness (2009)
By 1818, President James Monroe had liquidated the national debt of $67 million (due in most part to the War of 1812) without collecting any additional taxes. Also in 1818, the first segment of the Cumberland (National) Road was completed, spanning 130 miles from Cumberland (MD) to Wheeling (now WVA), which opened the West to large-scale farming. Roads, canals, and steamboats drastically lowered transportation costs yet increased the speed of delivery of goods. Also in 1818, the first fifteen miles of the Erie Canal opened; this canal would eventually make New York City the biggest-and-busiest city on the Atlantic Seaboard.
But in early-1819, the Panic of 1819 ushered in America's first economic crisis of the century. The Panic of 1819 was caused by the super-inflated prices of Western land speculation combined with shady bank practices, which led to hundreds of banks shutting down. As a result, the largest number of depositors to that point in US History lost their money. One bank in Rhode Island was initially capitalized at $45, yet the bank issued $800,000. Due to such unscrupulous practices, Congress passed a law requiring banks to literally back up their money with specie (coin) or precious metals such as gold.
But in early-1819, the Panic of 1819 ushered in America's first economic crisis of the century. The Panic of 1819 was caused by the super-inflated prices of Western land speculation combined with shady bank practices, which led to hundreds of banks shutting down. As a result, the largest number of depositors to that point in US History lost their money. One bank in Rhode Island was initially capitalized at $45, yet the bank issued $800,000. Due to such unscrupulous practices, Congress passed a law requiring banks to literally back up their money with specie (coin) or precious metals such as gold.
Due to the banking law, most banks simply just shut their doors, knowing that there were no laws on the books that could be used against them in an ex post facto situation. President Monroe was helpless to combat the banking crisis, and the only weapon in the arsenal of Congress was to increase tariffs. Thankfully, the Panic of 1819 wasn't nearly as serious as the Panic of 1837. The only Americans that were seriously hurt were the land speculators (such as Andrew Jackson; he never forgave the 2nd Bank of the United States for his diminished portfolio) and bankers that caused the Panic of 1819. Farmers across the nation, including the West, went about their business, living off the land and bartering for what they needed.
The "Era of Good Feelings" took another hit when the territory of Missouri applied for statehood in 1819. Secretary of State John Quincy Adams stated that President Monroe believed the crisis could be "winked away with compromise" . . . JQA did not share Monroe's perspective on the matter. The House and Senate, divided due to sectionalism, delayed any decision on adding Missouri as a state to 1820. Monroe was not as unconcerned as JQA believed; the President saw the slavery debate as "menacing" to the tranquility of the nation.
The "Era of Good Feelings" took another hit when the territory of Missouri applied for statehood in 1819. Secretary of State John Quincy Adams stated that President Monroe believed the crisis could be "winked away with compromise" . . . JQA did not share Monroe's perspective on the matter. The House and Senate, divided due to sectionalism, delayed any decision on adding Missouri as a state to 1820. Monroe was not as unconcerned as JQA believed; the President saw the slavery debate as "menacing" to the tranquility of the nation.
On 30 March 1820, Monroe started the last leg of his Goodwill Tour, which would take four months traveling over 5000 miles across six Southern states. Monroe started in North Carolina, then traveled through South Carolina to Savannah (GA). Monroe felt the toll of his sojourn soon enough, cancelling his stop at St. Louis and shortening scheduled destinations in Kentucky and Tennessee. After detouring to northern Alabama, Monroe arrived at Nashville (TN) on 6 June 1820. Monroe stayed with General Andrew Jackson at the Hermitage, and the two American titans smoothed out any differences they had over Florida in 1818. Monroe next traveled to Kentucky, and then even to southern Indiana before returning to D.C. on 9 August 1820.
Missouri was added as a "Slave State" without a Northern "Free State" to maintain equilibrium in the U.S. Senate. The South saw that development as long-delayed justice, in that votes in the Senate that ended in a tie were broken by a Northern Vice-President in favor of the North, and in the House, the South was a 105-81 minority to the North. Monroe ordered his Cabinet to avoid engaging in the debate over Missouri with each other in order to try and keep a semblance of equilibrium among its members. Before the end of 1820, Maine petitioned to become a "Free State", and with the
Missouri Compromise (1820), balance returned to the Senate, and the "36 degree 30 minute North" line of latitude was drawn as far west as America's border reached.
Missouri was added as a "Slave State" without a Northern "Free State" to maintain equilibrium in the U.S. Senate. The South saw that development as long-delayed justice, in that votes in the Senate that ended in a tie were broken by a Northern Vice-President in favor of the North, and in the House, the South was a 105-81 minority to the North. Monroe ordered his Cabinet to avoid engaging in the debate over Missouri with each other in order to try and keep a semblance of equilibrium among its members. Before the end of 1820, Maine petitioned to become a "Free State", and with the
Missouri Compromise (1820), balance returned to the Senate, and the "36 degree 30 minute North" line of latitude was drawn as far west as America's border reached.
The Election of 1820 was the last Presidential election to be solely determined by the Electoral College without being based on each state's popular vote. Monroe received 231 of 235 Electoral Votes; there were 3 abstentions, and the remaining Elector cast his vote for John Quincy Adams so George Washington would remain the only unanimously selected President.
By Monroe's 2nd Inauguration on 4 March 1821, time had seemed to pass by the President, in that as the last Founding Father, Monroe was viewed in an increasingly antiquated fashion. In the view of more-and-more Americans, the work of the Founding Fathers was complete, and it seemed that America was looking to the future for their leaders. As 1821 unfolded, Monroe had to deal increasing disappointments, such as Secretary of the Treasury William H. Crawford claiming the federal government had a $7 million surplus, but the reality was a $5 million deficit.
Congress responded by slashing military spending by 75% (from $800k to $200k). Crawford's "mistake" was intentional, in that he wanted to embarrass and discredit Monroe during his 2nd term. In Crawford's mind, a "Zero-Sum Game" existed between him and Monroe, in that a gain by Monroe was perceived as a corresponding loss by Crawford, and vice-versa. In a way, Monroe was a victim of his own political success, in that he had forced the demise of the Federalist Party. With no rival party on which to focus, prominent politicians such as Crawford started to attack others in their own party that were seen as obstacles to their path of towards the Presidency.
By Monroe's 2nd Inauguration on 4 March 1821, time had seemed to pass by the President, in that as the last Founding Father, Monroe was viewed in an increasingly antiquated fashion. In the view of more-and-more Americans, the work of the Founding Fathers was complete, and it seemed that America was looking to the future for their leaders. As 1821 unfolded, Monroe had to deal increasing disappointments, such as Secretary of the Treasury William H. Crawford claiming the federal government had a $7 million surplus, but the reality was a $5 million deficit.
Congress responded by slashing military spending by 75% (from $800k to $200k). Crawford's "mistake" was intentional, in that he wanted to embarrass and discredit Monroe during his 2nd term. In Crawford's mind, a "Zero-Sum Game" existed between him and Monroe, in that a gain by Monroe was perceived as a corresponding loss by Crawford, and vice-versa. In a way, Monroe was a victim of his own political success, in that he had forced the demise of the Federalist Party. With no rival party on which to focus, prominent politicians such as Crawford started to attack others in their own party that were seen as obstacles to their path of towards the Presidency.
During his 2nd term, Monroe discovered that he had no way to discipline the members of his Cabinet. With the exception of SecState Quincy Adams, the other members of the Cabinet started to jockey for position to be the next President. Monroe had accidentally created political anarchy, and his Cabinet officials and other prominent politicians used constituents from their region as their political base instead of using a political party, which undermined national unity and advanced Sectionalism.
Among SecTreas Crawford's goals with his various shenanigans was to also discredit SecWar Calhoun as a potential rival. Monroe stubbornly refused to involve himself in the rivalries in his Cabinet. Monroe became an early "Lame Duck" (a British metaphor for "defaulter") during his 2nd term in many ways. Ironically, by 1821, Monroe was in the same situation as was Madison during his second term, except that Monroe didn't have a "Go-To Guy", as Madison had with James Monroe coming to his (and the nation's) rescue during the War of 1812.
Among SecTreas Crawford's goals with his various shenanigans was to also discredit SecWar Calhoun as a potential rival. Monroe stubbornly refused to involve himself in the rivalries in his Cabinet. Monroe became an early "Lame Duck" (a British metaphor for "defaulter") during his 2nd term in many ways. Ironically, by 1821, Monroe was in the same situation as was Madison during his second term, except that Monroe didn't have a "Go-To Guy", as Madison had with James Monroe coming to his (and the nation's) rescue during the War of 1812.