1. Topic 4.3 Politics and Regional Interests 1800-1820

2. Learning Objective:
Explain how different regional interests affected debates about the role of the federal government in the early republic.

3. Thematic Focus:
Debates fostered by social and political groups about the role of government in American social, political, and economic life shape government policy, institutions, political parties, and the rights of citizens.

4. Regional Economic Interests
Northeast
High tariffs
Internal improvements
South
Low tariffs
Expansion of slavery
West
Cheap land
Panic of 1819
Oversupply of cheap British goods
Most severe in west
Least severe in south

5. Efforts to Unify the Nation
American System
Protective Tariff
Large tax on imports
Protected U.S. manufacturers
Internal Improvements
Federally-funded roads, canals, railroads, etc.
2nd National Bank
Easy credit policies to encourage investments
Supported by North and West
Rejected by South
Henry Clay believed that new transportation links would promote trade and unite the various sections of the country. Clay’s “American System” called for tariffs to protect domestic industries and fund internal improvements and a national bank.
The Tariff of 1816 was the first protective tariff in U.S. history. It placed a large tax on imports from foreign countries. It was designed to slow the flood of cheap British manufactures into the country, thereby protecting U.S. manufacturers.
Because of its dependence on agricultural plantations and slave labor, the South benefited the least from internal improvements.
The Second Bank of the United States provided overly liberal credit policies to encourage investments. This decision proved to be inflationary and price levels rose sharply.

6. Sectional Tensions Missouri Crisis 1819—Missouri applied for statehood
Slavery well-established
NY Congressman proposes abolition
Southern senators in uproar
Deadlock—even number of slave/free states
Missouri Compromise
Balance in Senate maintained
Missouri—slave
Maine—free
36º30’ line for Louisiana Territory
Defuses slavery issue