icon 0
icon TOP UP
rightIcon
icon Reading History
rightIcon
icon Log out
rightIcon
icon Get the APP
rightIcon

Rise of the New West, 1819-1829

Chapter 9 THE CRISIS OF 1819 AND ITS RESULTS (1819-1820)

Word Count: 3468    |    Released on: 29/11/2017

f society. On the Atlantic seaboard were the centers of American civilization that had grown up in colonial days in close touch with Europe. From this region of commerce and manufa

s on the Atlantic coast had now spread nearly across the continent. [Footnote: Turner,

ons, the middle states, the south, and the west. As traveler after traveler passed over the routes of his predecessor in this period, reporting the life by the wayside and in the towns, we can almost see American society unfolding with startling rapidit

high as seventy-eight dollars per acre was bid for government land in the offices of the southwest. [Footnote: Annals of Cong., 16 Cong., I Sess., 446.] The policy of the government fostered reckless purchases of public land. In the critical times of the closing years of the war, the treasury a

st tract offered under the terms of the law; planters, relying equally on the state banks, bought great tracts of land at absurd prices; speculators, tempted by the rapid rise in land values and by the ease of securing loans, purchased large quantitie

check the movement, but even contributed to it. After a dance of speculation, the bank, in the summer of 1818, was facing ruin, and it took drastic means to save itself. Its measures compelled the state bank

t.; manufacturers were in distress; laborers were out of work; merchants were ruined. [Footnote: J. Q. Adams, Memoirs, IV., 375; Jefferson, Writings, X., 257; Benton, View, I., 5; Niles' Register, XVI., 114; Hodgson, Travels, II., 128; Sumner, Hist, of Banking, I., chaps, vii., viii.] The conditions are illustrated in the case of Cincinnati. By the foreclosure of mortgages, the national bank came to ow

ncorporated a similar provision in her constitution of 1818. Between 1817 and 1819 Maryland, Tennessee, Georgia, North Carolina, Kentucky, and Ohio all passed acts taxing the United States Bank. [Footnote: Ibid., 64, 65.] Ohio, defying the decision

tion without stockholders and under officers elected by the legislature and paid by the state. Its notes were assigned to the counties in proportion to the taxable property, to be loaned on mortgage securities to those who needed them "for the purpose of paying his, her, or their just debts," or to purchase products for exportation. The only real capital of the bank was a legislative appropriation of seven thousand dollars to buy the material and plates for printing notes. In short, the treasury of the state was used as a kind of land bank of the sort favored in the colonial days

elief system." This act the old court also declared unconstitutional, and a contest followed between the "old court" and the "new court" parties, which lasted until 1826, when the "old court," "anti-relief" party was victorious. In the mean time

Bank of the United States, as "engines of aristocracy," oppressive to the common people, and the general discontent wit

819, were but $1,635,000 in 1820. In December, 1819, Crawford, the secretary of the treasury, was obliged to announce a deficit which required either a reduction in expenditures or an increase in revenue. Congress provided for two loans, one of $3,000,000 in 1820, and another of $5,000,000 in 1821. A policy of retrenchment w

ecame a squatter on the public lands without legal title, was impatient with the policy which made revenue the primary consideration of the government. Benton expressed this view in 1826, [Footnote: Register of Debates, 19 Cong., I Sess., I., 727.] when he said: "I speak to statesmen, and not to compting clerks; to Senators, and not to Quaestors of provinces; to an asse

ternative was so obviously dangerous and inexpedient that Congress passed two new acts. The first [Footnote: U. S. Statutes at Large, III., 566.] (April 24, 1820) reduced the price of land from two dollars to one dollar and twenty-five cents per acre, abolished the system of credit, and provided that lands might be purchased in multiples of eighty acres. Thus the settler with one hundred dollars could secure full title to a farm. This was followed by a relief act (March 2, 1821), recom

163-170.] The argument rested chiefly on the large number of men unable to secure a farm even under the cheaper price of 1820; the great quantity of public land which remained unsold after it had been offered; the advantage to the revenues from filling the vacant lands with a productive population; and the injustice to the western states, which found themselves

s established by the tariff of 1816 [Footnote: Babcock, Am. Nationality (Am. Nation, XIII.). chap. xiv.] was inevitable. Hence, in the spring of 1820 a new tariff bill was presented by Baldwin, of Pennsylvania, the member from Pittsburgh.

to meet the failure of the system of revenue, not by encouraging importations, but by internal taxes and excises on the manufactured goods protected by the impost. Additional revenue would be secured by higher duties on sugar, molasses, coffee, and salt. The bill increased ad valorem duties by an amount varying from twenty-five to sixty-six per cent, additi

ted States as compared with Europe made the ratio of the increase of her capacity of consumption to that of our capacity of production as one to four. Already he thought Europe was showing a want of capacity to consume our surplus; in his opinion, cotton, tob

nsiderations were cheapness; if national independence were to weigh nothing; if honor nothing; why not subsidize foreign powers to defend us?" He met the argument of the deficiency of labor and of the danger of developing overcrowded and pauperized manufacturing centers by reasoning that machi

pril 29, 1820) stood 91 to 78. New England gave 18 votes in favor and 17 opposed; the middle region, including Delaware, gave 56 votes for and 1 vote against; the south, including Maryland and her sister states on the southern seaboard, gave 5 votes in favor and 50 opposed. The northwest gave its 8 votes in favor, and the southwest, including Kentucky, gave 4 votes in favor and 10 opposed. The vote of New England was the most divided of that of any section. From the manufacturing states of Connecticut and Rhode Island but

rk, New Jersey, Pennsylvania, Delaware, Ohio, Indiana, and Illinois, casting altogether 65 votes, but one man voted against the bill, and he was burned in effigy by his constituents and resigned the same year. Of the 53 votes cast by the south and southwest, outside of the border states of Maryland and Kentucky, there were but 5 affirmative votes. I

ncidental to this state of things, and that this vague but wide-spread discontent, caused by the disordered circumstances of individuals, had resulted in a general impression that there was something radically wrong in the administration of the government. [Footnote: Adams, Memoirs, V., 128; cf. IV., 498.] Although this impression was the result of deeper influences than those to which it was attributed by these statesmen, yet the crisis of 1819, which bore with peculiar heaviness upon the west and south, undoubtedly aggravated all the discontent of those regions. To the historian the movement is profoundly significant, for ultimately it found its leader in Andrew Jackson. More immediately it le

Claim Your Bonus at the APP

Open