Economic+Nationalism.-cm

Economic Nationalism

Traditionally, Republicans had opposed the idea of a National Bank. In 1811, they stopped the charter renewal of this First Bank of the United States and that caused disastrous results. Because there was no National Bank to regulate currency, prices sky rocketed during the War of 1812. The government was forced to borrow money to pay for the war and had to pay high interest rates on those loans. In 1816, Representitive John Calhoun introduced a bill proposing a Second Bank of America. The bill was passed. This bank had power to issue notes that would be the national currency and the the power to control state banks. During the War of 1812 an embargo of British goods kept Amercans from buying them. To compensate, American manufacturers increased their output of goods to keep up with the demands. However, when the war ended there was no longer and embargo on British goods. The British goods were now at such a low price that it threatened to put American manufacturers out of business. To keep this from happening, Congress put a tax on all imported goods to raise the price. This was called the Protective Tariff. In 1816 John Calhoun sponsored a federal internal improvement plan of building canals and roads. Even though President Madison Vetoed it, roads and canals stated to be built with most of the funding coming from private businesses and atate and local governments.