1802, Congress had authorized
the construction of the National Road across the Appalachians, but fourteen years
later the road had not yet crossed the Ohio River. Hence merchants and farmers continued
to rely on river systems to move goods in the interior.
Yet significant improvements lay close at hand. Steamboats, dismissed as “floating
smokestacks” by skeptical observers when Samuel Fulton’s prototype made its debut
on the Hudson River in 1807, were slowly gaining popularity, especially on the Western
rivers. And Governor DeWitt Clinton of New York had begun to elicit legislative support
for the construction of a canal (derided by his critics as “Clinton’s Big Ditch” or
“the Governor’s Gutter”) that would stretch across the state for 340 miles from Albany
to Buffalo, through thick forests and disease-ridden swamps, connecting the Hudson
River with the Great Lakes.
Manufacturing was poised to expand as well. When the recent war temporarily deprived
American consumers of British goods, New England merchants and entrepreneurs provided
financial backing for scores of small-scale domestic textile “manufactories” that
produced a total of $24 million worth of cotton goods and provided employment to nearly
a hundred thousand men, women, and children. Americans produced an additional $19
million worth of woolen goods in 1815, and the Boston Manufacturing Company, headed
by Frances Cabot Lowell, had recently completed the nation’s first integrated textile
factory along the Charles River in Waltham, Massachusetts.
In the aftermath of war, a new spirit of nationalism swept over the United States.
For the past twenty-five years, the nation had been riven by deep divisions over domestic
issues—primarily Alexander Hamilton’s economic proposals—and the war in Europe. The
disagreements produced the first two political parties in the United States: the Federalists,
led by Hamilton and John Adams, who were horrified at the disorder and excesses of
the French Revolution; and the Democratic-Republicans, who shared Thomas Jefferson’s
dislike of a strong central government, and Madison’s distrust of Great Britain.
Lately, however, many Republicans had come to accept much of the Federalist domestic
agenda; a powerful central government seemed less threatening if they controlled it,
as they had since 1801. (Madison, however, had grown no more fond of Britain since
the king’s troops burned the President’s Mansion in Washington; in early 1816 Madison
was living in a private dwelling on the corner of New York Avenue and 18th Street
known as the “Octagon House,” while workmen repaired and repainted the mansion, this
time with white rather than gray paint.) Moderate Federalists who could recognize
a lost cause were deserting to the opposition in increasing numbers. And a series
of costly missteps by the dwindling band of hard-core Federalist stalwarts—including
vocal opposition to the war effort and a thinly veiled threat by New England political
leaders in December 1814 to secede—destroyed any hopes the Federalists may have entertained
to regain power on the national level.
Partisan rancor thus subsided, although it did not entirely disappear when the Fourteenth
Congress concluded its regular session in the spring of 1816. Legislators spent much
of their time debating economic issues. In early April, Congress approved the first
protective tariff in the nation’s history. Several weeks later, legislators voted
to establish a second Bank of the United States, to provide a uniform, stable currency
and a source of credit for business ventures.
Yet there remained many congressmen and voters, especially from rural areas, who distrusted
the power of a central bank independent of popular control. These same critics demanded
that the federal government cut taxes now that the war had ended. Since military expenditures
during the