317. The National Bank and Internal Improvements.—The year 1816 also saw the passage of another financial measure destined to cause division later. This was the reëstablishment of a national bank, Hamilton’s bank (§ [266]) having failed to secure a second charter in 1811. The financial burdens of the war had fallen in consequence upon the state banks, which had not been managed well. Hence the new bank scheme was favored even by cautious Republicans like Madison. Its establishment for twenty years, with a largely increased capital, enabled the country practically to resume a specie basis in less than a year.[[137]] A fund of a million and a half dollars was paid by it to the government for the privileges granted by the charter, and the problem how to employ this sum to the best advantage brought forward still another question involving conflicting interests.
318. The Question of Internal Improvements.—At first the individual states had attended to their internal needs and had spent considerable sums, especially in improving their water-ways, but a great scheme for a system of national canals had, before the war, attracted leading Republicans. Now Calhoun proposed to use for a similar purpose the money turned in by the bank. His bill passed Congress, but Madison vetoed it, on the ground that although such improvements were desirable, a specific amendment to the Constitution was needed if the general government was to undertake them.
319. The Succession of Monroe.—This veto of Madison’s, which led the people of New York, in default of national aid, to construct their own Erie Canal, through which New York City was enabled soon to outstrip its rivals,[[138]] was one of his last official acts and showed that he was still faithful to the political creed of Jefferson. He was shortly after (March 4, 1817) succeeded by his Secretary of State, James Monroe, who had proved his claim to the succession by developing the nationalistic ideas that had made Jefferson and Madison safe leaders in a very critical period. Monroe had also rendered very efficient service as temporary Secretary of War, and had endeared himself to the people of every section.
References.—General Works: same as for Chapter XIII.
Special Works: same in the main as for Chapter XV., with the addition of: Henry Adams, History of the United States (1800–1817, 9 vols.); D. C. Gilman, James Monroe (“American Statesmen”); W. G. Sumner, Andrew Jackson (“American Statesmen”); C. Schurz, Henry Clay (2 vols. “American Statesmen”); B. J. Lossing, Field Book of the War of 1812; C. J. Ingersoll, Historical Sketch of the Second War; T. Roosevelt, Naval War of 1812; J. Fenimore Cooper, History of the Navy of the United States, chaps. xiii.–xlix.; E. S. Maclay, History of the United States Navy, Vol. I., 305-577; H. C. Adams, Public Debts, Part II., chap. i.; H. C. Lodge, George Cabot, chaps. x.–xiii.
| [126] | Born, 1782; died, 1850. Graduated at Yale, and early developed remarkable powers; entered House of Representatives in 1811; was Secretary of War during Monroe’s administrations; was Vice President, 1825–1832, when in consequence of radical differences with Jackson, he resigned his position and entered the Senate, where his ability at once made him a leader of the “States’ Rights” party; was Secretary of State under Tyler in 1844–1845; reëntered the Senate in 1845, where he held the leadership of the Southern Democrats till his death. |
| [127] | This statement, put thus baldly, is probably an exaggeration, but it is certain that strong pressure was brought to bear on Madison, and that he finally yielded to the “War Hawks,” as the party opposed to peace was styled. |
| [128] | As in the later years of the Revolutionary War, it was fortunate that British ships were so fully occupied on the other side of the Atlantic. |