Capitalism & Economy

The New Republic

How did American values both challenge

and promote new economic ideals?

Mercantilism

U.S. gained trade advantages during war Robert Oliver John Jacob Astor

US Bank allows Americans to be independent of Brit

Aft 1811 State Banks Profitable Loaned money

Panic of 1819

Natural Business cycle

Pittsburgh 1817Pittsburgh 1817

Regional Divide

Banking & Manufacturing Northeast Power & Money Port Cities prosper

Rural Expansion Artisans

Ex: shipbuilders Entrepreneurs

develop a system From subsistence to

profit Environmental

impact Efficiency and

dependency

The Commonwealth System

Legislatures promote “common wealth” Eminent domain State court judges

follow Marshall States provided

charter to corps.

Individual rights compromised Private property Power shifted to

corporations State aid to private

businesses

First Bank of the U.S.

Courts viewed slaves as property Virginians feared manumissions in North

Individual liberty and equality for WHITES only

Slavery Defended

Sources: Government & the Economy

Fletcher v. Peck 1810

1. Why did the framers place restrictions on state legislatures?

2. Do you agree with Marshall’s interpretation of Article 1, sect. 10

Madison’s Veto of Calhoun’s Internal Improvements Bill 1817

1. Why does Madison believe the bill is unconstitutional?

2. How do you interpret Madison’s conclusion?