US History

U.S. History Study Guide

establish settlements. The treaty marked the Britain's last permanent loss of territory, in what is now the Continental United States. 9.5 The Monroe Doctrine During James Monroe’s presidency, several revolutions against Spanish rule flared up in South and Central America and ousted the colonial governments. The United States, broken away from colonial rule, and officially recognized these new countries, established lucrative trading relations with many of these government. Fearing that European governments would intervene and try to reassert colonial dominance, Secretary of State John Quincy Adams collaborated with James Monroe on the Monroe Doctrine. It consisted of three principles: • Unless American interests were involved, the United States would stay out of European wars. • The “American continents”, including both North and South America, were not subject to any further colonization by European powers. • The United States would construe any attempt at European colonization in the New World as an “unfriendly act.” Internal Development, 1820-1830 The years following the War of 1812 were years of rapid economic and social development. So rapid, in fact, they were followed by a severe depression in 1819. This slump was temporary, and it became obvious that the country was moving rapidly from its agrarian origins towards an industrial, urban future. Westward expansion accelerated, and the mood of the people became very positive. In fact, these years were referred to as the “Era of Good Feelings.” 9.6 Postwar Boom The years following the war were summed up by a high demand for American cotton, grain, and tobacco; exports boomed. The Second National Bank proved to spike the economy. Banks lent money with little or no collateral to businessmen seeking to buy land, build factories, and develop industries. The high protective tariff promoted further domestic development. Accompanying this expansion was the steady rise of inflation, the increase of paper money and credit leading to higher prices and less valuable currency. 9.7 The Depression of 1819 In 1818, the global demand for American goods declined, in part because Europe had recovered from the devastation of the Napoleonic Wars. Inventories of British manufactured goods had built up during the war, and English merchants began to dump their products on the American market at cut-

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