Summary
Highlights
The War of 1812 exposed strong regional interests, with Federalists in New England vehemently opposing the war, even threatening secession. The war's outcome fostered nationalism but also highlighted weaknesses: the lack of a National Bank for credit and poor infrastructure for troop and supply movement.
To address the nation's weaknesses and unify the economy, Henry Clay proposed the American System. Its components included federally funded internal improvements (roads, canals), protective federal tariffs to boost domestic manufacturing, and a Second Bank of the United States to stabilize the economy. Presidents Madison and Monroe, however, objected to federal spending on internal improvements, viewing it as an overreach of federal power that would disadvantage the South.
Westward expansion intensified regional tensions, particularly concerning slavery. When Missouri applied for statehood in 1819 as a slave state, it sparked a bitter dispute. At the time, the Senate maintained a delicate balance of eleven free states and eleven slave states. Missouri's entry as a slave state would disrupt this balance, giving the South a legislative advantage.
The controversy deepened with the Tallmadge Amendment, proposed by James Tallmadge, which sought to gradually ban slavery in Missouri over 25 years. This proposal enraged Southern senators, who saw it as a precursor to the abolition of slavery nationwide and a threat to the balance of power, leading to threats of secession.
Henry Clay once again intervened, brokering the Missouri Compromise (also known as the Compromise of 1820). This agreement admitted Missouri as a slave state and Maine as a free state, preserving the Senate's balance. It also established the 36°30’ parallel as the line dividing future slave and free territories, with land above it entering as free states (except Missouri) and land below it eligible for slave state status.