I. Westward Expansion (Appalachians to Mississippi)
A. Causes
1. Growing US population (3.9 million in 1790, 17 million in 1840, 62 million by 1890) and continued emphasis on agriculture
2. Higher commodities prices- more demand for wheat and corn from Britain, France, West Indies, other European nations as well as South America. Cotton ((1793- Cotton Gin invented by Eli Whitney) also boomed as it became fashionable after 1815 (by 1830, cotton comprised 2/3 if all US exports.
3. Cheap land
4. American System (promoted by Henry Clay of Kentucky) led to transportation system improvements (canals, turnpikes, National Road, steamboats and eventually, railroad)
5. 6 Million acres of western land given to War of 1812 veterans
6. Increased federal army presence (greater security for pioneers)
7. New States- 26 by 1840, 44 by 1890
B. Indian Removal
1. Focused on the “Five Civilised Tribes” of the old Southwest- Cherokees (GA, NC, AL), Choctaws (Miss), Creeks (GA, AL), Chickasaws (Miss), and Seminoles (Fla).
2. In the 1820s, Monroe and Adams attempted voluntary removal. The Govt would provide land west of the Mississippi.
3. White settlers accelerated squatting of Indian land in AL, GA, Miss. During the 1820s, they requested that state govts pass laws to forcibly move remaining Indians.
4. 1830- Indian Removal Act (pushed by President Jackson) authorized President to force Indians to move West. In the next 6 years, Indians exchanged 100 million acres of land for 32 millions of Western land.
5. Creeks were forcibly removed, Seminoles fought a bitter war (1835-1842), Cherokees were forced to move to Oklahoma in the Trail of Tears (1/3 of them died along the way)
II. The Economics of Westward Expansion
A. Land Policy
1. Ordinance of 1785
a. Western land to be divided into 640 acre lots
b. Sold for minimum of $2/ acre, to be paid in 1 year
c. Favoured wealthy land speculators
d. Kept actual settlement from occurring (land owned by wealthy investors)
2. Republican Policies
a. In 1800, Jefferson dropped min. purchase to 320 acres with 4 year payment term
b. Min acreage kept decreasing until reaching 40 acres in 1840
c. Though meant to benefit smaller farmers, the land kept being sold at auction to the highest bidder.
d. Due to speculation, land prices increased 1000% between 1800-1814
e. Small farmers were forced to barrow in order to buy land.
3. The advantages of squatting
a. Squatters often settled on land while it still belonged to government
b. Made “improvements” then claimed pre-emption rights
c. Congress legitimized pre-emption in 1821
B. Panic of 1819
1. State subsidiaries of the Bank of the United States printed more money in order to lend it to land speculators(often bank directors) and small farmers.
2. Fearing that too much currency was in circulation, the Bank of the United States told the states to redeem the paper mone they had on deposit (at the bank of the US) for specie (gold & silver coin)
3. In order ti pay back the Bank of the US, state banks began to call in loans from farmers and speculators who in turn often had to sell mortgaged land at a loss. This was exacerbated by temporarily lower demand for commodities in Europe
4. The panic later served as justification for President Jackson to get rid of the Bank of the US in the 1830s.