[74] Months after Monroe took office as Secretary of War, the war ended with the signing of the Treaty of Ghent. The treaty resulted in a return to the status quo ante bellum, and many outstanding issues between the United States and Britain remained. But Americans celebrated the end of the war as a great victory, partly due to the news of the treaty reaching the United States shortly after Jackson's victory in the Battle of New Orleans. With the end of the Napoleonic Wars in 1815, the British also ended the practice of impressment. After the war, Congress authorized the creation of a national bank in the form of the Second Bank of the United States.[75]

Election of 1816
Main article: 1816 United States presidential election
Monroe decided to seek the presidency in the 1816 election, and his war-time leadership had established him as Madison's heir apparent. Monroe had strong support from many in the party, but his candidacy was challenged at the 1816 Democratic-Republican congressional nominating caucus. Secretary of the Treasury William H. Crawford had the support of numerous Southern and Western Congressmen, while Governor Daniel D. Tompkins was backed by several Congressmen from New York. 