[185][183] Commanding General Henry Dearborn, hampered by mutinous New England infantry, retreated to winter quarters near Albany, after failing to destroy Montreal's vulnerable British supply lines.[183] Lacking adequate revenue to fund the war, the Madison administration was forced to rely on high-interest loans furnished by bankers based in New York City and Philadelphia.[186]
In the 1812 presidential election, held during the early stages of the war, Madison was re-nominated without opposition.[187] A dissident group of New York Democratic-Republicans nominated DeWitt Clinton, the lieutenant governor of New York and a nephew of recently deceased Vice President George Clinton, to oppose Madison in the 1812 election. This faction of Democratic-Republicans hoped to unseat the president by forging a coalition among Democratic-Republicans opposed to the coming war, as well as those party faithful angry with Madison for not moving more decisively toward war, northerners weary of the Virginia dynasty and southern control of the White House, and many New Englanders wanted Madison replaced. Dismayed about their prospects of beating Madison, a group of top Federalists met with Clinton's supporters to discuss a unification strategy. 