[70] As the war dragged on, the British offered to begin negotiations in Ghent, and the United States sent a delegation led by John Quincy Adams to conduct negotiations. Monroe allowed Adams leeway in setting terms, so long as he ended the hostilities and preserved American neutrality.[71]
When the British burned the U.S. Capitol and the White House on August 24, 1814, Madison removed Armstrong as Secretary of War and turned to Monroe for help, appointing him Secretary of War on September 27.[72] Monroe resigned as Secretary of State on October 1, 1814, but no successor was ever appointed and thus from October 1814 to February 28, 1815, Monroe effectively held both Cabinet posts.[73] Now in command of the war effort, Monroe ordered General Andrew Jackson to defend against a likely attack on New Orleans by the British, and he asked the governors of nearby states to send their militias to reinforce Jackson. He also called on Congress to draft an army of 100,000 men, increase compensation to soldiers, and establish a new national bank to ensure adequate funding for the war effort.