Title: James Monroe: Domestic Affairs | Miller Center
Headings: James Monroe: Domestic Affairs
James Monroe: Domestic Affairs
James Monroe: Domestic Affairs
James Monroe: Domestic Affairs
National Tours
Monroe's Cabinet
The Panic of 1819
The Missouri Compromise
The American System
Political Parties
Daniel Preston
More Resources
James Monroe Essays

Content: Although he encouraged debate and solicited advice from his cabinet, there was never any doubt that he was firmly in charge. He made the final decisions and expected his cabinet to support and implement them. The Panic of 1819
Two years into his presidency, Monroe faced an economic crisis known as the Panic of 1819. It was the first major depression to hit the country since the 1780s. The panic stemmed from declining imports and exports, and sagging agricultural prices. A number of state banks suspended payment on their notes and declared bankruptcy, with the Second Bank of the United States shifting to more conservative policies. The result was high unemployment and an increase in bankruptcies and foreclosures. Although some critics derided Monroe for not responding more forcefully to the economic downturn, he could do little to alleviate its short-term effects. The power to change economic policies rested with the states and the Bank of the United States. In addition, Monroe believed that depressions were natural features of a maturing economy and that the U.S. economy would soon rebound from the panic (and indeed it did—the depression ended by 1823).