National Expansion and Regional Economies

By further expanding federal powers, the War of 1812 reinforced political changes that had been under way for more than a decade. At the Hartford Convention, Federalists who had once advocated broad national powers called for restrictions on federal authority. By contrast, Democratic-Republicans, who initially demanded restraints on federal power, now applauded its expansion. Indeed, Democratic-Republicans in Congress sought to use federal authority to settle boundary disputes in the West, make investments in transportation, and reestablish a national bank. Some state governments also invested in roads and canals. Federal power was again asserted to settle disputes with Britain and Spain over U.S. borders in the North and the South. At the same time, more secure borders and state and federal investments in transportation fueled overseas trade and the development of increasingly distinct regional economies.