Prior to 1812, westward expansion had proceeded slowly. Most Americans were nestled along the Atlantic coastline. More than two-thirds of the new nation's population still lived within 50 miles of the Atlantic seaboard, and the center of population rested within 18 miles of Baltimore. Only two roads cut across the Allegheny Mountains, and no more than half a million pioneers had moved as far west as Kentucky, Tennessee, Ohio, or the western portion of Pennsylvania. Cincinnati was a town of 15,000 people; Buffalo and Rochester, New York, did not yet exist. Kickapoos, Miamis, Wyandots, and other Indian peoples populated the areas that would become the states of Illinois, Indiana, Michigan, and Wisconsin, while Cherokees, Chickasaws, Choctaws, and Creeks considered the future states of Alabama, Mississippi, and western Georgia their territory.
Between 1803, when Ohio was admitted to the Union, and the beginning of the War of 1812, not a single new state was carved out of the west. Thomas Jefferson estimated in 1803 that it would be a thousand years before settlers occupied the region east of the Mississippi.
The end of the War of 1812 unleashed a rush of pioneers to Indiana, Illinois, Ohio, northern Georgia, western North Carolina, Alabama, Mississippi, Louisiana, and Tennessee. Congress quickly admitted five states to the Union: Louisiana in 1812, Indiana in 1816, Mississippi in 1817, Illinois in 1818, and Alabama in 1819.
Farmers demanded that Congress revise legislation to make it easier to obtain land. Originally, Congress viewed federal lands as a source of revenue, and public land policies reflected that view. Under a policy adopted in 1785 and reaffirmed in 1796, the federal government only sold land in blocks of at least 640 acres. Although the minimum allotment was reduced to 320 acres in 1800, federal land policy continued to retard sales and concentrate ownership in the hands of a few large land companies and wealth speculators.
In 1820, Congress sought to make it easier for farmers to purchase homesteads in the West by selling land in small lots suitable for operation by a family. Congress reduced the minimum allotment offered for sale from 320 to 80 acres. The minimum price per acre fell from $2 to $1.25. In 1796, a pioneer farmer purchasing a western farm from a federal land office had to buy 640 acres costing $1280. In 1820, a farmer could purchase 80 acres for just $100. The second Bank of the United States encouraged land purchases by liberally extending credit. The result was a boom in land sales. For a decade, the government sold approximately a million acres of land annually.
Westward expansion also created a demand to expand and improve the nation's roads and canals. In 1808, Albert Gallatin, Thomas Jefferson's Treasury secretary, proposed a $20 million program of canal and road construction. As a result of state and sectional jealousies and charges that federal aid to transportation was unconstitutional, the federal government funded only a single turnpike, the National Road, at this time stretching from Cumberland, Maryland, to Wheeling, Virginia (later West Virginia), but much later extending westward from Baltimore through Ohio and Indiana to Vandalia, Illinois.
In 1816, John C. Calhoun introduced a new proposal for federal aid for road and canal construction. Failure to link the nation together with an adequate system of transportation would, Calhoun warned, lead "to the greatest of calamities--disunion." "Let us," he exclaimed, "bind the republic together with a perfect system of roads and canals. Let us conquer space." Narrowly, Calhoun's proposal passed. But on the day before he left office, Madison vetoed the bill on constitutional grounds.
Despite this setback, Congress did adopt major parts of the nationalist neo-Hamiltonian economic program. It had established a second Bank of the United States to provide a stable means of issuing money and a safe depository for federal funds. It had enacted a tariff to raise duties on foreign imports and guard American industries from low-cost competition. It had also instituted a new public land policy to encourage western settlement. In short, Congress had translated the spirit of national pride and unity that the nation felt after the War of 1812 into a legislative program that placed the national interest above narrow sectional interests.