Final answer:
The Panic of 1819 created conflict within the Democratic-Republican Party by highlighting internal differences in economic and political philosophies, leading to a division over the government's role in the economy and setting the stage for Andrew Jackson's rise and the second party system.
Step-by-step explanation:
Conflict Within the Democratic-Republican Party
The Panic of 1819 created significant conflict within the Democratic-Republican Party by highlighting differing economic and political philosophies among its members. This internal strife stemmed from debates over the role of government in economic affairs. On one side, some party members supported a focus on economic and mercantile development through measures like tariffs on imported goods and government funding for internal improvements, which included the development of roads and canals. On the other side, populists within the party argued for reducing state property requirements to enfranchise more of the 'common man' and were generally opposed to what they saw as an overextension of federal authority in economic matters.
Further fueling division was the question of how to handle the economic crisis itself, exacerbated by land speculation and banking practices, which some blamed on the policies of the Second Bank of the United States. By 1820, amid the economic downturn and territories' debates like the Missouri Compromise, factionalism became pronounced. Events such as these paved the way for the emergence of a new leader, Andrew Jackson, who represented a different set of values and ultimately contributed to the rise of the second-party system.
Moreover, the Panic of 1819 and ensuing internal conflicts illustrated the philosophical divides within the party, with increasing concerns about centralized power and the direction of national policy. The party, originally unified in its opposition to Federalist policies and strong central government, found itself mired in its struggles to align its economic policies with the needs and values of its constituents.