Editing Henry Clay (section)

===Madison administration, 1811–1817===
{{Further|Presidency of James Madison|12th United States Congress|13th United States Congress|14th United States Congress}}

Clay and other war hawks demanded that the British revoke the [[Orders in Council (1807)|Orders in Council]], a series of decrees that had resulted in a de facto commercial war with the United States.{{sfn|Heidler|Heidler|2010|pp=89–90}} Though Clay recognized the dangers inherent in fighting Britain, one of the most powerful countries in the world, he saw it as the only realistic alternative to a humiliating submission to British attacks on American shipping.{{sfn|Klotter|2018|p=33}} Clay led a successful effort in the House to [[Declaration of war by the United States|declare war]] against Britain, complying with a request from President Madison.{{sfn|Heidler|Heidler|2010|pp=97–98}} Madison signed the declaration of war on June 18, 1812, beginning the War of 1812. During the war, Clay frequently communicated with Secretary of State [[James Monroe]] and Secretary of War [[William Eustis]], though he advocated for the replacement of the latter.{{sfn|Heidler|Heidler|2010|pp=99–101}} The war started poorly for the Americans, and Clay lost friends and relatives in the fighting.{{sfn|Heidler|Heidler|2010|pp=97–98}} In October 1813, the British asked Madison to begin negotiations in Europe, and Madison asked Clay to join his diplomatic team, as the president hoped that the presence of the leading war hawk would ensure support for a peace treaty. Clay was reluctant to leave Congress but felt duty-bound to accept the offer, and so he resigned from Congress on January 19, 1814.{{sfn|Heidler|Heidler|2010|pp=107–108}}

Clay left the country on February 25, but negotiations with the British did not begin until August 1814. Clay was part of a team of five commissioners that included Treasury Secretary [[Albert Gallatin]], Senator [[James A. Bayard (elder)|James Bayard]], ambassador [[Jonathan Russell]], and ambassador [[John Quincy Adams]], the head of the American team.<ref>Richard Archer, "Dissent and peace negotiations at Ghent." ''American Studies'' 18.2 (1977): 5–16 [https://journals.ku.edu/amsj/article/download/2285/2244 online].</ref>  Clay and Adams maintained an uneasy relationship marked by frequent clashes, and Gallatin emerged as the unofficial leader of the American team. When the British finally presented their initial peace offer, Clay was outraged by its terms, especially the British proposal for an [[Indian barrier state]] on the [[Great Lakes]]. After a series of American military successes in 1814, the British delegation made several concessions and offered a better peace deal.{{sfn|Heidler|Heidler|2010|pp=110–117}} While Adams and Gallatin were eager to make peace as quickly as possible even if that required sub-optimal terms in the peace treaty, Clay believed that the British, worn down by years of fighting against France, greatly desired peace with the United States. Partly due to Clay's hard-line stance, the [[Treaty of Ghent]] included relatively favorable terms for the United States, essentially re-establishing the ''[[status quo ante bellum]]'' between Britain and the U.S. The treaty was signed on December 24, 1814, bringing a close to the War of 1812.{{sfn|Klotter|2018|pp=35–36}} After the signing of the treaty, Clay briefly traveled to London, where he helped Gallatin negotiate a commercial agreement with Britain.{{sfn|Heidler|Heidler|2010|p=117}}

Clay returned to the United States in September 1815; despite his absence, he had been elected to another term in the House of Representatives. Upon his return to Congress, Clay won election as Speaker of the House.{{sfn|Heidler|Heidler|2010|pp=119–122}} The War of 1812 strengthened Clay's support for interventionist economic policies such as federally funded internal improvements, which he believed were necessary to improve the country's infrastructure system.{{sfn|Klotter|2018|pp=39–40}} He eagerly embraced President Madison's ambitious domestic package, which included infrastructure investment, [[Tariff in United States history|tariffs]] to [[Protective tariff|protect]] domestic manufacturing, and spending increases for the army and navy. With the help of [[John C. Calhoun]] and [[William Lowndes (congressman)|William Lowndes]], Clay passed the [[Tariff of 1816]], which served the dual purpose of raising revenue and protecting American manufacturing.  To stabilize the currency, Clay and Treasury Secretary [[Alexander J. Dallas (statesman)|Alexander Dallas]] arranged passage of a bill establishing the [[Second Bank of the United States]] (also known as the national bank).{{sfn|Heidler|Heidler|2010|pp=123–131}} Clay also supported the [[Bonus Bill of 1817]], which would have provided a fund for internal improvements, but Madison vetoed the bill on constitutional concerns.{{sfn|Heidler|Heidler|2010|pp=132–133}} Beginning in 1818, Clay advocated for an economic plan known as the "[[American System (economic plan)|American System]]," which encompassed many of the economic measures, including protective tariffs and infrastructure investments, that he helped pass in the aftermath of the War of 1812.{{sfn|Klotter|2018|pp=81–82}}