The rush bagot pact was an agreement between the United States and Great Britain to eliminate their fleets from the Great Lakes, with the exception of small patrol vessels. The 1818 convention established the border between the territory of Missouri in the United States and British North America (later Canada) at the forty-ninth parallel. Both agreements reflected the easing of diplomatic tensions that led to the War of 1812 and marked the beginning of Anglo-American cooperation. The Rush Bagot Treaty was a treaty between the United States and Great Britain that restricted naval armament from the Great Lakes and Lake Champlain after the War of 1812. April 18, 1818 ratified by the United States Senate and confirmed by Canada after Confederation in 1867. Although the agreements did not fully resolve border disputes and trade agreements, the Rush Bagot Agreement and the 1818 Agreement marked an important turning point in Anglo-American and American-Canadian relations. The panic of 1819 took shape. A sharp decline in real estate values and a sharp contraction in credit (an inability to insure bank credit) increase the currency and lead to imports and prices. In March, the price of cotton collapses on the English market. The conservative policy of the Second Bank of the United States, founded in 1816, accelerated the crisis that ended around 1823.
The origins of the Rush Bagot Treaty can be attributed to correspondence between US Secretary of State Richard Rush and British Minister in Washington Sir Charles Bagot, which was exchanged and signed on 27 and 28 April 1817. After the terms of Rush and Bagot`s notes were agreed, the Rush Bagot agreement was informally recognized by both countries. On April 16, 1818, it was introduced to the U.S. Senate and formally ratified on April 16, 1818. The treaty eventually resulted in the Washington Treaty in 1871, which concluded disarmament. In 1946, the United States and Canada agreed, through an exchange of diplomatic notes, that the deployment of naval ships for training purposes was authorized, provided that each government was informed in advance.  On December 2, 1823, President Monroe, in his annual message to Congress, addressed the subject in three parts. He first repeated the traditional American policy of neutrality with regard to European wars and conflicts.
He went on to say that the United States would not accept the reintroduction of a country by its former European master, although he also acknowledged non-interference in existing European colonies in America. Finally, he said that European countries should no longer regard the Western Hemisphere as open to further colonization, a jab that was aimed primarily at Russia, which was trying to expand its colony on the north Pacific coast. A plaque from the Ontario Heritage Trust in Kingston, in Ontario, recognizes the Rush Bagot Agreement (44-13`48`N 76-27`59`W / 44.229894 N 76.466292 N 76.466292-W / 44.29894; -76.4662922). A commemorative plaque is also located on the former site of the British envoy in Washington, D.C., D.C. (38-54`13.N 77-3`8.4`W / 38.903806 N 77.05233-W / 38.903806; -77.052333), where the agreement was negotiated. A monument is also located on the site of the Old Fort Niagara (43-15`N 79-03`49`W / 43.263347 N 79.063719 W / 43.263347; -79.063719), reliefs of Rush and Bagot, as well as the words of the treaty.  This statement, known in the 1850s as the Monroe Doctrine, sounded harsh, but most countries knew that America had little capacity to insinuate it by force.