Chap. 10 Launching the New Ship of State 1789-

1800Objectives

• Assess the successes and failures of the fledgling government.

• Chart the platform of our first two political parties: The Federalists and the (Democratic) Republicans.

Themes:

• Led by Washington and Hamilton, the first administration under the Constitution overcame various difficulties and firmly established the political and economic foundations of the new federal government. A Bill of Rights was added to the Constitution, and precedents were established.

• The Cabinet debate over Hamilton’s financial measure with the creation of the Bank of the United States expanded into a wider political conflict partially centered around interpretation of the “elastic clause” between Hamiltonian Federalists and Jeffersonian Democratic -Republicans—the first political parties in America.

• The French Revolution created a severe ideological and political division over foreign policy between pro-British Federalists and the pro-French Republicans. The foreign-policy crisis coincided with domestic political divisions that culminated in the bitter election of 1800, but in the end, power passed peacefully from Federalists to Republicans (the so-called “Revolution of 1800.”)

I. A New Ship on an Uncertain Sea

• 1790 = 4 million people, 90% rural, 95% east of Appalachians

• Vermont, Ken, Tenn, Ohio in as states

• Distrust of government• Western settlers restive• Finances precarious

II. Washington’s Pro-Federalist Regime• Washington unanimously elected by Electoral College• Temporary 1st capital = New York City• Establishes precedent of Cabinet

– Sec. Of State = Thomas Jefferson– Sec. Of Treasury = Alexander Hamilton– Sec. Of War = Henry Knox– And Postmaster General

III. The Bill of Rights• Anti-federalists opposed Consti. because lacked one• Proposed by 2/3 of Congress w/ Madison’s help• Ratified by 9 states by 1791• 1 Freedom of speech, press, religion, peaceable assembly, petition• 2 Right to bear arms• 3 Quartering of soldiers• 4 Unreasonable searches and seizures• 5 Trial rights, right to life, liberty, and property• 6 Criminal trial rights• 7 Civil trial rights• 8 Bail and punishments• 9 All rights are not listed• 10 All rights not listed reserved to states + peopleJudiciary Act of 1789 to set up federal courts

John Jay = 1st Chief Justice + 5

IV.Hamilton Revives Corpse of Public Credit • Sec. Of Treasury = Alexander Hamilton

– A bit of an elitist, but a financial wizard

– Favor wealthy who’d be grateful to gov’t

• Must improve our credit!

– Funding at par – gov’t will pay face value on debts

• Speculators grabbed up bonds when dirt-cheap

– Assume complete debt

• Tie all states as well as rich to federal gov’t this way

States w/ smaller debt (mainly the South) not happy, so…

• Assumption Bill

– Pay the entire debt at par and put

nation’s new capital in the South

Washington, D.C.

Designed by Frenchman Pierre L’EnfantNotice any

similarities

to Paris?

V. Customs Duties and Excise Taxes• Debt is now $75 million• Hamilton – debt is a blessing—more money you are owed,

more stake you have in stable gov’t• Sources of paying debt?

– 1. External customs duties/tariff = 8%• Both revenue and protective purposes

– 2. Internal excise tax• On some domestic items, esp. whiskey• This will hurt western farmers

VI. Hamilton Battles Jefferson for a Bank• Hamilton’s idea: Private bank w/ government the major

stockholder and w/ government deposits but with limited government involvement; print currency = loose construction

• Jefferson’s reaction: No! Not allowed for in enumerated powers in Constitution (Art. I, Sec. 8, clauses 1-17); so therefore right is reserved to states = strict construction

• Hamilton’s reaction to that? “elastic” necessary and proper clause of 18th clause implies it since gov’t can coin money, collect taxes, regulate trade, etc.

• Bank chartered for 20 years; most support came from North

VII.Mutinous Moonshiners in Pennsylvania• Whiskey Rebellion

– Unhappy westerners against excise tax because they’ve been distilling grain since it’s cheaper to transport

– Tar and feather tax collectors– Washington calls militia; 13,000 arrive– “Whiskey Boys” had dispersed

• Significance? New government commands a new respect! (Not like with Shays’ Rebellion!)

VIII. The Emergence of Political Parties• Many of Hamilton’s successes at the cost of states’ rights

(funding, assumption, excise tax, bank)• Leads to rise of first 2 parties• Founding Fathers hadn’t prepared for that• Ironically, most agree parties improve democracy

IX. The Impact of the French Revolution• French Revolution has a huge

impact on new U.S. and world• Jefferson’s Democratic-

Republicans – support war, even with terror

• Hamilton’s Federalists – oppose war, especially with Reign of Terror

• Then French Revolution spread to Britain which will now affect us

X. Washington’s Neutrality Proclamation• 1778 Franco-American alliance still in effect; U.S.

supposed to help them defend West Indies• Jeffersonians want to honor alliance• Washington felt we were too new to risk it; must delay

involvement• Neutrality Proclamation of 1793 (announced

w/out consulting Congress)– Gov’t is neutral and so should citizens be– Jefferson resigns from the Cabinet

• Replaced by Edmund Randolph• Citizen Genet tries to secure our involvement

– We were incensed; he was sent home and replaced• Our neutrality actually favored France – they needed us to

feed Fr. West Indies; Bri. could blockade us

XI. Embroilments with Britain

• British retained posts on US soil to insure its fur trade and use Indians to buffer

• Gen. “Mad Anthony” Wayne – defeated Indians in Battle of Fallen Timbers, 1794– Leads to Treaty of Greenville

of 1795 – ceded Ohio• Bri. assumed we’d defend France’s West Indies,

so they seized 300 of our ships, impressed our sailor, and threw others into dungeons

• Though the Jeffersonians were especially angry, again, we cannot risk war with anyone so early

XII. Jay’s Treaty, Washington’s Farewell • Jay’s Treaty of 1794

– Britain will evacuate posts, pay damages for anything past

– No promises for future seizures, impressments, Indians– We will pay our debts on pre-war accounts

• Jeffersonians feel this is humiliating and are galvanized to form their party

• Pinckney’s Treaty of 1795– Spain doesn’t want us to get too close to Bri.– free use of Mississippi and disputed Fla. land

• Washington’s Farewell Address– Establishes precedent of 2 term limit– Warns us of permanent alliances and parties

XIII. “Bonny Johnny” Becomes President

• Hamilton was unpopular, so Fed.

chose John Adams• Dem.-Rep. chose Thomas Jefferson• Some rather ugly campaigning• Adams won, but Jefferson came in second because

Founding Fathers hadn’t anticipated distinct parties; corrected by 12th Amendment

• Adams not as formidable as Washington – Stuffy, stubborn, tactless, aristocratic, trying to fill

Washington’s shoes, hated by Hamilton who has split off into “high Federalists,” and we’re still quarrelling w/ Fr.

XIV. Unofficial Fighting with France• France angry about Jay’s Treaty

– Start seizing our ships, impressing our sailors

– Won’t receive our envoy in Paris

• Adams sent 3 men to France

– John Marshall + 2 hope to meet Talleyrand

– Approached by X, Y, Z wanting a bribe

– Return home

– “Millions for defense but not one cent for tribute!”

– Federalists happy, Jeffersonians ashamed

• War preparation at home

– Navy and Marine Corps established

– Some bloodshed in West Indies

• Will there be war with France?!

XV. Adams Puts Patriotism Above Party• Talleyrand makes up to us, because he doesn’t want war or

to drive us closer to Britain• Adams at high point of popularity, but wisely wants to also

avoid war, so appoints new minister to France (Hamiltonians angry)

• 3 new envoys meet w/ Napoleon• Convention of 1800

– Fr. will annul alliance w/ us– US, not Fr., will pay claims of Amer. shippers– Our only peacetime mil. alliance for @ 150 years

• Adams did good to preserve peace; lays groundwork for La. Purchase

XVI. The Federalist Witch Hunt• Federalists had gotten anti-Jeffersonian laws

passed due to anti-French frenzy• Alien Acts

– Lengthened residency time for naturalization from 5 to 14 yrs.

– Pres. can deport dangerous foreigners in peacetime and imprison them in wartime

• Sedition Acts (to expire in 1801 before next election)– Anyone who impeded or defamed gov’t or officials could

be fined and imprisoned– What about freedoms of press and speech?!– Ten tried and convicted– Yet popular support for laws

XVI. The Virginia (Madison) and Kentucky (Jefferson) Resolutions

• Jefferson penned Kentucky Resolutions• Madison penned Virginia Resolutions• (remember, Madison had been a Federalist!)

• Both called on “Compact theory” of gov’t – contract between states and federal gov’t

• States have the right to “nullify” laws of excessive gov’t

• Others said people had madecontract, so it was up to Supreme Court to rule laws unconstitutional

• Defeated, but will be used by Southbefore secession

XVII Federalists v Democratic-Republicans• See chart for differences (next)

Issue Fed. Dem.-Rep.Leader Hamilton Jefferson

Level of power National States

British Pro Anti

France Anti Pro

Who rules The best Informed masses

Elastic clause loose strict

Bank Pro Anti

Livelihood Commercial Agrarian

Support Coast, Northern S, SW

Tariff Pro Anti

Alien & Sed. Acts Pro Anti

Navy Pro Anti