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Launching the New Ship of State
Chapter 10
Central government to be distrusted, watched, and curbed.
Financial problems plagued the country. Debt high Revenue low Worthless paper money
Growing Pains
Population still growing fast
Doubling every 25 years 1790 census shows 4 million Cities blossoming
90% rural
95% live east of Appalachian Mountains New states being carved out People looked down on America’s ax and
rifle pioneering
Western states- Tennessee, Kentucky, Ohio open to seduction Spain and British agents offer independence
Washington for President
Drafted to be President by Electoral College in 1789 War hero, strength of character
New York temporary capital
Great ceremony at Washington’s inauguration
Establishes a cabinet
Not mentioned in constitution Sec of State- Jefferson Sec of Treasury- Hamilton Sec of War- Knox Attorney General- Edmund Randolph
The Bill of Rights
Unfinished business
Drafting a Bill of Rights States ratified Constitution based on fact
that one would be drawn up quickly
Bill of Rights drawn up by Madison Feared narrow victory by Federalists would
unravel if states called a national convention
Drew them up and led them through Congress
Adopted in 1791
First 10 Amendments Safeguards to most basic American
principles
9th Amendment
Rights not mentioned are protected also Reassure states
10th Amendment
Reserve Clause Rights not mentioned are reserved to the
states
Judiciary Act of 1789
Creates federal court system• Supreme Court, Chief Justice, 5 Associates,
Federal District and Circuit Courts and Attorney General
• John Jay becomes first Chief Justice
Hamilton Revives the Corpse of Public Credit
Hamilton Secretary of Treasury
Genius Doubts about character Overzealous at times
Establish America on sound financial footing Favor wealthy who would help preserve the
Government. Hope to help propertied class get more
wealth Trickle down to masses
Bolstering the nations credit
Fund debt “at par” Assume all states debts accrued during the
war
“Funding at par”
Government would pay off debts at face value plus interest- $54 million
Bonds depreciated to 10 or 15% of value Sold to speculators who had not fought in
war• Bought from war veterans or widows
Wants to assume state debts of $21.5 million Hamilton eager to take on debt
Assumption was logical
Occurred during the War so national government should pay
Would chain states to federal government so that debts would be paid off• Shift loyalty to wealthy creditors to that
national government
States with heavy debt delighted
States with small debts afraid Virginia did not want assumption
• Got DC in Virginia for assumption
Customs Duties and Excise Taxes
Hamilton- “Father of the National Debt” Debt swelled to $75 million Bold move Debt a national blessing
• Creditors have a personal interest in success of government to get paid back
Makes a debt an asset for federal government
Customs duties
Tariff duties 1789 low 8% tariff
• Revenue for government• Protection for weak manufacturing
• Saw future of America still lies in manufacturing
• America still controlled by agriculture
Excise tax on whiskey to raise revenue 7 cents a gallon Whiskey flows freely in western frontier Used as money
Hamilton Battles Jefferson for a Bank
Idea of a national bank
Modeled after Britain Government a major stockholder Deposit surplus money Stimulate commerce by keeping money in
circulation Print paper money for sound stable
currency
Jefferson opposed to the bank
No authorization in Constitution for a bank Powers not granted to federal government
reserved to the states **Strict interpretation
Hamilton’s view
What Constitution did not forbid it permitted
Loose interpretation • To collect taxes and regulate trade
Implied powers- justifies national bank Loose or broad interpretation
Hamilton prevails
Support came from North Opposition came from South
Created in 1791 for 20 years
Philadelphia $10 million 1/5 owned by United States
Mutinous Moonshiners in Pennsylvania
Whiskey Rebellion- 1794- Pennsylvania Challenges new government Excise tax harsh on pioneers- saw as burden
imposed by national government• Cheaper to send east than bales of hay
“Liberty and no excise” Brought collection to a halt- tar and feather
Washington summons militia
Alarmed at self created societies 13,000 join national army Captured 2 but no real insurrection
Pardoned by Washington
3 killed Strengthened command and respect for
Washington• Or was it a brutal display of force
The Emergence of Political Parties
Hamilton’s financial plan a success
Creates political liabilities
Encroached on states rights Organized opposition began to build Becomes a political rivalry with Jefferson
and Hamilton
Factions had formed over heated issues These were ideological organizations
Ideas of parties new to government Opposition parties seemed tainted with
disloyalty Jefferson and Madison form opposition and
confined activities to Congress Newspapers bolster ideas of two parties
Two parties emerge
Seemed suspicious Actually helped America establish sound
democracy Party out of power “Loyal Opposition”
keeps things in the middle
The Impact of the French Revolution
Domestic affairs bring parties into existence under Washington End of Washington’s first term Foreign policy brings them further into the
political fray
French Revolution begins in 1789 Left deep scare in American life Americans cheer at first growth of
democracy• Jeffersonians liked the Revolution
France declares war on Austria and proclaims itself a republic Americans rejoice Liberty is moving forward
Reign of Terror begins
Federalists point finger at Jeffersonians Federalists disapprove of Revolution
Jeffersonians thought it a cheap price to pay for liberty
Things change when Britain is involved America has to be a part of controversy Moves over to America
Washington’s Neutrality Proclamation
Alliance of 1778 bound America
To protect French West Indies British bound to attack
Jeffersonians want to aid France
We owed them
Washington wants to avoid war at all costs Militarily weak Economically wobbly Bide time until population grows
• Then assert maritime rights
Hamilton and Jefferson agree
*Neutrality Proclamation of 1793 Claimed American neutrality in upcoming
war Warned Americans to be impartial
First major foreign policy statement Moved Americans to support isolationism
Citizen Genet
French representative to America Began raising privateers and others to help
the French cause Did not believe the Neutrality Proclamation
reflected most Americans Began raising army to invade Spanish
Florida
Citizen Genet (cont.)
Became embarrassment to French and Jeffersonians
Washington tells him to leave• French Revolution takes a new turn and he
cannot go back to France• Retires in America
Neutrality shows self interest cornerstone of all foreign policies Only France stood to gain in 1793
• Never call on America to its treaty• America supplies West Indies with food
anyway• British would have blockaded America and food
would not have flowed
Embroilments With Britain
Neutrality put to test by Britain
Kept forts in NW in defiance of treaty Want to contain Americans in west and
north Sold firearms to Indians
• Miami Confederation led by Little Turtle• Claim Ohio Valley as theirs
– Defeat Josiah Harmar and Arthur St. Clair
• One of the worst defeats on western frontier
(Mad) Anthony Wayne
Routs Miamis at Battle of Fallen Timbers • British refused to support Indians• Treaty of Greenville in 1795
• Gave up much of the Northwest
• Given money annually and right to hunt land
• Thought they had limited America’s ability to decide fate of Indians
On the Sea
British want to starve West Indies• Capture and impress American ships and
sailors• Imprisoned others
Roused American resentment
Jeffersonians call to arms against Britain to protect its liberties
Federalists know that economy depends on trade with Britain
Jay’s Treaty and Washington’s Farewell
Jay sent to London
Jeffersonians afraid Jay would sell out his country to Britain• Kissed the queen’s hand
Jay entered negotiations with weak hand Hamilton hurt him too
• Told Britain of their bargaining strategy
Britain promises to leave forts in NW Pay damages for recent seizures
Did not agree to future seizures and impressments Bound US to pay debts owed to merchants during
Revolutionary War
Unpopular treaty
Vitalized Democratic- Republicans Treaty seemed like a surrender Southern planters would have to pay
majority of debt to British merchants Hurt Washington’s popularity
Other consequences of Jays Treaty Spain moved to strike a deal with US
fearing an alliance with Britain• Pinckney’s Treaty in 1795
• Gave US navigation of Mississippi River (re-inforced right of Deposit)
• Gave US disputed territory north of Florida
Washington decides to retire
Establishes a two term limit for President Farewell Address
• Avoid permanent alliances• Good advice for a weak nation
Other contributions
Central government solidly established Economy becoming sound West was expanding Trade growing Cabinet Kept nation out of overseas entanglements
and wars
Left on less than prestigious note
John Adams Becomes President
Adams chosen to succeed Washington Hamilton too unpopular with masses Will run against Jefferson for President
Election of 1796
Became personal Jeffersonians went to issues of Whiskey
Rebellion and Jay’s Treaty
Adams wins 71 to 68
Jefferson becomes Vice- President problem with electoral system)
Adams a great statesman Intellectual aristocrat No appeal to masses
Other handicaps
Hard to succeed Washington Hated by Hamilton who now headed the
High Federalists (war faction)• Cabinet against him- led by Hamilton
Inherits a violent quarrel with France
Unofficial Fighting with France
French retaliate against Jays Treaty Saw it as an alliance with their enemy Began seizing American ships Refused to receive America’s new
diplomats
President Adams avoids conflict
Sends 3 men to meet with French officials John Marshall
**XYZ Affair
Americans hope to meet French foreign minister Talleyrand
Met by 3 go betweens Asked for $250,000 just to talk to
Talleyrand
Negotiations broke down
Bribes part of usual negotiations but not just to talk
Marshall seen as hero
War hysteria sweeps America
“Millions for defense but not one cent for tribute”
Federalists delighted at turn against French Jeffersonians dismayed
War effort moves forward
Navy department created Marines established
War of seas
Americans capture 80 French ships Privateers and men of war do most damage Americans lose several hundred ships
Adams Puts Patriotism Above Party
France really doesn’t want to go to war with US Doesn’t need another enemy Driving US closer to England Talleyrand says he will receive a new
diplomat with respect
Avoiding war brings Adams new acclaim War that takes Florida and Lousiana would
bring Federalists new prestige But realizes that war must be avoided
Adams submits new minister’s name to Senate Hamilton’s war hawks enraged Jefferson and cooler heads prevail
New ministers met with Napoleon
Napoleon wants to free hands of American squabble
Wants to build European empire Worry about Louisiana later
Convention of 1800
Annul treaty Americans pay damage of shippers Ends America’s first entangling treaty
Adams deserves credit
Avoids war Allows for purchase of Louisiana later on
People of times are not happy with Adams History has seen that it was the wise choice
The Federalist Witch Hunt
Federalists use French frenzy to push thru Congress laws to stifle foes and critics
**Alien Act
Aimed at pro-Jefferson immigrants• They were welcomed into Jeffersonian ranks• 1.) Raised citizenship requirements from 5 to 14
years.• Violates America’s open door policy toward immigrants
• 2.) President could deport in time of peace and jail in time of hostilities
• Arbitrary use of power• Never really enforced
**Sedition Act
Hurt freedom of speech and press• 1.) Provided that anyone who impedes policies
of government of falsely defames officials liable for fines and prison
• Felt it was justified
• Verbal violence has been unrestrained
Jeffersonians editors indicted
10 sent to prison Congressman Matthew Lyon- spit on
Federalist and criticized Adams
Sedition Act in direct violation of Constitution Supreme Court Federalists would not listen
to appeals Had law expire in 1801 in case they lost
election Sent many converts to Jeffersonians
Sedition Act did have some supporters Anti- French hysteria plays into hands of
conservatives Federalists swept into office in 1798-99
The Virginia and Kentucky Resolutions
Jeffersonians will not take this lying down Could take away more freedoms Might stamp out their party
***Kentucky Resolutions (Jefferson) and Virginia Resolutions (Madison) Approved by those state legislatures
Compact Theory*****
States had entered into a compact with other states to create the federal government and its jurisdiction
Federal government was agent of the states States were final judge on whether federal
government had broken the contract Federal government had overstepped its rights
with Alien and Sedition Acts States had the right to nullify these laws
Other states do not follow
Federalists states say Supreme Court has right to say if laws are unconstitutional
People are the final authority
K and V Resolutions were extreme state’s rights view Later used by southerners to nullify laws
which led to secession Irony: Jefferson and Madison were looking
for ways to save Union not break it up Actually want to gain support for upcoming
election
Federalists Versus Democratic Republicans
Differences easy to see between Federalists and Democratic Republicans
Federalists forged by Hamilton
Federalists who wanted ratification Rule by the best people Intellectual arrogance Distrust full blown democracy Strong central government with power to
crush democratic excesses Protect lives and wealth of rich
Federalists forged by Hamilton (cont.) Government should support private
enterprise Most support came from seaboard
merchants, manufacturers and shippers Pro British Want foreign foreign trade, especially with
Britain
Jefferson leads Republicans
Master political organizer but not a commanding public figure
Appealed to middle class and underprivileged Traitor to upper class- slave owning, aristocratic planter Want weak central government- best government
governs least Power to the states Central authority kept in check by strict interpretation
of the Constitution
Jefferson leads Republicans (cont)
Pay off debt Primarily agrarian No special privileges for special classes
(manufacturing) Want government run by educated (not property
class)• Believe in masses if educated
Keep slaves so whites will not become wage earners and be able to own land
Jefferson leads Republicans (cont)
Jefferson believes in freedom of press and speech to protect liberties• Government without newspapers or newspapers
without government
Receive much ill will during his life time in public service
Basically pro-French• Support liberal ideals of French
Coming election of 1800 was showing the fragility of nation Will become the Revolution of 1800