Chapter 10Launching the New Ship of State

Growing Pains

Increase in American population.– Doubled approx. every 25 years at the

time of the Constitution’s commencement.

First federal census in 1790: – Recorded 4 million Americans.

Despite flourishing cities, population was still rural.– 90% living in rural areas with 95%

residing east of App. Mountains. Heavy trans-Appalachian flow results

in formation of new states.– Kentucky, Ohio, and Tennessee

Loyalty of Western settlers questionable.– Spanish and British agents offering

promises of independence to Western states

Washington for President

Unanimously drafted president by the Electoral College in 1789.– Only president to be elected

unanimously.– Imposing structure, 6’ 2”, 175 lbs.

As a leader… – More balanced than brilliant.– Led with strong character instead

of arts of a politician. Established a presidential cabinet

– Not mentioned in the Constitution.– Only three full-fledged department

heads: Secretary of State (Thomas Jefferson) Secretary of the Treasury

(Alexander Hamilton) Secretary of War (Henry Knox)

The Bill of Rights

Anti-federalist criticism of Constitution.– No guarantee of individual rights and liberties,

led to the formation of the Bill of Rights (first 10 amendments).

James Madison wrote and guided the Bill of Rights through Congress.

9th Amendment:– Protected against the conclusion that only the

rights specified were the ones protected by law.

States adopted Bill of Rights in 1791 and retained all rights not delegated or prohibited by federal government.

Judiciary Act of 1789:– Organized the federal legal system.– Established the Supreme Court, federal

district and circuit courts, and the office of the attorney general.

Hamilton Revives the Corpse of Public Credit

Treasury Secretary Alexander Hamilton:– Set out to bolster national credit and

strengthen the federal regime.– Urged Congress to “fund” the national

debt “at par”, paying off all debts at face value plus interest.

Also convinced Congress to assume the debts of all states.– Shifted attachment of wealthy creditors

to the federal government rather than state.

– States burdened with heavy debts (Massachusetts) were delighted with the proposal, states with small debts (Virginia) were not.

Support of the rich was crucial to strengthening the central government

Alexander Hamilton, the “Father of National Debt”

Custom Duties and Excise Taxes

National debt swelled to $75 million – Result of Hamilton’s new policies – $13 million in interest– Both political and economic effects

Redefined debt from a liability to an asset.– A “Union adhesive”, meaning the more

creditors the federal government owed money to, the more people with a personal stake in its success.

Congress passed first tariff law in 1789.– Imposed a tariff of about 8% on dutiable

imports in order to gain revenue and protect infant industries

Hamilton secured an excise tax from Congress in 1791.– Placed on domestic items such as

whiskey

Hamilton Battles Jefferson for a Bank

Hamilton capped his financial system with a national bank.– Modeled on the Bank of England

Jefferson argued that the states should commission their own banks.– It was not a power reserved for the

federal government in the Constitution. In response, Hamilton invoked the

Constitution’s “elastic clause”. – Deemed a national bank both

“necessary and proper”. The Bank of the U.S. was created in

1791 and chartered for 20 years.– Located in Philadelphia – Had $10 million in capital, 1/5 of which

was owned by the federal government

Mutinous Moonshiners in Pennsylvania Hamilton’s high excise taxes were a

heavy burden.– Regarded as unnecessary taxation

on an economic necessity and medium of exchange

Distillers raised the cry of “Liberty and No Excise” – Tarring and feathering revenue

collectors, effectively ending tax collection

Washington was alarmed by these “self-created societies” – Whiskey Rebellion– Encouraged by Hamilton to summon

the state militias and bring an end to the “rebellion”

Approximately 13,000 troops marched into western Pennsylvania

Strengthened and garnered respect for Washington and his administration

The Emergence of Political Parties

Hamilton’s economic success infringed upon state rights.– Organized opposition arose

out of resentment to Hamilton’s policies.

– Led by Jefferson and Madison.

In 1790, the leaders in Philadelphia had not envisioned permanent political parties.– Organized opposition to the

current government was viewed as disloyal.

The double party system has existed since this first rift in American politics

The Impact of the French Revolution

At the start of the French Revolution, there was a schism between the two political parties.– Over foreign policy.– During Washington’s second term.

In 1789 the French Revolution began relatively peacefully.– Starting in 1792 , however, the revolution

had become more ominous France declares war on Austria

Reign of Terror (1793-1794)– Ten-month period of brutal repression

when some 40,000 individuals were executed as enemies of the French Revolution.

– Many Jeffersonians maintained their faith in the French Republic.

– Federalists withdrew their already lukewarm support once the Reign of Terror commenced.

Washington’s Neutrality Proclamation

Jeffersonians experienced a split in regards to the Franco-American Alliance, – Either wanted to merely honor

the alliance, or join the war against Britain

Washington felt war had to be avoided at all costs– Felt that the nation needed at

least a generation to gain a sound footing

Neutrality Proclamation (1793):– Issued by George Washington.– Proclaimed America's formal

neutrality in the escalating conflict between England and France.

– Pro-French Jeffersonians were enraged by the Proclamation.

Embroilments with Britain

Britain reluctant to relinquish fur-trading land in the Great Lakes region.– Sold firearms to the surrounding

Indians of the Miami Confederacy Led to the Battle of Fallen

Timbers (1794):– Decisive battle between the Miami

confederacy and the U.S. Army. – British forces refused to shelter the

routed Indians, forcing them to surrender.

Treaty of Greenville (1795)– Miami Confederacy agrees to cede

territory in the Old Northwest for cash payment, hunting rights and formal recognition of their sovereign status.

British attacked American merchants vessels, leads to Jay’s Treaty.

Jay’s Treaty and Washington’s Farewell

Washington sent John Jay to negotiate a treaty known as Jay’s Treaty.– British evacuate trading posts in U.S., pay for

all damages for captured American ships. Didn’t prevent any future seizures of ships and

the sale of firearms to Indians.– The United States had to pay the pre-

revolutionary debts to British Merchants. The Spanish then signed the Pinckney’s

Treaty of 1795 with the United States– Free American navigation of the Mississippi

River, warehouse rights in New Orleans and giving the U.S. the disputed territory of western Florida.

Washington retired after two-terms which became tradition – Gave his Farewell Address which outlined his

advice to avoid permanent alliances as young and weak nation.

John Jay

John Adams Becomes President Washington’s Contributions

– The solid foundation of central government.

– The expanding west.– Kept out of Old World Conflicts.

Election of 1796:– John Adams (Federalist)

against Thomas Jefferson (Democrat-Republican).

Adams wins the election – Narrow victory of 71-68

Electoral Votes– Jefferson, as runner-up,

becomes vice president. Adams was experienced in

politics, had stern principles and was devoted to his duty.

Hamilton hated him and resigned from the Treasury.

Unofficial Fighting with France

Adams sent three to France including John Marshall to meet with Talleyrand, the foreign minister.

Met three go-betweens X, Y, and Z – Demanded a loan of $250,000 to talk

with Talleyrand. – The three Americans were steadfast

and negotiations broke down. The United States prepared for war

by:– Establishing the Navy Department– Reestablishing the Marine Corps– New army of 10,000 men authorized

Undeclared war fought in the West Indies 1798 to 1800.– American Privateers and Navy

captured 80 vessels but lost several hundred Yankee merchant ships.

Adams Puts Patriotism Above Party

Adams avoids war with France.– Believed that the country

was to politically to weak to handle war.

– Plunged Adam’s popularity.– Adams should be partially

credited for the Louisiana Purchase.

If America had drifted to war with France, Napoleon would have not sold Louisiana to Jefferson in 1803.

Convention of 1800:– Agreement to formally

dissolve the United States' treaty with France.

The Federalist Witch Hunt

Federalists drive a set of laws through Congress designed to muffle or minimize Jeffersonian foes.– Alien Laws (1798):

Raised the residency requirement for citizenship to fourteen years.

Granted the president the power to deport dangerous foreigners in times of peace.

– Sedition Act (1798): Effort to clamp down on

Jeffersonian opposition. Law made anyone convicted

of defaming government officials or interfering with government policies liable to imprisonment and a heavy fine.

The act drew heavy criticism from Republicans, who let the act expire in 1801.

The Virginia and Kentucky Resolutions Jefferson fearful of new laws.

– Federalists managed to choke freedom of speech and press.

– Feared that they would wipe out other constitutional guarantees.

Virginia and Kentucky resolutions:– Secretly drafted by Jefferson and

Madison for the legislatures of Kentucky and Virginia.

– Argued that states were the final arbiters of whether the federal government overstepped its boundaries.

– Believed that they were allowed to nullify national legislation they deemed unconstitutional.

Federalists Versus Democratic-Republicans

Federalists:– Most were old Federalists

before the Constitution.– Most were merchants,

manufacturers, and shippers.– Located primarily along the

Atlantic coast.– Mostly pro-British, realized that

foreign trade was key to U.S. development

– Wanted a strong government ruled by the educated aristocrats, the “best people”

Federalists vs Democratic-Republicans (cont.)

Democratic-Republicans:– Led by Thomas Jefferson.– Desired rule by the informed

class.– Weaker central government that

would preserve the sovereignty of the states.

– Pro-French.– Emphasized that national debt

must be paid off.– Mostly farmers– Advocated the rule of the

people, but not all the people, just those who were not ignorant.

– Slavery could help avoid a class of landless voters by providing the necessary labor.