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