The New Republic1789-1816

• Describe the steps Washington’s administration took to build the federal government.

• Analyze Hamilton’s plans for the economy and the opposition to them.

• Explain how a two-party system emerged in

the new nation.

Objectives

Terms and People

• administration – the officials in the executive branch of government• precedent – an act or statement that becomes a tradition to be followed• Cabinet – the officials who head the major executive departments and advise

the President• tariff – a tax on imported goods• loose construction – a broad interpretation of the Constitution relying on the

implied powers of Congress

Terms and People (continued)

• strict construction – a narrow interpretation of the Constitution that limits Congress’s actions only to powers specifically granted by the Constitution

• Whiskey Rebellion – a 1794 protest by farmers in western Pennsylvania against an excise tax on whiskey

• political party – a group that seeks to win elections, hold public office and shape policy

• Democratic Republicans – a political party that emerged in opposition Hamilton’s economic policies

Demographics of the new nation

• First census- 1790• 4 million people• Cities growing- Philadelphia, New York,

Boston, Charleston, and Baltimore• 90% rural• 95% lived east of the Appalachians• Within fourteen years, Vermont, Kentucky,

Tennessee, and Ohio all added as states

Calls during the ratification process for greater guarantees of rights resulted in the addition of a Bill of Rights in 1791

The Bill of Rights consists of the first 10 amendments to the Constitution

The Bill of RightsAmendment I- Freedom of religion, speech, press, assembly, and petitionAmendment II- The right to bear armsAmendment III- No quartering of soldiers in private homesAmendment IV- Protection from unreasonable searches and seizuresAmendment V- Guarantees due process of law; the right to remain silent; no double jeopardy

Amendment VI- The right to a fair and speedy public trial in a criminal caseAmendment VII- The right to a trial by jury in a civil caseAmendment VIII- No excessive bail or cruel and unusual punishmentAmendment IX- People have rights not mentioned in the ConstitutionAmendment X- Powers not mention in the Constitution belong to the states or the people

In 1789, the leaders of the new government gathered in New York City. The newly ratified Constitution was entirely untested.

How did debate over the role of government lead to the formation of political parties?

The Framers and President Washington knew that a good start was essential to the future of the republic.

Election of Washington

• Unanimously chosen by the Electoral College in 1789– Only presidential nominee to be chosen

unanimously• Took oath of office on April 30, 1789 in NYC

When George Washington took office, he quickly established precedents for running the government.

The new President faced many challenges:

• The nation was $52 million in debt.

• There was no navy and the army had only 400 men.

• Spain closed the Mississippi River in New Orleans to American trade.

• British troops occupied American land along the Great Lakes.

Washington picked a Cabinet to head each of four executive departments in his administration.

• Secretary of State Thomas Jefferson

• Secretary of WarHenry Knox

• Secretary of TreasuryAlexander Hamilton

• Attorney GeneralEdmund Randolph

• Cabinet – the officials who head the major executive departments and advise the President

• administration – the officials in the executive branch of government

Jefferson Hamilton Knox Randolph

Washington

President Obama’s Cabinet

• http://www.whitehouse.gov/administration/cabinet

• Loretta Lynch- first African American female nominated to be Attorney General

The first task was to set up a court system.

• The Judiciary Act of 1789 created district and circuit courts and a six-member Supreme Court.

• The office of Attorney General was created to prosecute legal cases for the government.

• John Jay was appointed as first Chief Justice of the Supreme Court.

The huge debt was the biggest problem facing the administration. Treasury Secretary Hamilton suggested a controversial plan.

Rather than just pay off the federal debt, state debts would also be assumed. Bonds for the total would be sold to wealthy investors.

The investors would receive annual dividends and have a stake in helping the government succeed.

Hamilton’s Financial Plan

• “Funding at par”– Federal government would pay off its debts at face

value- more than $54 million– (people had been losing faith that the new

government would be able to meet its obligations and the value of government bonds had depreciated to 10-15 cents on the dollar)

• “Assumption”– Federal government would assume state debts.

This would tie the states more to the fed. gov’t.

• Hamilton also proposed chartering a Bank of the United States to regulate state banks and insure business support.

• He hoped to replace the nation’s agriculturally based economy with commerce and manufacturing.

• He proposed a high tariff or tax on imported goods to earn revenue and encourage domestic industry.

Figure 10-1 p184

Hamilton saw 3 advantages to his financial plan

3 The plan would enrich investors who would reinvest and thus create more wealth.

The plan would gain political support from the wealthiest Americans.2

The plan would establish the nation’s financial credibility. 1

Debt as a national blessing?

If the government owes people money, those people have a stake in the success of that government

Wealth would be redistributed from farmers to merchants, and from the South to the North.

Investors who purchased the bonds would make huge profits at everyone else’s expense.

The costs would fall on farmers who would have to pay excise taxes and higher tariffs.

Antifederalists objected to Hamilton’s plan.

They had 3 main complaints:

1

2

3

Most southern states had already paid off their war debts. He asked why they should bail out northern states that still had debts.

Jefferson believed the plan gave more power to the government than the Constitution permits.

Secretary of State Jeffersonopposed Hamilton’s plan.

Hamilton favored a loose construction of the Constitution.

Congress has implied powers, and can take any actions not specifically forbidden.

The Constitution allows Congress to act for the “general welfare” so it could charter a bank.

Jefferson favored a strict construction of the Constitution.

Congress should be limited to the powers specifically granted

by the Constitution.

The Constitution does not give Congress power to charter a national bank, so it could not establish one

The Bargain

• 1790• Hamilton convinced Jefferson to support the

plan for assumption in return for the new federal district (D.C.) to be located on the Potomac

In 1791, Congress accepted Hamilton’s plan.

In return, a new national capital was created. Washington D.C. would be placed in the South, on the banks of the Potomac River.

The national debt was funded, outstanding state debts were assumed, excise taxes and tariffs were levied, and the bank was authorized.

L’Enfant’s Plan for the District of Columbia

Washington, D.C. Today

White House Construction

An excise tax on whiskey led to divisions between the Federalists and the Antifederalists.

• To increase their profits, western Pennsylvania farmers made whiskey from their grain.

• The whiskey tax reminded farmers of British taxes.

• In 1794, some farmersresisted payment. Theyharassed and intimidatedtax collectors.

Whiskey Rebellion

• 1794, southwestern Pennsylvania• Distillers used arguments and symbols of the

Revolution • Washington called for militias from the states.

13,000 troops responded.• Whiskey Rebellion faded. • Government was strengthened

p185

Hamilton persuaded Washington to suppress the Whiskey Rebellion.

• Twelve thousand militiamen were sent to deal with the rebellion, but they found no organized insurrection.

• Then Jefferson criticized Hamilton for the use of federal force to repress legitimate criticism.

Despite Washington’s disapproval, two political parties emerged.

Democratic Republicans

Favored Jefferson and Madison.This party was strongest among Southerners and farmers.

Federalists

Favored Hamilton and was strongest among Northerners, merchants, and the wealthy.

The Emergence of Political Parties

• Organized opposition to Hamilton’s revenue-raising and centralizing policies began to build

• Previously, factions (Whigs/Tories, Feds/Anti-Feds) had existed as opposed to organized political parties

• Beginning of America’s two-party system• The party out of power (“the loyal opposition”)

acts as a check on the party in power

Table 10-2 p186

Political Opinion Poll

• Political opinion poll- http://www.people-press.org/political-party-quiz/newshour/

Today