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Chapter 7. Democracy in Distress. Problems of a New Nation. Spain and Britain wanted the new United States to fail With backing from the British, there were Indian attacks on American settlers who were moving into what the Indians felt was their territory

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Chapter 7

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Chapter 7
Chapter 7

Democracy in Distress


Problems of a new nation
Problems of a New Nation

  • Spain and Britain wanted the new United States to fail

  • With backing from the British, there were Indian attacks on American settlers who were moving into what the Indians felt was their territory

  • The British continued to occupy 7 forts on American soil even after the Treaty of Paris


Chapter 7


Chapter 7

  • Spain had closed off the Mississippi to American trade. were compensated for their confiscated property

  • Spain did offer Americans export privileges in New Orleans in return for American help in taking Tennessee

    • Andrew Jackson considered helping the Spanish because the American government was weak and had many problems


Chapter 7
1789 were compensated for their confiscated property

  • The government’s credit was essentially no good

  • Indians and frontiersmen fought constantly

  • The West considered breaking away

  • There were foreign restrictions on U.S. trade

  • There was factionalism among citizens

    All these problems faced George Washington when he took office as president in 1789


President washington
President Washington were compensated for their confiscated property

  • He took the oath of office on 30 April 1789

  • He helped to interpret the Constitution honestly where it wasn’t specific:

    • Cabinet?

    • Structure of the court system?

    • Should he send legislation to Congress?

    • Amendments?


Chapter 7

  • Washington brought dignity and bearing to the office were compensated for their confiscated property

  • He won the respect of foreign leaders

  • He was an able head of government

  • He was used to using authority

  • He knew his own limitations

  • He deferred to Congress whenever possible; he tried not to interfere


Chapter 7

  • He used the veto only 2 times in 8 years were compensated for their confiscated property

  • He knew he needed advisors so he formed a cabinet

    • From Virginia: Edmund Randolph as Attorney General & Thomas Jefferson as Secretary of State

    • From Massachusetts: Henry Knox as Secretary of War & Samuel Osgood as Postmaster General

    • From New York: Alexander Hamilton as Secretary of the Treasury


Revenue
Revenue were compensated for their confiscated property

  • Raising revenue was the most important problem facing the new government

  • Capital was needed to pay the day-to-day expenses

  • Capital was needed to pay off debts

  • To pay for the running of the government, Hamilton asked Congress to place a 5% tax on imports


Chapter 7

  • The next problem was to pay off our debts were compensated for their confiscated property

    • U.S. owed $12 million to foreign nations

    • U.S. owed $44 million to Americans

      Hamilton wanted to pay off all debts in full, both to foreigners and to Americans to establish credibility


Chapter 7

  • Congress agreed to pay off foreigners in full were compensated for their confiscated property

  • Congress had a problem with paying Americans in full

    • Americans had bought bonds during the war as a contribution to the war effort

    • Immediately after the war Congress failed to pay up and people lost hope

    • To get some money back on their investments, they sold their bonds to speculators


Chapter 7

  • They sold them for less than they were worth were compensated for their confiscated property

  • Many who bought the bonds were Congressmen

  • Madison was against paying off the holders of the bonds at full value because in many cases, the government would be paying a profiteer rather than the original investor


Chapter 7

  • Madison proposed paying profiteers half the value of the bond and paying the original investors the full value plus 4% interest

  • He felt this was the moral answer

  • Hamilton said morality was beside the point; we had to show the government as credible, so the wealthy would re-invest


Chapter 7


Hamilton s next proposal how to handle states debts
Hamilton’s Next Proposal: How to Handle States’ Debts

  • Said federal government should assume all the states’ debts

  • By paying back loans ignored for 10 years, the viability of the U.S. would be strengthened


Chapter 7

  • James Madison was opposed Debts

    • Said southern states had paid off their debts or most of them

    • If government assumed debts, then the southern states would be paying twice

    • Not fair


Chapter 7


Chapter 7

  • So Hamilton made a deal with Jefferson House of Representatives 31 – 29

    • In return for letting the Assumption Bill pass,

    • Hamilton promised enough northern votes to get the capital moved to the banks of the Potomac

      On the second go-round, the Assumption Bill passed 34 - 28


Bank of the united states
Bank of the United States House of Representatives 31 – 29

  • Part III of Hamilton’s fiscal plan

  • He wanted a central institution where all government money would be deposited

  • However, the Bank of the United States would not be a government agency

  • The President would appoint 5 of the 25 bank directors

  • 20 would be elected by shareholders, the wealthy


Chapter 7

  • The bank bill passed in Congress House of Representatives 31 – 29

  • Jefferson urged Washington to veto it

    • He thought Congress had overstepped its powers as stated in the Constitution

    • The Constitution didn’t say, Congress create a bank

      Hamilton stated that nothing in the Constitution said it couldn’t


Chapter 7


2 interpretations of the constitution
2 Interpretations of the Constitution necessary and Proper for carrying them into execution

  • Jefferson was a “Strict Constructionist”; if the Constitution didn’t spell something out in black and while, it didn’t exist

  • Hamilton was a “Broad Constructionist”; he said Article 1, Section 8 allowed Congress to do what was not prohibited by another section of the Constitution


Chapter 7


Chapter 7

  • In that report Hamilton stated that Congress should promote industry to add to the country’s agricultural and commercial base

  • To do this, he proposed a “Protective Tariff”

    • Place a high duty on imported goods

    • Encourage investors to build mills and factories in U.S. rather than depend on Europe

    • It would create new American jobs


Chapter 7


Re election
Re-election for their servants and slaves

  • 1792 – Washington was re-elected without opposition

  • He been relatively successful in office

  • He’d established precedents for other presidents to follow

  • He successfully established a stable government for 4 million people

  • Washington remained in office until 1797


Farewell address
Farewell Address for their servants and slaves

  • Written by Alexander Hamilton, influenced by Madison

  • He warned Americans of 4 problems:

    • Don’t form political parties

    • Voice opposition to government policies peacefully, through legal channels

    • Avoid sectionalism; give allegiance to the nation

    • Honor alliances already in effect; avoid new ones


Revolution in france
Revolution in France for their servants and slaves

  • Began in 1789, influenced by American Revolution

  • But went to a further extreme

  • Rebelled against the excesses of the monarchy, ex: Versailles

  • Tried to redesign society from top to bottom

  • Many Americans initially supported French

  • French went beyond basic freedoms


Chapter 7

  • January, 1793 – King Louis XVI was guillotined for their servants and slaves

  • Within a year Marie Antoinette, his wife, met the same fate

  • This was followed by the Reign of Terror launched by Maximilien de Robespierre

    • Thousands were drowned or guillotined, especially nobles


Chapter 7


Chapter 7

  • Under the terms of the French Alliance of 1778, the U.S. was supposed to help France

  • Washington and others did not want to get involved in this fight

  • We were a new, unstable nation ourselves

  • Hamilton found a legal loophole

    • Said the Alliance of 1778 was invalid because we had made that agreement with the king


Chapter 7

  • We did not make an agreement with this new revolutionary government

  • The U.S. remained neutral

  • Enter Citizen Genet:

    • French Minister who arrived in Charleston in April, 1793

    • Tried to commission American ships to act as privateers (armed raiders, paid by French, to seize British ships)


Chapter 7

  • Many complied: 80 ships were brought into U.S. ports government

  • Genet gave prizes to the privateers

  • Genet’s actions were dangerous because they could drag the U.S. into the war

  • When Washington finally met with Genet, he told Genet to STOP

  • He later told Genet to go back to France


Chapter 7


British threat
British Threat and the Reign of Terror was in full swing

  • Before Britain and France began fighting, U.S. had been excluded from French ports in the West Indies – trade restrictions

  • After the war began, France wanted the American trade for supplies

  • Britain invoked an old law concerning war at sea - Rule of 1756 – which said ships of neutral nations couldn’t trade in ports where they had been excluded before the war


Chapter 7

  • Many Americans were doing this and making lots of money and the Reign of Terror was in full swing

  • Britain didn’t want America in the war; they didn’t want to lose trade with the U.S.

  • So Britain began to seize American ships and impress its sailors

    • 1793-1794 , Britain seized 600 American ships

    • Removed seamen who had British accents


Chapter 7

  • Many Americans began to pressure Washington to declare war on Britain

  • Instead, Washington sent John Jay to England to work out a peace

  • The Jay Treaty

    • Britain agreed to evacuate western forts

    • Britain agreed to compensate American ship owners for vessels seized in West Indies and allow some trade with British possessions


Chapter 7


Chapter 7


Pinckney s treaty
Pinckney’s Treaty led to the formation of political parties

  • Spain had territory to the west and south of the U.S.

  • They were afraid the newly reconciled U.S. and Britain would invade their Louisiana

  • So Spain met with Thomas Pinckney and gave into every demand made by Americans since 1783


Chapter 7


Western problems
Western Problems Louisiana

  • Hard life in the West – labor, disease, malnutrition, isolation, Indian problems

  • Washington was eager to remove Indians from western lands, especially from the Ohio Valley

  • 1790 – Washington sent Josiah Harmer to find and defeat the Miami and Shawnee under Chief Little Turtle


Chapter 7

  • They were poorly supplied Louisiana

  • They were fighting dysentery and malaria

  • They were decimated

  • 1791 – Arthur St. Clair and 600 soldiers were also killed in this same endeavor

  • The Miami and Shawnee remained supreme in the Northwest Territories until 1794


Chapter 7


Pioneers and whiskey
Pioneers and Whiskey the Battle of Fallen Timbers near present-day Toledo

  • Settlers were heavy drinkers – for recreational and medicinal purposes

  • It eased the isolation; it was a companion

  • It was also a cash crop and much easier to transport than grain

  • A problem arose with Hamilton’s tax of 1791, making the whiskey to expensive to sell


Chapter 7


Chapter 7

  • A few men were arrested, tried, convicted of treason, and sentenced to death

  • Washington then pardoned them

  • Political significance:

    • It showed that the federal government had the right and the force to crush rebellion

    • Troops could cross state lines

      People of the West remained staunchly Anti-Federalist


Federalists vs republicans
Federalists vs. Republicans sentenced to death

  • Party lines were becoming clearer

  • Federalists

    • Supported Hamilton’s fiscal policies

    • Feared the French Revolution

    • Friendly towards England

    • Accepted the Jay Treaty

    • Believed the national government should act decisively and powerfully to maintain internal order


Chapter 7


Chapter 7

  • Jeffersonian-Republicans sentenced to death

    • Opposed Hamilton’s fiscal policies that enriched speculators and paid off the debts of other states with their tax money

    • Friendly towards the French Revolution minus the Reign of Terror

    • Suspicious of England

    • Despised the Jay Treaty

    • Supported Democratic values

    • Worried about an overly-powerful national government


Election of 1796
Election of 1796 sentenced to death

  • Thomas Jefferson (Jeffersonian –Republican) and Vice President John Adams (Federalist) were running for President

  • In the election, the candidate with the most votes would be president; the runner-up would be Vice President

  • They could be from different parties


Chapter 7


John adams
John Adams to manipulate the election results

  • Seen as vain, intolerant, and stern with an impossible temper

  • He was pre-occupied with another threat of war, this time with France

    • French were angered by the Jay Treaty and seized 300 American ships

    • French threatened to hang American sailors, captured from British ships, as pirates


Chapter 7

  • French Minister in the U.S. spoke out against Adams to manipulate the election results

  • Adams was determined to keep the peace

  • He sent John Marshall, and Elbridge Gerry to join American Minister in Paris, Pinckney

  • French Foreign Minister Talleyrand sent word to them through 3 agents, X,Y, & Z, that he would talk to them if Americans would loan France $12 million and give Talleyrand a gift of $250,000

  • Bribes were routine, but this was excessive


Chapter 7

  • The Americans walked out to manipulate the election results

  • Adams authorized the construction of 40 frigates in case of war

  • Jeffersonian-Republicans were against any preparation for war

  • Federalists responded to the protest with the Alien and Sedition Acts of 1798


Chapter 7

  • Alien Acts were not enforced, but extended the period of residence required for American citizenship from 5 to 14 years because most newcomers supported the Jeffersonian-Republicans

  • Under the Alien Act the President could deport any foreigner he wanted that he deemed dangerous to U.S.


Chapter 7

  • The Sedition Act was enforced residence required for American citizenship from 5 to 14 years because most newcomers supported the Jeffersonian-Republicans

    • There were still fines and prison sentences for those who made public statements against U.S. government or Adams; that went against freedom of speech

    • 25 cases were brought to trial and 10 people were convicted

      Republicans believed this was an attempt to crush political opposition


Chapter 7

  • Jeffersonian-Republicans found these acts to be unconstitutional – violated the Bill of Rights

  • In reaction, the Virginia & Kentucky Resolutions resulted

    • Said when Congress enacts a law that a state deems unconstitutional, the state has the right to nullify the law within its borders


Chapter 7


Election of 1800
Election of 1800 those states

  • Jefferson won over Adams in 1800

  • Close vote between Aaron Burr and Thomas Jefferson; they got the same number of electoral votes

  • It was decided by the House of Representatives on the 36th ballot

  • Again politicians had tried to manipulate the outcome, but it didn’t work


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