Chapter 10

1. Chapter 10 Launching the New Ship of State 1789 - 1800

2. Troubled Times for US Gov’t • Americans distrustful of authority & gov’t • Had overthrown BR & Articles of Confederation • Finances in bad shape • Little tax money coming in • Huge amount of public debt • Worthless paper money in circulation • Republican gov’t spread over wide area • Is a republic possible in a large area?

3. Growing Pains Population doubling every 25 years Cities growing (although 90% still rural) 95% lived east of Appalachian mountains Trans-Appalachians: 5% of population Kentucky, OH, Tennessee (became states) Not very loyal to US Shipped agricultural products down MS River (controlled by SP)

4. Washington for President Only president unanimously elected by electoral college Precedents Set: title of presidency, 2 term limits, & Cabinet R.H. Lee quote (p.191) Temporary capital: NY Took oath of office on April 30, 1789 Cabinet: Constitution only says president “may require” written opinions of heads of exec branch departments The Cabinet evolved into a group that held meetings and discussed policy under Washington Sec. of Treasury - Hamilton, Sec. of State-Jefferson & Sec. of War-Knox

5. The Bill of Rights Antifederalists had criticized Constitution b/c it didn’t have bill of rights Some states agreed to Constitution if BoR added Bill of rights (1791) – to please anti-federalists and protect basic rights Amendments to the Const could be proposed in 2 ways: new const convention requested by 2/3 of states or 2/3 vote of both houses of Congress Madison wrote amendments & proposed them through Congress since last Const Conv was so closely won by federalists 1791 the 10 amendments passed ¾ of state legislatures to become law

6. The Bill of Rights Freedom of religion, speech, press Right to bear arms Right to trial by jury Right to assemble and petition for redress of grievances Prohibition of cruel and unusual punishment Prohibition of arbitrary government seizure of private property 9th Amendment: guard against assumption that the only rights protected were those listed 10th Amendment: reserved all rights not explicitly delegated or prohibited by the Const “to the States respectively, or to the people” Judiciary Act of 1789 Organized the Supreme Court with a chief justice (John Jay the first) and 5 associate justices (6 total) Organized federal courts Established office of Attorney General

7. Hamilton & Public Credit Sec of Treasury Alexander Hamilton Genius but favored aristocratic gov’t Interfered in others’ departments, esp. TJ’s dept of state Hamilton’s financial goals for US: Fix economic problems from Articles of Confed Favor wealthy groups so that they will lend $$$ and support to gov’t Prosperity will “trickle down” from upper to lower classes

8. Hamilton & Public Credit Hamilton strengthening the national credit: Believed US gov’t needed confidence of people (esp wealthy) Pushed Congress to pay off entire national debt ($54 mil) at face value Speculators had bought up bonds at low prices Gov’t bonds had depreciated b/c most didn’t believe gov’t could pay them back Pushed for Congress to assume states’ debts ($21.5 mil) from Revolution Debts had been incurred fighting for our country Would strengthen US b/c states would be more supportive of nat’l gov’t & so would rich creditors (to get their $$$ paid back)

9. Hamilton and Public Credit • State reaction to assumption bill • States w/large debts (like Mass) supported plan • Small debt states (like VA) did not • District of Columbia • VA wanted this federal district for commerce & prestige so they supported assumption and it passed • New location for nation’s capital  L’Enfant • 10 sq. miles • MD & VA • **Benjamin Banneker  • finished capital

10. Hamilton & Public Credit Under Hamilton’s plan, national debt was now $75 mil True objective was to strengthen US The more creditors the gov’t owed $$$ to, the more people with interest in making sure the gov’t worked Tariffs on foreign trade (tax on imports) Hamilton’s plan to pay down debt Protect weak Am industry from foreign competition (esp BR) 1789 first tariff law of small 8% duty Internal taxes (within US) Additional to pay down debt 1791 Congress passed excise tax on a few things Worst was .7 cents per gallon on whiskey (hurt rural farmers)

11. Hamilton’s Financial Structure

12. Hamilton Battles Jefferson for a Bank • Hamilton’s bank • Proposed powerful private institution, with gov’t as majority stockholder • Gov’t would deposit money from federal treasury there • Would stimulate the economy by remaining in circulation (available for loans and investments) • Would print paper money & provide stable currency • Bank of the U.S. • wealthy will buy bonds • 20 yr. charter

13. Hamilton Battles Jefferson for a Bank Jefferson opposed the bank “strict” construction (interpretation) of the Constitution No specific authorization in Constitution for a bank Powers not specifically granted to US are reserved for states Therefore, states had power to authorize banks, not national gov’t Hamilton’s reply “loose” construction of constitution Anything Const does not forbid it permitted (opposite of Jefferson) “necessary and proper” clause (“elastic”) from Article I Gov’t explicitly authorized to collect taxes & regulate trade Bank would help gov’t carry out these powers Therefore, bank was implied (“implied powers”) in other explicit powers

14. Hamilton Battles Jefferson for a Bank Fight over bank exposed differences b/w N & S Industrial N supported it Agricultural S didn’t Hamilton’s view won & Washington signed BUS into law 1791 Congress created bank 20 year charter Located in Philadelphia 1/5 owned by federal gov’t Stock sold out quickly in public sale The First Bank of the United States in Philadelphia.

15. Government Finances Jefferson vs. Hamilton Strict Loose

16. Mutinous Moonshiners in Penn. • Whiskey important to rural areas • Bad roads forced farmers to convert grain to alcohol for easier & cheaper shipping to E • Used as $$$ on frontier • Hamilton’s excise tax hurt rural farmers • 1784 Whiskey Rebellion • Distillers tarred & feathered revenue officers to stop collections • “Liberty & No Excise” • Washington brought militia from several states to stop rebellion • Men from other states united • Rebels dispersed when heard troops were coming • 2 convicted; Washington pardoned them • Increased power of nat’l gov’t b/c Washington acted harshly

17. The Emergence of Political Parties • Hamilton gave more power to federal gov’t at expense of state power • Hamilton’s successes led to differences • States’ rights vs. federal power • Personal feud b/w Jefferson & Hamilton now a political rivalry • Organized political parties didn’t exist during Washington’s first term • Founders had not anticipated existence of parties (seemed disloyal) • 1790s Jefferson & Madison organized against Hamilton • Party system took form; newspapers brought in ordinary citizens • The Party System: • Competition for power b/w 2 parties important for sound democracy • Opposition party makes sure the other one doesn’t go too far from wishes of people • 1793 political parties formed: • Democratic-Republicans (Jeffersonian) • Federalists (Hamiltonian)

18. The Impact of the French Revolution • 1789 FR Revolution began • At first Americans supported this as an imitation of the Amer Revolution • In 1793 it grew radical • King beheaded • Reign of Terror began (ending in 1794; 40,000 people killed) • Federalists turned against Revolution overnight • Jeffersonians regretted killing, but accepted death of some aristocrats for human freedom • BR brought into conflict against FR • According to Franco-Amer Alliance of 1778, US obligated to defend FR W. Indies (where BR was certain to attack) • Dem-Rep wanted to honor treaty (we owed FR for our freedom) • Washington resisted • Believed US had to avoid conflicts for 1-2 generations to build up strength & numbers • Didn’t want US to be hurt or even defeated

19. Washington’s Neutrality Proclamation • Neutrality Proclamation of 1793 • Issued right after war started b/w BR & FR • Proclaimed US’ strict neutrality • Warned US citizens to be neutral toward both sides • Influenced spread of isolationist feelings amongst Americans • Angered many Dem-Rep • Betrayal of FR • Announced by Washington w/out consultation of Congress • Citizen Edmond Genêt: ambassador from FR • Received enthusiastically in S by Dem-Republicans • Mistakenly believed most Americans did not support Neutrality Procl • Tried to recruit Americans to invade SP Florida, Louisiana & BR Canada • 1794 Washington demanded he be replaced

20. Washington’s Neutrality Proclamation • Neutrality Proclamation showed alliances are based on self-interest • 1778 both America & FR benefited from alliance • 1793 only FR would gain, so alliance didn’t happen • FR never called on US to act, so technically 1778 alliance wasn’t broken • US neutrality favored FR • FR W. Indies needed US food • BR would have blockaded US if we had entered war on FR’s side, so no blockade meant we could still ship to FR colonies

21. Embroilments with Britain • BR kept 7 forts on Northern border b/w US & Canada • violation of 1783 Treaty of Paris • Didn’t want to give up fur trade • Wanted Indian buffer b/w Canada & US • Miami Confederacy allied w/BR • Wanted to contain US south of Ohio River • 1794 Battle of Fallen Timbers • General “Mad Anthony” Wayne defeated Miamis • Aug 1795 Treaty of Greenville • Indians gave up huge amounts of land (Indiana & Ohio) • Received payment • Could continue to hunt on lands they had given up • Indians hoped treaty had put limits on white expansion

22. Embroilments with Britain • BR attacks on US shipping • Blockaded FR W. Indies • Seized 300 US ships & impressed US sailors into service on BR ships; others imprisoned • Jeffersonians called for war (or at least embargo) against BR • Federalists resisted Jeffersonian demands • Wanted US to develop trade & industry; depended on BR for this • Did not want destructive war w/most power country • 1794 Chief Justice John Jay sent to London to negotiate treaty as last attempt to avoid war • Sabotaged by Hamilton, who feared war w/BR (told them Jay’s negotiation strategy) • Jay got few concessions from BR • Jay’s Treaty: • BR promised to evacuate 7 forts on US soil & promised to pay damages for seized ships • Didn’t promise anything about future impressments or seizures, or about supplying weapons to Indians • Americans promised to repay debts owed to BR merchants from before Revolution • Treaty outraged Dem-Republicans • Seemed like a complete surrender to BR • Hurt S (had to pay larger share of debts) while N was helped (by being repaid for lost ships) Jay burned in effigy by anti-BR Americans

23. Pinckney’s Treaty - 1795 • Treaty of San Lorenzo • SP quickly agreed to US terms b/c feared Anglo- • American alliance • US granted free navigation of MS River (right of • deposit) and territory N of Florida Thomas Pinckney

24. Washington’s Farewell Address • 1796 Washington retired (two-term tradition) • 22nd Amendment (1951) made two terms part of Constitution • Washington’s farewell address • Published in newspapers, not spoken • Warned against “permanent alliances” (only temporary if necessary) Washington established fiscal health & strong gov’t. The US settled further west, sea trade expanded, & US had avoided foreign wars This painting by John Trumbull depicts Washington resigning his commission as commander-in-chief.

25. Adams as President • President – 1796 • Had been Washington’s VP • Dem-Republicans nominated Jefferson • Became president by 3 electoral votes • Jefferson became VP b/c came in 2nd • 1st to live in White House • 12th Amendment- ends possibility of Pres. and VP not being of same political party John Adams was stern & stubborn; not well-liked by mass of Americans

26. John Adams Becomes President • Hamilton hated Adams; headed High Federalist opposition to Adams • Adams inherited a fight w/FR that might lead to war • FR angered by Jay’s Treaty (step toward US-BR alliance & violation of Franco-American alliance of 1778) • FR began seizing US merchant ships (300) • Adams wanted to avoid war, like Washington had • 1797 sent 3 men to reach agreement & meet w/Talleyrand (FR foreign minister) • Met by 3 FR agents: X,Y,Z (demanded bribe to talk to Talleyrand) • American negotiators refused & left Europe • “Millions for defense, not one cent for tribute” • Politically beneficial to pro-BR Federalists • Most Jeffersonians also condemned FR action

27. The XYZ Affair

28. Adams Puts Patriotism Above Party • 1798-1800 undeclared naval war (quasi-war) • Mostly in W. Indies • FR didn’t want war w/US • Already fighting against BR & Austria • Adams decided US not ready for war w/a European power • Napoleon received new US ambassadors • Wanted to stop fighting w/America to concentrate on Europe • Convention of 1800 • FR agreed to annul Franco-American alliance of 1778 • US agreed to pay damages to American shippers (caused by FR attacks) • Adams avoided war w/FR • Prepared way for LA Purchase (1803) • Adams unappreciated by Americans at the time

29. The Federalist Witch Hunt • 1798 Alien & Sedition Acts pushed through Congress • Federalists used increased popularity (during anti-FR/anti-Jeffersonian period) • Supposedly to protect US during war w/FR • Really designed to weaken Jeffersonians • Naturalization Act: most European immigrants were poor & supported Dem-Republicans (less prosperous, more democratic) • Raised residency requirement for aliens (non-citizens) from 5 to 14 years • Alien Acts: President could deport any foreigners • Never enforced, but gave president arbitrary & excessive power • Sedition Act: sedition is inciting a rebellion against the authority • Impeding gov’t policies or falsely damaging officials’ reputation could lead to fine or jail • Many indicted & sent to trial (convicted by Federalist judges) • Supreme Court (dominated by Federalists) refused to declare acts unconstitutional • Law expired in 1801 • Drove many to Dem-Rep party • Many others supported A&S Acts (Federalists won 1798 Congressional elections)

30. The Virginia & Kentucky Resolutions • Jefferson feared Federalists would become 1-party dictatorship • choking freedom of speech might lead to other rights being violated • Jefferson (Kentucky) and Madison (VA) wrote resolutions adopted by state legislatures opposing A&S Acts • Stressed “compact theory” of gov’t • 13 sovereign states had made compact (contract) when they formed federal gov’t • Federal gov’t a creation of the states • States therefore were final judges of whether the federal gov’t had broken the contract • Jefferson said federal gov’t had exceeded its authority with A&S Acts • “nullification” (refusal to accept them) was the “rightful remedy” • VA & Kentucky resolutions not adopted by other states • Federalists condemned resolutions • People, not the states, had made the original compact • Supreme Court, not the states, had right to nullify unconstitutional laws passed by Congress • Supreme Court first does this in 1803 in Marbury vs. Madison

31. Federalists vs. Democratic-Republicans • Impact of resolutions: • Extreme states’ rights view of Union • Used by S to support nullification & eventually secession • Didn’t intend to break up Union, just stop Federalist abuse of power • Sharp divisions b/w Federalists & Democratic-Republicans • Election of 1800 a choice for voters

32. Federalists vs. Democratic-Republicans • Democratic-Republicans: • Anti-federalists (had not supported Constitution) • Led by Jefferson • Primarily small farmers, middle class, underprivileged, laborers, artisans, small shopkeepers • Wanted weak central gov’t (best gov’t governed the least) • Power should stay w/states, not federal gov’t • Strict interpretation of Constitution keeps gov’t to a min. • National debt should be paid off • No special privileges for groups (esp. manufacturers) • Agriculture most important part of economy • Federalists: • Federalists who had supported Constitution • Led by Hamilton • Primarily from northeastern Atlantic seaboard & merchants, manufacturers, shippers • Wanted strong central gov’t, able to crush democratic excesses (like Shays’ Rebellion), protect rich, promote foreign trade (esp. w/BR) • Advocated rule by “best people” • “Those who own the country ought to govern it” –John Jay • Feared democracy & rule by commoners

33. Political Parties • Dem-Rep and democracy: • Voting only for white male literate enough to inform themselves & vote intelligently • Universal education important for voters • Jefferson had faith in properly educated masses & their collective wisdom • Feared property-less dependents would be manipulated by landowners • Slavery allowed white southern yeoman to be independent • Whites would not have to work for low wages on plantations • Dem-Rep and foreign policy: • Generally pro-F • Election of 1800 – can US survive w/ conflicting parties? Federalist newspaper cartoon in 1800 attacks a drunken Jefferson for trying to pull down the pillars of the Washington-Adams Federalist achievements with the aid of the devil and devilish ideas in his pocket