1. Launching the New Ship of State
The Federalist Era

2. America Circa 1790 Roughly 4 million people Doubling every 25 years
90% rural
95% east of Allegheny Mts.
Precarious finances

3. George Washington The President of Precedents

4. Washington Administration

5. Domestic Policy Issues

6. Unanimously elected the first president under the new Constitution
Served from 1789 – 1797
John Adams – Vice President
New federal government first established in New York City
later moved to Philadelphia in 1790

7. Congress created the executive branch departments of…
State
Treasury
War
Postmaster General.

8. The Cabinet:
Washington sets precedent of consulting the department heads in order to make decisions
Part of “unwritten constitution”

9. Thomas Jefferson appointed as the first Secretary of State

10. Alexander Hamilton was Secretary of the Treasury

11. Henry Knox became the first Secretary of War

12. Judiciary Act of 1789 Supreme Court created by the Constitution
A Chief Justice
5 Associate Justices

13. Washington appointed John Jay to be the first Chief Justice

14. Judiciary Act expanded the Judicial Branch by creating
federal district courts
circuit court of appeals

15. Act also created the office of Attorney General
Edmund Randolph

16. The Bill of Rights
James Madison drafted the first amendments & sent them to Congress

17. The first ten amendments adopted in 1791

18. The Bill of Rights
1st – freedom of speech, press, assembly, petition, & religion
2nd – right to bear arms
3rd – forbade quartering troops
4th – forbade unreasonable searches & seizures

19. 5th – rights during trial & life, liberty, property
6th – right to fair & speedy trial
7th – right to trial in civil cases
8th – forbade excessive fines & unusual punishments

20. 9th Amendment:
Certain rights “shall not be construed to deny or disparage others retained by the people”
People retain rights not enumerated here

21. 10th Amendment so-called “state’s rights amendment”
all rights not explicitly delegated or prohibited were reserved to the states or the people

22. Hamilton’s Financial Plan
Hamilton:“Father of National Debt”
“Funding at par”
“Report on Public Credit”
Rev. War debt certificates paid at full face value (“at par”)
Purpose: bolster national credit

23. Assumption of State Debts
“Report on Manufactures”
Would tie states & creditors to federal government
North-South struggle ensued
Massachusetts – large debt
Virginia – small debt

24. Compromise reached
South agreed to assume the debt if North agreed to allow the new Capital to be built in the South
“log rolling”
Washington, D.C. would be built on the Potomac River on land donated by Maryland and Virginia

25. Tariffs (customs duties)
Revenue Act of 1789
8% tariff on imports
Also attempt at helping infant American industries
Whiskey Excise Tax (1791)

26. National Bank (BUS) Foundation of Hamilton’s plan
Private institution in which the government held a majority interest

27. The B.U.S.

28. Government deposited its surplus money in the bank
Deposits would then be the source of loans & allow for the printing of a national currency

29. Bank issue sparks public Hamilton-Jefferson debates
Jefferson argued that the bank would favor northern bankers over the western & southern farmers

30. “Strict Construction”
Jefferson also argued that the Constitution said nothing about creating a bank & therefore it was unconstitutional
“Loose Construction”
Hamilton argued that the bank was “necessary & proper” and permitted by the elastic clause
Gave Congress “implied powers”

31. HAMILTON JEFFERSON BANK OF THE U.S.
BUS
HAMILTON
Safe place to deposit and transfer money
Provide loans to government and state banks
A national currency---$$$$$
An investment by people to buy stock into US bank
Constitution did not forbid a national bank….Loose construction of Constitution
National debt good for country
JEFFERSON
Went against the Constitution
State banks would collapse
Only wealthy could invest in bank and would control bank than control the government
Hurt the common man
Strict construction…If it is not mentioned in the Constitution than there can’t be a national bank
Against a national debt

32. Hamilton won over Washington
The Bank of the United States was founded in 1791 & chartered for twenty years
More N-S friction!

33. HAMILTON'S FINANCIAL PLAN Custom Duties (Tariffs)
Foreign Debt
$11,710,000
Pay off $80 million debt
Excise tax: taxes placed on manufactured products
Tariff: a tax on imports
Establish good credit with foreign nations
Create a national bank with a national currency
Raise money for gov’t backed by gold silver
Assumption Act passed as a compromise with Thomas Jefferson placing the US Capital in the South (Virginia)
Federal Domestic Debt
$42,414,000
State Debt
$21,500,000
Misc. Revenue
Excise Tax on Whiskey
Custom Duties (Tariffs)

34. Whiskey Rebellion (1794)
SW Pennsylvania farmers hated Hamilton’s whiskey tax
“Liberty and No Excise”
Major challenge to new national government
Whuppin’ Revenooers

35. Washington summoned the militia of several states to put down the insurrection
“Rebels” were dispersed without bloodshed

36. President Washington reviews 13,000 troops of the Western Army assembled at Fort Cumberland, Maryland, to crush the Whiskey Rebellion.

37. Swift & decisive action of President gave the new government badly needed respect
Federal Government could ensure domestic tranquility!

38. Emergence of Political Parties
Factionalism, fueled by newspaper editorials, developed into organized political parties
Political duels of Jefferson & Hamilton = the beginning of the political party system

39. Jefferson and Hamilton were at completely opposite poles in the political spectrum.

40. Jefferson, an Anti-Federalist, opposed a strong central government.
Hamilton, a Federalist, was suspicious of giving power to the people.

41. Jefferson was a friend of France and believed in their revolution.
Hamilton was a friend of England and wanted close ties for trade.

42. Jefferson distrusted commerce and industry, he believed in a rural population of farmers and an economy of agriculture.
Hamilton wanted a strong commercial economy based on trade and commerce and an urban population.

43. Federalists (1790s) Gov’t by “best people” Distrusted common people
Strong central government
Gov’t should encourage business
Pro-British foreign policy

44. Jeffersonians aka Democratic-Republicans Rule of the people (literate)
Appealed to middle class & underprivileged
Gov’t that governed best, governed least

45. State’s rights should prevail
National Debt was a curse
Primarily agrarians
Freedom of speech to expose tyranny
Pro-French foreign policy

46. RISE OF POLITICAL PARTIES
Federalist Beliefs
(former Anti-Federalists) Democratic-Republicans
Alexander Hamilton John Adams
Thomas Jefferson James Madison
Leader
Manufacturers, merchants, wealthy, and educated Favored seaboard cities
Farmers and Planters common man Favored the South and West
Appealed to
Strong government over states Loose Construction of Constitution
Implied powers
Wealthy and educated involved
Limit freedoms of speech & press
Preferred govt. similar to a king
State’s rights over National Govt. Strict construction of Constitution
Expressed/Enumerated powers
Common man but educated
Bill of Rights is sacred
Lesser government the better
Ideas of Government
Domestic Policy
Supported National Bank—BUS Supported excise tax National debt good for country National govt. assume state debts Tariffs should be high
Against National Bank—BUS Against excise tax Against National debt States pay their own debts Tariffs should be low
Foreign Policy
Opposed French Revolution Wanted war with French Favored the British
Supported French Revolution Opposed war with French Favored the French

47. 1792 Election Results

48. 1792 Election Results (16 states in the Union)
George Washington
Virginia
Federalist
132
97.8%
John Adams
Massachusetts 77
57.0%
George Clinton
New York
Democratic-Republican 50
37.0%
Thomas Jefferson 4
3.0%
Aaron Burr 1
0.7%
Electoral Votes Not Cast
---
----- 6
4.4%
Total Number of Electors
132
Total Electoral Votes Cast
264
Number of Votes for a Majority 67

49. Foreign Policy Issues

50. The French Revolution
Single most important issue separating Federalists & Republicans
Republicans cheer the Revolution as an extension of their own
Conservative Federalists feared “mobocracy”

51. “Reign of Terror”
Jeffersonians became less favorable

52. 1793 - France and Britain go to war
U.S. bound to aid French shipping in West Indies by the Alliance of 1778

53. Washington believed in avoiding war at all cost:
militarily weak
economically unstable
politically disunited
Hamilton & Jefferson agreed

54. Washington makes Neutrality Proclamation
government & the people to be neutral
Jeffersonians mad he didn’t consult Congress
Federalists happy

55. Washington’s Neutrality Speech
“Whereas it appears that a state of war exists between Austria, Prussia, Sardinia, Great Britain and the United Netherlands, of the one part and France on the other; and the duty and interest of the U.S. require, that they should with sincerity and good faith adopt and pursue a conduct friendly and impartial toward the belligerent powers. I have therefore thought fit by these presents to declare the disposition of the U.S. to observe the conduct aforesaid towards those Powers respectfully; and to exhort and warn the citizens of the U.S. carefully to avoid all acts and proceedings whatsoever, which may in any manner tend to contravene such disposition…” (April 1793)

56. Citizen Genet Affair (1793)
Envoy from France arrives and recruits army & privateers to aid France
Washington warns him to stop, Genet goes over his head to the people

57. Proclamation was in the self-interest of both the US and France
Genet is withdrawn
People are outraged
Proclamation was in the self-interest of both the US and France

58. British Problems
British harassment of US shipping & French trade in the West Indies
British hoped to provoke the US to defend the French alliance

59. Britain impressed US sailors
Impressment = the act of kidnapping a ship, its contents, men and forcing them into your navy

60. British seized 300+ US merchant ships in West Indies
Jeffersonians called for war against Britain
Hamilton’s economic plan was tied to British trade

61. Britain continued to hold fur-trading forts on US soil
Violation of Peace Treaty of 1783
Britain used Indians as a buffer against US expansion

62. Jay’s Treaty (1794) Washington’s motivations
He sought to avoid war while US was weak
Sent John Jay to London
Hamilton gave British information that weakened Jay’s position

63. Jay’s Treaty:
British agree to abandon forts & pay damages for seized ships
British would not agree to halt future seizures & impressments nor stop selling arms to Indians

64. American public response:
Jay agreed to help force Americans to pay debts
American public response:
Jeffersonians declared Jay a traitor
South held the most debts
Federalist north got damages for shipping

65. John Jay is burnt in effigy because Americans believed he sold out to the British.

66. Significance: War with Britain averted
Increased factional differences between 2 parties
Origins of Democratic-Republican party

67. Victory in Old Northwest
St. Clair defeated in Ohio
“Worst military defeat ever!”
Left US with troops total
1st Congressional Investigation
In November 1791 the army was attacked by Indians again led by Little Turtle, around what is now Fort Recovery, Ohio. The general leading the army had been warned by Washington to be careful of surprise attacks. He didn't listen.
More than 700 Americans died in the fighting, including 56 women who had accompanied their soldier husbands to the frontier. By comparison, about 200 soldiers died at Custer's Last Stand in 1876.
The general who failed to heed Washington's warnings was Arthur St. Clair himself, Wayne's Revolutionary War nemesis. The debacle became known as 'St. Clair's defeat.'

68. General “Mad Anthony’ Wayne defeats Indians at the Battle of Fallen Timbers - August 20,1794
On Aug. 20, 1794, Wayne's army attacked the Indians at Fallen Timbers, just south of Toledo. The battle lasted less than an hour. Fleeing Indians raced toward Fort Miami, where the British had promised protection. They were turned away because the British did not want to risk war with the United States.

69. The Battle of Fallen Timbers

70. Treaty of Greenville (1795)
Indians cede 2/ of land in the Ohio country
British abandon forts in Old NW
Indians abandon British allies

72. Pinckney’s Treaty (1795)
Spain feared an American-British alliance & signs Pinckney’s Treaty
US got disputed territory north of Florida
US got free navigation on Miss. River
3 year right of deposit in New Orleans

73. Spain cut off our farmers right to use the Mississippi River and deposit their crops in New Orleans.

74. Washington’s Farewell Address
Washington served a reluctant 2nd term
Verbal abuse wore on him
A warning to Americans against disunity

75. Washington’s Farewell
“Europe has a set of primary interests which to us have none or a very remote relation…Our detached and distant situation invites and enables us to pursue a different course…It is our true policy to steer clear of permanent alliances with any portion of the foreign world…Taking care always to keep ourselves by suitable establishments on a respectable defensive posture, we may safely trust to temporary alliances for extraordinary emergencies…” (1796)

76. Major Points: Avoid political factionalism
Avoid permanent foreign alliances
Follow our own self-interest
Did not advocate isolationism

77. Washington’s Legacy Kept young nation from war
Chose & consulted Cabinet
2-term office limit
Went outside Supreme Court for Chief Justice
Hamilton’s financial program

78. Election of 1796
Domestic & Foreign Policy issues widened factional differences

79. Federalists chose John Adams over Hamilton
“monarchist; his Rotundity”
Democratic-Republicans chose Jefferson
“lackey of the French; coward”

81. Main Issues: Outcome: Jay’s Treaty Whiskey Rebellion Adams wins 71-68
Jefferson becomes VP

82. 1796 Election Results

83. 1796 Election Results (16 states in the Union)
John Adams
Massachusetts
Federalist 71
51.4%
Thomas Jefferson
Virginia
Democratic-Republican 68
49.3%
Thomas Pinckney
South Carolina 59
42.8%
Aaron Burr
New York 30
21.7%
Samuel Adams 15
10.9%
Oliver Ellsworth
Connecticut 11
8.0%
George Clinton 7
5.1%
Other -
Total Number of Electors
138
Total Electoral Votes Cast
276
Number of Votes for a Majority 70

84. Problems with France US merchants getting rich off war trade
Britain violated Jay’s Treaty & impressed US sailors
French Directory, fearful of Jay’s Treaty, ordered seizure of American ships

85. XYZ Affair (1797)
Adams sends John Marshall, Elbridge Gerry, and Charles Pickney to France to negotiate
3 French officials (X, Y, & Z) want bribes to set up negotiations with Talleyrand - French foreign minister

86. Negotiations end – Marshall returns a hero War hysteria swept America
Navy Dept. created (3 ships!)
Marines established
10,000 man army authorized

87. “Millions for defense, not one cent for tribute.”

88. Adams suspend trade with France & authorizes capture of French ships
Undeclared Naval War
: “Quasi-War”
80 French ships captured

89. “Convention of 1800” Adam’s Finest Moment
Negotiated a peace with Napoleon
Avoids war
Ends 22 year French alliance

90. Alien & Sedition Acts
1798 – Federalists passed laws to reduce power of Jeffersonians & silence anti-war opposition

91. Alien Acts Raised requirements for citizenship from 5 to 14 years
Allowed President to deport “dangerous” aliens in peacetime & imprison them during war

92. Sedition Act
Impeding the government or defaming officials would lead to fines or imprisonment
10 Jeffersonians convicted including Matthew “spitting” Lyon

93. Matthew “Spitting” Lyon

94. Laws was never declared unconstitutional & expired in 1801

95. Virginia & Kentucky Resolutions
Kentucky Resolutions - penned by VP Jefferson
Virginia Resolutions - written by James Madison

96. Premise: States had right to nullify unconstitutional laws
Essentially campaign documents against Federalists

97. Compact Theory of Government
Sovereign states had entered into a compact with federal government
States were the final authority on the constitutionality of a law

98. Doctrine of Nullification
Last Kentucky resolution added the premise that nullification was “remedy” of unauthorized acts
Called for states to nullify the laws - neither state did - others would try later

99. Significance:
Nullification would be used later by southerners prior to the Civil War

100. Federalist Legacy Hamilton’s financial plan Washington’s precedents
Kept US out of wars
Preserved gains of Revolution & fended off anarchy
Two-Party system arises