Launching the New Ship of State The Federalist Era 1789-1800

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

George Washington The President of Precedents

Washington Administration

Domestic Policy Issues

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

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

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

Thomas Jefferson appointed as the first Secretary of State

Alexander Hamilton was Secretary of the Treasury

Henry Knox became the first Secretary of War

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

Washington appointed John Jay to be the first Chief Justice

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

Act also created the office of Attorney General Edmund Randolph

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

The first ten amendments adopted in 1791

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

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

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

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

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

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

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

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

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

The B.U.S.

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

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

“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”

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

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

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)

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

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

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

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

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

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

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

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

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.

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

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

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

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

1792 Election Results

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

Foreign Policy Issues

The French Revolution Single most important issue separating Federalists & Republicans 1789 - Republicans cheer the Revolution as an extension of their own Conservative Federalists feared “mobocracy”

“Reign of Terror” Jeffersonians became less favorable

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

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

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

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)

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

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

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

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

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

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

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

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

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

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

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

Victory in Old Northwest St. Clair defeated in Ohio “Worst military defeat ever!” Left US with 300 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.'

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.

The Battle of Fallen Timbers

Treaty of Greenville (1795) Indians cede 2/3 of land in the Ohio country British abandon forts in Old NW Indians abandon British allies

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

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

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

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)

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

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

Election of 1796 Domestic & Foreign Policy issues widened factional differences

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

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

1796 Election Results

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

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

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

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

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

Adams suspend trade with France & authorizes capture of French ships Undeclared Naval War 1798-1800: “Quasi-War” 80 French ships captured

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

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

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

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

Matthew “Spitting” Lyon

Laws was never declared unconstitutional & expired in 1801

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

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

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

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

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

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