Launching the New Ship of State Chapter 10

w Central government to be distrusted, watched, and curbed.

Financial problems plagued the country. w Debt high w Revenue low w Worthless paper money

Growing Pains

Population still growing fast w Doubling every 25 years w 1790 census shows 4 million w Cities blossoming

90% rural w 95% live east of Appalachian Mountains w New states being carved out w People looked down on America’s ax and rifle pioneering

Western states- Tennessee, Kentucky, Ohio open to seduction w Spain and British agents offer independence

Washington for President

Drafted to be President by Electoral College in 1789 w War hero, strength of character

New York temporary capital w Great ceremony at Washington’s inauguration

Establishes a cabinet w Not mentioned in constitution w Sec of State- Jefferson w Sec of Treasury- Hamilton w Sec of War- Knox w Attorney General- Edmund Randolph

The Bill of Rights

Unfinished business w Drafting a Bill of Rights w States ratified Constitution based on fact that one would be drawn up quickly

Bill of Rights drawn up by Madison w Feared narrow victory by Federalists would unravel if states called a national convention w Drew them up and led them through Congress

Adopted in 1791 w First 10 Amendments w Safeguards to most basic American principles

9th Amendment w Rights not mentioned are protected also w Reassure states

10th Amendment w Reserve Clause w Rights not mentioned are reserved to the states

Judiciary Act of 1789 w Creates federal court system Supreme Court, Chief Justice, 5 Associates, Federal District and Circuit Courts and Attorney General John Jay becomes first Chief Justice

Hamilton Revives the Corpse of Public Credit

Hamilton Secretary of Treasury w Genius w Doubts about character w Overzealous at times

Establish America on sound financial footing w Favor wealthy who would help preserve the Government. w Hope to help propertied class get more wealth w Trickle down to masses

Bolstering the nations credit w Fund debt “at par” w Assume all states debts accrued during the war

“Funding at par” w Government would pay off debts at face value plus interest- $54 million w Bonds depreciated to 10 or 15% of value w Sold to speculators who had not fought in war Bought from war veterans or widows

Wants to assume state debts of $21.5 million w Hamilton eager to take on debt

Assumption was logical w Occurred during the War so national government should pay w Would chain states to federal government so that debts would be paid off Shift loyalty to wealthy creditors to that national government

States with heavy debt delighted w States with small debts afraid w Virginia did not want assumption Got DC in Virginia for assumption

Customs Duties and Excise Taxes

Hamilton- “Father of the National Debt” w Debt swelled to $75 million w Bold move w Debt a national blessing Creditors have a personal interest in success of government to get paid back w Makes a debt an asset for federal government

Customs duties w Tariff duties w 1789 low 8% tariff Revenue for government Protection for weak manufacturing Saw future of America still lies in manufacturing America still controlled by agriculture

Excise tax on whiskey to raise revenue w 7 cents a gallon w Whiskey flows freely in western frontier w Used as money

Hamilton Battles Jefferson for a Bank

Idea of a national bank w Modeled after Britain w Government a major stockholder w Deposit surplus money w Stimulate commerce by keeping money in circulation w Print paper money for sound stable currency

Jefferson opposed to the bank w No authorization in Constitution for a bank w Powers not granted to federal government reserved to the states w **Strict interpretation

Hamilton’s view w What Constitution did not forbid it permitted w Loose interpretation To collect taxes and regulate trade w Implied powers- justifies national bank w Loose or broad interpretation

Hamilton prevails w Support came from North w Opposition came from South

Created in 1791 for 20 years w Philadelphia w $10 million w 1/5 owned by United States

Mutinous Moonshiners in Pennsylvania

Whiskey Rebellion Pennsylvania w Challenges new government w Excise tax harsh on pioneers- saw as burden imposed by national government Cheaper to send east than bales of hay w “Liberty and no excise” w Brought collection to a halt- tar and feather

Washington summons militia w Alarmed at self created societies w 13,000 join national army w Captured 2 but no real insurrection

Pardoned by Washington w 3 killed w Strengthened command and respect for Washington Or was it a brutal display of force

The Emergence of Political Parties

w Hamilton’s financial plan a success

Creates political liabilities w Encroached on states rights w Organized opposition began to build w Becomes a political rivalry with Jefferson and Hamilton

Factions had formed over heated issues w These were ideological organizations

Ideas of parties new to government w Opposition parties seemed tainted with disloyalty w Jefferson and Madison form opposition and confined activities to Congress w Newspapers bolster ideas of two parties

Two parties emerge w Seemed suspicious w Actually helped America establish sound democracy w Party out of power “Loyal Opposition” keeps things in the middle

The Impact of the French Revolution

Domestic affairs bring parties into existence under Washington w End of Washington’s first term w Foreign policy brings them further into the political fray

French Revolution begins in 1789 w Left deep scare in American life w Americans cheer at first growth of democracy Jeffersonians liked the Revolution

France declares war on Austria and proclaims itself a republic w Americans rejoice w Liberty is moving forward

Reign of Terror begins w Federalists point finger at Jeffersonians w Federalists disapprove of Revolution

w Jeffersonians thought it a cheap price to pay for liberty

Things change when Britain is involved w America has to be a part of controversy w Moves over to America

Washington’s Neutrality Proclamation

Alliance of 1778 bound America w To protect French West Indies w British bound to attack

Jeffersonians want to aid France w We owed them

Washington wants to avoid war at all costs w Militarily weak w Economically wobbly w Bide time until population grows Then assert maritime rights w Hamilton and Jefferson agree

*Neutrality Proclamation of 1793 w Claimed American neutrality in upcoming war w Warned Americans to be impartial w First major foreign policy statement w Moved Americans to support isolationism

Citizen Genet w French representative to America w Began raising privateers and others to help the French cause w Did not believe the Neutrality Proclamation reflected most Americans w Began raising army to invade Spanish Florida

Citizen Genet (cont.) w Became embarrassment to French and Jeffersonians w Washington tells him to leave French Revolution takes a new turn and he cannot go back to France Retires in America

Neutrality shows self interest cornerstone of all foreign policies w Only France stood to gain in 1793 Never call on America to its treaty America supplies West Indies with food anyway British would have blockaded America and food would not have flowed

Embroilments With Britain

Neutrality put to test by Britain w Kept forts in NW in defiance of treaty w Want to contain Americans in west and north w Sold firearms to Indians Miami Confederation led by Little Turtle Claim Ohio Valley as theirs –Defeat Josiah Harmar and Arthur St. Clair One of the worst defeats on western frontier

(Mad) Anthony Wayne w Routs Miamis at Battle of Fallen Timbers British refused to support Indians Treaty of Greenville in 1795 Gave up much of the Northwest Given money annually and right to hunt land Thought they had limited America’s ability to decide fate of Indians

On the Sea w British want to starve West Indies Capture and impress American ships and sailors Imprisoned others

Roused American resentment w Jeffersonians call to arms against Britain to protect its liberties w Federalists know that economy depends on trade with Britain

Jay’s Treaty and Washington’s Farewell

Jay sent to London w Jeffersonians afraid Jay would sell out his country to Britain Kissed the queen’s hand

Jay entered negotiations with weak hand w Hamilton hurt him too Told Britain of their bargaining strategy w Britain promises to leave forts in NW w Pay damages for recent seizures w Did not agree to future seizures and impressments w Bound US to pay debts owed to merchants during Revolutionary War

Unpopular treaty w Vitalized Democratic- Republicans w Treaty seemed like a surrender w Southern planters would have to pay majority of debt to British merchants w Hurt Washington’s popularity

Other consequences of Jays Treaty w Spain moved to strike a deal with US fearing an alliance with Britain Pinckney’s Treaty in 1795 Gave US navigation of Mississippi River (re- inforced right of Deposit) Gave US disputed territory north of Florida

Washington decides to retire w Establishes a two term limit for President w Farewell Address Avoid permanent alliances Good advice for a weak nation

Other contributions w Central government solidly established w Economy becoming sound w West was expanding w Trade growing w Cabinet w Kept nation out of overseas entanglements and wars

w Left on less than prestigious note

John Adams Becomes President

Adams chosen to succeed Washington w Hamilton too unpopular with masses w Will run against Jefferson for President

Election of 1796 w Became personal w Jeffersonians went to issues of Whiskey Rebellion and Jay’s Treaty

Adams wins 71 to 68 w Jefferson becomes Vice- President problem with electoral system) w Adams a great statesman w Intellectual aristocrat w No appeal to masses

Other handicaps w Hard to succeed Washington w Hated by Hamilton who now headed the High Federalists (war faction) Cabinet against him- led by Hamilton w Inherits a violent quarrel with France

Unofficial Fighting with France

French retaliate against Jays Treaty w Saw it as an alliance with their enemy w Began seizing American ships w Refused to receive America’s new diplomats

President Adams avoids conflict w Sends 3 men to meet with French officials w John Marshall

**XYZ Affair w Americans hope to meet French foreign minister Talleyrand w Met by 3 go betweens w Asked for $250,000 just to talk to Talleyrand

Negotiations broke down w Bribes part of usual negotiations but not just to talk w Marshall seen as hero

War hysteria sweeps America w “Millions for defense but not one cent for tribute” w Federalists delighted at turn against French w Jeffersonians dismayed

War effort moves forward w Navy department created w Marines established

War of seas w Americans capture 80 French ships w Privateers and men of war do most damage w Americans lose several hundred ships

Adams Puts Patriotism Above Party

France really doesn’t want to go to war with US w Doesn’t need another enemy w Driving US closer to England w Talleyrand says he will receive a new diplomat with respect

Avoiding war brings Adams new acclaim w War that takes Florida and Lousiana would bring Federalists new prestige w But realizes that war must be avoided

Adams submits new minister’s name to Senate w Hamilton’s war hawks enraged w Jefferson and cooler heads prevail

New ministers met with Napoleon w Napoleon wants to free hands of American squabble w Wants to build European empire w Worry about Louisiana later

Convention of 1800 w Annul treaty w Americans pay damage of shippers w Ends America’s first entangling treaty

Adams deserves credit w Avoids war w Allows for purchase of Louisiana later on

People of times are not happy with Adams w History has seen that it was the wise choice

The Federalist Witch Hunt

Federalists use French frenzy to push thru Congress laws to stifle foes and critics

**Alien Act w Aimed at pro-Jefferson immigrants They were welcomed into Jeffersonian ranks 1.) Raised citizenship requirements from 5 to 14 years. Violates America’s open door policy toward immigrants 2.) President could deport in time of peace and jail in time of hostilities Arbitrary use of power Never really enforced

**Sedition Act w Hurt freedom of speech and press 1.) Provided that anyone who impedes policies of government of falsely defames officials liable for fines and prison Felt it was justified Verbal violence has been unrestrained

Jeffersonians editors indicted w 10 sent to prison w Congressman Matthew Lyon- spit on Federalist and criticized Adams

Sedition Act in direct violation of Constitution w Supreme Court Federalists would not listen to appeals w Had law expire in 1801 in case they lost election w Sent many converts to Jeffersonians

Sedition Act did have some supporters w Anti- French hysteria plays into hands of conservatives w Federalists swept into office in

The Virginia and Kentucky Resolutions

Jeffersonians will not take this lying down w Could take away more freedoms w Might stamp out their party

***Kentucky Resolutions (Jefferson) and Virginia Resolutions (Madison) w Approved by those state legislatures

Compact Theory***** w States had entered into a compact with other states to create the federal government and its jurisdiction w Federal government was agent of the states w States were final judge on whether federal government had broken the contract w Federal government had overstepped its rights with Alien and Sedition Acts w States had the right to nullify these laws

Other states do not follow w Federalists states say Supreme Court has right to say if laws are unconstitutional w People are the final authority

K and V Resolutions were extreme state’s rights view w Later used by southerners to nullify laws which led to secession w Irony: Jefferson and Madison were looking for ways to save Union not break it up w Actually want to gain support for upcoming election

Federalists Versus Democratic Republicans

w Differences easy to see between Federalists and Democratic Republicans

Federalists forged by Hamilton w Federalists who wanted ratification w Rule by the best people w Intellectual arrogance w Distrust full blown democracy w Strong central government with power to crush democratic excesses w Protect lives and wealth of rich

Federalists forged by Hamilton (cont.) w Government should support private enterprise w Most support came from seaboard merchants, manufacturers and shippers w Pro British w Want foreign foreign trade, especially with Britain

Jefferson leads Republicans w Master political organizer but not a commanding public figure w Appealed to middle class and underprivileged w Traitor to upper class- slave owning, aristocratic planter w Want weak central government- best government governs least w Power to the states w Central authority kept in check by strict interpretation of the Constitution

Jefferson leads Republicans (cont) w Pay off debt w Primarily agrarian w No special privileges for special classes (manufacturing) w Want government run by educated (not property class) Believe in masses if educated w Keep slaves so whites will not become wage earners and be able to own land

Jefferson leads Republicans (cont) w Jefferson believes in freedom of press and speech to protect liberties Government without newspapers or newspapers without government w Receive much ill will during his life time in public service w Basically pro-French Support liberal ideals of French

Coming election of 1800 was showing the fragility of nation w Will become the Revolution of 1800