1. Washington Shapes the new Government
A New Republic
Washington Shapes the new Government

2. What is America like in 1790?
Population nearly 4 million in 1790 census: doubling every 25 years.
About 90% of Americans lived on farms
Relatively few large towns existed:
-- Exceptions: Philadelphia, NY, Boston, Charleston, Baltimore
5% lived west of the Allegheny mountains -- New states: Kentucky, 1792; Tennessee 1796; Ohio 1803;
Finances of the new nation were precarious -- Public debt was enormous; revenue had significantly declined Worthless paper money, both state & national, was in heavy Circulation.
Foreign challenges by Britain and Spain threatened unity of the U.S.

3. President George Washington and his administration
Washington unanimously elected president by the Electoral College in            – Only Presidential nominee ever to be honored unanimously.
Many believe Congress was willing to give the presidency power due to Washington's immense respectability
Took oath of office on April 30, 1789 in temporary capital of New York City.             -- John Adams sworn in as vice president

4. Washington’s Cabinet Did not agree on many issues
Set Precedent: Consulting of cabinet members (department heads) in order to make decisions. Constitution does not mention a cabinet. However the cabinet has become an integral part of the "unwritten constitution."
The Cabinet
State
Thomas Jefferson
War
Henry Knox
Treasury
Alexander Hamilton
Attorney General (Created by the Judiciary Act of 1789)
Edmond Randolf
Did not agree
on many issues
Chose Hamilton and Jefferson because they had different views.
Washington wanted them to work together but eventually led to 2 parties. (Federalist (AH) and Democratic Republican (TJ))

6. Judiciary Act 1789
Established Supreme Ct. (1 chief (John Jay) 5 assistant)
Empowered to rule on constitutionality of St. courts.
Also set up 13 district courts and 3 court of appeals.
Set up the Attorney General
Fatal provision: law stated Supreme Court could force presidential appointments of judges. This law would be overturned in (Marbury v. Madison) and a new judicial act would need to be written.

7. Jefferson Distrusted Central Government
Wanted strong state and local government
Felt the executive term should be limited.
Against a Standing Army
Believed in a society of farmer-citizens. (wealthy background)
Felt Central Government Too oppressive and expensive!
Jefferson's views--man is rational, capable of self-improvement.
1) Government exists to protect man's natural rights to life, liberty, and happiness.
2) The greatest threat to man's freedom is tyrannical government. It needs to be limited in its powers and completely responsive to the needs and desires of the people.
3) State governments should have greater power because they are less likely to be despotic.

8. Hamilton Wanted strong Central Govt. led by a educated elite.
Commerce & Industry were the keys to a strong nation.
Hamilton's views--Man is irrational, corrupt, and guided by base instincts.
1) Sovereignty must rest with a strong central government insensitive to the popular will
2) Government's function is maintain order in a potentially chaotic society. It needs to be remote and secure from the people's emotional uprisings.
(came from a poor background)

9. Hamilton’s Financial Plan The Basics
Govt. millions of dollars in debt.
Establishment of a national bank
Pay off foreign debt.
Federal government would assume state debts.
Raise revenue
excise taxes on luxury items (liquor & jewelry)
tariffs
Needed to put country on firm footing.
National bank would issue paper money and handle tax receipts & federal funds.
Some southern states against paying 0ff debt because already paid off. Hamilton felt it would Force creditors to support govt. - or else lose money.
Imposing a protective tariff would also encourage domestic industries
II. Hamilton's Financial Plan
A. Protective tariff to stimulate industry
B. Willingness to assume debts of states
C. Willingness to assume Confederation's debts
D. Establishment of a national bank. Purposes:
1) Repository of national assets
2) Issue paper money based on assets
3) Source of investment capital
E. Whiskey Excise Tax--burden fell on western farmers
1) Whiskey Rebellion (1794) armed men
2) Washington leads militia to put down revolt

10. Debate for and Against The National Bank
Constitution didn’t make a provision for it.
In Favor
The elastic clause granted power to create (necessary and proper)
Creation of bank became one of the first uses of the doctrine of implied power.
Eventually compromise – get bank, move capital to south (DC).
II. Hamilton's Financial Plan
A. Protective tariff to stimulate industry
B. Willingness to assume debts of states
C. Willingness to assume Confederation's debts
D. Establishment of a national bank. Purposes:
1) Repository of national assets
2) Issue paper money based on assets
3) Source of investment capital
E. Whiskey Excise Tax--burden fell on western farmers
1) Whiskey Rebellion (1794) armed men
2) Washington leads militia to put down revolt
III. Jeffersonian Opposition to Hamilton's Plans
A. Strict constructionist view--creation of U.S. Bank exceeded Congressional authority
B. 10th Amendment forbids the national government exercising powers not delegated to it.
C. Commercial and manufacturing interests favored over farming interests.

12. Birth of Parties
By , two well-defined groups had crystallized:               a.  Hamiltonian Federalists
              b. Jeffersonian Republicans
Our two-party system is largely owed to the clash between Hamilton & Jefferson.
Birth of the Party System      A. Founding Fathers in 1787 did not envision the existence of political
parties.           1. Organized opposition seemed disloyal and against spirit of
national unity.           2. No national political party had ever existed in America before               Washington's administration.           3. Factions had existed only over special issues: e.g. Tories &
Whigs, Federalists & Antifederalists. But factions were not
parties.           4. Jefferson & Madison first organized their opposition to
Hamilton only in Congress; did not anticipate creating a
permanent, popular party.           5. As their opposition to Hamilton grew, political parties emerged.           6. By , two well-defined groups had crystallized:               a.  Hamiltonian Federalists               b. Jeffersonian Republicans
          7. Our two-party system is largely owed to the clash between
Hamilton & Jefferson.

13. PARTIES DEVELOP -Federalists- led by Hamilton
-supported strong Nat’l Gov’t
-NE businessmen / merchants
Less rights to people and states
Pro British
-Democratic-Republicans- led by Jefferson and Madison
-supported limited role of Gov’t
-southerners/common people yeoman farmers
Favored small federal gov. with limited power (strong state governments)
Pro French
Federalists
Believed in gov't by upper class (the "landholders" (Stake in society)
Biggest appeal to the upper classes and distrusted the common people.
Supported a strong central government
Lose interpretation of the Constitution.
Allowing the nation to pay debt built credit and respect for the country.
Federal gov't should encourage business, not interfere with it.
Pro-British in foreign policy
Jeffersonians
Advocated the rule of the people; government for the people (literate – not all)
Biggest appeal was to middle class and the underprivileged
Democratic-Republicans believed the best gov't was one that governed least.
Strict interpretation of  Constitution
Nation should not incur debt of states because some had paid them off.
Primarily supported farmers and tradesmen.
Basically pro-French

14. Washington and Congress
Congress requested frequent updates on Washington’s presidential decisions
Washington limited how often his cabinet officers appeared to testify.
Underlined the independence and separation of the executive branch.

15. Whisky Rebellion 1794 Hamilton placed an Excise tax on Whisky.
Pennsylvania farmers revolted
Washington forced to use military (3,000)
Showed the strength of the new National government. It could survive a Shays type rebellion.
Whisky tax hit Southwestern Pennsylvania hard.
Pennsylvania farmers “Whisky Boys” revolted
Torched buildings, tarred & feathered revenue officers,  chased gov’t supporters from the region; some talked of secession from U.S.
Tax collections came to a halt.
Washington forced to summon militia of 13,000 (Washington led part way – Hamilton stayed with troops whole way)
Rebels Dispersed – (later pardoned)
Showed the strength of the new National government. (Could handle a Shays type threat)
Jefferson and his supporters condemned the actions and saw it as a brutal display of force which gained him support among ordinary farmers.
E. Whiskey Excise Tax--burden fell on western farmers
1) Whiskey Rebellion (1794) armed men
2) Washington leads militia to put down revolt (15,000 troops sent, but no bloodshed).
Criticized in backcountry as some worried about power of new government.

16. Foreign Affairs - General
Washington tried to keep the US neutral.
1793 – Issued a Proclamation of Neutrality. (aimed at Fr. Rev – Jefferson resigned)
Jay’s Treaty
Jay negotiated with British who agreed to:
a) Abandon posts
b) Limit seizures of American cargos
France saw as violation of French American Alliance.
Trouble with Great Britain arose over fur trading posts in the Northwest and interference with American shipping
Felt the new nation was still economically & militarily weak.
(also argued to not get involved in European affairs, not to form political parties, and to avoid sectionalism)

17. Farewell Address Reluctantly agreed to run for second term (unanimous)
Refused 3rd term
Farewell Address
Warned against Political Parties
Aadvised “steer clear of permanent alliances with any portion of the foreign world.
Became a cornerstone to American isolationist tradition for next 100 years   
V. Washington’s Farewell Address (1797)     A. He had reluctantly accepted a second term at the urging of his
Supporters; unanimously reelected     B. Washington lost his nonpartisan standing when he became a
Federalist           -- Verbal abuse from Jeffersonian wing was significant    C. Refused to accept a third term as President       1. Set a precedent for the 2-term presidency       2. Washington exhausted physically and weary of verbal abuse    D. Farewell Address       1. 2/3 domestic related: Warned against evils of political parties.       2. Warned against permanent foreign alliances (like treaty with
France)       3. Jeffersonians angered; speech seemed to declare U.S. hostility
toward France.       4. Isolationism became dominant U.S. foreign policy for next 100
years.    E. Washington thus kept U.S. out of war     F. Review of Washington's Precedents       1. President relied on and consulted regularly with his cabinet.       2. Chief executive gained the right to choose his own cabinet.            -- This custom grew out of Congress' respect for Washington       3. Two-term office for president       4. After Jay resigned, Washington went outside the Supreme Court to
select a new Chief Justice
Felt the new nation was still economically & militarily weak.
(also argued to not get involved in European affairs, not to form political parties, and to avoid sectionalism)

18. Review of some of Washington's Precedents
President relied on and consulted regularly with his cabinet which he choose.
Two-term office for president.
After Jay resigned, Washington went outside the Supreme Court to select a new Chief Justice
Title “Mr. President”

19. The Federalist
Era
Part II: Adams

20. ADAMS IS ELECTED -1796 election (winner is top two vote-getters)
Adams elected President (71) Federalist
Jefferson elected V.P. (68) Democratic-Republican
-They were from different political parties different ideas about how the Government. should work
- This problem fixed by 12th Amendment (Pres./VP from same party)

21. The election map of 1796 shows a new politically-divided nation
The election map of 1796 shows a new politically-divided nation. This election also underscored the growing danger of sectionalism.

22. XYZ AFFAIR France Angered over Jay’s Treaty
Thought US was renewing relationships with BR and against Franco-American treaty of 1778
Began seizing ships.
Ambassadors sent to France by Adams to try and improve relations
French delegates (X Y Z) approach ambassadors and demand for a bribe ($250,000) before negotiating with Americans
Delegates reply - Millions for defense, not one cent for tribute!
So angered citizens that they called for war.

23. “Millions for defense, but not one cent for tribute!”
Quasi War of
Political Parties oppose each other
Federalists / British
Dem-Republicans / French
Began war preparations
Navy Department established (3 ships increased)
Marine Corp. established
Washington authorized 10,000 man army to be raised (never actually that many)
While war was never officially declared, for the next two years an undeclared naval war raged between France and the U.S.
Americans seized some ships, lost merchantmen. Seemed full blown war imminent
“Millions for defense, but not one cent for tribute!”
Convention of 1800 avoids war
Adams makes peace with French
Federalists angry with Adams

24. ALIEN & SEDITION ACTS
-Federalists passed laws to limit criticism of gov’t by those sensitive to the French (Dem-Republicans) and restrict citizenship rights
-would have limited freedom of speech and allowed deportation of unpopular aliens
1798
Anti-French feeling flourished, and many Federalists believed that French agents were everywhere, plotting to overthrow the government. New arrivals from foreign countries were held in particular suspicion, especially because immigrants were active in the Dem.-Rep. party.

25. Alien & Sedition Acts (1798)
Passed a series of laws that sought to lessen criticism of the Federalists
Alien Acts made it more difficult to become a citizen, provided for detention of aliens in time of war, and allowed the president to deport any alien
Sedition Act outlawed criticism of the government or the president (10 convictions obtained)
Allowed to expire just before Adams presidency ended
Popular support showed Anti-French hysteria
Largest ever Federalist victory in congressional elections
. Alien and Sedition Acts (1798)         1. Purpose: Federalists passed a series of oppressive laws in 1798
to reduce power of Jeffersonians and silence anti-war opposition         2. Alien Acts            a. Attack on pro-Jeffersonian "aliens"                 i. Most immigrants lacked wealth and were welcomed by
Jeffersonians.                 ii. Hated by Federalists who did not want these immigrants
voting in U.S.            b. Raised residence requirements for U.S. citizenship from 5 years
to 14 years.            c. President could deport "dangerous" foreigners.            d. Laws in some ways seemed sensible                 i. Some foreign agitators coming into U.S. (e.g. Citizen Genet)                 ii. Many from France sought anti-British policies                 iii. Others were foreign agents who should have been expelled.            e. Alien Acts never enforced but some frightened foreign agitators
left       3. Sedition Act            a. Anyone who impeded the policies of gov't or falsely criticized
its officials, including the president, would be liable to a heavy
fine and imprisonment.            b. Direct violation of the 1st Amendment to the Constitution                 -- Federalist Supreme Court not interested in declaring it
unconstitutional.            c. 10 Jeffersonian editors were brought to trial & convicted            d. Law expired in 1801 the day before Adams left office.                -- Demonstrated dubious intentions of bill (if a Federalist was
not elected in 1800, Republicans wouldn't have the Sedition
Act to prosecute Federalists.)         4. Popular support for Alien and Sedition Acts significant            a. Anti-French hysteria played into the hands of the Federalists            b. Largest ever Federalist victory in congressional
elections
A. Alien & Sedition Acts (1798) sought to lessen criticism of the Federalists
1) Alien Acts made it more difficult to become a citizen, provided for detention of aliens in time of war, and allowed the president to deport any alien
2) Sedition Act outlawed criticism of the government or the president (10 convictions obtained)
3) Jefferson and Madison wrote the Kentucky & Virginia Resolutions which stated right of states to disobey Congress if laws exceeded Constitutional authority. First statement of nullification.

26. Kentucky and Virginia Resolutions
- -issued to declare the laws unconstitutional – violates the First Amendment
-Written by Jefferson and Madison
- states laws were unconstitutional (they were)
Sent to state governments for approval; fed. gov. enforcing laws
Stated right of states to disobey Congress if laws exceeded Constitutional authority.
-presented idea of nullification
Declare unfair laws null and void; idea of states’ rights

27. The Jefferson "Revolution of 1800" (Election of 1800)
Federalist face problems
Split over quasi war with France
Spent lots of $ preparing for a war that didn’t happen
Backlash of Alien & Sedition Act
Jefferson Defeats Adams (73-65)
Tied with Burr – Thrown to House
Many Federalist hated Jefferson
Hamilton helped push to Jefferson (Now Burr hates Hamilton)
Significance
Peaceful transfer of power from one party to another that both accepted.
The Jefferson "Revolution of 1800" (Election of 1800)      A. Federalist handicaps           1. Federalists split over going to war with France biggest reason for
Adam’s defeat                --  Hamilton and "High Federalists" openly broke from Adams
for his refusal to go to full-blown war against France           2. Alien and Sedition Acts became a liability           3. Federalists swelled the debt in preparation for war with France.                -- New taxes (incl. a stamp tax) were levied to pay the costs.           4. Military preparations now seemed unnecessary
     B. Federalist mudslinging accused Jefferson of:           1. being an atheist (Jefferson really a deist)               -- His success with separating church & state in Virginia
incurred the wrath of the orthodox clergy especially in
Congregationalist & Federalist New England.           2. robbing a widow and her children of a trust fund           3. fathering mulatto children by his own slave woman (note: in
1998, genetic tests apparently proved that Jefferson had fathered
at least one child from his slave mistress, Sally Hemmings)
     C. Jefferson defeated Adams: 73 to 65           1. Most support from South & West where universal manhood
suffrage had been adopted.                -- New York was the key: Aaron Burr narrowly turned NY
toward Jefferson           2. Yet, Jefferson tied with Burr, the vice presidential candidate, for
electoral votes                a. House of Representatives had to break the deadlock                b. Federalists wanted Burr; hated Jefferson                c. Eventually, a few anti-Burr Federalists, refrained from voting
and Jefferson became president (swayed by Hamilton; Burr
now hated Hamilton)           3. Significance: Peaceful change of power was revolutionary                a. Transfer of power on a basis of an election that all parties
accepted                b. Britain would not achieve the same stature for another
generation.

28. The Federalist Legacy Hamilton's financial plan
Washington established important precedents for the presidency.
Federalists kept the U.S. out of war
Preserved democratic gains of the Revolution and fended off anarchy.
Opposition party (Jeffersonians) resulted in creation of two-party system. 
Westward Expansion (Treaty of Greenville and new western states)
The Federalist Legacy      A. Hamilton's financial plan      B. Washington established important precedents for the presidency.
     C. Federalists kept the U.S. out of war      D. Preserved democratic gains of the Revolution and fended off
anarchy.      E. Opposition party (Jeffersonians) resulted in creation of two-party
system. 
     F.  Westward Expansion (Treaty of Grenville and new western states)