Launching the New Ship of State

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Launching the New Ship of State

• The Federalist Era
• 1789-1800

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America Circa 1790

• Roughly 4 million people
• Doubling every 25 years
• 90 rural
• 95 east of Allegheny Mts.
• Precarious finances

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George WashingtonThe President of Precedents
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Washington Administration
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Domestic Policy Issues
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• 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

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

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

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• Thomas Jefferson appointed as the first Secretary
  of State

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• Alexander Hamilton was Secretary of the Treasury

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• Henry Knox became the first Secretary of War

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Judiciary Act of 1789

• Supreme Court created by the Constitution
• A Chief Justice
• 5 Associate Justices

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• Washington appointed John Jay to be the first
  Chief Justice

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

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• Act also created the office of Attorney General
• Edmund Randolph

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The Bill of Rights

• James Madison drafted the first amendments sent
  them to Congress

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• The first ten amendments adopted in 1791

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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

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• 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

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

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• 10th Amendment
• so-called states rights amendment
• all rights not explicitly delegated or prohibited
  were reserved to the states or the people

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Hamiltons Financial Plan

• HamiltonFather 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

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

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• 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

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

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• National Bank (BUS)
• Foundation of Hamiltons plan
• Private institution in which the government held
  a majority interest

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The B.U.S.
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• Government deposited its surplus money in the
  bank
• Deposits would then be the source of loans
  allow for the printing of a national currency

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

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• 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

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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 constructionIf it is not mentioned in the
  Constitution than there cant be a national bank
• Against a national debt

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

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HAMILTON'S FINANCIAL PLAN

• 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 govt backed by gold silver
• Assumption Act passed as a compromise with Thomas
  Jefferson placing the US Capital in the South
  (Virginia)

Foreign Debt 11,710,000
Federal Domestic Debt 42,414,000
State Debt 21,500,000
CustomDuties(Tariffs)
ExciseTaxon Whiskey
Misc.Revenue
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Whiskey Rebellion (1794)

• SW Pennsylvania farmers hated Hamiltons whiskey
  tax
• Liberty and No Excise
• Major challenge to new national government

Whuppin Revenooers
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• Washington summoned the militia of several states
  to put down the insurrection
• Rebels were dispersed without bloodshed

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President Washington reviews 13,000 troops of the
Western Army assembled at Fort Cumberland,
Maryland, to crush the Whiskey Rebellion.
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• Swift decisive action of President gave the new
  government badly needed respect
• Federal Government could ensure domestic
  tranquility!

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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

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

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

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

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• 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.

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• Federalists (1790s)
• Govt by best people
• Distrusted common people
• Strong central government
• Govt should encourage business
• Pro-British foreign policy

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• Jeffersonians
• aka Democratic-Republicans
• Rule of the people (literate)
• Appealed to middle class underprivileged
• Govt that governed best, governed least

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

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RISE OF POLITICAL PARTIES
political
Federalist Beliefs
(former Anti-Federalists)Democratic-Republicans
Alexander HamiltonJohn Adams
Thomas JeffersonJames Madison
Leader
Manufacturers, merchants, wealthy, and
educatedFavored seaboard cities
Farmers and Planterscommon manFavored the South
and West
Appealed to

• Strong government over statesLoose Construction
  of Constitution
• Implied powers
• Wealthy and educated involved
• Limit freedoms of speech press
• Preferred govt. similar to a king

• States 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
DomesticPolicy
Supported National BankBUSSupported excise
taxNational debt good for countryNational govt.
assume state debtsTariffs should be high
Against National BankBUSAgainst excise tax
Against National debtStates pay their own
debtsTariffs should be low
ForeignPolicy
Opposed French RevolutionWanted war with
FrenchFavored the British
Supported French RevolutionOpposed war with
FrenchFavored the French
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1792 Election Results
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1792 Election Results (16 states in the Union)

George Washington Virginia Federalist 132 97.8
John Adams Massachusetts Federalist 77 57.0
George Clinton New York Democratic-Republican 50 37.0
Thomas Jefferson Virginia Democratic-Republican 4 3.0
Aaron Burr New York Federalist 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
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Foreign Policy Issues
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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

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• Reign of Terror
• Jeffersonians became less favorable

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

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

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• Washington makes Neutrality Proclamation
• government the people to be neutral
• Jeffersonians mad he didnt consult Congress
• Federalists happy

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Washingtons 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)

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• 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

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

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British Problems

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

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• Britain impressed US sailors

Impressment the act of kidnapping a ship, its
contents, men and forcing them into your navy
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• British seized 300 US merchant ships in West
  Indies
• Jeffersonians called for war against Britain
• Hamiltons economic plan was tied to British trade

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• 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

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Jays Treaty (1794)

• Washingtons motivations
• He sought to avoid war while US was weak
• Sent John Jay to London
• Hamilton gave British information that weakened
  Jays position

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• Jays 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

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• 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

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John Jay is burnt in effigy because Americans
believed he sold out to the British.
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• Significance
• War with Britain averted
• Increased factional differences between 2 parties
• Origins of Democratic-Republican party

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Victory in Old Northwest

• St. Clair defeated in Ohio
• Worst military defeat ever!
• Left US with 300 troops total
• 1st Congressional Investigation

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• General Mad Anthony Wayne defeats Indians at
  the Battle of Fallen Timbers - August 20,1794

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

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Pinckneys Treaty (1795)

• Spain feared an American-British alliance signs
  Pinckneys Treaty
• US got disputed territory north of Florida
• US got free navigation on Miss. River
• 3 year right of deposit in New Orleans

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

• Washington served a reluctant 2nd term
• Verbal abuse wore on him
• A warning to Americans against disunity

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Washingtons Farewell

• Europe has a set of primary interests which to
  us have none or a very remote relationOur
  detached and distant situation invites and
  enables us to pursue a different courseIt is our
  true policy to steer clear of permanent alliances
  with any portion of the foreign worldTaking care
  always to keep ourselves by suitable
  establishments on a respectable defensive
  posture, we may safely trust to temporary
  alliances for extraordinary emergencies (1796)

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

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Washingtons Legacy

• Kept young nation from war
• Chose consulted Cabinet
• 2-term office limit
• Went outside Supreme Court for Chief Justice
• Hamiltons financial program

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Election of 1796

• Domestic Foreign Policy issues widened
  factional differences

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

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(No Transcript)
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• Main Issues
• Jays Treaty
• Whiskey Rebellion
• Outcome
• Adams wins 71-68
• Jefferson becomes VP

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1796 Election Results
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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 Federalist 59 42.8
Aaron Burr New York Democratic-Republican 30 21.7
Samuel Adams Massachusetts Federalist 15 10.9
Oliver Ellsworth Connecticut Federalist 11 8.0
George Clinton New York Democratic-Republican 7 5.1
Other - - 15 10.9
Total Number of Electors 138
Total Electoral Votes Cast 276
Number of Votes for a Majority 70
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Problems with France

• US merchants getting rich off war trade
• Britain violated Jays Treaty impressed US
  sailors
• French Directory, fearful of Jays Treaty,
  ordered seizure of American ships

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• 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

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

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• Millions for defense, not one cent for tribute.

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• Adams suspend trade with France authorizes
  capture of French ships
• Undeclared Naval War
• 1798-1800 Quasi-War
• 80 French ships captured

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• Convention of 1800
• Adams Finest Moment
• Negotiated a peace with Napoleon
• Avoids war
• Ends 22 year French alliance

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Alien Sedition Acts

• 1798 Federalists passed laws to reduce power of
  Jeffersonians silence anti-war opposition

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

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

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Matthew Spitting Lyon
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• Laws was never declared unconstitutional
  expired in 1801

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Virginia Kentucky Resolutions

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

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

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• 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

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• 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

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

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Federalist Legacy

• Hamiltons financial plan
• Washingtons precedents
• Kept US out of wars
• Preserved gains of Revolution fended off
  anarchy
• Two-Party system arises