CHAPTER 10: Launching the new ship of state (1789-1800)

1. I shall only say that I hold with Montesquieu, that a government must be fitted to a nation, as much as a coat to the individual; and, consequently, that what may be good at Philadelphia may be bad at Paris and ridiculous at Petersburg. - Alexander Hamilton CHAPTER 10: Launching the new ship of state (1789-1800)

2. First Census:4million(90% rural) • Philadelphia (42,000) / New York (33,000) / Boston (18,000) / Charleston (16,000) • Population of the United Kingdom: 8 million

3. Struggles of the new nation • Public debt was enormous; revenue had significantly declined • Worthless paper money, both state and national, was in circulation • Foreign challenges by Britain and Spain (and Native Americans) threatened the unity of the U.S.

4. Washington In New York • Took oath of office on April 30, 1789 in temporary capital of NYC • John Adams: Vice President • Creates the “cabinet” • Secretary of State: Thomas Jefferson • Secretary of the Treasury: Alexander Hamilton • Secretary of War: Henry Knox • Attorney General: Edmund Randolph

5. congress convenes and the republic begins • Bill of Rights (First Ten Amendments) • Anti-Federalists had sharply criticized the Constitution for not having one. • James Madison (“Father of the Constitution”) drafted the amendments and submitted them to Congress • Judiciary Act of 1789 • Organized the Supreme Court with a chief justice (John Jay) and five associates • Organized federal district and circuit courts. • Major differences between the Articles and Constitution, right?

6. Five major components • Increase national credit • Debts would be paid at face value plus accumulated interest • Although a national debt, within limits, can be viewed as a “national blessing” • Assumption of State Debts • Wealthy creditors who held the debt would be loyally bound to the national government that was able to pay it off • States with huge debt were delighted (esp. Mass.) • States with less debt or no remaining debt were unhappy (generally the South) • South would get a new federal district-- now District of Columbia Hamilton’s Financial Plan

7. Tariffs (taxes on imports) became a source of revenue and protection for manufacturers • Northerners tended to favor high tariffs, Southerners tended to favor low tariffs • Excise taxes (an extension of federal power) • A Federal or state tax imposed on the manufacture and distribution of certain non-essential consumer goods • Backcountry distillers of whiskey most affected by the 7 cent/gallon tax. • Whiskey was often used as money Hamilton’s Financial Plan

8. Hamilton’s Financial Plan • Create a National Bank (B.U.S.) • Federal Treasury would deposit its surplus moneys in the bank • Government would print needed paper money thus providing a stable national currency.

9. Hamilton’s Financial Plan • Strict construction • Jefferson: Constitution did not stipulate creation of a national bank • Loose construction • Hamilton: favored a broad interpretation of the Constitution • "necessary and proper" clause [creates the idea of “implied powers”] stretches the Constitution • Set a precedent for enormous federal powers despite the 10th Amendment that protects states’ rights • Washington reluctantly signed the bank measure (creating the B.U.S.) into law

10. Southwestern Pennsylvania backcountry folks hard hit by Hamilton's excise tax Torched buildings, tarred and feathered revenue officers, chased government officials Tax collections came to a halt. Washington summoned the militia of several states resulting in 13,000-man army. When the troops reached the hills of w. Pennsylvania the Whiskey Boys dispersed Significance: Washington's government showed it could ensure domestic tranquility (condemned for “using a sledgehammer to crush a gnat”) Whiskey Rebellion (1794)

11. Democratic-republicans federalists • Jefferson • Advocated the rule of the people; government for the people (the states) • Biggest appeal was to the middle class and the underprivileged • The best government was one that governed least • Jeffersonians themselves were primarily agrarians • Pro France • Hamilton • Supported a strong central government • Protect life and property of the wealthy • Federalists dominated by merchants, manufacturers, and shippers • Pro Great Britain CLICK ON THE LINK BELOW TO LEARN THINGS! Birth of the Two party system

12. FEDERALIST ERA Foreign Policy • The French Revolution • One of the most important issues separating Federalists and Dem.-Republicans • Britain pulled into that conflict which became a world war • Washington proclaimed U.S. neutrality toward the war between Britain and France • American Reaction • Jeffersonians enraged, especially by Washington for not consulting Congress. • Federalists supported it.

13. Washington's Neutrality Proclamation (1793) • Edmond Charles Genet known as Citizen Genet • French ambassador • Wrongly believed Neutrality Act did not truly reflect the wishes of Americans. • Suggested going over "Old Washington's" head by appealing to the voters. • Washington demanded his withdrawal and Genet was replaced (this discredits pro-France Dem-Reps)

14. Jay treaty Pinckney treaty • Background: British had continued menacing Americans on U.S. soil and on the high seas • Provisions: America won few concessions • British renewed their pledge to remove their posts from U.S. soil (as in 1783) • British consented to pay damages for recent seizures of American ships • British refused to guarantee against future maritime seizures and impressments • Jay bound the U.S. to pay pre-Revolution debts owed to British merchants • Normalized relations with Spain • Spain’s position was declining on the American frontier • Treaty provisions: (Spanish concessions) • Granted free navigation of the Mississippi to the U.S. including right of deposit at port city of New Orleans • Yielded large area north of Florida that had been in dispute for over a decade. • Why did we get so much? Fear of the British Federalist foreign policy treaties

15. Battle of Fallen Timbers (1794) • Indians finally forced to abandon their British allies • Treaty of Greenville (1795) – cleared 2/3 of Ohio and Indiana of Indian tribes • Eastern Woodlands Indians now saw their lifestyle ruined by increased competition for fur trade, white settlement, and destruction of their hunting grounds • #1 – Anthony Wayne, #2 – Little Turtle, #4 - W.H. Harrison, #5 – William Clark, #6 – Merriwether Lewis, #7 – Blue Jacket

16. George washington’s Farewell and legacy • Refused to accept a third term as President • Set a precedent for the 2-term presidency • In his Farewell Address he warned against the evils of political parties -- partisan bitterness/factions • Warned against permanent foreign alliances (like treaties with France) • President came to rely on department heads for advice and consult regularly withhis cabinet.

17. THE ELECTION OF 1796 • Adams defeats Jefferson 71-68 in the Electoral College • Jefferson, as runner-up, became V.P. T. Jefferson Dem.-Republican J. Adams Federalist

18. War with France • French government infuriated by Jay Treaty as an initial step towards alliance with Britain • French warships began seizing U.S. merchant vessels (about 300 by mid-1797) • President Adams sent a delegation to Paris in 1797 • French demanded a large loan of $32 million and a bribe of $250K for U.S. privilege of merely talking to foreign minister • This became known as the XYZ Affair (“Millions for defense, not one cent for tribute!”) • Undeclared Naval Warfare, 1798-1799 (which party is helped here?)

19. Alien and Sedition Acts (1798) • Purpose: Federalists passed a series of oppressive laws in 1798 that would reduce power of Democratic-Republicans • Alien Acts • Raised residence requirements for U.S. citizenship from 5 yrs to 14 yrs (Naturalization Act) • President empowered to deport "dangerous" foreigners • Sedition Act: Anyone who impeded the policies of gov't or falsely defamed its officials, incl. the president, would be liable to a heavy fine and imprisonment • Violation of the 1st Amendment • Adams finished his term keeping us out of war with France but these laws hurt the Federalists

20. Virginia and Kentucky Resolutions • Jefferson & Madison secretly created a series of resolutions • Premise • States have fundamental rights that the federal government cannot abridge • The U.S. Constitution exists as a compact between the federal and state governments • States can nullify federal laws that they judge to be unconstitutional • Who created the federal government, anyway?

21. Election of 1800 • Jefferson defeats Adams: 73 to 65 • Yet, Jefferson tied with Burr (N.Y.), his V.P. running mate, for electoral votes • House of Reps had to break the deadlock • Amendment XII fixes the problem (1804)

22. “THE REVOLUTION of 1800” • Significance: Peaceful change of power (from party to party) was revolutionary • Transfer of power on the basis of an election that all parties accepted (Adams simply “surrendered” the office) • “We are all Republicans, we are all Federalists.” • The end of the Federalist Party

23. Federalist Legacy (1787-1800): • Party of the elite • Built enduring political and financial foundations for the new government • Diplomats kept the U.S. out of war and signed treaties • Preserved democratic gains of the Revolution and fended off anarchy. • Peaceful transition of power • Creation of two-party system. • Federalist demise a result of its inability to adapt to changes (are there more “people” or “rich and well-born”?)