Building a NEW NATION

What problems face the new nation?

How does Washington establish a strong executive?

Washington

A. Federal Bill of Rights. Promised to both Mass/Virginia. 1791, 10 amendments to the original constitution are ratified. They form “Bill of Rights”... protecting individual democratic rights.

B. Sec. of Treasury Hamilton has to stabilize the economy. His actions are necessary, but controversial.

Handling the DEBT….

1. Debt: Hamilton proposes 2 plans to solve our nation debts. This is published in “The Report on the Public Credit”. Solving the debt was critical to stabilize our nation’s credit

a. The 1st plan would pay off the national debt by issuing bonds. (about $50 million). This plan was not a problem politically….it gets little criticism.

b. The 2nd plan has the federal gov’t pay off the individual states remaining debts, (about $22 million) This plan was caused a huge controversy.

1. States with debts (Mass) like it, states who already paid it off don’t (PA, VA)

2. The plan was approved by a deal to put the national capitol federal district on the Potomac R. (VA border). This

gets Washington’s OK. Opposition still exists

DEBT

a. Funding – sell new securities at 4% through sale of western lands and whiskey tax replace old bonds at face value

• Soldiers have been selling old bonds at less than face value; 25% of face value

• Selling frenzy after word of @par• Injustice to vets being cheated by moneymen• opposition saw this as new government favoring an

aristocracy and powerful menpay debt at face value for foreigners and soldiersspeculators at 50%lost to hard to discriminate between speculator or not

Assumption

Assumption – national government would assume state debtsa. VA had already paid off debt, not fair to pay 3$ million and be assessed 5$ million in taxesb. Madison wanted state assessment first1. POWER of national government; states being swallowed by national; similar to taxes of Parliament “consolidate, nationalize” offensive

2. Land measure of wealth not capital3. TJ knew foreign debt had to be paid to be taken serious4. DINNER – TJ house deal is brokered 3 parts:5. Residence, revised VA assumption, and settlement6. Seat of government – 100 sq. miles; temporary was in NY

for 10-20 years7. No debate on residence/ PA Ave main strip in DC/supervised

by GW

Establishing a BANK

2. Bank. Hamilton proposes a national bank in 1790. It would handle national finances/currency

(Similar to Bank of England). This is another hugely controversial idea.

a. The South hates the bank. They fear the fed gov’t could interfere in their Euro-trade

ROLE of BANK: 1/5 capital by government; rest private needed bank to supply notes assist gov in meeting short term obligations depository of funds (taxes) if fell short make loan personal loans easier to pay taxes 20 years, Philadelphia with 8 branches Boston to New Orleans Hamilton – banking is implied power Strict v loose interpretation of Constitutio

BANK

b. Congress approves it…but Pres. Washington is unsure. His decision will tip the balance.

Jefferson says NO: Constitution doesn’t allow for that power. STRICT

Hamilton says YES: Implied powers allow for right to charter such a bank. BROAD

c. Washington signs it over TJ’s objections. Jefferson’s openly splits with Wash/Ham

Collecting TAXES

3. Taxes. In the 2nd “Report on Public Credit” Ham calls for taxation on goods like whiskey. This also causes a firestorm of criticism. a. The Whiskey Rebellion was a clear sign of popular discontent with the new federal. gov’t

1. Western PA farmers make whiskey instead of hauling grain over the mountains. Ham’s tax would make this unprofitable.

2. 1792. Mass meetings start: a convention held in Pittsburgh denounces the Whiskey tax. Taxes collections are held up, the

gov’t fears a violent response may spread throughout the interior

3. At Hamilton’s urging, Washington himself leads a federal army of 13,000 to quell the revolt. The rebel farmers disperse quickly. The

Rebellion is over.

4. Hamilton’s Federal tax policy is enforced…but people worry about a gov’t that has to use the army to collect taxes from it’s people.

TRADE

4. Trade. In “Report on Manufactures”, He argues for protective tariffs for our infant industry, and gov’t paid internal improvements (roads, lighthouses). These are all very aggressive Federalist moves (the states should do this!). This scares Congress, they turn it down

The Silence

Q: Gradual emancipation, national plan?1. Africa – like Liberia, Sierra Leone2. West – Indians3 – mulatto – biracial society

Silence

Sectional Issues:1. South – wanted importation, open west to slavery, not restrictions on property

a. will leave if national emancipation plan2. VA – thought defense of slavery was embarrassment, but ending is premature3. North – wanted national emancipation plan

Gradual Emancipation Plan

1. Slave owners compensated – tax and land sale

2. Relocate to an American colony3. No biracial society anywhere4. Cost - $140 million total budget was $7

million1. Total debt was $77 million would be $125

Ben Franklin

1. Reminded all that “Silence” was a betrayal of the Revolution

2. Put slavery on national agenda before it is too late

3. Madison knew not to allow debate4. Resolution:

1. 1808 end slave importation2. Tax on slave imports3. Congress does not have the power to regulate

Slavery

1. Debate moves to the church - Sin that needs purging

2. 1790 – 8% free by 1800 11% freea. 1794 most states outlawed slave tradeb. 1793 Fugitive Slave Law – denied jury trial, denied property rights, free blacks denied Bill of Rightsc. Naturalization is for foreign whitesd. Equality diminishes after 1800

Haiti

Toussant L’Overture overthrows white rulers and creates a black nation state for Haiti 1798 - uses ideas from the Declaration of Independence

Puts fear back in the U.S.Rejects the racial assumption of slaveryU.S. does not recognize Haiti until after Civil

War

FOREIGN Affairs

II. Foreign Affairs during Washington’s presidency. Events in Europe dominate our foreign attentions.

A. The French Revolution starts in 1789, and a coalition of nations led by British attacks France. Europe slides into war…and France into as bloody chaos.

1. We are neutral, so we profitably trade with both sides...but this angers both sides too!

a. Both England and France actively stop our ships heading to each other’s ports. England also starts impressing sailors. Potential war looms with England

b. Our revolutionary treaty (1778) with France makes them feel we should be aiding them, and this

adds to the potential of conflict with the British

France or England??

2. Some in the US become fascinated with the French Revolution: They’re being like us!

a. But this fades as the revolution turns bloody and barbaric. By default,

support for England grows, especially amongst Federalists. (this is why Radicals can’t run civilized gov’ts! A of T) Many still support France though, including TJ.

Citizen Genet

3. French politician Edmund Genet (“Citizen Genet”) visits in 1793 to get public support and a get a commerical treaty favorable to France. a. While here, he tries to hire American privateer ships in Charleston to attack British and Spanish shipping in the Caribbean…this would be a dangerous violation of our nation’s neutrality. b. Genet gets big crowds, and even when told to cut it out, appeals to Congress and the US people to defy Washington’s neutrality stance Wash., fearing war with England, sends him home.

Citizen Genet

B. The Revolution/Genet helps fuel the growth of 40+ “Democratic” societies that emerge across the nation. 1. Seeing themselves as “Sons of Liberty”…they promote the spirit of freedom/equality They oppose Federalists and Hamilton. They oppose our neutral stance to Europe

2. They were mostly composed of working people, small farmers…some educated upper class too.

3. Washington and other Feds worried about these group’s reckless nature…Feds thought these groups could push us into a war with England and also bring back an Articles style gov’t

a. The groups evolve into the “Jeffersonian Republicans” a major political force by mid 1790’s

FOREIGN Policy - England

C. Jay’s Treaty. Washington sends John Jay to England to try to head off potential war with them.

1. The treaty is a disaster. Jay gets nothing from British in regards to impressment, the British

still in forts on our west border, and continual British interference with our neutral shipping,

2. Wash feels it’s the best we can get now: avoid a war with England our nation can’t get into.

a. It is ratified, but only narrowly. It is especially unpopular in the South.

FP - Spain

D. The Treaty of San Lorenzo is a lot better. Negotiated by Thomas Pinckney in 1795. 1. Spain recognizes our borders in west, free navigation on the Miss. R. 2. 31 parallel for Florida3. discourage Indian attacks dismantle forts on our soil

FP – Native Americans

Treaty of Greenville:1. Sent General Wayne into Ohio – wins at Battle of

Fallen Timbers2. Indians cede land in the Ohio Valley3. Peaceful for 16 years4. Indian Intercourse Act – public treaties only way for

the U.S. to take lands from the Indians5. Pacification – laws prohibiting trespassing on Indian

lands, punish crimes committed by non-Indians6. Assimilation – try to encourage Native Americans to

own private property, accept white culture, “civilize”

ELECTION of 1796

A. 1793. Jefferson resigns as Sec. of State….with intent of running for president against the Federalists

1. He’s against Hamilton and his financial programs. Pro French Revolution. In general, he wants to expand democracy...not limit it.

B. Washington decides not to run for a 3rd term (he dies in 1799). Running for the feds is VP John Adams.

1. He supports a strong national gov’t, opposes the French Revolution, and Aristocracy of Talent

C. Adams wins a tight victory in the Electoral College (3 votes). TJ finishing 2nd…becomes the new VP !

1. Adam’s slim victory shows the Federalist party is weakening…the Jeff-Republicans are gaining.

John Adams

Adam’s slim victory shows the Federalist party is weakening…the Jeff-Republicans are gaining.

2. Cards were stacked him….. hard to follow GW rise of political parties has caused tension Adams 71 to TJ 68; TJ becomes his VP a Democratic-

Republican TJ works against Adams Adams keeps a lot GW’s men; hurts him because their

allegiance is with Hamilton moody, tactless, aristocrat form NE actually very philosophical,

idealistic, brilliant, major player in causing Revolution….but not very practical, not people oriented, rather inflexible

John Adams

Adam’s term is marked by a war crisis with France. Our relations with them have deteriorated.

1. To solve this, Adams sends a delegation to France. There, agents of Foreign Minister Talleyrand try to extort a $240,000 bribe from the US Reps. Insulted, our delegation leaves. a. The Report to Congress is known as the XYZ Affair…and it causes an outrage in US

2. Federalists in the gov’t use the affair to whip up anti-French public sentiment. TheRepublicans have to go along with it...since it was so humiliating. War fever with France grows

3. Congress increases the size of our Navy, and approves a standing 10,000 man army. Adams worries about a standing army around with no declared war.

4. Congress responds by arming 54 ships to protect American commercea. Tripled regular army to 10,000 – for both French war and civil war at home

Alien and Sedition Act

5. The war crisis with France gives the Federalists in Congress the opportunity to pass laws limiting rights by claiming they protect our nation’s security.

a. Naturalization Act extended the residency years from 5-14 to become a citizen. A response to fear of immigrants, who tended to become active Jeffersonian-Republicans.

b. Alien Act gave powers to imprison/deport/deny citizen rights to aliens (immigrants not yet citizens) who endanger to the “peace and safety of the nation”.

c. Sedition Act. Made it illegal to oppose any government measure, and to aid in unlawful assemblies or insurrections. It also forbade writing that was slanderous to the gov’t.

Interposition and Nullification

These laws are aimed at Jeff-Republicans. Sec. of State Pickering uses them to muzzle opposition to Federalist policies. Many Jeff-Reps are jailed…some deported

a. These laws become unpopular very quickly. Kentucky and Virginia pass resolutions condemning the laws as Bill of Rights violations. (Virginia’s res. is written by James Madison...co-author of the Federalist Papers!) KY by TJ

b. State legislatures never surrendered their right to judge constitutionality of federal measuresi. Interposition – authority to protect individual liberties (challenges courts)ii.Nullification – federal laws can be nullified; state does not have to abide by national law it does not support

End of Adams

6. The crisis ends in 1799. France offers an honorable peace deal, and Adams decides to negotiate. His son John Quincy Adams is key to getting this settlement a. If France is now not an enemy, the US no longer needs gut the needs the Federalist war program (the N,A,S laws)…so Federalists oppose the proposed peace deal strongly. These laws are allowing them to control the growing power of the Jeff-Reps. . b. Adams opposes his own Federalist Party and comes to terms with France. Losing the support of his own party costs him his chances of re-election.

Adams

7. Fries Rebellion – PA German farmers released prisoners who had not paid taxes to fund army expansion Adams raises army to suppress rebellion

8. Judiciary Act replaced judges with Federalists to life-long positions

Election of 1800

V. The Election of 1800. The ruling Federalist Party is a mess. Peace has made their war acts appear unconstitutional and unneeded.

1. The Fed.Party now feels Adams has betrayed them by the peace deal . Hamilton now opposes Adams.

B. Jefferson, running for the Jeffersonian-Republicans easily defeats the Feds. 1. By accident, the intended JR Vice-President, Aaron Burr, gets the same number of

electoral college votes (73) as Jefferson. Adams finishes a humiliating third.

2. The election now, by law, goes to the House, but Burr now refuses to concede to TJ! a. A group of Federalists back Burr (lesser of two evils)…but Hamilton deals to

get TJ elected. b. From then on, Electoral college votes separately for P and VP. (12th Amendment).

C. Jefferson is now President. Burr is VP. Burr will have little or no role in the gov’t. He kills Hamilton in a duel in1804