Chapter 10Launching the New Ship of State
Growing Pains
Increase in American population.– Doubled approx. every 25 years at the
time of the Constitution’s commencement.
First federal census in 1790: – Recorded 4 million Americans.
Despite flourishing cities, population was still rural.– 90% living in rural areas with 95%
residing east of App. Mountains. Heavy trans-Appalachian flow results
in formation of new states.– Kentucky, Ohio, and Tennessee
Loyalty of Western settlers questionable.– Spanish and British agents offering
promises of independence to Western states
Washington for President
Unanimously drafted president by the Electoral College in 1789.– Only president to be elected
unanimously.– Imposing structure, 6’ 2”, 175 lbs.
As a leader… – More balanced than brilliant.– Led with strong character instead
of arts of a politician. Established a presidential cabinet
– Not mentioned in the Constitution.– Only three full-fledged department
heads: Secretary of State (Thomas Jefferson) Secretary of the Treasury
(Alexander Hamilton) Secretary of War (Henry Knox)
The Bill of Rights
Anti-federalist criticism of Constitution.– No guarantee of individual rights and liberties,
led to the formation of the Bill of Rights (first 10 amendments).
James Madison wrote and guided the Bill of Rights through Congress.
9th Amendment:– Protected against the conclusion that only the
rights specified were the ones protected by law.
States adopted Bill of Rights in 1791 and retained all rights not delegated or prohibited by federal government.
Judiciary Act of 1789:– Organized the federal legal system.– Established the Supreme Court, federal
district and circuit courts, and the office of the attorney general.
Hamilton Revives the Corpse of Public Credit
Treasury Secretary Alexander Hamilton:– Set out to bolster national credit and
strengthen the federal regime.– Urged Congress to “fund” the national
debt “at par”, paying off all debts at face value plus interest.
Also convinced Congress to assume the debts of all states.– Shifted attachment of wealthy creditors
to the federal government rather than state.
– States burdened with heavy debts (Massachusetts) were delighted with the proposal, states with small debts (Virginia) were not.
Support of the rich was crucial to strengthening the central government
Alexander Hamilton, the “Father of National Debt”
Custom Duties and Excise Taxes
National debt swelled to $75 million – Result of Hamilton’s new policies – $13 million in interest– Both political and economic effects
Redefined debt from a liability to an asset.– A “Union adhesive”, meaning the more
creditors the federal government owed money to, the more people with a personal stake in its success.
Congress passed first tariff law in 1789.– Imposed a tariff of about 8% on dutiable
imports in order to gain revenue and protect infant industries
Hamilton secured an excise tax from Congress in 1791.– Placed on domestic items such as
whiskey
Hamilton Battles Jefferson for a Bank
Hamilton capped his financial system with a national bank.– Modeled on the Bank of England
Jefferson argued that the states should commission their own banks.– It was not a power reserved for the
federal government in the Constitution. In response, Hamilton invoked the
Constitution’s “elastic clause”. – Deemed a national bank both
“necessary and proper”. The Bank of the U.S. was created in
1791 and chartered for 20 years.– Located in Philadelphia – Had $10 million in capital, 1/5 of which
was owned by the federal government
Mutinous Moonshiners in Pennsylvania Hamilton’s high excise taxes were a
heavy burden.– Regarded as unnecessary taxation
on an economic necessity and medium of exchange
Distillers raised the cry of “Liberty and No Excise” – Tarring and feathering revenue
collectors, effectively ending tax collection
Washington was alarmed by these “self-created societies” – Whiskey Rebellion– Encouraged by Hamilton to summon
the state militias and bring an end to the “rebellion”
Approximately 13,000 troops marched into western Pennsylvania
Strengthened and garnered respect for Washington and his administration
The Emergence of Political Parties
Hamilton’s economic success infringed upon state rights.– Organized opposition arose
out of resentment to Hamilton’s policies.
– Led by Jefferson and Madison.
In 1790, the leaders in Philadelphia had not envisioned permanent political parties.– Organized opposition to the
current government was viewed as disloyal.
The double party system has existed since this first rift in American politics
The Impact of the French Revolution
At the start of the French Revolution, there was a schism between the two political parties.– Over foreign policy.– During Washington’s second term.
In 1789 the French Revolution began relatively peacefully.– Starting in 1792 , however, the revolution
had become more ominous France declares war on Austria
Reign of Terror (1793-1794)– Ten-month period of brutal repression
when some 40,000 individuals were executed as enemies of the French Revolution.
– Many Jeffersonians maintained their faith in the French Republic.
– Federalists withdrew their already lukewarm support once the Reign of Terror commenced.
Washington’s Neutrality Proclamation
Jeffersonians experienced a split in regards to the Franco-American Alliance, – Either wanted to merely honor
the alliance, or join the war against Britain
Washington felt war had to be avoided at all costs– Felt that the nation needed at
least a generation to gain a sound footing
Neutrality Proclamation (1793):– Issued by George Washington.– Proclaimed America's formal
neutrality in the escalating conflict between England and France.
– Pro-French Jeffersonians were enraged by the Proclamation.
Embroilments with Britain
Britain reluctant to relinquish fur-trading land in the Great Lakes region.– Sold firearms to the surrounding
Indians of the Miami Confederacy Led to the Battle of Fallen
Timbers (1794):– Decisive battle between the Miami
confederacy and the U.S. Army. – British forces refused to shelter the
routed Indians, forcing them to surrender.
Treaty of Greenville (1795)– Miami Confederacy agrees to cede
territory in the Old Northwest for cash payment, hunting rights and formal recognition of their sovereign status.
British attacked American merchants vessels, leads to Jay’s Treaty.
Jay’s Treaty and Washington’s Farewell
Washington sent John Jay to negotiate a treaty known as Jay’s Treaty.– British evacuate trading posts in U.S., pay for
all damages for captured American ships. Didn’t prevent any future seizures of ships and
the sale of firearms to Indians.– The United States had to pay the pre-
revolutionary debts to British Merchants. The Spanish then signed the Pinckney’s
Treaty of 1795 with the United States– Free American navigation of the Mississippi
River, warehouse rights in New Orleans and giving the U.S. the disputed territory of western Florida.
Washington retired after two-terms which became tradition – Gave his Farewell Address which outlined his
advice to avoid permanent alliances as young and weak nation.
John Jay
John Adams Becomes President Washington’s Contributions
– The solid foundation of central government.
– The expanding west.– Kept out of Old World Conflicts.
Election of 1796:– John Adams (Federalist)
against Thomas Jefferson (Democrat-Republican).
Adams wins the election – Narrow victory of 71-68
Electoral Votes– Jefferson, as runner-up,
becomes vice president. Adams was experienced in
politics, had stern principles and was devoted to his duty.
Hamilton hated him and resigned from the Treasury.
Unofficial Fighting with France
Adams sent three to France including John Marshall to meet with Talleyrand, the foreign minister.
Met three go-betweens X, Y, and Z – Demanded a loan of $250,000 to talk
with Talleyrand. – The three Americans were steadfast
and negotiations broke down. The United States prepared for war
by:– Establishing the Navy Department– Reestablishing the Marine Corps– New army of 10,000 men authorized
Undeclared war fought in the West Indies 1798 to 1800.– American Privateers and Navy
captured 80 vessels but lost several hundred Yankee merchant ships.
Adams Puts Patriotism Above Party
Adams avoids war with France.– Believed that the country
was to politically to weak to handle war.
– Plunged Adam’s popularity.– Adams should be partially
credited for the Louisiana Purchase.
If America had drifted to war with France, Napoleon would have not sold Louisiana to Jefferson in 1803.
Convention of 1800:– Agreement to formally
dissolve the United States' treaty with France.
The Federalist Witch Hunt
Federalists drive a set of laws through Congress designed to muffle or minimize Jeffersonian foes.– Alien Laws (1798):
Raised the residency requirement for citizenship to fourteen years.
Granted the president the power to deport dangerous foreigners in times of peace.
– Sedition Act (1798): Effort to clamp down on
Jeffersonian opposition. Law made anyone convicted
of defaming government officials or interfering with government policies liable to imprisonment and a heavy fine.
The act drew heavy criticism from Republicans, who let the act expire in 1801.
The Virginia and Kentucky Resolutions Jefferson fearful of new laws.
– Federalists managed to choke freedom of speech and press.
– Feared that they would wipe out other constitutional guarantees.
Virginia and Kentucky resolutions:– Secretly drafted by Jefferson and
Madison for the legislatures of Kentucky and Virginia.
– Argued that states were the final arbiters of whether the federal government overstepped its boundaries.
– Believed that they were allowed to nullify national legislation they deemed unconstitutional.
Federalists Versus Democratic-Republicans
Federalists:– Most were old Federalists
before the Constitution.– Most were merchants,
manufacturers, and shippers.– Located primarily along the
Atlantic coast.– Mostly pro-British, realized that
foreign trade was key to U.S. development
– Wanted a strong government ruled by the educated aristocrats, the “best people”
Federalists vs Democratic-Republicans (cont.)
Democratic-Republicans:– Led by Thomas Jefferson.– Desired rule by the informed
class.– Weaker central government that
would preserve the sovereignty of the states.
– Pro-French.– Emphasized that national debt
must be paid off.– Mostly farmers– Advocated the rule of the
people, but not all the people, just those who were not ignorant.
– Slavery could help avoid a class of landless voters by providing the necessary labor.
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