1789-1800 Chapter 10: Launching a New Ship of State.

1789-1800

Chapter 10: Launching a New

Ship of State

Chapter 10 Vocabulary

1. Tallyrand2. Strict construction3. Cabinet4. Bank of the United States5. Bill of Rights6. Jay’s Treaty7. Neutrality Proclamation of 17938. Whiskey Rebellion9. Alien and Sedition Acts10. XYZ Affair

Population Changes

Constitution launched in 17891790 first census taken

About 4 million people Population doubling every 25 years

Cities booming 90% of the population still lives in rural areas95% live East of the Appalachian MountainsKentucky, Tennessee, and Ohio become states

within 14 years Vermont = 14th state in 1791

People in frontier areas resistive and questionably loyal

Governmental ChangesGeorge Washington

drafted as President by electoral college in 1789. Only presidential nominee

honored by unanimity Commanded followers by

strength of character rather than by the arts of politicians

Takes oath of office April 30, 1789

Washington’s stamp Creates cabinet not

outlined in the Constitution (1789)1. Secretary of State:

Thomas Jefferson2. Secretary of Treasury:

Alexander Hamilton3. Secretary of War:

Henry Knox4. Attorney General:

Edmond Randolph

Bill of RightsNew amendments could be proposed 2 ways:

2/3rds vote in both houses of Congress A new constitutional convention requested by 2/3rds of

the statesMadison brings amendments to the Congress Adopted in 1791 Amendments 1-10 (known as the Bill of Rights)Safeguard of American principles

Ex: freedom of press, religion, speech, assembly, prohibits cruel and unusual punishment

9th and 10th amendments added to preserve strong central government while giving minorities and individual rights

Judicial BranchJudiciary Act of 1789:

creates effective federal courts Organizes Supreme Court Federal courts, circuit

courts, and establishes the attorney general (the 4th cabinet position)

John Jay becomes first Supreme Court Chief Justice 1789

Alexander HamiltonBorn in British West Indies“Father of the National Debt”Plan to shape policies in a

way that would favor the wealthy Their gratefulness would lend

support monetarily to central gov’t

Prosperity would trickle down to masses

Urges Congress to “fund at par” the government Federal government pays off

debts at face value plus interest totaling more than $54 million

Hamilton’s financial plans

Urges Congress to shoulder state debts as wellMakes case for “assumption”

State debts could be regarded as proper national obligation, because they were incurred during the war for independence

Assumption would link states and federal governmentSupport of the rich for the national

administration was a crucial link for Hamilton’s political strategy of strengthening the central government

Heavy debt states Small debt states

MassachusettsHappy with

proposal

Virginia Not happy with

proposalVA: wants DC to be

located on Potomac river

State Reactions

New GovernmentNational debt reaches $75 millionHamilton believes that within reason national

debt is a “national blessing”With more creditors there are more people

invested in, have a stake in, the success of the nation

Paying off the interest

Custom duties Based off of tariff which were based off vigorous

foreign trade1st tariff law imposed a tariff of about 8% on

the value of dutiable imports Passed by Congress in 1789

Revenue is the main goal Measure was designed to erect a low protective wall

around infant industries Hamilton argues strongly in favor of more protection

for the well-to-do manufacturing groups

Congress still dominated by agricultural and commercial interests

It voted only 2 slight increases in the tariff during Washington’s presidency

Hamilton seeks additional internal revenue 1791 Congress passes excise tax on few

domestic items (ex. Whiskey) 7cents/gallon Distillers took on most of the tax Most distillers live in backcountry

Hamilton’s Bank

Based on the Bank of EnglandProposes powerful private institution where the

government would be the major stockholderFederal treasury would deposit its surplus

monies Federal monies would stimulate business by

remaining in circulationBank prints needed paper money with backing

that was sound and stable for national currency

Bank’s constitutionality

Jefferson argues against bank No specific authorization in

Constitution All powers not specifically granted

were given to states (amendment 10) States not Congress had the power to

charter banks Jefferson will embrace “strict

constructionist” theory “literal” or “strict” interpretation of

the Constitution Believes what the constitution does

not permit it forbids

Bank’s Constitutionality

Hamilton replies to Jefferson’s argument Believes that what the Constitution does

not forbid it permits Loose constructionist view (“loose” or

“broad” interpretation) Invokes the Elastic clause: “necessary and

proper” laws can be passed by Congress Gov’t is explicitly empowered to collect

taxes and regulate trade and thus it is not only proper but necessary to create a national bank to help facilitate these duties – an “implied” power

By virtue of implied powers Congress could establish a Bank of the United States

Who Wins?Hamilton’s views win

argumentWashington reluctantly

signed the bank measure into law

Most enthusiastic support for bank: from commercial and financial centers of the North

Most opposition: from agricultural South

Bank of the United States

Created by Congress in 1791Chartered for 20 yearsLocated in PhiladelphiaCapital of $10 million1/5th of it was owned by federal governmentStock thrown open to public for sale

All stocks were sold within the first 2 hours

Whiskey Rebellion

1794Southwestern Pennsylvania Challenges new governmentBased off of Hamilton’s high

excise tax on whiskeyView tax as one on an

economic necessityWhiskey poles erected “Liberty and No Excise Tax”Tarred and feathered revenue

officers– stopping collections

Washington’s Response

Washington summons militia from several states (appox. 13,000 men)

No resistance “whiskey boys” were

overawed, dispersed or captured

Small rebellion --- 3 rebels killed

Result: George Washington’s government commanded respect This is the only time a sitting

president, the commander and chief, has ever physically led troops “into battle”.

Responses to Hamilton’s fiscal feats

Many Americans not happy with federal government becoming so big overshadowing states’ rights

Organizations begin to form out of opposition to Hamilton’s policies

Hamilton and Jefferson’s personal feud turns into full-blown political rivalry

Political Parties

Whigs, Tories, federalists, antifederalists are all factions that formed over specific issues and disappeared when the issue resolved

Founders didn’t picture political parties to be permanent

Opposition to national government goes against spirit of national unity inspired by Revolution

Jefferson and Madison don’t expect long-lived political party

Parties good idea?

Competition for power has proved to be indispensible ingredient of a sound democracy

Party out of power plays the balancing role ensuring politics never drift too far out of kilter of the people’s wishes

(Pg. 197 political parties)

French Revolution

1789 first act of the French Revolution26 years later peace ensuedFrench Revolution had deep scars and impact

on American political and social lifeFrench revolution sent tremors throughout

most of Western World. Americans supported Revolution at first

sympathizing with revolutionaries despising despotism

French Revolution

Federalists- fear change, reform, were outspoken and hostile to “despicable mobocracy”

Jeffersonians- overjoyed1792 Revolution takes a turn

France declares war on hostile AustriaFrance defeats Austria and America

celebrates1793 King beheaded Reign of Terror begins

Federalists- disapproveJeffersonians- regret bloodshed

“One could not expect to be carried from ‘despotism to liberty in a feather bed’…A few thousand aristocratic heads were a cheap price to pay for human freedom.” - Jefferson

As battle rages on America is involved through trade and control of the Atlantic Ocean

Washington’s Neutrality

ProclamationFranco-American Alliance of 1778

Set to “last forever” US bound to help the French defend West Indies

against future foesJeffersonian Democratic-Republicans: favor

honoring the alliance Claim America owes France its freedom

Washington and Hamilton believe war should be avoided at all costs (Jefferson will agree as well)

Washington thinks that if America can avoid war for a generation or two then it will be strong enough to truly enter the world stage

Neutrality Proclamation of 1793 proclaimed neutrality and warns against American citizens involvement

Jeffersonians - enraged by neutrality (pro French)Federalists- encouraged (pro British)

French emissary, Edmond Genet

Tries to overrule Washington

Use American lands to seize territory for French

Neutrality Proclamation illustrates that self-interest is the best cement of alliances

British had forts in frontier violating peace treaty of 1783

London reluctant to abandon because of fur trade

Hoped Indians would serve as buffer British openly sell firearms and liquor to the

Miami ConfederacyMiami Confederacy: alliance of 8 Indian nation

who terrorized Americans invading their lands.

Miami ConfederacyLittle Turtle- chief of the Miamis

Miami, Chippewa, Ottawa, Potawatomi, Lenni Lenape, Shawnee, and Illinois

Treaty of Greenville August of 1795 Indians give up vast areas of

Old Northwest (today’s Ohio and Indiana)

Indians received lump sum of $20,000 and annual annuity of $9,000 ($365,442 and $164,449 today)

Sovereignty of Indian nationsMichikinikwa

British naval issues

British navy ignores America’s right to neutrality and impresses American seamen into service

Cry for war against Britain arises

Jay’s Treaty

John Jay sent by Washington to London 1794Hamilton undermined Jay’s work in LondonJay won:

British pledge to abandon forts on US soil British pledge to pay for damage to American ships

that had been seizedJay said America would pay debts still owed

to British merchants from pre-Revolution

Democratic-Republicans

Revitalized by Jay’s treatyViewed treaty as a surrender to

Britain Affected the south badly

Unforeseen Consequences

Pinkerton’s Treaty of 1795 (with Spain) Americans given free navigation of the

Mississippi and the large disputed territory north of Florida

Washington’s Retirement

1796 Washington retiresWarns to avoid permanent treatiesFavored temporary alliances (for extreme

emergencies)Central government was established soundlyLeaves office in 1797Sets a two term precedent

Presidential Election of 1796

John Adams: 71 electoral votes

Thomas Jefferson: 68 electoral votes

Adams: stubborn, unpopular

Trouble with cabinet- (Hamilton)

Inherits the trouble with France

French issues

French upset by Jay’s treatyView it as a step toward alliance with Britain

Violating Franco-American Treaty of 1778Adams tries to reach diplomatic agreementsSent commission of 3 men:

John Marshall among men

XYZ

1797 envoys reach Paris hoping to meet Talleyrand, the French foreign minister

Secretly approached by 3 go-betweens known as X-Y-Z

French demanded: a bribe of $250,000 for privilege of meeting Talleyrand and an unneutral loan of 32 million florins

Americans refused to payWar looms– Federalists happy over war,

Jeffersonians upset “millions for defense, but not one cent for tribute”

“millions for defense, but not one cent for tribute” slogan

US prepares for war Navy created Marine corps reestablished New army authorized Bloodshed confined to the sea (mostly

West Indies) 1798-1800, 2 years of undeclared

hostilities Only a slight push might have plunged

theses nations into a full war

France realizes their mistake

France wants no war and Talleyrand is open to a new American envoy

Adams knows in order to keep nation in one piece, war must be avoided

Submits a new minister of France to Senate (1799) Enrages Hamiltonians Jeffersonians are happy

Treaty signedNapoleon Bonaparte had

seized dictatorship and Napoleon wants to be rid

of American problemsConvention of 1800

signed in ParisFrance agreed to annul

the 22 year agreement (previously set up)

Smoothed way for peaceful negotiations of LA Purchase later

Federalist Witch-Hunt

Feds. Capitalize on anti-French sentiments to pass laws in Congress in 1798

1st aimed at pro-Jeffersonian “aliens” Immigrants, lack wealth Welcomed as voters by

Jeffersonians; scorned by Federalists

Alien Laws Sedition LawCongress raises

residence requirements for aliens wanting to be citizens from 5 to 14 yrs.

President has power to deport “dangerous foreigners” in time of peace

President has power to imprison or deport “dangerous foreigners” in times of war

Anyone who impeded the policies or speaking or falsely defaming officials (including the President)

Directly conflicts with the constitution

Intentionally written to expire in 1801

Alien and Sedition Laws

Kentucky Virginia

Penned by JeffersonWritten in secretKentucky Legislature

approved in 1798 & 1799

Penned by MadisonVA legislature

adopted in 1798

Virginia and Kentucky Resolutions

Both:•Stressed compact theory: popular English theory meaning that 13 sovereign states had entered into a contract with the forming of the national government. This meant that the states determined what the federal government could and couldn’t do. The idea was to overrule the Alien and Sedition Acts by saying the states didn’t want them. This didn’t work. No other states joined.