The New Government Chapter 10. Objective #1 Identify and explain issues that the infant government had to handle that became the foundations of stability.

The New Government

Chapter 10

Objective #1

• Identify and explain issues that the infant government had to handle that became the foundations of stability and change in the areas of political participation, challenges to the Constitution, and change in power.

Objective #2

• Examine the events and debates of the Federalist Period including Washington’s conception of the Presidency, Alexander Hamilton’s financial planning, struggles with France and England over U.S. sovereignty, the Whiskey Rebellion, and the Alien and Sedition Acts, and their contribution to the development of the two-party system.

Post-Constitution Stats

• Population doubling every 25 years

• 4 million people in U.S. in 1790

• 90% of America still rural

• 95% still live east of Appalachian Mts.– Most of those who lived

west, lived in KY, OH, TN

Presidential Election of 1789

• Washington elected unanimously by the Electoral College.

• First Cabinet• Alexander Hamilton

became the first Secretary of Treasury– Sec. of State: Thomas

Jefferson– Sec. of War: Henry Knox– Attorney General:

Edmund Randolph

Judiciary Act of 1789

• Created Federal Court System

• Organized Supreme Court (which was already created by Article III)--example: 5 justices+chief

• John Jay became the first Chief Justice

Bill of Rights

• Bill of Rights ratified in 1791

• Pushed by Anti-Federalists

• Written by Federalist James Madison

Alexander Hamilton

• Had to correct economic problems

• Believed national government was to promote economic enterprise

• Should be a close alliance between national gov’t and rich

Hamilton Con’t

• Rich (“Ambitious Entrepreneurs”) would then lend money and political support to the gov’t

• Country’s prosperity would then trickle down to the masses.

Hamilton’s Economic Plan

• Phase 1:– Allow the exchange of depreciated paper currency

for government bonds• “Funding at Par”• Nat’l gov’t is taking on national debt (and all state debts)• $75 million in debt

– A little debt links the country

– Motivates people to work hard to rid itself of debt

• Also puts them in charge of economy• Gives credibility/stability to national economy

Hamilton’s Economic Plan

• Phase 2:– Formation of National Bank

• Created in 1791• Copied Bank of England

– Private institution

– National government would be the largest “stockholder”

• Could print needed paper money• Provide a stable and national system• Opposed by Democratic-Republicans (Thomas

Jefferson) as unconstitutional• Hamilton sited elastic (necessary and proper) clause

Hamilton’s Economic Plan

• Phase 3:– National taxes

• Protective tariff against imports from Europe– First tariff passed by Congress in 1789

– Would protect future industry against foreign competition

• Proposed national excise taxes– Small excise tax approved in 1791

• Constitutional?– Jefferson opposed stating it was a state power

– Tenth Amendment v. Elastic Clause (Art. I, Sec. VIII)

Whiskey Rebellion

• 1791: Excise tax on whiskey: 7 cent/gallon• Farmers in western Pennsylvania distilled their corn

for profit– Also used whiskey as a form of currency

• 1794: Farmers protest tax by tarring and feathering tax collectors

• Washington sent in national militia sent in to enforce taxes

• Showed power of national gov’t• Also forecasted the battle between national and state

governments (and future political parties)

Democratic-Republicans

• Also referred to as “Jeffersonian Republicans”

• People who came together in opposition of Federalist politics

• Believed in states rights• Hamilton’s economic policies brought

them closer together• Birth of our two-party system

Federalists v. Democratic Republicans

French Revolution

• 1793: French revolution leads to conflict with Britain

• D-Rs side with France (republicanism over monarchy)

• Federalists believed that supporting France would be anarchy– Disturbed by violence and executions

• Feds. Support Britain (economics) in the ensuing war with France

French Revolution Con’t

• France helped colonists in American Rev.

• 1778: Treaty of Alliance

• D-Rs feel compelled to enter war and honor treaty.

Neutrality Proclamation of 1793

• Washington remains neutral– France started war– Neutral countries can

trade with both sides– Would hurt American

growth and economy

• Jefferson resigned in protest

• Britain largely ignored America’s neutrality– Seized ships and

impressed sailors

Citizen Genet

• French minister from France to U.S.

• Organized expeditions of American privateers against Spanish colonies and Britain (violating U.S. neutrality)

• Tried to rally Americans to defy national gov’t

• Disrespect turned D-Rs against him

• Washington (w/Jefferson’s support) demands his recall

Jay’s Treaty

• Jay sent to negotiate with Britain to get them to honor Treaty of Paris (1783) and American neutrality– Many D-R’s calling for war

against England

• Jay goes to London in 1793– D-R’s did not trust Jay– Felt a “sell out” coming– Treaty took approximately

one year to finalize

Jay’s Treaty Con’t

• Hamilton, in an attempt to appease Britain, told them Jay’s negotiation demands and strategy– Hamilton knows US needs Britain as a trade

partner if we are to grow our economy– Cut Jay’s bargaining power

• The Treaty:– England vacated western posts (which it had

already agreed to do in Treaty of Paris of 1783)– Compensated U.S. for seized ships

What Jay’s Treaty Did NOT Do…

• Did not address compensation for impressment, stolen cargo, confiscated slaves, arming Native Americans, future seizures

• Did not acknowledge America’s neutrality• Did not forgive American debts from pre-

Revolution – Largest debts were in the D-R dominated South– Southerners felt betrayed

Impact of Jay’s Treaty

• Vitalized the D-R party• South had more debt to England--became largely

D-R• New England merchants benefited from payment

for seized ships and trade--remain strongly Federalist

• Pinckney Treaty (1795): Spain gives U.S. free navigation of Miss. River and large disputed territory north of Florida– Did this to avert a possible alliance between U.S. and

Britain

1797: Washington’s Farewell Address

• Washington leaves office after two terms– Did not run in 1796

• Gives Farewell Address warning Americans to:– Not split into political

parties– Stay out of European

affairs– Avoid permanent

alliances with foreign countries

– Avoid sectionalism

1796 Election Results (16 states in the Union)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 Electors13

8

Total Electoral Votes Cast27

6

Number of Votes for a Majority

70

Election of 1796

Problems with France

• France believes Jay’s Treaty is an alliance with Britain and a violation of the treaty of 1778

• France begins seizing American ships

• Refuses to see American diplomats

XYZ Affair (1797)

• Foreign Minister Talleyrand sends three subordinates to see American diplomats (X, Y, Z)– American diplomats led by John Marshall

• They demand $250,000 bribe and $12 million loan to see Talleyrand– These “bribes” were actually normal in Europe

• Insulted Americans break off negotiations and prepare for war– “Millions for defense, but not one for tribute”– Vaulted John Marshall into hero status for standing up

to the French

Undeclared War (1798-1800)

• Fought principally in W. Indies• U.S. creates Navy Department and Marine Corps.• Talleyrand agrees to see new ministers• Group of Federalists (“War Hawks”), led by Hamilton,

want war to continue.• President John Adams goes against his party and

negotiates peace.– Napoleon took over France in 1800

• Convention of 1800: Treaty of Alliance (1778) is annulled, France pays for damage, and fighting stops.

Alien and Sedition Acts (1798)

• Laws designed to hurt D-R party– Came during war w/France– Feds trying to take advantage of their

momentum to hurt D-R party

• Alien Acts: Raised residence requirements for citizenship from 5 years to 14 years (Naturalization Act)

• Made it easier to deport aliens• Sedition Act: Made it a crime to

impede the policies of the gov’t or falsely defame the gov’t

• Congress set both to expire in 1801

Virginia and Kentucky Resolutions

• Pro-Federalist Supreme Court would not declare them unconstitutional– 1st Amendment

• Further, there was no judicial review as of yet.

• Virginia and Kentucky respond to the Alien and Sedition Acts by passing state resolutions nullifying them.– Secretly written by

Jefferson and Madison

“Compact Theory”

• States were sovereign and the federal government existed because states had entered into a compact with it.

• Federal government was an agent of the states

• States are the final judges and authority• States could nullify national law

– “Nullification”– Stance of D-R’s– No other state approved the resolutions

Federalist Response to “Compact Theory”

• Federal government gets its authority from the people, not the states.

• Therefore, states cannot nullify.

• Only the Supreme Court could nullify “unconstitutional” legislation– “Judicial Review”

1800 Election Results (16 states in the Union)1800 Election Results

(16 states in the Union)

Thomas Jefferson

Virginia Democratic-Republican

73 52.9%

Aaron Burr New York Democratic-Republican

73 52.9%

John Adams Massachusetts Federalist 65 47.1%

Charles Pinckney South Carolina Federalist 64 46.4%

John Jay New York Federalist 1 0.7%

Total Number of Electors13

8

Total Electoral Votes Cast27

6

Number of Votes for a Majority

70

1800 Election Results (Into the House of Representatives!!)

1 vote for each State

1800 Election Results (Into the House of Representatives!!)

1 vote for each State

Thomas Jefferson Virginia Democratic-Republican 10 62.5%

Aaron Burr New York

Democratic-Republican 4 25.0%

Blank ------- 2 12.5%