Chapter 10:Chapter 10:

Launching the New Ship of Launching the New Ship of StateState

1789 - 18001789 - 1800

A New Ship on an Uncertain Sea A New Ship on an Uncertain Sea 17891789– U.S. Constitution was launchedU.S. Constitution was launched– population was doubling every twenty years population was doubling every twenty years

America’s population was still 90% ruralAmerica’s population was still 90% rural– 5% west of the Appalachians 5% west of the Appalachians

Vermont became the 14th state in 1791, and Kentucky, Vermont became the 14th state in 1791, and Kentucky, Tennessee, and Ohio (states where trans-Appalachian Tennessee, and Ohio (states where trans-Appalachian overflow was concentrated) became states soon after overflow was concentrated) became states soon after Foreigners looked down on the new countryForeigners looked down on the new countryAmerica was also heavily in debtAmerica was also heavily in debt– paper money was worthlesspaper money was worthless– restless monarchs watched to see if the U.S. could succeed in restless monarchs watched to see if the U.S. could succeed in

setting up a republic while facing such overwhelming odds setting up a republic while facing such overwhelming odds

Washington’s Pro-federalist Regime Washington’s Pro-federalist Regime George WashingtonGeorge Washington was an was an imposing figure--imposing figure--unanimouslyunanimously drafted as president by the drafted as president by the Electoral College in 1789 Electoral College in 1789

Washington established a diverse Washington established a diverse cabinet (which was not cabinet (which was not necessary, Constitution-wise) necessary, Constitution-wise)

– Secretary of StateSecretary of State: Thomas : Thomas Jefferson Jefferson

– Secretary of the TreasurySecretary of the Treasury: : Alexander HamiltonAlexander Hamilton

– Secretary of WarSecretary of War: Henry Knox : Henry Knox

The Bill of Rights The Bill of Rights Many states had ratified the Constitution on the Many states had ratified the Constitution on the condition that there would be a condition that there would be a Bill of Rights--Bill of Rights--The necessary number of states adopted it in The necessary number of states adopted it in 17911791– Amendment I:Amendment I: Freedom of religion, speech or Freedom of religion, speech or

press, assembly, and petition. press, assembly, and petition. – Amendment IIAmendment II:: Right to bear arms (for militia). Right to bear arms (for militia). – Amendment IIIAmendment III: Soldiers can’t be housed in : Soldiers can’t be housed in

civilian homes during peacetime. civilian homes during peacetime. – Amendment IVAmendment IV: No unreasonable searches; all : No unreasonable searches; all

searches require warrants. searches require warrants. – Amendment VAmendment V: Right to refuse to speak during : Right to refuse to speak during

a civil trial; Double Jeopardy. a civil trial; Double Jeopardy. – Amendment VIAmendment VI: Right to a speedy and public : Right to a speedy and public

trial. trial. – Amendment VIIAmendment VII: Right to trial by jury when the : Right to trial by jury when the

sum exceeds $20. sum exceeds $20. – Amendment VIIIAmendment VIII: No excessive bails and/or : No excessive bails and/or

fines. fines. – Amendment IXAmendment IX: Other rights not enumerated are : Other rights not enumerated are

also in effect.also in effect.– Amendment XAmendment X: Non-federal powers belong to : Non-federal powers belong to

the statethe state

The The Judiciary Act o f 1789Judiciary Act o f 1789 created effective federal courts. created effective federal courts. – John JayJohn Jay became the first chief justice of the United States became the first chief justice of the United States

HamiltonHamilton Revives the Corpse of Public CreditRevives the Corpse of Public CreditUrged federal government to assume its debts ($54 million) Urged federal government to assume its debts ($54 million) try to pay them off at face value, PLUS interest--“Funding at try to pay them off at face value, PLUS interest--“Funding at Par” Par” as well as assume the debts of the states ($21.5 million) as well as assume the debts of the states ($21.5 million) – Massachusetts had a huge debt, but Virginia didn’t, so Massachusetts had a huge debt, but Virginia didn’t, so

there needed some haggling there needed some haggling – Virginia felt it unfair that all debts were to be assumed, Virginia felt it unfair that all debts were to be assumed,

instead of just a set amount instead of just a set amount – Virginia would have the Virginia would have the District of ColumbiaDistrict of Columbia built on its built on its

land (therefore gaining prestige) in return for letting the land (therefore gaining prestige) in return for letting the government assume all the states’ debtsgovernment assume all the states’ debts

Customs Duties and Excise Taxes Customs Duties and Excise Taxes national debt at a huge $75 million national debt at a huge $75 million – As of 12/6/2011 $15,086,255,317,559As of 12/6/2011 $15,086,255,317,559– http://www.usdebtclock.org/ – used the debt as an asset: used the debt as an asset: the more people the government owed the more people the government owed

money to, the more people who would care about what would money to, the more people who would care about what would happen to the U.S. happen to the U.S.

To pay off some of the debt, Hamilton first proposed custom To pay off some of the debt, Hamilton first proposed custom dutiesduties– imposing a low tariff of about 8% of the value of dutiable imports, imposing a low tariff of about 8% of the value of dutiable imports,

was passed in 1789 was passed in 1789 – 17911791 - Hamilton secured an excise tax on a few domestic items, - Hamilton secured an excise tax on a few domestic items,

notably whiskey (7 cents per gallon)notably whiskey (7 cents per gallon)

Hamilton Battles Jefferson for a Bank Hamilton Battles Jefferson for a Bank Hamilton proposed for a national treasury Hamilton proposed for a national treasury – to be a private institution modeled after the Bank of England to be a private institution modeled after the Bank of England – have the federal government as a major stockholder have the federal government as a major stockholder

circulate cash to stimulate businesses circulate cash to stimulate businesses

store excess money store excess money

print money that was worth something print money that was worth something

opposed by Jefferson opposed by Jefferson

Hamilton vs. Jefferson Hamilton vs. Jefferson What was not forbidden in What was not forbidden in the Constitution was the Constitution was permitted permitted

A bank was “necessary and A bank was “necessary and proper” (from Constitution). proper” (from Constitution).

He evolved the He evolved the Elastic Elastic ClauseClause

What was not permitted What was not permitted was forbidden was forbidden

bank should be a state bank should be a state controlled item (9th controlled item (9th Amendment). Amendment).

The Constitution should be The Constitution should be interpreted literally and interpreted literally and strictly strictly

End result:End result: Hamilton won, and Washington reluctantly signed the bank Hamilton won, and Washington reluctantly signed the bank measure into law measure into law Bank of the Untied StatesBank of the Untied States was created by Congress in was created by Congress in 17911791, and was chartered for 20 years , and was chartered for 20 years – located in Philadelphia and was to have a capital of $10 million. located in Philadelphia and was to have a capital of $10 million. – Stock was thrown open to public sale, and surprisingly, a milling Stock was thrown open to public sale, and surprisingly, a milling

crowd oversubscribed in two hourscrowd oversubscribed in two hours

Mutinous Moon-shiners in PennsylvaniaMutinous Moon-shiners in Pennsylvania17941794 - the - the Whiskey RebellionWhiskey Rebellion flared up in PA when fed flared up in PA when fed up farmers revolted against Hamilton’s excise tax up farmers revolted against Hamilton’s excise tax (everyone hates taxes)(everyone hates taxes)– liquor and alcohol was often used as money. liquor and alcohol was often used as money. – Washington cautiously sent an army of about 13,000 troops Washington cautiously sent an army of about 13,000 troops – Anti-federalists criticized the government’s use of a giant to crush Anti-federalists criticized the government’s use of a giant to crush

a gnat a gnat

Emergence of Political Parties Emergence of Political Parties Hamilton’s policies had seemed to encroach on Hamilton’s policies had seemed to encroach on states’ rights states’ rights rivalry between Hamilton and Jefferson gradually rivalry between Hamilton and Jefferson gradually evolved into two political parties evolved into two political parties – Jeffersonian Democratic-RepublicanJeffersonian Democratic-Republican – Hamiltonian FederalistsHamiltonian Federalists Founding Fathers had not envisioned various Founding Fathers had not envisioned various political parties political parties – (Whigs and Federalists and Tories, etc… had existed (Whigs and Federalists and Tories, etc… had existed

but they had been groups, not parties) but they had been groups, not parties) – Washington disliked political partiesWashington disliked political parties

Said that people might vote for/against something just Said that people might vote for/against something just because of a party issue (known as Partisan Politics)because of a party issue (known as Partisan Politics)

Impact of the French RevolutionImpact of the French Revolution first stages of the revolution first stages of the revolution were not unlike America’s were not unlike America’s dethroning of Britain (thought dethroning of Britain (thought our ideas were spreading) our ideas were spreading) few ultraconservative few ultraconservative Federalists were upset at this Federalists were upset at this “mobocracy” and revolt “mobocracy” and revolt the revolution turned radical the revolution turned radical and bloody and bloody America was sucked into the America was sucked into the revolution when France revolution when France declared war on Great Britain declared war on Great Britain and the battle for North and the battle for North American land began…American land began…againagain

Washington’s Neutrality ProclamationWashington’s Neutrality Proclamation (Jeffersonian Democratic-Republicans) wanted to enter on the (Jeffersonian Democratic-Republicans) wanted to enter on the side of Franceside of FranceWashington knew that war could mean disaster and Washington knew that war could mean disaster and disintegration disintegration 17931793 - he issued the - he issued the Neutrality ProclamationNeutrality Proclamation– proclaiming the U.S.’s official neutrality and warning Americans to stay proclaiming the U.S.’s official neutrality and warning Americans to stay

out of the issue and be impartial out of the issue and be impartial – Americans ended up getting it from both sides by trying to stay out of itAmericans ended up getting it from both sides by trying to stay out of it

Embroilments with BritainEmbroilments with BritainBritain supplied the Indians with weapons (on U.S. soil)Britain supplied the Indians with weapons (on U.S. soil)

British commanders of the Royal Navy seized about 300 British commanders of the Royal Navy seized about 300 American merchant ships and impressed scores of seamen American merchant ships and impressed scores of seamen into their army into their army

Many JDR’s cried for war with Britain, or at least an embargo Many JDR’s cried for war with Britain, or at least an embargo – Washington refused, knowing that such drastic action would destroy Washington refused, knowing that such drastic action would destroy

the Hamilton financial systemthe Hamilton financial system

Jay’s Treaty and Washington’s FarewellJay’s Treaty and Washington’s Farewell last-ditch attempt to avert warlast-ditch attempt to avert war– Washington sent John Jay to England to work something out Washington sent John Jay to England to work something out

negotiations were sabotaged by Hamilton, who secretly negotiations were sabotaged by Hamilton, who secretly gave the Brits the details of America’s bargaining strategy gave the Brits the details of America’s bargaining strategy results weren’t pretty:results weren’t pretty:– Britain would repay the lost money from recent merchant ship Britain would repay the lost money from recent merchant ship

seizures seizures – it said nothing about future seizures, impressments, and Indians it said nothing about future seizures, impressments, and Indians

arms supplying arms supplying – America would have to pay off its pre-Revolutionary War debts to America would have to pay off its pre-Revolutionary War debts to

BritainBritain

Result:Result: the JDR’s from the South were INCENSED as the the JDR’s from the South were INCENSED as the southern farmers would have to pay while the northern southern farmers would have to pay while the northern merchants would be paid merchants would be paid After his second term, Washington stepped down, creating a After his second term, Washington stepped down, creating a strong two-term precedent that wasn’t broken until FDR was strong two-term precedent that wasn’t broken until FDR was electedelected– His His Farewell AddressFarewell Address warned against binding, permanent alliances warned against binding, permanent alliances – Washington had set the U.S. on its feet and had made it sturdyWashington had set the U.S. on its feet and had made it sturdy

Adams Becomes PresidentAdams Becomes President Alexander Hamilton was the logical choice to become the next Alexander Hamilton was the logical choice to become the next president, but his financial plan had made him very unpopular president, but his financial plan had made him very unpopular John AdamsJohn Adams, the ablest statesmen of his day, won, 71 to 68, , the ablest statesmen of his day, won, 71 to 68, against against Thomas JeffersonThomas Jefferson, who became vice president , who became vice president – Adams had a hated rival and opponent in Hamilton, who plotted with Adams had a hated rival and opponent in Hamilton, who plotted with

Adams’ cabinet against the president, and a political rival in his vice Adams’ cabinet against the president, and a political rival in his vice president president

He also had a volatile situation with France that could explode into He also had a volatile situation with France that could explode into warwar

Unofficial Fighting with FranceUnofficial Fighting with FranceFrance was incensed by France was incensed by Jay’s TreatyJay’s Treaty – began seizing defenseless American merchant ships began seizing defenseless American merchant ships

XYZ AffairXYZ Affair– 1797 - 1797 - John Adams sent three envoys (including John Marshall) to John Adams sent three envoys (including John Marshall) to

France, where they were approached by three agents, “X,” “Y,” & “Z”France, where they were approached by three agents, “X,” “Y,” & “Z”demanded a load of 32 million florins and a $250,000 bribe just for demanded a load of 32 million florins and a $250,000 bribe just for talking to talking to TalleyrandTalleyrand envoys returned to America, cheered by incensed Americans as envoys returned to America, cheered by incensed Americans as having done the right thing for America having done the right thing for America Irate Americans called for war with France Irate Americans called for war with France An unofficial war raged on for 2 ½ yrs.An unofficial war raged on for 2 ½ yrs.

Federalist Witch Hunt Federalist Witch Hunt 17981798 – Federalists passed a series of laws aimed at – Federalists passed a series of laws aimed at Jeffersonian foesJeffersonian foes– Aristocratic Federalists scorned the poor immigrants “aliens”, who Aristocratic Federalists scorned the poor immigrants “aliens”, who

in turn were welcomed by the JDR’s in turn were welcomed by the JDR’s – raised the residence requirements for aliens who wanted to raised the residence requirements for aliens who wanted to

become citizens from 5 to 14 yearsbecome citizens from 5 to 14 years– the President was allowed to deport dangerous aliens during the President was allowed to deport dangerous aliens during

peacetime & jail them during times of war peacetime & jail them during times of war

The The Sedition ActSedition Act provided that anyone who impeded the provided that anyone who impeded the policies of the government or falsely defamed its officials, policies of the government or falsely defamed its officials, including the president, would be liable to a heavy fine and including the president, would be liable to a heavy fine and imprisonmentimprisonment– it was aimed at newspaper editors and the JDR’s it was aimed at newspaper editors and the JDR’s

– obviously unconstitutional, this act was passed by the Federalist obviously unconstitutional, this act was passed by the Federalist majority in Congress & upheld in the court because of the majority majority in Congress & upheld in the court because of the majority of Federalists there too of Federalists there too

conveniently written to expire in conveniently written to expire in 18011801 to prevent use of it to prevent use of it against themagainst them

Virginia (Madison) and Kentucky Virginia (Madison) and Kentucky (Jefferson) Resolutions (Jefferson) Resolutions

Jefferson feared that the Federalists, having limited freedom Jefferson feared that the Federalists, having limited freedom of speech and of the press, might wipe out more of speech and of the press, might wipe out more – 1798-991798-99 - wrote a series of legislation that Kentucky approved - wrote a series of legislation that Kentucky approved– James Madison wrote another series of legislation (less James Madison wrote another series of legislation (less

extreme) that Virginia approvedextreme) that Virginia approved– These resolutions argued that the federal government had These resolutions argued that the federal government had

exceeded its federal powersexceeded its federal powers– nullified thenullified the Alien and Sedition LawsAlien and Sedition Laws

Federalists argued it was up to the Supreme Court to nullify Federalists argued it was up to the Supreme Court to nullify legislation, a procedure that it adopted in legislation, a procedure that it adopted in 18031803Result:Result:– Basically used to crystallize opposition to the Federalists in 1800Basically used to crystallize opposition to the Federalists in 1800– Prime example of the States’ Rights viewPrime example of the States’ Rights view– Would be used to justify the southern view of nullification…and later Would be used to justify the southern view of nullification…and later

secessionsecession

Federalists vs Democratic-RepublicansFederalists vs Democratic-Republicans The FederalistsThe Federalists – Most were federalists from before the Constitution Most were federalists from before the Constitution – wanted a strong government ruled by the educated aristocrats, the wanted a strong government ruled by the educated aristocrats, the

“best people.” “best people.” – Most were the merchants, manufacturers, and shippers along the Most were the merchants, manufacturers, and shippers along the

Atlantic seaboard Atlantic seaboard – were mostly pro-British and recognized that foreign trade was key in were mostly pro-British and recognized that foreign trade was key in

the U.Sthe U.S

The Democratic-RepublicansThe Democratic-Republicans – Led by Thomas Jefferson Led by Thomas Jefferson – desired rule by informed classes and a weaker central government desired rule by informed classes and a weaker central government

that would preserve the sovereignty of the states that would preserve the sovereignty of the states – national debt national debt hadhad to be paid off to be paid off – mostly agrarians & insisted no special privileges for the upper class mostly agrarians & insisted no special privileges for the upper class

– advocated rule of the people, but not all the people, just those who advocated rule of the people, but not all the people, just those who

weren’t ignorantweren’t ignorant