CHAPTER 10

During the 1790’s the policies of the Federalists dominated the

central government, discuss the effects the Federalists had on the central government and

American public.

America & George Washington

Characteristics of America Population – double every

25 years (1790 = 4 million), 90% rural, 95% East of Appalachians.

Farmers in KY, TN and OH being bribed by Britain and Spain.

Government – Weak, in debt, people had a general distrust – a “necessary evil,”

Affected by French Revolution.

First President – George Washington - 2 terms 1789-1797, VP – John Adams.

Took oath on April 30, 1789 on Wall Street

First Cabinet – Not in the Constitution, but needed a series of advisers.

Secretary of State – Thomas Jefferson

Secretary of Treasury – Alexander Hamilton

Secretary of War – Henry Knox

Attorney General – Edmund Randolph (Created by Judiciary Act of 1789)

First Actions of Congress Bill of Rights - feared another

Constitutional Convention James Madison wrote the

Amendments and then proposed them to Congress. (Madison will be our fourth president, 1809-1817)

 First – freedom of religion, speech, press, assembly and to petition

Second – Right to bear arms Third – No quartering of troops Fourth - No unreasonable search

and seizure Fifth – Right to trial by jury for life,

liberty and property Sixth – Rights of the accused Seventh – No double jeopardy Eighth – No cruel and unusual

punishment Ninth – Rights not listed are not

excluded – protect minorities and individuals

Tenth – Those powers not listed as Federal powers, go to the states

Judiciary Act of 1789- Created the Federal Court System

Supreme Court – 1 Chief and 5 judges (First Chief Justice – John Jay)

Federal Courts Circuit Courts Attorney General

Reaction to Hamilton’s Policies

1794 The Whiskey Rebellion – group of whiskey distillers from SW Pennsylvania. “Liberty and no excise!”

Washington’s response – called up military of 13,000 to put down rebellion

*Significance – Shows strength of new government, but looks bad.

The Two-Party System

The Two-Party System - The founders of the Constitution believed it was dangerous to have an organized opposition to the government.

Federalists – claiming victory with Hamilton’s economic plan and end to Whiskey Rebellion.

Democratic Republicans – unhappy about the lack of state’s rights. Champion of the small, western farmer.

Problems Overseas French Revolution – The democratic republicans championed the rights of the

underdog and were therefore in support of the French Revolution. This would come

back to hurt them in the end. (1793-94 “Reign of Terror”). They believed we owed France our freedom and we should be prepared to help in time of need.

Britain enters the war for domination of the seas.

Does the US step up and help France? If we enter the war Britain will attack our supply ships that are supplying the French with food, etc. in the West Indies.

Washington’s Neutrality Proclamation of 1793 – Proclaimed US neutrality in war and advised the citizens to stay out of any discussions. The beginnings of “Isolationism.”

Reason – America is too weak politically, militarily and economically! Hamilton and Jefferson both agreed.

Citizen Genet – Representative from France who wrongly believed Americans were ready to fight and recruited privateers and troops to invade Spanish Florida and Louisiana. (Embarrassment to Federalists)

Alexander Hamilton and “Trickle Down Economics”

Hamilton’s Plan of Action “Trickle Down Economics” – Shape

government spending and taxes to favor the wealthy, they would then start new businesses and hire new employees.

  #1 Goal – Credit worthiness overseas.

By creating a large public debt the states and American people would work hard to make sure the Federal government was a success.

Alexander Hamilton’s Fiscal Policy

1790 FUNDING AT PAR – PAY OFF ALL DEBTS AT FACE VALUE PLUS INTEREST.

ASSUMPTION – THE FEDERAL GOVERNMENT WOULD ASSUME ALL STATE DEBTS ($54M),

EVENTUALLY THE TOTAL DEBT WOULD REACH $75 MILLION. “DEBT = BLESSING”

HOW TO PAY FOR THE DEBT? A SERIES OF TAXES; BUT WHO BEARS THE BURDEN OF TAX? * CUSTOMS DUTY –TAX ON IMPORTS TO GENERATE INCOME AND PROTECT US BUSINESSES.

HAMILTON GUESS IND REV. WOULD BE HITTING US SOON. COTTON GIN 1793.

*EXCISE TAX – 7 CENT TAX ON WHISKEY. FARMERS COULDN’T AFFORD TO SHIP THE GRAIN, SO THEY WERE DISTILLING AND SELLING WHISKEY. (WHISKEY WAS ALSO USED AS MONEY)

ALEXANDER HAMILTON – “HIGH FEDERALIST”

The Bank of The United States

Bank of the United States – a private bank in which the government would be a major stockholder and keep its money.

Could print money and would create stability.

Creation of new money – government puts money in bank, that money then gets loaned out, and spent.

1791 a 20 year charter in Philadelphia with $10 million in capital stock, 1/5 owned by government. The rest for sale, which sold out quickly. (Jefferson is anti-bank)

The Bank of The United States

Hamilton – Federalists (Wealthy merchants)

What the Constitution did not forbid, it allowed.

Congress may pass any laws necessary and proper. Government controlled taxes and trade and needed a place to put their money – The Elastic Clause

Loose Construction

Jefferson – Democratic Republicans (Backcountry settlers, farmers)

No authorization in Constitution . Amend X states all powers not listed as Federal, were states rights.

Strict Construction

Problems Overseas

Problems with Britain British Forts – NW territories for trade and Indian

Relations At Sea – raided US ships, jailed sailors,

made them serve in Royal Navy. Impressment

Do we go to war? Democratic Republicans – strike against King

George, a strike against our liberties – Embargo? Federalists – Needed the trade with Britain, must

not go to war.

Jay’s Treaty

Jay’s Treaty – 1794 - Fearing the repercussions of a war with Britain, President George Washington sided with Hamilton and sent pro-British Chief Justice John Jay to negotiate with the British Government. Jay looked to Hamilton for specific instructions for the treaty. Hamilton recommended an approach that would both stabilize relations with Great Britain and guarantee increased trade between the United States and Great Britain.

Jay’s only significant bargaining chip in the negotiations was the threat that the United States would join the Danish and the Swedish governments in defending their neutral status and resisting British seizure of their goods by force of arms. In an attempt to guarantee good relations with Britain, Hamilton independently informed the British leadership that the United States had no intention of joining in this neutral armament. Hamilton’s actions left Jay with little leverage to force the British to comply with U.S. demands.

Jay’s Treaty Provisions of Treaty

1. Britain would evacuate forts and pay damages to US ships 2. US would pay debts to British merchants from Pre-Revolution.

Reactions to Treaty – South would have to pay the debts (most from farmers) and the merchants in the North would benefit from British payments.

Pinckney’s Treaty of 1795 -Thomas Pinckney, U.S. minister to Britain, was dispatched to Spain and won two highly desirable concessions:

Spain recognized U.S. borders at the Mississippi and the 31st parallel (the northern border of Florida, a Spanish possession)

Spain granted Americans the right to deposit goods for transshipment at New Orleans.

Britain and the Indians Miami War – 1790-91, The

Miami Conference – a league of 8 nations in American West. Little Turtle Vs. US – US lost

Battle of Fallen Timbers – 1794 General “Mad Anthony” Wayne beat Indians and Britain refused to help.

Treaty of Greenville – August 1795 – US got areas of OH & IN, we gave them $20,000 plus $9000 annually, with hunting rights. *Indians felt it “checked” some US power.

Washington’s Achievements and Farewell

Achievements 1. Strong central Government 2. Sound fiscal policy 3. Expansion in the West 4. Increase in naval power 5. Isolationism Farewell Address – printed 1796 – a

further warning to avoid permanent alliances.

“temporary alliances for extreme emergencies.”

Washington’s Farewell Address Extolls the benefits of the federal government. "The unity of government...is a main pillar in the

edifice of your real independence...of your tranquility at home, your peace abroad; of your safety; of your prosperity; of that very liberty which you so highly prize."

Warns against the party system. "It serves to distract the Public Councils, and enfeeble the Public Administration....agitates the Community with ill-founded jealousies and false alarms; kindles the animosity of one....against another....it opens the door to foreign influence and corruption...thus the policy and the will of one country are subjected to the policy and will of another."

Stresses the importance of religion and morality. "Where is the security for property, for reputation, for life, if the sense of religious obligation desert the oaths, which are the instruments of investigation in Courts of Justice?"

On stable public credit. "...cherish public credit. One method of preserving it is to use it as sparingly as possible...avoiding likewise the accumulation of debt....it is essential that you...bear in mind, that towards the payments of debts there must be Revenue, that to have Revenue there must be taxes; that no taxes can be devised, which are not...inconvenient and unpleasant..."

Warns against permanent foreign alliances. "It is our true policy to steer clear of permanent alliances with any portion of the foreign world..."

On an over-powerful military establishment. "...avoid the necessity of those overgrown military establishments, which, under any form of government, are inauspicious to liberty, and which are to be regarded as particularly hostile to Republican Liberty."

In saying farewell to the new nation he helped create Washington pointed out that ".......the name of American, which belongs to you, in your national capacity, must always exalt the just pride of Patriotism..."

John Adams – Election of 1796

Presidency of John Adams – The tax policies of Hamilton left him too unpopular for Federalists candidate. (High Federalists)

1796 Election - #1 votes = president, #2 – vice president

Changed by XII Amendment, 1804 Federalists – John Adams – not likeable, hated by

Hamilton Democratic – Republics – Thomas Jefferson Problems with France – began with Jay’s Treaty –

France saw this as a violation of Franco-American Alliance of 1778. French warships began attacking US merchant ships.

Adam’s opinion – needed to avoid war. Sent a diplomat (Pinckney) to France to

Negotiate a bargain. Turned away!

XYZ Affair In 1797, President John Adams sent

Charles Cotesworth Pinckney, Elbridge Gerry and John Marshall to Paris to negotiate a settlement. However, the French Foreign Minister, Talleyrand, refused to receive the Americans. Instead, he designated three unofficial agents to negotiate with them. These agents -- who became known as X, Y, and Z -- demanded that America pay for alleged wrongs done to France, grant a large loan to finance the French war with Britain, and pay a bribe of about $240,000 to Talleyrand.

XYZ AffairThe cartoon depicts a five-headed monster, representing the Directory that ruled France in 1797, demanding payment of a bribe from the three American representatives.

Alien and Sedition Acts Alien and Sedition Acts – Anti-Democratic Republican Laws, designed

to help the Federalists party. Alien Acts

president has authority to deport dangerous foreigners in time of peace and deport/imprison during war.

Naturalization Act - must live in US for 14 years to be citizen

Sedition Act – anyone who impeded the policies of the government or falsely defamed officials would be liable to high fines and/or jail.

Criticism – violation of first amendment. (high public approval)

Federal courts were “packed” with Federalists judges

Expired 1801 so the law could not hurt Federalists after election of 1800 if they lost to Democratic Republicans.

Democratic Republicans Response

Democratic Republican Response – Jefferson and Madison feared more liberties would be taken away, wrote a series of resolutions 1798-1799.

Compact Theory – The states entered into a compact regarding jurisdiction, so the Federal government was a creation of the states, therefore the states had the power and could declare the federal government had violated the Compact.

Virginia and Kentucky Resolutions – Due to the Compact Theory, nullification was the only answer.

Federalists Response – The people NOT the states held the power and the Supreme Court is the only one with the power of nullification.

The Federalists

Federalists – wealthy, seacoast Ruled by the “best people” – merchants, lawyers Distrust of full-blown democracy Strong central government Protect lives and property of wealthy Promote foreign trade Support, not interfere with private business Loose interpretation of Constitution Pro-British National debt is a blessing High degree of Bureaucracy Central Bank Restrictions of freedom of speech, press Strong Navy

Democratic Republicans

Democratic Republicans – small farmers, west and south Ruled by the masses Extension of democracy Weak central government, state’s rights Agriculture preferred  No special treatment for wealthy Strict interpretation of Constitution Pro-France National debt is a curse Small government State banks Freedom of speech, press Small navy

FRQ

During the 1790’s the policies of the Federalists dominated the central government, discuss the effects the Federalists had on the central government and American public.

Thesis sentence – clear, concise declaratory statement! 3 categories (PERMITS) 5 pieces of outside information for ONE category

(10 minutes)