Launching the New Ship of State1789-1800

Launching the New Ship of State Americans regarded a central authority as a necessary evil

One to be distrusted, watched and curbed Times were difficult

Revenue declining Public debt increasing

Growing Pains American population was doubling every 25 years

1790 census – 4 million 90% rural

Largest cities: Philadelphia – 42,000 New York City – 33,000 Boston – 18,000 Charlestown – 16,000 Baltimore – 13,000

Growing Pains 5 % of the population resided east of the Appalachian Mts. Kentucky, Tennessee & Ohio would all become states within

14 years Vermont in 1791

Washington for President George Washington was unanimously voted

as president by the Electoral College in 1789 NYC was the temporary capital

Washington created the Cabinet 3 full department heads:

Secretary of State – Thomas Jefferson Secretary of Treasury – Alexander Hamilton Secretary of War – Henry Knox

Amending the Constitution Antifederalists criticized the constitution for no guarantee of

individual rights Bill of Rights became a major goal

Rules for Amendments: A new constitutional convention

Requested by 2/3 of the states Or a 2/3 vote by both houses of congress

James Madison drafted the Bill of Rights Guided them through Congress Got the vote in 1791

Bill of Rights1. Freedom of religion, speech, press. Right to petition and assemble.2. Right to bear arms.3. Clause on quartering soldiers.4. Unreasonable search and seizure.5. Can’t incriminate yourself. Double jeopardy. Property rights.6. The rights of a defendant in a criminal proceeding.7. Right to a trial by jury.8. Matching the punishment with the crime. (bail)9. Listing these rights, does not deny other rights of the people.10. Powers not listed in constitution are granted to the states and people.

Judiciary Act Judiciary Act of 1789 – organized the

Supreme Court Chief Justice and 5 associate judges

First Chief Justice – John Jay (Federalist Papers)

Created a federal district and circuit courts

Hamilton Revives the Corpse of Public Credit Secretary of Treasury, Alexander Hamilton,

was a financial wizard Favored wealthier groups

They would lend money to the government Government & wealthy would prosper Prosperity would trickle down

Asked congress to “fund” the national debt “at par” and assume all state war debts

Hamilton Revives the Corpse of Public Credit Fed would pay off its debts at face value + interest ($54 mil)

Government bonds had depreciated to 10¢ or 15¢ Speculators bought them up ahead of the news

Fed would also assume the debts states ($21 mil)

“Assumption” Hamilton felt “assumption” was a national

obligation Paying off war of independence Chain states more tightly to “federal chariot” Support of rich creditors to national

administration Some states favored assumption, others

didn’t

Assumption Compromise Hamilton persuaded Jefferson to line up votes in congress for

assumption In exchange, Virginia would have the new federal district on

the Potomac River

Hamilton’s Financial StructureDebt OwedForeigners$11,710,000

Federal Domestic Debt$42,414,000

State Debt$21,500,000

Miscellaneous RevenueExcise Revenue (on

Whiskey, etc)Customs Duties (Tariffs)

Hamilton Plans for a U.S. Bank Hamilton wanted a Bank of the U.S.

Gov. would be major stockholder Treasury to deposit surpluses Federal funds would stimulate business Would print paper money to provide a sound national currency

Hamilton Battles Jefferson for a Bank Was it Constitutional to create a U.S. Bank?

Jefferson says No Theory of “strict construction” – powers not granted to the federal gov. were

reserved for the states

Hamilton says Yes Theory of “loose construction” – belief of “implied powers” of the

constitution. Congress may pass any laws “necessary and proper”

Bank of the United States Bank of the U.S. created in 1791

Had a capital of $10 million 1/5 owned by the federal government

Stock was sold to public

Whiskey Rebellion Whiskey Rebellion of 1794

Whiskey distillers were upset about Hamilton’s excise tax Tar and feathering revenue collectors

Whiskey often used in lieu of paper money Rye & corn cheaper to distill than to transport bales of grain

Washington raised several state militias and crushed the rebellion

Whiskey Rebellion

Emergence of Political Parties Political parties begin to emerge

Never intended and seen as undemocratic Caused by the growing feud between Hamilton and Jefferson

Hamilton: Federalists Jefferson: Democratic Republicans

The two party system has proven to be beneficial over time

Jefferson

Hamilton

French Revolution In 1789, most Americans hailed the French

Revolution as the next step to their own glorious revolution

1792 – France declared war on Austria 1793 – King Louis XVI beheaded as well as

hundreds of nobility Federalists – were against this Jeffersonians – felt it was a necessary evil

Washington’s Neutrality Proclamation Washington chose not to honor the Franco-American Alliance

of 1778 Would have to protect West Indies from Britain Felt America was too weak

Jeffesonians – Favored war Hamiltonians – were against it

France was better off with America neutral French West Indies needed Yankee foodstuffs

Embroilments with Britain England tested Washington’s neutrality

Kept their forts on U.S.’s northern frontier (fur trade) Incited Indians (provided them firearms & firewater)

Battle of Fallen Timbers Little Turtle and his Miamis defeated

British navy captured American merchant ships in West Indies Jeffersonians – wanted war Hamiltonians – say we need to trade with England

Jay’s Treaty Chief Justice, John Jay, sent to London in 1794 to negotiate

Hamilton sabotages Jay Jay’s Treaty

Britain promises to evacuate forts on northern border Would pay damages for recent seizures of shipping

Did not pledge to stop

U.S. had to pay off pre-war debt Jeffersonians were upset

Pickney’s Treaty Spain, worried about an Anglo-American alliance, quickly makes

a deal with America Pickney’s Treaty of 1795

Free navigation of the Mississippi River U.S. gets disputed territory north of Florida

Washington’s Farewell Washington left after two terms Said America should not form any permanent alliances Achievements

Fiscal government on solid ground West expanding Trade was growing No overseas entanglements

President John Adams John Adams ran for

president in 1796 versus Jefferson Adams wins by 71to 68 in

the electoral college Jefferson became

the VP

John Adams John Adams was 62 when he became

president 5’7”, rotund Able statesman Considered tactless and prickly Felt Hamilton did his best to sabotage his

administration

Unofficial Fighting with France French condemned Jay’s Treaty

Violated Franco-American Alliance French navy begins to seize American merchant ships

XYZ Affair XYZ Affair of 1797

The French foreign minister, Talleyrand, did not permit American ambassadors to speak with him

Adam’s envoys, including John Marshall (future Chief Justice), try to meet with him They were secretly approached by 3 go-betweens,

later known as X, Y, Z They want a bribe to meet him $250,000

Talleyrand

XYZ Affair

Americans Prepare for War John Marshall came back a hero

Did not pay the tribute Americans prepare for war

Navy Department created U.S. Marine Corps. Reestablished 10,000 men army authorized

Sea battles occur for next two years No full fledged war

Adams puts Patriotism Above Party France did not want war

Talleyrand had too many enemies Would drive Britain closer to U.S. Napoleon wanted to focus on Europe

Talleyrand let it be known he would accept a new American minister Rather than go to war, Adams appoints a new minister Hamilton wanted war

Convention of 1800 Franco-American Pact ended

U.S. to pay damage of American shippers

Adams had kept the peace

The Alien & Sedition Acts Federalists tried to capitalize on Anti-French frenzy Alien Acts – Federalists did not like poor immigrants

Citizen Requirement – residency raised from 5 yrs to 14 Violated open door policy & speedy assimilation

Deportation & Imprisonment of foreigners Never enforced Too much executive power violated constitution

The Alien & Sedition Acts Sedition Act

Imprisonment to anyone who impeded the government or falsely defamed it Many outspoken Jeffersonians were indicted

10 went to trial (all convicted) Matthew Lyon (“Spitting Lyon”)

Supreme Court, dominated by Federalists, said act was constitutional For most part Alien & Sedition Acts received widespread

support

The Virginia & Kentucky Resolutions Jefferson feared freedoms of speech and press were slipping

away Secretly writes a series of resolutions adopted by Virginia &

Kentucky The Compact Theory

States entered into a willing compact regarding creation of the U.S. Gov. was an agent of the contract, therefore states could judge

whether gov. violated contract Wanted to nullify Alien & Sedition Acts

The Virginia & Kentucky Resolutions No other state legislatures adopted Jefferson’s resolutions Supreme Court determines if laws are unconstitutional Jefferson’s resolutions later used by Southerners to justify

nullification prior to Civil War

Federalists Democratic-Republicans Rule by the “best people” Hostility to extension of democracy A powerful central government Loose interpretation of the Constitution Government to foster business A protective tariff Pro-British National debt a blessing An expanding bureaucracy A powerful central bank Restrictions on free speech and press Concentration in seacoast areas, urban A strong navy to protect trade

Rule by the informed masses Friendliness toward extension of democracy A weak central government (states rights) Strict interpretation of the Constitution No special favors to business No special favors to manufacturers Pro-French National debt a bane A reduction of federal officeholders Encouragement of state banks Relatively free speech and press Concentration in South and Southwest,

agricultural A minimal navy for coastal defense