Ch 8- GW Administration Parties

8/14/2019 Ch 8- GW Administration Parties

1/17

Ch. 8: The Early Republic, 17891800 Expecting consensus within new government,

Americans are shocked by disagreement

Disagreements over domestic (especially

economic) policy and foreign policy cause

factions (not yet parties) to develop

All see factions as negative

Key era of defining Constitution: how muchcentral authority does Republic need to

survive


2/17

Building a Workable Government Almost all members of US Government are

Federalists, and again Madison (House) is key

Revenue Act (1789): tariff on some imports

Bill of Rights (1791)

Organize executive branch w/ War, State,

Treasury, etc. (Cabinet); allow president to fireappointees

Judiciary Act (1789) allows appeal of some

state cases to new federal courts


3/17

Washingtons First Steps Presidency created w/ Washington in mind

Aware of creating precedents, Washington

acts cautiously (forms cabinet, wary of

veto)

Tours nation in elaborate, nationalistic

rituals

Hamilton (Treasury Secretary) is brilliant

and ambitious; not tied to any state;


4/17

EMERGENCE OF THE TWO

PARTY SYSTEM


5/17

Emergence of the Two Party SystemToday the two party system of government

seems natural- We are used to having twomajor parties compete for the presidency.

Constitution says nothing about political

parties.

Most founders hoped we would never have

any.


6/17

Original Ideas on Factions

The framers did not like

parties, which they called

factions.

They wanted people to actin their self interest. People

would form groups, but

change groups withdifferent issues.

This is called pluralism.


7/17

Early divisions about government:

The National Bank

Splits within the Washington Administrationemerged almost immediately over the issue

of a national bank.

Hamilton: Wanted a bank to put theAdministration on sound financial footing.

Jefferson: Thought a bank unconstitutional.


8/17

Hamiltons Financial PlanHamilton wanted to pay off the substantial

national debt from the Revolution. Somewas owed to other nations, some to

soldiers. He believed this necessary to

restore domestic and foreign confidence in

the U.S. Paying off the debt at face value

could restore confidence.

A national bank was proposed by Hamilton

as a key to his plan. It would keep tax

receipts, print money, loan money, etc..


9/17

First Bank of the United States (1791)

Hamilton pushes charter of a private/public

bank to solve shortage of exchange

Will release bank notes as nations currency

Madison and Jefferson assert no authorization

in Constitution (strict construction)

Hamilton counters w/ broad construction: ifend (goal) is constitutional, and means not

banned, then can do it (Washington agrees)


10/17

Report on Manufactures (1791) Assumption of state debts and national

bank contributes to economic stabilityand growth

Hamilton asserts need to foster domesticmanufacturing w/ protective tariffs; will

reduce dependence on European imports

Opponents argue mainstay of republic is

small farmers; US future is agrarian, not

industrial; defeat Hamiltons tariffs


11/17

Whiskey Rebellion (17911794) To fund state debt assumption, Hamilton gets

Congress (1791) to tax whiskey production

Affects farmers on frontier, and they protest

When protests turn violent (1794); Presidentsends in militia (fear Shays Rebellion)

Demonstrates protest should come throughpolitical system, not allow extralegal acts of

1760s and 1770s


12/17

Opposition to Hamiltons Plan

Many opposed Hamiltons plan because it

favored the rich. Speculators had bought thedebt owed soldiers, so soldiers would get

nothing. Soldiers had sold bonds to

speculators at less that face value because theydoubted the government would pay them.

Southern states disliked the plan because they

had already paid their debts.

Jefferson and others argued that the bank plan

was unconstitutional.


13/17

Development of Partisan Politics (1792-94)

Hamiltons opponents begin to coalesce; call

themselves Democratic-Republicans

Fear Hamiltons support of commerce will

create a corrupt, aristocratic government

Hamilton and allies then form Federalists

Each accuse other of being an illicit factionout to destroy republican ideals and USA

Each claim they are seeking the public good


14/17

Key Issue:

The Necessary and Proper Clause

The Constitution says theCongress has the power

to make all laws

necessary and proper toexecute the powers given

it.

This clause is also calledthe elastic clause.


15/17

Dispute over the Elastic Clause

Hamilton

Emphasized proper.

Commerce, taxing,

printing money, etc..,

all powers given to

Congress, therefore, it

was proper to establish

a bank. Read between the lines

of the Constitution.

Loose construction.

Jefferson

Emphasized

necessary.

A bank was not

necessary for the

Congress to do its job,

so it was not

constitutional. Follow the

Constitution exactly.

Strict construction.


16/17

FederalistFederalistDemocratic-Democratic-RepublicansRepublicans

Leader

Appealed

to

Alexander HamiltonJohn Adams

Thomas JeffersonJames Madison

-Manufacturers,merchants, wealthy andeducated.

-Favored seaboard cities

-Farmers and Planterscommon man-Favored the South and

West

Ideas ofGovt.

Strong governmentover statesLoose ConstructionLoose Construction

Implied powersImplied powersWealthy and educatedinvolvedLimit freedoms ofspeech & press

More elite rule

States rights over

National Govt. StrictStrict

constructionconstruction

Expressed/EnumeratedExpressed/Enumerated

powerspowersCommon man buteducatedBill of Rights is sacredLess govt. is best.

political


17/17

FederalistFederalist Democratic-Democratic-RepublicansRepublicans

Domestic

Policy

Supported NationalBankBUS

Supported excise tax/Tariffs

National debt good forcountry

National govt. assume

state debts

Against BUS

Against excise tax

Against National debt

States pay their owndebts

Tariffs should be low

Foreign

Policy

Opposed French

Revolution

Favored the British

over French

Supported French

Revolution

Favored the French

over British.

political

Documents

Ch 8- GW Administration Parties