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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