LAUNCHING THE NEW SHIP OF STATE - 1789-1800

1. LAUNCHING THE NEW SHIP OF STATE -1789-1800 Chapter 10

2. A New Ship On An Uncertain Sea • Population growth. • Kentucky, Tennessee, and Ohio • Trans-Appalachian population was dubiously loyal • Economy in poor shape. • Much of rest of world hostile.

3. Washington’s Pro-Federalist Regime • George Washington elected unanimously in 1789 • Washington view of the presidency and presidential power • Cabinet

4. First Executive Departments • Secretary of State: Thomas Jefferson • Secretary of Treasury: Alexander Hamilton • Secretary of War: Henry Knox

5. The Bill Of Rights • First Congress addressed matters left undone by Constitution • Bill of Rights • Drafted by Madison • Ratified in 1791 as first 10 Amendments to the Constitution. • Designed to protect rights of the people against actions of the government.

6. Key Provisions of Bill of Rights • First--Religion, speech, assembly • Fourth--search and seizure • Fifth-- life, liberty and property (Due Process); freedom against self-incrimination; double jeopardy • Sixth--Speedy trial, trial by jury, assistance of counsel; public trial. • 9th—List not exclusive

7. 10th Amendment • Explicitly reserves all rights to the states not specifically delegated to federal government. • Makes clear the national government is one of specific and limited powers.

8. Judiciary Act of 1789 • Created federal courts. • Organized the Supreme Court • Established the office of Attorney General • 1st Chief Justice = John Jay

9. Hamilton’s Financial Plan • Alexander Hamilton was a key figure in new govt. • Secretary of Treasury. • Fought in revolutionary war. Led key charge at Yorktown. • Aid to Washington. • Key figure at Constitutional convention. • Author of many of the federalist papers. • Ally of Madison during the drafting and ratification process. • Strongly federalist.

10. Hamilton’s Financial Plan • Hamilton wanted to correct the economic problems that plagued the young nation. • Plan: shape fiscal policies in a way to favor the wealthier groups. • Why? • Plan has three parts: • Funding and Assumption of the Debt • Tariffs and Excise Taxes • National Bank • Goals?

11. Funding and Assumption • Nat. credit terrible because of all the unpaid debt • Plan: • Pay national debt “at par” (full value) and • assume the state’s debts. • This increases debt of US, but restores credit rating. • Makes a lot of wealthy people wealthier, too. • Why? • Hamilton believed that assuming the nation and state debt would strengthen the unity of young nation. • Why?

12. Hamilton's Financial Structure Supported by Revenues

13. Customs Duties And Excise Taxes • National debt had soared to $75 million because of Funding and Assumption • How to Pay? • Tariff • Excise Taxes • Tariff depended on a vigorous foreign trade. • Britain is main trading partner • This is VIP to understanding Hamilton’s foreign policy toward GB • Tariff has value beyond raising money. What?

14. National Bank • Third leg of Hamilton’s plan • Modeled on Bank of England, • Nature and purpose? • Benefits: • Increase money in circulation by making US funds available for loans—stimulate business • Provide stable bank notes (paper money) • Increases money in circulation • Stabilizes the money in circulation • Stabilizes private banks

15. Debate over Constitutionality of Bank • Jefferson argued that the bank was Unconstitutional. • 10th Amendment • Hamilton argued was constitutional • Nec. and Proper Clause. • Jefferson’s response • Washington sides with Hamilton. Is a Federalist at heart. • Bank of the USchartered in 1791 for 20 years • located in Philadelphia with capital of $10 million.

16. Whiskey Rebellion • 1794 in Southwest Pennsylvania • Hamilton’s high excise tax hurt pioneers • Why? • Defiant distillers brought collections to a halt. Tarring and feathering. • Saw as little different than taxes imposed by the Brits. This Mountain Tea Kettle as it was referred to in the 1800's is an authentic replica of the whiskey stills the pioneers hand forged out of pure copper to brew their shine

17. Whiskey Rebellion • G. Washington alarmed. • He and Hamilton lead troops to put down. • Easily defeated • Significance?

18. The Emergence Of Political Parties • Framers attitude toward political parties. • Began to arise in Washington Administration. • Reasons? • Hamilton—Federalists • Jefferson—Democratic Republicans

19. The Impact Of The French Revolution • French Revolution starts a few weeks after Washington inaugurated. • Dramatically affects US foreign policy for next 26 years. • Reign of terror. • Soon France and England at war. • Hamilton and Federalists tend to be nervous of revolution and favor the Brits. • Why? • Jefferson and Dem.-Rep. favor revolution and France. Why?

20. Washington’s Neutrality Proclamation • The Franco-American alliance of 1778 was to last forever. • What did the treaty require of US? • Many Dem-Rep. wanted to honor alliance and take another shot at GB • President Washington felt war should be avoided at all costs. • Why? • Why do Federalists argue the treaty isn’t valid?

21. Neutrality Proclamation • Washington issued the Neutrality Proclamation of 1793 • stated government’s official neutrality • sternly warned American citizens to be impartial • Significance: • Jeffersonians were mad. Why? • Citizen Edmond Genet

22. Embroilments With Britain • British won’t leave forts. • Reasons • British aiding and stirring up Indians • Reasons • Battle of Fallen Timbers • “Mad” Anthony Wayne • Treaty of Grenville • Significance • British seize ships and impress sailor. • Reasons • Consequences

23. Jay’s Treaty • , Washington sent John Jay to London in 1794 to try to settle difference. • Why Jefferson suspicious • Hamilton sabotaged the negotiations. • How? Why? • Jay comes home with a very bad treaty. • Dem.-Rep. and Southerners outraged. Why?

24. Jay’s Treaty • Terms • Britain will evacuate the chain of forts • Agreed to pay damages from seizures of American ships. • But, refuses to stop future ship seizures or impressments • Refuses to stop supplying arms to Indians. • U.S. must ensure that Americans pay the debts still owed to British merchants on pre-Revolutionary accounts.

25. Jay’s TreatyConsequences • Furthers the development of political parties • Leads to Pinckney’s Treaty of 1795. Why? • US gets: • 31st parallel established as the border between the U.S. and West Florida • Spain agreed to allow the U.S. free navigation of Mississippi River to Gulf of Mexico and granted the right of deposit in New Orleans for 3 years. • Both nations agreed not to incite Indian attacks against each other.

26. Washington’s Farewell Address • Washington • Extols the benefits of the federal government • Warns against the party system • Stresses the importance of religion and morality • Warns against permanent foreign alliances. • Washington’s Accomplishments

27. Election of 1796 • Why do Federalists pick John Adams over Hamilton? • Jefferson runs for Dem.-Rep. • Nasty and personal campaign • John Adams won 71 to 68 in the Electoral College on the strength of the NE vote. • As runner-up Jefferson is vice president (that isn’t changed until the 12th Amendment in 1804)

28. John Adams • Adams tactless, prickly, stuffy, intellectual. “His Rotundity.” • In first 36 years of presidency, only president not a Virginian. • Only one-term president. • Inherits problems with England • Hamilton fights him for control of party

29. Unofficial Fighting With France • Jay’s Treaty outraged the French • Why? • French retaliation • Adams wants to avoid war. Why? • Adams political courage • XYZ Affair

30. Results of XYZ Affair • War hysteria. “Millions for defense, not one cent for tribute.” • War Preparations: • Navy Department was created • The U.S. Marine Corps was established • New army of 10,000 men was authorized • Leads to 2 ½ years of undeclared naval warfare with France.

31. French Back Down • French actions are backfiring on France. How? • French receive new American envoy • Bonaparte takes power and agrees to new treaty with US. • Convention of 1800 • Terms • Significance

32. The Federalist Witch Hunt • Alien Laws • Sedition Act • Causes • Significance • Virginia and Kentucky Resolves • Compact Theory • Significane

33. Federalists Founder — Hamilton wanted rule by “best people” and advocated a strong central government Government should support private enterprise not interfere — this was liked by merchants, manufacturers, and shippers. pro-British in foreign affairs a powerful central bank Restrictions of free speech and press. Concentrated on seacoast Strong navy to protect shippers. Democratic-Republicans Thomas Jefferson appealed to middle class and underprivileged (common man) Weak central government. States should have the bulk of power. Strict interpretations of Constitution. Did not favor the national debt. No special privileges for special classes like manufacturers. Agriculture was favored branch of economy Followers were from the South and Southwest. Rule of people Pro-French. FEDERALISTS V. DEMOCRATIC REPUBLICANS