The Federalist Presidents: Washington and Adams

1. The Federalist Presidents: Washington and Adams

2. Washington Sets the Tone • Washington designs the role of the President • Dignified, but not ostentatious • Travels in a coach • “Mr. President” • Formal receptions – all invited • Forms cabinet based on talent • This establishes a precedent

3. Schools of Political Thought • Federalists • Need for a strong central government • Respected at home - put down rebellion within the borders • Gain international respect • Build economy through industry • Democratic Republicans • Government should be limited in power. • The government that governs best, governs least. • The more you educate people the better their decisions will become. • America should be a nation of yeoman farmers

4. Adam Smith • What was mercantilism? • The Wealth of Nations

5. Free Enterprise • Jefferson – Cottage Industry & agrarian Society • Hamilton – Industrial Development • Report on Manufacturers

6. Hamilton Economics • Secretary of the Treasury • Hamilton’s Report on Public Credit - 1789 • Fund the national government • Federal government will pay war bonds at face value • Federal government assumes all state debts from war • United States owed • $12 million to foreign creditors • $42 million to domestic creditors

7. Jefferson’s Philosophy • Secretary of State • Faith in the common people • Yeoman farmer is the backbone of America, • Urban life is corrupt • Favored small scale cottage industry • Strong state government • Strict interpretation of the Constitution

8. Debt: Domestic IOUS • The Issue: Speculators & Government Bonds (IOUs) • Hamilton: • Pay current bondholder • Must pay debt to gain respect… financial responsibility • Jefferson: • Pay original holders • They deserve it • Hamilton argued • How would we find them? • Speculators took the risk

9. State Debt • Hamilton: Government should assume all state debt • Jefferson: Unfair to responsible states • Compromise: • Southern Capitol for Jefferson’s support

10. First National Bank • The First Bank of the United States, chartered 1791. • Privately managed • Government owned the majority of the stock • Only bank with federal charter • Things it did • Depository for all revenue from land sales and taxes • It would pay government bills • Authorized to issue paper money • The bank’s decisions had an effect on interest rates. • Problem • It was a monopoly

11. National Bank Debate • Jefferson: • Felt it would not serve the little guy • Argued it is not constitutional • Hamilton: • Federal revenue and debt servicing had to be done • Necessary and Proper clause • Washington agreed with Hamilton and signed the legislation

12. Report on Manufacturers - 1791 • Subsidies to industry • Moderate Revenue Tariffs • 8-10% on mfg items imported into the United States • Jefferson opposed subsidies

13. Whiskey Rebellion • The distillation of whiskey – a vital economic commodity on the frontier • Government places an excise tax on whiskey – 1794 • Western Pennsylvania farmers hold protests and demonstrations • Not represented well • What about rum? • Response • Harass tax collectors • Washington calls in the militias • Protestors back down • Organizers are sentenced to death, but Washington pardons them. • Significance • The new government proved that it would enforce its laws,

14. Issues with France • French Revolution breaks out in 1789 • They desire democracy • Degenerates into Reign of Terror • Emperor takes power – Napoleon (1799) • War in Europe springs from Revolution…England declares war on France and it lasts from 1792-1814

15. American Response • Some sympathize with British (Hamilton) • Some sympathize with French (Jefferson) • Neutrality Proclamation

16. “Citizen” Edmond Genet • French ambassador - 1793 • Received well by the people • French democracy • He was a rock star • Blew off the Neutrality Proclamation • Began to license privateers • Handed out French military commissions • Washington received him and told him to knock it off • Genet ignores him • Washington called for him to be deported • Genet requested asylum

17. Neutrality of the Seas Violated • American Trade • Merchant shipping became dangerous • French warships would stop American merchants • English warships would stop American merchants • Seized merchant vessels • Impressment of sailors

18. America’s Response to England • Still steaming from Revolution • British troops in NW forts • British restrictions on trade with the US • Now this… • Americans were calling for war • Washington recognized that war would be stupid and sent Chief Justice John Jay to work things out

19. Jay’s Treaty • British didn’t give into US demands • Terms • Brits agree to … • abandon western forts • compensate merchants for seized ships • Open up trade in British Asian colonies to America • America agrees to… • Pay pre-revolution debts (despised in America) • Problems • No freedom of seas • Americans got little • Burning effigies

20. Results of Jay’s Treaty • American Indian Relations • Pinckney Treaty of 1795 • Spanish open the Mississippi River to Americans • Treaty antagonizes the French

21. Washington’s Farewell • Washington steps down • Farewell Address • Avoid partisanship • Mend east and west sectionalism • Maintain neutrality

22. Adams Takes the Reins • XYZ Affair • Alien & Sedition Acts • Virginia & Kentucky Resolves

23. XYZ Affair – 1797 • French raid American merchant ships • Adams sent diplomats to France • They were not well received by the French • French agents (X, Y, & Z) demand bribes • The Americans left insulted • “Millions for defense, but not one cent for tribute” • US builds navy • Led to Quasi-War (1798-1800)

24. Alien and Sedition Acts -1798 • Demo-Rep disliked military buildup • Newspapers criticized Adams • French-Americans perceived as threats • Congress passed Alien and Sedition Acts as a result

25. Alien and SeditionActs • Naturalization Act – 14 yrs for citizenship • Alien Act – President – can have dangerous foreigners removed from the country. • Never invoked • Alien Enemies Act – During war, the President can arrest and deport aliens subject to an enemy power • Sedition Act – High misdemeanor for Americans to speak out against the gov’t. • 25 are indicted, 10 convicted - $2,000 max fine.

26. Alien and Sedition Acts • Adams didn’t write it, but he signed it. • Adams did not want criticism during a war • All 25 arrested were Republicans (all opposite party of Adams)

27. Kentucky and Virginia Resolves • Madison and Jefferson - Alien and Sedition Acts were unconstitutional • They argued that states should have the right to declare legislation unconstitutional since the Constitution was a compact between the states • Neither legislature implemented this, but … • Test of 1st Amendment rights – freedom of speech • Introduced the people to how T Jefferson would run things • Question of states rights

28. Treaty of Mortefontaine • Also called French Convention of 1800 • Ends Quasi War • French/Americans dissolve their military and political alliance of 1778 • French debt forgiven – raids on merchants • Many people wanted full war with France • Adams knew war was a bad option • This cost him popularity points