The World of the Federalists 1789 - 1800

1. The World of the Federalists 1789 - 1800

2. What did the Judiciary Act of 1789 Establish? • A Supreme Court of 1 Chief Justice and 5 Associate Justices • 3 Federal Circuit Courts, 13 Federal District Courts • State disputes could be elevated to a federal court when constitutionality issues arose • Allowed Federal law to remain supreme

3. What departments did Washington create and whom did he appoint to head them?? • Department of State: Foreign Affairs • Original Secretary of State: Thomas Jefferson • Current Secretary of State??? • Department of the Treasury: Management of Finance • Original Secretary of the Treasury: Alexander Hamilton • Current Secretary of the Treasury: ??? • Department of War: Military Issues • Original Secretary of War: Henry Knox – GW’s former artillery commander – and the guy who was so heavy in the boat crossing the Delaware River before the battle at Trenton • Current Secretary of Defense: ??

4. Cabinet • Fulfills Constitutional Provisions for advisors to the President • There are a lot more Cabinet positions today. These include: • Agriculture, Commerce, Justice, Interior, Labor, Education, Energy, Transportation, Health and Human Services, Veteran’s Affairs, Housing and Urban Development, Homeland Security

5. Jefferson v. Hamilton Jefferson Hamilton • Political Power and the common people • Government should be run by local people – citizen/farmers • Why did he oppose a national bank? • If states controlled the money supply it gave them more power in national affairs • There was no provision in the Constitution for a bank. • Political Power and the common people • Government should be run by educated, prosperous people – commerce and industry • Why did he support a national bank? • Assume the states’ debts • Funded by the government and private citizens -

6. Strict vs. Loose Construction • Strict Construction • Jefferson/Madison • Only those powers that were specifically granted to the federal government in the Constitution were allowable • In other words – if it wasn’t in the Constitution, it was a state affair • Loose Construction • Hamilton/Adams • If the government was given a job to do, then the means to do it must be allowable (Based on the “elastic clause” Art. 1, sec. 8, clause 18) • In Hamilton’s words – if the government had to regulate something, i.e. commerce, then it had the power to create the tools to do the job.

7. The Economy – Alexander Hamilton The Plan • To put the national economy on a solid footing – would make the country prosperous, provide jobs, and help to pay off the country’s debts • Provide tax protection for business and industry – help to build the nation’s industrial economy. • Originally the national government was responsible for 2/3 of the debt, the states the other 1/3

8. Hamilton proposed that the federal government take it all over – and assume the states’ obligations • Question: Would you have supported Hamilton’s economic plan – i.e. favored industrial development? Why or why not? • Think about: • The money problems that the nation faced • Other problems faced by the new country

9. He also wanted to issue new federal bonds to replace the older ones from the Confederacy and individual states • Would give creditors incentive to support the new government • Made the south furious – they had already paid off much of their wartime debt. • With sound money, backed by the government, the economy began to work efficiently again.

10. The Feud and the Party System • These differing views – farmers or industry, and the role of the government began to coalesce into two major factions in the country • Those who supported Jefferson – strong state governments – called themselves Republicans – later Democratic Republicans • Those who supported Hamilton – strong national government – called themselves Federalists

11. The Party System • Generally distrusted because of what had happened in Britain • Pitt (Conservative) promised repayment of debt • When George Grenville (Liberal) came to power, he changed his mind – raised taxes, and the rest is history. • Washington did not want them to develop – he did not get his wish

12. Recap: Hamilton and the Federalists • The Federalists in general believed in a ruling elite to run the country. • What made them elite? • Education – either formal or not • Proven Success

13. Federalists Continued • They believed that the country needed to move toward industrialization and industry to ensure that “the people” would have the means to ensure their happiness and well being. • They looked toward Britain as their model – as long as the US government was more responsive to the people that that one had been. • They also believed in the essential goodwill of the people – i.e. if properly educated, they wouldn’t harm one another – hence no Bill of Rights.

14. And last but not least . . . • They also believed in the essential goodwill of the people – i.e. if properly educated, they wouldn’t harm one another – hence no Bill of Rights. • Based on traditional Christian beliefs, mixed with a huge portion of Deism and some humanism, this made them believe that the wealthy would be trustworthy and shepherd those less fortunate. • This belief was tempered greatly by the failure of the Confederation.

15. Democratic-Republican Fundamentals • Jefferson fundamentally believed in the goodness of humanity also • His belief was “scientific” – people would foster their own self-interest by helping those around them. • Also very humanistic and Deistic

16. The Party believed • People would be best suited and ensured a greater degree of happiness if they were in charge of their own destiny. • His view was that farming would allow “The People” the best opportunity to pursue their own goals. • This would allow them to be their own bosses • It would ensure that everyone essentially ran their own business.

17. Benefits • People could • Set their own hours • Educate children as they saw fit • Could better dream and “see the future” • Use the non- “9-5” schedule to their best advantage • People could also retain their traditions if they weren’t in the cities. • They saw France as the trendsetter – the country to emulate.

18. Role of Government Federalists Democratic – Republicans Protect the citizens Ensure safe ports and infrastructure Ensure stability Help people to help themselves realize their greatest dreams – through education and investment. • Protect the citizens • Ensure safe ports and infrastructure • Ensure stability for business • Help people to help themselves realize their greatest dreams – through education, hard work and investment.

19. The Way Forward Federalists Democratic – Republicans Ensure that the states kept their militias to strong to ensure stability and safety Allow states to deal with the financial sector to make funds available for farms and industry. Provide a mechanism to ensure that people have the basics of life. • Ensure an adequate federal military to ensure stability and safety • Ensure the stability of the financial sector to make funds available for farms and industry. • Provide a mechanism to ensure that people have the basics of life – on their own.

20. Question: How would you judge President Washington’s decision to put two such opposed thinkers such as Jefferson and Hamilton on his Cabinet? • Think about: • Both men’s merits • Their philosophies • The conflicts that developed

21. The Whiskey Rebellion • One of the new taxes was an excise tax on the manufacture of whiskey. • In 1794 – the small farmers on the PA frontier refused to pay the tax – corn was their main crop and income source • Since it was so hard to transport, they distilled it into whiskey and shipped it • Threatened secession and beat up federal marshals in Pittsburgh

22. Federal troops, led by Hamilton and Washington went to PA to break up the rebellion. • This was done without a single death. • Compare this response to the federal response after Shay’s Rebellion.

24. Foreign Policy Challenges • Events in Europe greatly affected US foreign relationships • 1789 – French Revolution: Because of the alliance, should the US support the democratic revolution or stick with the King? • The terror created major issues • First it was a violation of most of the US Bill of Rights • Second, the Jacobin government declared war on other monarchies – including Great Britain • The French government expected US support in their war with Britain

25. US Reaction • In April 1793, President Washington officially declared US neutrality • Jefferson and Madison wanted to help France • Hamilton wanted to help Britain • There was no will or money to fight on either side, nor was there a navy to carry troops to Europe or to defend the coast from British attack.

26. The Jay Treaty • Got the British to evacuate the Northwest Territories • The British pledged to remove their troops from the northern frontier • Got the British to pay damages for seized American vessels and lost wages to sailors. • Agreed to allow Britain access to the fur markets • Greatly upset the French and western settlers who wanted to get rid of the British • A major concession was a re-affirmation that US citizens would repay their pre-Revolutionary debt to British merchants. • Scared the Spanish into negotiating the San Lorenzo Treaty

27. Jay Treaty Disliked By Jefferson • The result of the provision to pay damages and repay US debt to Britain was the main source of trouble. • Most of the pre-war debt was owed by Southern plantation owners • Most of the ships seized were owned by Northern business interests • So – while the South repaid their debts, the North was collecting

28. The Treaty of San Lorenzo (Pinckney’s Treaty of 1795) • Made with Spain • Opened the Mississippi to US trade • Formalized the border with Florida • Spain gave up all claims east of the Mississippi except Florida • Spain very excited to sign the deal – why?? • Their empire was getting restless, and they needed secure borders so that they could deal with internal problems • They were also afraid of a US/British alliance which could potentially threaten the empire

29. Election of 1796 • Vice President Adams vs. Sec. State Jefferson • Because of the way the Constitution was originally written, the first place finisher became President, #2 became VP • Federalist Adams became President • Democratic-Republican Jefferson became VP

30. Near War with France • Continued tensions over US relations with Britain created more issues • In 1798, the US created a Navy Department and a new navy • One of the first ships was called the USS Constitution – Old Ironsides • One result of these tensions was that the government was convinced that there were French agents all over the place • Anyone seen as anti-British was believed to be a threat from France

31. The XYZ Affair • To avoid a war with our one-time ally over impressment, President Adams sent three envoys to France to meet with Foreign Minister Talleyrand • One of these was the future Chief Justice, John Marshall • When met by Talleyrand’s envoys, they were presented with a very unusual request. • In return for 32 Million Florins, and a personal bribe of $250,000 for each of them, Adam’s envoys might speak with Talleyrand. • This met with strong disapproval – especially from Marshall – he refused

32. Fallout from XYZ • Upon returning to New York, Marshall was greeted as a hero for his refusal to give in. • “Millions for Defense, not one penny for tribute.” • Immediate fallout resulted in the creation of a Navy Department and a 3 ship Navy (the USS Constitution is one of them) • A new army of 10,000 men was funded and approved

33. This led • To 2 years of undeclared war between France and the US – on the high seas. • France had most of the powers of Europe fighting against it, and did not need another. • Talleyrand recanted, asking for a new ambassador.

34. This request • Gave Adams a much needed victory – and he sent a new minister • This sending, while prudent and what was necessary, infuriated his political base – who wanted war • The Convention of 1800, signed by the new leader of France, ended hostilities and formally ended the “friendship” between the two countries.

35. Alien and Sedition Acts • Raised the residence requirement from 5 to 14 years for citizenship • Allowed the deportation of any alien considered undesirable • Made it illegal to hinder the actions of the government by expressing “false, scandalous, and malicious statements” against the government. • Since Jefferson was anti-British, most of these people were his supporters • Set to expire on the day after the Presidential inauguration in 1801.

36. Questions to Consider • What did the Alien Acts actually do? Against whom were they directed? • What did the Sedition Act make illegal? Against whom was it directed?  • Why did the law expire in 1801?

37. Virginia and Kentucky Resolutions • Each of these states, at the urging of Jefferson and Madison passed resolutions declaring the Alien and Sedition laws “null and void” because they used powers not specifically granted in the Constitution • This led to the theory of nullification – states could nullify laws that they felt were in violation of the Constitution or their state understanding of the role of the national government • These issues died with the election of 1800, however, the doctrine would come back to haunt the US government until 1865.