Launching the New Ship of State 1789-1800

1. Launching the New Ship of State1789-1800 The American Pageant Chapter 10

2. Ship on Uncertain Sea • 1790: Pop. doubling every 25 yrs, cities grew, but 90% rural. • Only 5% west of Appalachians, most in KY, TN, & OH. • 1791: Vermont becomes 14th state.

3. Ship on Uncertain Sea (2) • Revolution & problems under Articles eroded respect for authority – a necessary evil. • Frontier was less loyal, esp. with Spain ruling mouth of Miss., Spanish/English agents.

4. Ship on Uncertain Sea (3) • Gov’t operating on very little revenue, huge public debt, little metallic money. • Many regarded creation of huge Republic as impossible, monarchs afraid of success.

5. Wash.’s Profed Regime • 1789: Wash. unanimously elected Pres. by Elec. College. • Triumphal procession from Mt. Vernon to NYC, took oath on April 30, 1789 on balcony over Wall Street.

6. Wash.’s Profed Regime (2) • Wash. established cabinet, with Secretaries of State (Jefferson), Treasury (Hamilton), War (Henry Knox). • Developed practice of cabinet meetings.

7. The Bill of Rights • Many states had ratified Const. on grounds that bill of rights would be added. • Madison drafted amendments, guided them through Congress.

8. The Bill of Rights (2) • 1791: 1st 10 amendments adopted by req'd # of states. • Incl. basic rights: freedom of religion, speech, press, bear arms, trial by jury, assembly, petition gov’t for grievances.

9. The Bill of Rights (3) • Also prohibits cruel & unusual punishment and arbitrary gov’t seizure of private property. • 9th Amendment: just because these rights are listed, doesn’t mean that’s all the rights.

10. The Bill of Rights (4) • 10th Amend.: For states’ righters – rights not specifically given to Fed. gov’t are reserved to states, people. • 1789: Judiciary Act created federal courts, Supreme Court under John Jay (CJ).

11. Hamilton Revives Credit • Brilliant Treasury Sec. Hamilton developed plan to help economy: help wealthy, who will help gov’t, prosperity will trickle down to masses. • 1st goal: bolster US credit.

12. Hamilton Revives Credit (2) • Urged Congress to fund debt “at par” (principal + interest). • Urged Congress to assume debts of states, as debt was to pay for war, assumption would chain states to union, & attach wealthy creditors to fed. gov’t.

13. Hamilton Revives Credit (3) • Heavy debt states (e.g. MA) delighted, light debt VA didn’t like plan, needed convincing. • Hamilton persuaded Congress to create DC near VA, got enough votes in Congress for assumption (1790).

14. Customs Duties/Excises • B/c funding at par, assumption, gov’t had huge debt ($75M). • Hamilton not worried, felt that debt was union adhesive. • Money to pay debt? Customs duties from tariffs: req'd large foreign trade.

15. Customs Duties/Excises (2) • 1789: 1st tariff law, 8% tariff on imports. Goal: revenue & protection for new industries. • 1791: Excise tax on few domestic items, e.g. whiskey (7¢/gallon).

16. Battle for a Bank Hamilton desired Bank of US, in order to: • Provide place for gov’t funds, which would stimulate business by remaining in circulation. • Print paper money, providing sound national currency.

17. Battle for a Bank (2) • Bank useful, but would it be constitutional? • Jefferson: the Constitution does not authorize creation of bank, that power reserved for states. • Developed theory of “strict construction.”

18. Battle for a Bank (3) • Strict constructionists held to strict/literal interpretation of Constitution: fed. gov’t can only do what is specifically allowed. • Hamilton argued that gov’t could do whatever not for-bidden by Constitution.

19. Battle for a Bank (4) • Hamilton used “necessary & proper” (or “elastic”) clause & resulting “implied powers” to justify this view (“loose construction”). • A loose or broad interpretation of the Constitution.

20. Battle for a Bank (5) • Hamilton convinced Wash. to his view, & Wash. signed bank bill into law. • Debate over bank revealed North/South split. • Bank created in 1791, chartered for 20 years.

21. Mutinous Moonshiners • 1794: Whiskey rebellion in PA challenged new gov’t. • Hamilton’s high excise tax angered PA pioneers, as whiskey was economic necessity, even used as money.

22. Mutinous Moonshiners (2) • Revenue officers were tarred & feathered, collections halted. • Wash. summoned militia, but found no significant rebellion, criticized for excessive force. • However, Wash.’s government commanded new respect.

23. Political Parties Emerge • Hamilton’s successes resulted in solid US credit, but policies infringed on states’ rights. • Organized opposition began to build (Jefferson & Madison) 1st in Congress, but flowed out to public via newspapers.

24. Political Parties Emerge (2) • Founders had not anticipated political parties, and, in fact, their existence in a democracy seemed disloyal. • However, 2-party system has existed ever since, providing needed check on maj. party.

25. Impact of French Rev. • Americans, esp. Jeffersonians, cheered beg. of French Rev. • However, when Reign of Terror began, Federalist opposed, aristocrats afraid of masses. • Became war which spread to New World.

26. Neutrality Proclamation • Franco-American alliance of 1778 still in effect, bound US to protect French West Indies. • Jeffersonian Democratic-Republicans favored honoring the alliance, entering conflict against Britain.

27. Neutrality Proclamation (2) • However Wash. knew US weak militarily, economically – war must be avoided. Needed another generation of American fertility to increase power. • 1793: W/out Congress, issued Neutrality Proclamation.

28. Neutrality Proclamation (3) • Proclamation warned citizens to be impartial. • Citizen Genêt arrives from French Republic at Charleston. Zealously promotes alliance with France, accepted by Demo-cratic-Republicans.

29. Neutrality Proclamation (4) • Genêt believed Proclamation did not reflect people, recruited Americans for invasions of FL, LA, Canada. • Wash. demanded his recall. • France never actually req’d. US to honor treaty obligation.

30. Conflicts with Britain • British made neutrality difficult: maintained trading posts on US soil, sold firearms to Indians, collaborated with Indians to check US expansion to frontier.

31. Conflicts with Britain (2) • British expected Americans to defend Fr. W. Indies, so attack-ed US merchant ships, seizing about 300, impressed and imprisoned American sailors. • Jeffersonians called for war, Feds resisted (financial system).

32. Jay’s Treaty/Wash. Leaves • To avoid war, Wash. sent CJ Jay to London (1794). Jeff’s concerned about Jay’s loyalty. • Hamilton feared war with England, secretly supplied Brits with US bargaining strategy.

33. Jay’s Treaty/Wash. Leaves (2) • Brits agree to pay some damag-es, but req'd US to pay old debts on pre-Revolution accounts. • Jeff’s felt treaty was surrender to Britain, betrayal of South (who had debts).

34. Jay’s Treaty/Wash. Leaves (3) • Jay’s Treaty gave life to new Democratic-Republican party, tarnished Wash.’s popularity. • Spain, fearing US-British alliance, gives US free use of Miss., disputed territory north of FL.

35. Jay’s Treaty/Wash. Leaves (4) • 1796: Exhausted from diplomatic & partisan battles, Wash. decides not to seek 2nd term, est. 2-term precedent. • Farewell address: advised US to avoid permanent alliances.

36. Adams Becomes President • 1796 campaign: Dem-Reps criticized crushing of Whiskey Rebellion, Jay’s treaty. • Adams was supported by New England, def. Jefferson 71-68 in Electoral College. Jefferson becomes VP.

37. Fighting with France • French upset by Jay’s treaty, saw as violation of France-US treaty, step toward alliance with England. • French warships begin to seize US merchant ships, about 300 by 1797.

38. Fighting with France (2) • French refused to receive new US envoy, threatened arrest. • Adams, like Wash., wanted to avoid war, sent 3-person delegation, incl. John Marshall. • 1797: Delegation reaches Paris to meet with Talleyrand.

39. Fighting with France (3) • Rather than Talleyrand, approached by 3 go-betweens, later called X, Y, & Z. • XYZ demanded loan, bribe of $250,000 to merely talk with Talleyrand. US delegation shocked, refused demands.

40. Fighting with France (4) • Americans wanted war – “millions for defense, but not one cent for tribute.” • Feds delighted, Jeffersonians embarrassed by French. • US prepares for war, expands navy, est. US Marine Corps.

41. Fighting with France (5) • 1798-1800: In undeclared hostilities, mostly around West Indies, US captured over 80 French ships, lost several hundred to France. • Needed only slight push for war.

42. Patriotism Above Party • France/Talleyrand did not want war, or push US to Britain. • French send back-channel message that new US minister would be received properly. • 1799: Adams submits to Senate new minister to France.

43. Patriotism Above Party (2) • Hamilton/war-hawk Feds enraged, but most Americans agreeable to try for peace. • 1800: new US envoys come to find Napolean as new dictator, desiring to resolve US conflict.

44. Patriotism Above Party (3) • Convention of 1800 signed: ended Franco-American alliance. • Adams deserves credit: avoided war & unknowingly laid foundation for LA Purchase.

45. Federalist Witch Hunt • 1798: Using anti-French hysteria, Feds in Congress pass Alien & Sedition Acts. • Alien Laws: raised residency req'd for citizenship to 14 years (from 5), resulting in fewer Dem-Rep voters.

46. Federalist Witch Hunt (2) • Alien Laws also gave Pres. authority to deport (peace) or imprison (wartime) foreigners. • Sedition Act: prohibited impeding policies of gov’t or falsely defaming officials – aimed at Jeff. newspapers.

47. Federalist Witch Hunt (3) • Sedition Act violated Const., but Fed SC would not overturn. • Law wrote to expire in 1801 in case Feds lost election. • Despite violation of freedoms, Acts were very popular.

48. VA & KY Resolutions • Jefferson (secretly) & Madison write resolutions adopted by KY & VA legislatures arguing “nullification.” • US gov’t had overstepped bounds, “compact” with states had been violated.

49. VA & KY Resolutions (2) • As a result, states could “nullify” federal laws, specific-ally the Alien & Sedition Acts. • Feds response: it’s people, not states, that formed union, therefore up to SC to nullify.

50. Feds vs. Democratic-Rep. Federalists in 1800 campaign held: • Rule by the “best people.” • Distrusted full-blown democracy. • Advocated strong central gov’t to crush democratic excess (Shays). • Gov’t should support enterprise. • Pro-British (trade)