Chapter 10

1. Chapter 10 Launching the Nation (1789-1800)

2. Chapter 10 Launching the Nation (1789-1800) Section 1 Laying the Foundations of Government

3. The First President • January 1789 – the states that had passed the constitution sent electors to choose the first president • Formed the electoral college • Electors chosen to represent popular vote in their state • April 6, 1789 – Congress declared that the electoral college had selected Washington unanimously – many believed he had strong character, honesty and patriotism • John Adams = vice president (1st) • Washington accepted because he felt it was his duty; wife = Martha Washington

4. Life in the New Republic • Few Americans ever thought of themselves as citizens of a united nation • Expected federal government to protect liberty and hoped it would improve the economy by providing stability • Did not want government to restrict trade like the British had done • American population almost 4 million (1790) • Most lived in countryside and worked on farms • Farmers wanted fair tax laws and right to settle western lands • Others worked in towns as craftspeople, laborers, or merchants • More interested in trade laws • Merchants wanted simpler trade laws • Manufacturers wanted laws to protect them from foreign competition • New York City and Philadelphia = only cities with populations higher than 25,000 • New York City = first capital of U.S.

5. Setting Precedents • Washington recognized that how the federal government handled issues for the first time would set a precedent – example for how they would be handled in the future • Planning executive branch was one of Congress’s first tasks • Several executive departments – each specializing in a different area of national policy • Ex. Military affairs • Washington nominated department heads • Alexander Hamilton – secretary of the treasury • Thomas Jefferson – secretary of state • Washington began meeting with department heads – became known as the cabinet

6. Setting Precedents (continued) • Congress had to organize the government’s judicial branch because the Constitution’s requirements for the judicial branch were not specific • Judiciary Act of 1789 created a federal court system with three levels; also outlined the powers of the federal courts and their relationship to state courts • Top – Supreme Court with 6 justices • Court of Appeals – reviewed district court decisions • Lowest level – district courts • President nominates federal judgeships at each level; need congressional approval • John Jay = first Chief Justice • Edmund Randolph = attorney general

7. Chapter 10 Launching the Nation (1789-1800) Section 2 Hamilton and National Finances

8. Settling the Debt • Hamilton (secretary of the treasury) – biggest challenge was paying off national debt • Estimated $11.7 million owed to foreign countries such as France • $40.4 million owed to citizens • Bonds (certificates that represent money owed) • Sold bonds during Revolutionary War to raise money • Bondholders began to doubt government’s ability to repay; began selling to speculators for less than original value • Feared government would lose trust of the people if he could not get the federal government on solid financial ground

9. Settling the Debt (continued) • Wanted to pay foreign debt immediately; repay full value of bonds over time • Some politicians argued against this because paying full value on bonds would allow speculators to make a profit; Hamilton believed this to be only fair • Thomas Jefferson (secretary of state) disagreed with plan – thought it cheated original bondholders (poor and ignorant) • Majority in Congress agreed with Hamilton; began exchanging the old bonds for new, more reliable ones whose value was guaranteed

10. The States’ Debts • States owed approx. $25 million for Revolutionary War expenses • Hamilton wanted federal government to pay $21.5 million of this debt • Believed aid would increase support for the federal government and paying state debts would strengthen national economy • Debtor states would not have to spend as much on repayment, would have resources to develop business and trade • Southern states (such as Virginia and North Carolina) had few war debts – their reps. did not want to help other states pay their debt • Patrick Henry did not believe the constitution gave the national government the power to do so • Hamilton was able to get the Southern states on board by promising the capital would be moved from New York (Southerners felt like this location gave the northern states too much power)

11. The States’ Debts (continued) • Compromise = Southern states approve debt repayment plan; an area along the Potomac River was chosen to build a new national capital (present-day Washington D.C.) • Philadelphia served as a temporary capital while architects designed new capital city

13. The Debate over the Bank • Hamilton: • Wanted to start national bank – gov. could safely deposit money • Make loans to gov. and businesses • Should build national mint and issue its own money • To limit the bank’s power – asked for a 20 year charter • Asked each state to start own bank so national bank would not have a monopoly • Pointed to the elastic clause for his constitutional justification • Loose construction – federal government can take any reasonable actions that the Constitution does not specifically forbid it from taking • Jefferson: • Believed elastic clause or “necessary and proper” clause should be used only in special cases • National bank a convenience not a necessity • Strict construction – the federal government should do only what the Constitution specifically says it can do • Washington and Congress agreed with idea – Bank of U.S. was chartered by Congress February 1791

14. Chapter 10 Launching the Nation (1789-1800) Section 3 Troubles Abroad

15. The French Revolution • Storming of the Bastille was one of the first acts of the French Revolution • During this revolution, the French overthrew the monarchy and created a republican government • Declaration of the Rights of Man – revolution’s principles – “liberty, equality, fraternity” • Thomas Jefferson – Secretary of State and U.S. minister to France - witnessed early days of Revolution • Ideals of equality and democracy had spread from the American Revolution • Many Americans supported the revolution • Some not so supportive • Worried about the violent riots • Feared attacks on all forms of traditional authority • Shocked by the beheading of Louis XVI and Marie-Antoinette

16. U.S. Neutrality • France and Great Britain went to war a few months after the start of the French Revolution – made the question of whether the U.S. should support the French more complex • Some Americans backed the French other backed the British • Debate over foreign policy divided Congress and the cabinet • Washington issued the Neutrality Proclamation on April 22, 1793 – the U.S. would not take sides with countries at war • Believed this plan to be the safest and most reasonable • James Madison questioned Washington’s right to issue the proclamation without Congress’s approval

17. Citizen Genet • Edmund Genet – “Citizen Genet” – France’s representative in the U.S. • Traveled across the country seeking American support for the French • Found sea captains will to become privateers (private ships allowed by a country to attack its enemies) • Washington warned Genet that recruiting privateers would hurt U.S. neutrality • Responded by saying he would ask American people to overrule Washington • At this point, even Jefferson said Genet needed to be sent home • Jefferson upset by U.S. policy toward France; felt pro-British Hamilton was influencing president’s foreign policy • Hamilton’s influence interfered with Jefferson’s duties as secretary of state • Jefferson chose to leave Washington’s cabinet (Dec. 1793)

18. Jay’s Treaty • British began seizing all ships carrying food to the French West Indies • Captured hundreds of neutral American merchant ships – brought U.S. to brink of war with Britain • Rumors that the British officers on the western frontier were encouraging American Indian uprisings • British had never abandoned forts – Treaty of Paris required • Hamilton recognized U.S. may be on path to war • Washington and Hamilton sent Chief Justice John Jay to London to work out resolution • U.S. lacked a strong navy, businesses relied on trade with Britain; British did not want to fight another war in N.A.

19. Jay’s Treaty (continued) • Jay’s Treaty (Nov 1794) • British to pay damages for seized American ships; small merchant ships allowed to continue trading certain items in the Caribbean; British would abandon forts on the northwestern frontier • U.S. would pay pre-Revolutionary debts it owed British merchants • Critics argued treaty did not prevent British from capturing large American ships or supporting American Indians on the frontier; did not make British return slaves they freed during the Revolutionary war

20. Pinckney’s Treaty • Spanish disputed border between Florida and U.S. • As a result, Spain closed the port of New Orleans to U.S. trade in 1784 • All goods moving down the Mississippi to places in the east or overseas had to pass through the city • U.S. ambassador Thomas Pinckney asked Spanish officials to reopen New Orleans to U.S. trade • Requested right of deposit – allow American boats to transfer their goods at New Orleans without paying fees on their cargo • Spanish minister Manuel de Godoy tried to delay hoping that Pinckney would sign treaty favorable to the Spanish • Began to fear U.S. would ally with Britain against the Spanish after signing Jay’s Treaty • Pinckney’s Treaty – Oct 1795 – Spain agreed to change the Florida border, reopen the port at New Orleans to American ships and gave them right of deposit • Considered a success because it opened the frontier to further expansion

21. Chapter 10 Launching the Nation (1789-1800) Section 4 Challenges at Home

22. Conflict in the Northwest Territory • American Indians protested American settlement of the Northwest Territory • American Indians went to war with Americans; supplied with guns and ammunition by British traders • Miami chief led an American Indian confederation to defeat U.S. forces • General Anthony Wayne sent by Washington to the frontier to take control of army • The Miami chief asked British for help, they turned him down; he backed down and warned other American Indian leaders to do the same

23. Conflict in the Northwest Territory (continued) • Battle of Fallen Timbers – fought between U.S. and American Indians on August 20, 1794 • General Wayne’s troops won; burned American Indians’ villages and fields • Treaty of Greenville – signed in August 1795 – U.S. given access to American Indian lands in the Northwest Territory and guaranteed safety of Americans there; Indians received $20,000 worth of goods and a formal acknowledgement of their claim to the lands they still held

24. The Whiskey Rebellion • Congress passed a tax on American-made whiskey in March 1791 • Farmers who produced small amounts argued they could not afford the tax • Whiskey Rebellion (1794) – protesters refused to pay the tax; tar and feathered tax collectors • Some called themselves the “new Sons of Liberty” • Washington saw them as a threat to federal authority • Congress had power to pass the tax under the Constitution • Men from state militias were assembled, led by George Washington; the Whiskey Rebellion ended without a battle – most of the rebels fled

25. Washington’s Farewell Address • Washington decided not to run for a 3rd term (1796) • Believed that by stepping down, he would remind Americans that he was only a president, not a king • Wrote farewell address with the help of Alexander Hamilton and James Madison • Spoke of what he believed to be the greatest dangers to the American republic • Dangers of foreign ties and political divisions at home • Expressed concerns about the public debt – government should try not to borrow so much money • Wanted to be free from outside influences and avoid diplomatic problems • Believed disagreements between political groups weaken government • Worried regional differences could lead too easily to political conflict

26. Chapter 10 Launching the Nation (1789-1800) Section 5 John Adams’s Presidency

27. The Election of 1796 • Election of 1796 – first time more than one candidate running for office • 2 political parties formed during Washington’s time in office • Federalists chose John Adams and Thomas Pinckney • Republicans chose Thomas Jefferson (former secretary of state) and Aaron Burr • Both sides attacked each other • Republicans called Federalists the “British Party;” Federalists said Republicans overly influenced by the French • Republicans called Adams a “Royalist;” Federalists questioned Jefferson’s political skills • Hamilton did not like Adams – tried to get Pinckney elected instead • Adams narrowly defeated Jefferson; person who came in 2nd place became the vice president • Adams = pres., Jefferson = v.p.

29. President Adams and the XYZ Affair • One of Adams’s first goals was to improve relations between the U.S. and France • French had been using privateers to attack American ships • XYZ Affair - Adams sent U.S. diplomats Elbridge Gerry, John Marshall, and Charles C. Pinckney to Paris • French foreign minister Talleyrand would not speak with them • 3 French agents paid them a secret visit – Talleyrand would only discuss a treaty if they paid a $250,000 bribe • French government also wanted loan of $12 million • Adams told Congress the peace-seeking mission had failed; described the events, substituting the letters, X, Y, and Z for the names of the agents • Federalists called for war with France

30. President Adams and the XYZ Affair (continued) • “Millions for defense, but not one cent for tribute!” – response of the American people • Adams feared war, asked Congress to expand the navy to a fleet of more than 30 ships; wanted to keep peacetime army of 30,000 troops – Congress approved both • Adams did not ask Congress to declare war – tried to reopen peace talks • Believed most people were against the war • Worried about the cost of war • American and French ships began fighting in the Caribbean • As a result of Adams peace efforts they signed a treaty that stopped the fighting between the ships • Adams forced two members of his cabinet to resign for trying to block his peace efforts

31. The Alien and Sedition Acts • Republicans criticized Adams for making the military stronger • Attacked Federalists for supporting war with France • Alien and Sedition Acts – passed by Congress in the summer of 1798 • Alien Act – allowed the president to have foreign residents removed from the country; could be removed if the president believed they were involved in plots against the government • Sedition Act – U.S. citizens could not join any plots against the government’s policies; also made it illegal to “write, print, utter, or publish” any false or hostile words against the government or its policies • Laws applied mostly against Republican newspapers

32. The Alien and Sedition Acts (continued) • Kentucky and Virginia Resolutions – passed in 1798 and 1799 • Madison wrote the Virginia Resolutions; Jefferson wrote the Kentucky resolutions • Stated Alien and Sedition Acts were unconstitutional • Federal government did not have the power to pass such laws – interfered with state government • Madison and Jefferson argued that state governments could ignore any federal laws they found to be unconstitutional • Asked Congress to repeal the Acts; Congress refused • A later Congress decided not to renew them • The resolutions gave support to the idea that state governments could challenge the federal government • This precedent would help other politicians who wanted to declare laws or actions of the federal government to be illegal

33. The Election of 1800 • Adams decided to run for re-election in 1800 • Thomas Jefferson and Aaron Burr vs. Adams and Charles Pinckney • Republicans challenged the legality of the Alien and Sedition Acts; criticized Adams’s creation of a permanent army and the higher taxes needed to pay for it • Federalists called Jefferson a pro-French revolutionary; if elected, would ruin the country; against organized religion • Republicans reminded voters that Jefferson was the author of the Declaration of Independence – could be trusted to protect liberties • Jefferson actively sought support; Adams took little part in his own campaign • Hamilton worked again to sabotage presidential campaign of Adams

34. A Narrow Republican Victory • Jefferson and Burr won 73 electoral votes each vs. 65 for Adams and 63 for Pinckney • Republicans won the election – but the tie caused a problem • Both Jefferson and Burr eligible for the presidency • Decision went to the House of Representatives • Federalists refused to vote for Jefferson, tried to elect Burr; Republicans voted for Jefferson • Result = another tie, another vote; repeated more than 30 times • Finally, some Federalists refused to vote for anybody • Hamilton trusted Jefferson more than Burr, worked on his behalf • Republicans elected Jefferson

35. A Narrow Republican Victory (continued) • 12th Amendment – result of problems with the voting system – created a separate ballot for president and vice president • Loss of presidential election weakened the Federalists; Adams retired from public life • Jefferson believed the transfer of power between the parties showed the strength of the U.S. system of government