Launching the New Ship of State

1. Launching the New Ship of State

2. Americans fear central authority Debt is monstrous Worthless paper money (state and national) Lack of hard currency French Revolution The whole world is watching, and wondering Issues at Hand

3. Const. Established in 1789 Population is doubling every 25 years 1790 census = 4 million people City populations growing (which ones) Growing Pains

4. 90% ag Only 5% live west of App. Mountains Trans- App. Mnt. Overflow concentrated in KY,TN,OH Problem- Spanish own mouth of Miss. River, Brit agents offering gold in trade Growing Pains

5. Only president nominee ever to receive all electoral votes Doesn’t really want the job Procession from Mount Vernon to temporary capitol in NYC GW for President

6. Cabinet not specifically mentioned in the Const. Only 3 department heads at first Sec. of State = TJ Sec. of Treasury= AH Sec of War = Henry Knox GW Cabinet

7. Many states ratified the const. With understanding that Bill of Rights would be amended How to make amendments Const. Convention requested by 2/3 of the states or 2/3 vote in both houses of Congress James Madison- drafts amendments himself, guides them through congress Bill of Rights

8. Amendments 1-10 Provides us protections Directly linked to our experiences with the British Problem -Fear that stating these rights, means that literally only these rights are protected Solution- 9th Amendment= rights to the people 10th amendment = rights to the states Success- created a strong central government, yet provides protection for minority and individual liberties Bill of Rights

9. Sets up Supreme Court Chief justice and five associates, as well as federal district and circuit courts John Jay ( co author of Fed. Papers with JM) becomes 1st chief justice Judiciary Act of 1789

10. Everybody knows AH is smart Some believes he loved country more than country men Very demanding and controlling, often times interfered with other departments (Sec of state) Hamilton and Public Credit

11. Hamilton’s plan Create fiscal polices that favor rich In turn, the rich support the government economically and politically Hoped prosperity would then go to lower classes Hamilton and Public Credit

12. Funding at par- Federal government will pay debts at face value with interest Roughly over 54 million dollars People have no faith in governments ability to pay off debts Speculators buy debts from people, as low as 10 cents on the dollar Hamilton and Public Credit

13. “Assumption” AH convinces congress to assume state debts, roughly 21.5 million dollars “Assumption” ties states to federal government Problems? Hamilton and Public Credit

14. Most northern states are in debt (Mass) Most southern states have debts paid off (Vir) Southern States hesitant Hamilton agrees to have capitol moved to Potomac, in return South will vote in favor of “assumption” Compromise of 1790

15. Father of the National Debt New debt is 75 million Debt ( within limits) is a natural blessing? Why? More creditors that owe government money, now these creditors have a vested interest in National Government’s success AH

16. Tariff- tax on imports Tariff Act of 1789 Low tariff (8%) on dutiable imports Done in hopes of protecting young manufacturing industries Congress is dominated by agricultural interests, thus tariff remains low How to pay off the debt

17. Excise Tax- tax on domestic goods 1791- Excise Tax on whiskey Aimed at western farmers Whiskey is much easier to transport, compared to grains In some areas it is used as currency How to pay off debt

18. Bank of United States Private institution, government is major stock holder Treasury can deposit surplus money Bank not only safeguards money, but keeps money in circulation thus helping the economy Print a stable and sound national currency Hamilton and the National Bank

19. TJ- strongly against bank If constitution doesn’t literally state/ grant a right to federal government, then right belongs to the states If the constitution doesn’t say it, then its forbidden (Literal/strict interpretation) Hamilton and National Bank

20. Hamilton’s argument What the constitution doesn’t forbade, it permits Necessary and Proper clause If government is to regulate commerce and collect taxes, national bank is not only proper, but a necessity Loose interpretation Hamilton and Bank

21. North, commercial and finance centers support it South, agriculture, against it 20 Charter In Philly 1/5 owned by Federal Government Rest of stock, open for sale Bank of the US 1791

22. SW Penn. Excise tax hits them hardest Even preachers paid in “Old Monongahela Rye” Erect Whiskey poles “Liberty and no Excise” Whiskey Rebellion

23. GW summons militias of several states (many doubted him) 13,000 troops march to W. Penn. Where is the rebellion? 3 rebels killed Fed’s point of view- good display of the strength of the federal government Anti Feds- brutal display of force- “Using a sledge hammer to kill a gnat” Whiskey Rebellion

24. AH’s plan establishes good credit for US Not every one is pleased with the plan Prior, no national parties Madison and TJ tried to keep their disputes within congress Newspapers start backing JM and TJ Political parties not in Const. But can be seen as beneficial Party out of power “The loyal opposition” makes sure federal government doesn’t get out of touch with peoples’ needs Political Parties

25. Hamiltonian Federalists Jeffersonian Democratic- Republicans The parties

26. GW’s second term, foreign policy issues create even bigger divide between parties Early on, FR is peaceful Most all Americans (except ultra conservative Feds) embrace it Seen as the second chapter in the “glorious revolution” 1793- Reign of Terror Violent overthrow begins Federalists are now fearful of FR, paranoid about JDR’s could want to rise up JDR’s a few rich men losing their heads is worth the price of human liberty The Impact of the French Revolution

27. 1778 Franco American Alliance was established US must help France defend West Indies Colonies from British Demo-Reps- want to honor France, they helped us, we owe them GW Neutrality Proclamation

28. GW, and the Federalists, want to avoid the war The US is militarily week, economically shaky, politically disunited Strategy of Delay- accepted by all founding fathers, delay is a necessity considering state of US Neutrality Proclamation 1793 US is neutral, tells US citizens to be impartial towards both camps Begins the “isolation” style of diplomacy GW Neutrality Proclamation

29. Edmond Genet, Frn rep, lands in Charleston Starts hiring privateers Thinks all of US supports Frn, starts raising armies to invade SPN FLA and British Canada (without French Consent) Even Madison and TJ are appalled Expelled Citizen Genet

30. 1778- Alliance favors both 1793- only France has something to gain *France never asked the US to join the fight US is neutral, thus can send food to West Indies If America joined FRN, British would then blockade US coast The complexity of War

31. Still in Northern area, violating treaty British aid Native any way possible Little Turtle, war chief of Miamis, (in Ohio) embarrassed us forces during 1790, 1791 The US and Britain

32. 1794 US led by General “Mad Athony” Wayne Brits don’t help the Natives upon retreat Natives want peace Battle of Fallen Timbers

33. US gets large amounts of land in Old Northwest, most of Indiana and Ohio Natives get 20,000 payment, annual payments of 9,000, right to hunt in the land they gave up sovereign status Treaty of Greenville 1795

34. Royal Navy steals 300 merchant ships Impressed majority of sailors, others sent to jail Demo-Reps- want to declare war on England Feds- US economic development needs trade relationship with England to survive. US and England at Sea

35. Sent to London Demo-Reps are outraged Federalists and Anglophile AH- secretly tells Britain our negotiation strategy Jay’s treaty British will leave posts on American soil (T of Paris) Britain will pay for damages of recently hi-jacked merchant ships US will continue to pay off Pre Revolution debts Treaty doesn’t mention- future seizures, impressments, or Britain’s relationship with Natives John Jay

36. Demo-Reps determination increases, as treaty is seen as surrender to the British Northern merchants get compensation Southerners get no compensation for lost slaves Jay’s Treaty

37. Also known as Treaty of San Lorenzo Spain sees Jay’s Treaty worried about the Anglo-American alliance Spain gives us everything we ask for Free Navigation of Miss. River, right to deposit at New Orleans, large portion of Western Fla. Pinckney's Treaty 1795

38. Controversy and age, GW retires (sets two term precedent) Farewell Address Warns against political parties Says to avoid permanent alliances Retirement of Washington

39. Federalists- can’t select AH, economic policies made speculators rich, but everybody else disdains him, select VP John Adams Demo-Reps- Thomas Jefferson The Election of 1796

40. Washington is gone, dirty politics begins Feds called DR- “Fire eating salamanders, poison sucking toads” Feds and Demo Reps eat in separate areas Campaign focused more on personalities Election of 1796

41. VP= Thomas Jefferson John= old (62), short, bald, fat “His Rotundity” Faces many issues GW-nobody can fill his shoes AH- hates him, secretly plots with cabinet members against him US could be at war with France John Adams

42. French outraged by Jay’s Treaty Says it violates their alliance French begin attacking American merchants John Adams- tries to stay neutral, sends three men to negotiate with France The US and France

43. 1797- US diplomats arrive in Paris Three Frenchmen stop diplomats (XYZ) before meeting king Tell US diplomats, they must pay 250,000 dollars just to talk to the king Bribes are common in Europe, but this price is outrageous Which political party does this favor? XYZ Affair

44. War preparations begin Navy department created Marine Crops reestablished New Army authorized All fought in the sea, mainly in West Indies Quasi War 1798-1800

45. Britain is supplying US with war material FRN- fearful of the potential alliance, agree to renegotiate Federalists were outraged, most including AH were War Hawks US and France

46. US is weak, doesn’t want war FRN- fighting Britain, doesn’t want to fight US End alliance with France Huge impact Why? Convention of 1800

47. Alien and Sedition Acts 1. Immigrants must be in the US for 14 years to earn citizen ship How does this help the Feds? 2. President can deport/imprison dangerous foreigners, in times of peace, or war 3. Sedition Act- huge restricts of free press and speech Anyone who speaks against the government, can be imprisoned and fined Trampling our Rights-Federalists Style

48. Directly conflicts with the Constitution Supreme Court made up of mainly federalists- let it pass But set it to expire in 1801, so it can’t be used against them in next election Trampling our Rights-Federalists Style

49. Vir= Madison Ken= Jefferson Written in secret Contract/Compact theory Constitution is a contract between Fed. Government and states If Federal gov. acts unconstitutionally, states have right to nullify law Strongly advocating for states’ rights With be used by the South during the ACW Virginia and Kentucky Resolutions