Chapter 6: The United States Begins
Question: What does the 1790s hold for the United States and George
Washington?
Answer: Debt, Security, and Political Parties issues.
George Washington was elected on personal prestige, physical stature,
commanding manner, and elegant way of life. (King George I of the
United States.)
Still needed to face issues from war: Debt, foreign relations,
choosing sides.
Congress needed to raise money, and fast.
lower debt, raise army from $$ raised and hold the wolves at
bay (payback debtors and land grabbers)
Chapter 6: The United States Begins
Shaping the Government by the Establishment of the Constitution :
•Adopted Great Compromise to establish two-body legislature
(Congress), whose representation was a fixed number of Senators,
and a fixed number of reps based on population. National Census
taken every 10 years will determine # of reps in house.
•James Madison of Virginia wrote the first 10 amendments – Bill of
Rights (Objections to the Constitution raised by the states during
ratification process.
•Tariff bill to raise money.
•Senate created the federal courts – Judiciary Act of 1789 set up the
Supreme Court, three circuit courts, and thirteen district courts. Later
in the case of Marbury v Madison (1803) “Judicial Review” was est.
– power to declare any law passed by Congress or the President as
Unconstitutional.
Chapter 6: The United States Begins
•Congress set up Executive departments of Treasury, State, and War, along
with positions for Attorney General and Postmaster General.
(Alexander Hamilton as Sec of Treasury, Edmund Randolph as Attorney
General, General Henry Knox as Sec. of War, and Thomas Jefferson as
Secretary of State.)
•President’s job to enforce domestic policy, Congress’ job to write domestic
policy, judicial to interpret laws.
•Cabinet members were now presidential advisors became President’s
Cabinet.
•Tackling the Debt Issues. Alexander Hamilton’s Job
•Prepared a program with 3 major reports:
–January 1790 – on the Public Credit
–December 1790 – on a National Bank
–December 1791 – on Manufacturing
•Reports are going to shape your future history of the U.S..
Chapter 6: The United States Begins
Early 1790s, US is in serious debt ($54 million), $10 mil owed
to France and Dutch. Also owed $20 mil to US citizens.
•Report on Public Credit – January 1790
–Have to pay foreign debt to have creditability.
–Bonds issued during War were bought at face value, the war and the
depression, forced owners to sell bonds for whatever they could get.
–Government on hook for bonds, Hamilton proposed to rely on
speculators to buy up the bonds for as little as 15 or 20 cents on the
dollar. (Madison wanted to buy bonds for an amount based on length of
time the bond was held.) National credit could only be restored if bonds
were paid back in full.
–Should States pay for own debts or should the government pay for the
states debt? Some say the states should clear their own debt, others say
the government needs to clear it for them. If state debt was not assumed
by the government, the speculators buying the stock would defeat the
payment of the government debt.
–Strike up the compromise: Hamilton proposed settling the nation’s
capital in VA on the Potomac River after 10 year’s in Philly.
Chapter 6: The United States Begins
–Total debt of $75 million was the “funded” with new bonds earning interest
from 3 to 6 %. (Bankers, Merchants, and wealthy speculators. These people
became supporters of the national government. Support for the government
was required in order to secure the value of new bonds.
–Moving from agrarian based society to one of manufacturing. Thanks to
Hamilton.
–May have started rift between agrarian South and the mercantile North. Split
supported by the moral issue of slavery will endanger the future of our nation.
•Report on National Banks – December 1790
–Creation of the Bank of the US: Gov’t would put $2 mil of $10 mil capital
and appoint 1/5 of the bank’s directors. Private investors would supply the rest
, and could use gov’t bond as part of their investment. Why a new bank?
•To collect taxes – bank would be the gov’t’s financial agent to provide a
safe place to deposit the gov’t’s cash and lend the gov’t $$$ when needed.
•Provide paper currency – Based on the bank’s capital , the bank could
issue bank notes to supplement the short supply of specie (gold and silver
coins). Note are legal tender to keep the economic current flowing.
•Develop new Businesses – Business leaders were in need of capital.
Chapter 6: The United States Begins
•Opposition to the Bank of the US
–Thomas Jefferson and James Madison (Virginians) - Argued for the
country to remain dependent on the hard-working agrarian society vs.
Alex Hamilton (New York) a country based on manufacturing.
•Strict Interpretation of the Constitution – Congress cannot est. a fed.
Bank, b/c the Constitution says you can’t. Congress and the president does
not have any powers unless the Constitution grants them that power.
•Broad interpretation of the Constitution – Congress and the pres.
Have the power to do everything necessary and proper to carry out any of
the powers granted in the constitution. (Elastic Clause)
–Bill to establish the Bank of the US was signed on February 25, 1791.
–Arguments over ‘Strict” and “Broad” interpretation is going to start to
divide followers into those who support Jefferson/Madison and those
that support Hamilton. Emergence of political parties.
•Report on Manufacturers – December 1791 – Key feature of report was the
request for Congress to pass a protective tariff to keep out good made in Europe
even if they were cheaper.
Chapter 6: The United States Begins
•Report on Manufacturers – December 1791 – Key feature of report was the
request for Congress to pass a protective tariff to keep out good made in Europe
even if they were cheaper.
–People would have to make an buy product from here. Promote homegrown manufacturing.
–Planters & farmers would have to pay more to more for their
manufactured good.
–Northern manufactures who need imported tools, glassware, furniture,
and the other items farmers purchased from them, would not have
access to these item b/c of tariffs.
–Tariff defeated. Tariffs would only be used to pay for the costs of
government, not to promote industry.
•Foreign Affairs – When President Washington started his 2nd term of office on
3/4/1793, foreign affairs, especially the French Revolution, the delicate posture of
our foreign affairs was his major reason for seeking a second term. Specifically
relations with Great Britain, France and Spain.
Chapter 6: The United States Begins
•Great Britain and the Indians in the NW: Even after to Peace Treaty of 1783, GB
still had trading posts in the US, and were supplying Native Americans. Inevitable
conflict w/ Nat. Americans, who were fighting the “European Invaders” Disastrous
battle at Fort Washington (Cincinnati). It is going to be a rough haul trying to settle
the Northwest.
•Spain: Spain controlled and would not allow the US access to the MS river
through New Orleans. Also supported the Creeks and Cherokee tribes. Still wanted
to hold on to the SW and detach Kentucky and Tennessee from the US.
–CANNOT AFFORD TO GO TO WAR W/ GB OR SPAIN OVER THESE ISSUES.
REPUBLIC TOO WEAK. NEED TO NEGOTIATE.
•France: French Revolution took place 5 days after Pres. Washington took office in
1789.
•FR wiped away the oppressive monarchy, nobility and higher clergy of France.
•Started wars with Austria and Prussia.
•Extreme Radicals, Jacobins of Paris, took control of France.
•“Reign of Terror” was a government of the guillotine.
•Declared ‘World Revolution” and would help any other nation overthrow their
gov’t.
•The rest of Europe (GB, Spain, Prussia, Austria and Holland) wage war against the
aggressive French Republic.
•We were supposed to be allies w/ France.
Chapter 6: The United States Begins
•Even though Pres. Washington was forced to recognize the New France
Government, the new US republic was still too weak to engage in war.
Passed a Proclamation of Neutrality, which declared that the US would not
take sides in the struggle in Europe.
–Proclamation of Neutrality gave away bargaining positions with GB.
•Jay’s Treaty: B/C France ignored the Proc. Of Neutrality, and waged war
against GB in US ports and the West Indies, GB did the same by seizing
American ships and “impressing” them to serve in their navy.
–War with GB threatened, Hamilton’s financial plan b/c of needed revenues
from GB and the possibility of acquiring more debt.
–May 1794, Pres. Washington sent Chief Justice John Jay to London to
make a treaty with GB.
•Could not stop GB from seizing ships and “impressing” sailors.
•Received open trade routes to India and West Indies, under tight
restrictions.
Chapter 6: The United States Begins
•Received promise that GB would abandon their frontier fur trading
post by June 1, 1796. Most significant term of this treaty.
•Border btwn US and Canada left unsolved, would be resolved by a
joint commission at a later time.
•For all of it faults of what the treaty did not resolve, this was the
best solution to keep peace w/ GB.
•Pinckney’s Treaty w/ Spain: With the Jay Treaty signed, Spain
feared the alliance of GB and US. Europe’s problems, now became
US opportunity.
–Spain had made peace w/ France, while GB was still at war, and were
concerned that GB/US would work together to seize their possession in Nor.
Am. – Florida and Louisiana.
–Thomas Pinckney went to Madrid, Spain to seek the freedom of American
citizens to navigate the Mississippi River. Spain was eager to negotiate.
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Pinckney’s Treaty was concluded in October 1795:
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Spain granted every point that the Americans had been demanding for
dozens of years.
1. Free Navigation of the Mississippi River
2. Acceptance of 31degrees north latitude as the southern boarder of
the US.
3. “Right of Deposit” – right to transfer cargoes at New Orleans from
Riverboats to ocean-going vessels w/out paying duty.
Treaty of Greenville of 1795: After total victory at the Battle of
Fallen Timbers in Northwestern Ohio in 1794, The US made a treaty
w/ the Indians of the NW.
– Chiefs of the Delaware, Shawnee, Wyandot, Miami Confederacy,
and other tribes agreed to open up most of the Ohio Territory to
settlement.
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These 3 treaties of 1795 were important in establishing the
security of the new American Republic.
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Reduced fear the KY and TN would join Spain.
Temporarily brought peace to the Northwest.
Gained recognition of the borders won from GB after the Revolutionary
War.
Keep them out of war and allowed President Washington to finish his term
of office in time of peace.
Rise of Political Parties
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Hamilton's programs built a national economy, but divided the
country into two camps – political parties – each shaping its
politics according to varying mix of economic interests, social
position, and philosophical beliefs.
Supporters were called “Federalists”, favored Hamilton’s economic
programs, strong central government, and had little faith in the
public.
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Federalists were “the wise, the good, and the rich” or the rich, the
well-born, and the able”.
Wanted a government “of gentlemen, by gentlemen, for
gentleman”. The hoity-toity were scared by the French Rev, and
did not want that to happen here.
In the other corner – Madison and Jefferson
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Disliked cities and factories that were likely to form slums.
Wanted a nation of small farmers, who owned property and had a
stake in society.
Became known as the Republicans.
Opposed Hamilton’s economic policies, and feared a strong central
government.
Washington hated the whole idea of political parties
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Infighting an compromises did not appeal to him.
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He preferred clear and simple principles of patriotism.
What he really wanted to do is go home to Virginia, but the three
stooges (Madison, Jefferson, and Hamilton) persuaded him the
country needed him. He again answered the “Call of Duty”.
Washington’s Farewell Address – September 1, 1796
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Washington would not serve another term. Set precedent for
future president to give up power after two terms. (Until FDR)
Called the US an Experiment, and urged the citizens to remain
loyal to the union and to a republican form of gov’t.
Warned against sectionalism (loyalty to and love of a region, i.e.
North, South, East, West) and political partisanship.
Warned against “entangling alliances” – playing favorites in the
community of nations.
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Election of 1796:
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Federalist candidate was John Adams
Republican candidate was Thomas Jefferson.
John Adams won by a narrow vote in the electoral college of 71 –
68. Jefferson became VP, through Constitutional law.
What George Washington had accomplished:
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Military hero in the war of Independence.
Chief force in starting a new gov’t.
Helped country grow by avoiding war w/ GB.
Unswerving devotion to his country.
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John Adams was:
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A farmer and a lawyer, not a military hero.
Short of statue, with no personality.
Lacked the prestige of Washington! How did he become president? He
was a great man.
• Served his country well during the fight for independence by:
– Write the petition to the king and the Declaration of Rights and
Grievances.
– Recommended Washington as commander of the Army.
– On committee that wrote Dec. of Independence, and defended the
document.
– Served on 80 congressional committee and chaired 25 of those
committees.
– Represented the US in GB, France and Holland.
– Negotiate peace w/ GB
– Served the thankless role of VP for 8 years.
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He was also a vain and stubborn man who made mistakes in
harmonizing his Cabinet, and refused to take account of political
parties.
The Cabinet – His first and worst mistake was retaining chief
cabinet officers from Washington’s second term. (Sec of State
Timothy Pickering, Sec of Treasury Oliver Wolcott, Sec of War
James McHenry, & Attorney Gen. Charles Lee)
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All were second-raters
All were personal friends of Adams enemy Alex Hamilton.
No precedence to replace them w/ first change of presidency, but he
still waited too long.
The Trouble with France
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France’s new gov’t, five men called the Directory, were unhappy
with Jay’s Treaty, and the recall of ambassador James Monroe.
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The Trouble with France
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France’s new gov’t, five men called the French Directory, were
unhappy with Jay’s Treaty, and the recall of ambassador James
Monroe.
The Directory spread their high seas terrorism to U.S. Ships in
French harbors, and refused to receive C.C. Pinckney as the
replacement for Monroe, and ordered him to leave. (Not accepting
an ambassador is a sign of not recognizing a nation.)
Adams advised Congress “we need to convince France we are no
longer a colony”.
Sent John Marshall and Elbridge Gerry to join Pinckney as a
commission to deal with the French.
XYZ Affair: French foreign minister, Talleyrand, refused to meet
the commission, and sent agents to meet them instead.
Chapter 6: The United States Begins
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XYZ Affair: French foreign minister, Talleyrand, refused to meet the
commission, and sent agents to meet them instead.
– Wanted an apology from Adams
– A $10 mil loan
– Talleyrand wand $250,000 bribe.
Commission left France, and stirred up American Patriotism against
France.
Know as the XYZ Affair b/c Sec of State subbed the X,Y,Z for the
names of the agent Talleyrand had sent to ask our commissioners for
the bribe.
Naval War – The treaty w/ France from 1778 was renounced, and our
ships were sent to prey on the French. War was not declared but it
existed from 1798 – 1800. Captured 80 ships, probably surrendered.
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Adams, like Washington, avoided temptation to put a weak new
nation in a war.
– Adams agreed to send a new minister to France to deal w/
Talleyrand. W/in days of the new minister sailing to France,
Napoleon Bonaparte overthrew the corrupt French Directory.
– Napoleon wanted to establish himself in France and Europe, did
not want any beef with the U.S. Sept. 1800, Napoleon signed an
agreement that ended the alliance of 1778, freeing the U.S. from
any obligation to assist France in War. U.S. waived damage claims
done to our naval cruisers since 1793. Allowed US to enter 1800 in
peace.
Alien and Sedition Acts, 1798 – Federalists passed a series of laws to
make the Republicans look bad, and to insure power for their party.
– Oppressive measures outraged the country and led to their
downfall.
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Alien and Sedition Acts, 1798
– Naturalization Act – Extended the time it took to become a citizen
from 5 to 14 years.
– Alien Acts – Gave the President at once the power to deport any
alien he thought to be too dangerous to the nation and then, in time
of war, the power to deport or arrest all aliens who came from an
enemy nation.
– Sedition Act - Extremely Harsh. Provided heavy fine and a jail
term for any person found guilty of “ combining and conspiring to
oppose the execution of laws, or publishing false scandalous, or
malicious writings against the President , congress, or the
government of the US.” Feds could use to stop all criticism of
party’s government.
– Adams did not approve but also did not reject these Acts.
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Were the Alien and Sedition Acts unconstitutional?
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Sedition Act attacked the freedoms of the speech and the press.
Courts did not have the power, yet (Marbury v Madison, 1803 is
only a few years away), to defend the public. Who could?
Virginia Resolutions – Virginia legislature w/ James Madison, declared
that each state had the right to judge the constitutionality of measures
passed by Congress.
Kentucky Resolutions – Thomas Jefferson wrote a state could declare
acts of Congress “null and void” , and the rightful response to an
unconstitutional act of Congress was “nullification” by the states.
Constitution did not state who had this power, Madison and Jefferson’s
states’ rights doctrine would be carried so far that it would lead to civil
war.
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Election of 1800 – Adams kept us out of war, but the Alien and
Sedition Acts ruined his career and he did not win re-election.
– Republicans won a very close election: Republicans Jefferson and
running mate Aaron Burr each had 73 electoral votes; Federalist
Adam and his running mate C.C. Pinckney had 64 and 63 votes
respectively.
– Since there was a tie, final vote had to go to the House of
Representatives.
– On February 16, 1801, in the new capital city of Washington, the
House correctly chose the best man for the job of president,
Thomas Jefferson.
– After this election, the Twelfth Amendment was added to the
Constitution in 1804. Provided for the naming of President and
Vice President separately on each elector’s ballot.
Chapter 6: The United States Begins
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Election of 1800 – This was the last election the Federalists came close
to the presidency.
Adams’ Legacy – Was a better man that history can portray him.
Followed Washington’s lead to keep a young, fragile nation from
going to war, and his devotion to the country during its most desperate
time cannot be questioned. His attempts to destroy Jefferson and the
Republican party will always be the albatross of his presidency.
Adams left the presidency and returned to Massachusetts. He
reconciled his friendship with Jefferson, and corresponded with in
their later years.
Ironically, these once allies of the Independence, and later bitter foes,
both died on July 4th, 1826. Oooh! Spooky!