Chapter 7: Launching the New Republic (1789-1800)
I. Constitutional Government Takes Shape- New York became the new state capital for the
United States. As the congressmen slowly began to congregate they were faced with the very
serious task of making decisions on things the Constitution had left ambiguous. There was no
president to help these congressmen decide what to do.
A. Defining the Presidency- Many feared that the president would become a virtual king,
which is why Washington with his reputation for honesty was chosen to be the first president. He
formed the first cabinet but otherwise Washington rarely spoke out against opponents of
government policy and generally limited his statements to matters of foreign relations and
military affairs. He deferred to congressional decisions concerning the domestic policy and cast
only two vetoes in his eight-year term.
1. Washington tried to reassure the public by striving to understand the two
groups that dominated American society—the northern merchants and the southern planters. He
balanced the cabinet between them.
2. He believed that citizens shouldn’t set the policy through elections but rather
choose educated men who would make laws in the people’s best interest.
3. Washington longed to leave Philadelphia (capital from 1790-1800). He feared
dying in office and setting the president for a lifetime presidency.
B. National Justice and the Bill of Rights1. Judicial System- The task of actually creating and structuring the judicial
system fell to this first Congress. Many states already had a well-established court system and
didn’t want to change.
a. Judiciary Act of 1789- This established a federal district court that
operated according to local procedures.
2. Bill of Rights- Americans feared that a strong central government would lead to
tyranny. Antifederalists believed that to defend against tyranny state governments should be
strengthened at the expense of the federal government. James Madison helped to draft the first
ten amendments that guaranteed basic rights to citizens without stripping the federal government
of any necessary authority.
II. National Economic Policy and Its Consequences- Washington’s reluctance to get involved in
domestic affairs allowed secretary treasury, Alexander Hamilton to set many of the
administration’s priorities.
A. Hamilton and His Objectives- Hamilton’s biggest fear was war with Britain or Spain,
which would put the states even deeper into debt. The US had to achieve self-sufficiency and
maintain a strong merchant marine in order to survive. He also worried that people would be
more loyal to their individual states that the nation. He believed that the government had to build
support among the politically influential citizens through an appeal to their financial interests.
B. Report on Public Credit- The US had debts to not only foreigners but also Americans.
Hamilton suggested that the government pay back the foreigners immediately by selling the land
in the West. For the debts to Americans, Hamilton wanted to honor it by selling new securities—
federal “stock” and western lands. This would reduce interest payments. Hamilton knew that
investors wouldn’t object because their investments would be more valuable and secure. He
suggested that it be a perpetual debt so as to unite the economic fortunes of the nation’s creditors
to the government.
1. This was highly controversial because speculators had bought up large holdings
at the expense of the unsuspecting original landholders and were now set to receive huge
benefits. It ignored the wartime sacrifices of ordinary citizens.
2. Also, MA, CT and SC were the only three states that hadn’t tried to do
anything about their debt and now they were being rewarded for irresponsibility.
3. Hamilton was able to get his proposal passed by promising Virginians that the
state capital would be moved into their state.
4. Europeans grew enthusiastic of these US bonds that by 1792 they were selling
at 10 percent about their face value.
C. Reports on the Bank- Hamilton intended to diversify the national economy with a
federally chartered bank. The bank would raise money through purchased shares. Private
investors could purchase ¾ of these shares with government bonds so the government would
recapture the debt.
1. Pros- It would cost the taxpayers nothing and benefit the nation, it would be a
safe place to deposit tax revenues, it would relieve the scarcity of hard cash by issuing paper
money, it would regulate state banks and would provide credit to expand the economy.
2. Cons- People worried that it would give an elite group special power to
influence the government, like the Bank of England. If a significant number of congressmen
owned bank stock they would likely support that over the national good. Some said it was
unconstitutional because it wasn’t specifically stated.
3. Congress passed it by a thin majority. Washington turned to Hamilton and
Jefferson for advice. He passed the bill and the bank was chartered.
D. Reports on Manufacturing- Hamilton called for American economic self-sufficiency.
He wanted to stimulate the industrialization of Great Britain and advocated protective tariffs.
1. People opposed the high tariffs because it would hurt the southern planters, the
high taxes would transfer over to the consumer and raise prices. The tariffs were rejected but
there were higher duties on goods imported on British ships than the American merchant marine.
E. Hamilton’s Legacy- Hamilton’s plans helped the moneid men of America. Those who
supported him called themselves Federalists but they actually favored a centralized national
government instead of a truly “federal” system with substantial powers left to the states.
Federalists dominated NE, NJ, SC, PA and NY while they were strongly opposed in the south.
F. The Whiskey Rebellion- Hamilton had recommended a tax on domestically produced
whiskey to augment the government’s revenue on import duties. Hamilton even alleged that the
nation’s morals would improve if they drank less.
1. Western Pennsylvanians were particularly pissed because it was one of their
main industries because whiskey was easier to ship than grain. Also, they violators were to be
tried at federal court, so they had to travel all the way to Philadelphia.
2. Mobs attacked the marshals who were giving delinquents summons to court.
There were even plans to create an independent country from the 6 western states.
3. Finally Washington had to assemble a militia and march them down to stop the
protests. This rebellion showed how far the public was willing to go.
III. The United States on the World Stage- People argued about whether the country’s foreign
policy should favor the industrial and overseas mercantile interests or those of farmers, small
businesses and artisans. The US entered the international arena in 1789—the year of the French
Revolution as tensions were exploding. Most European nations perceived the French revolution
as a threat to their social orders and territories and so by 1793 they had declared war on France.
For most of the next 20 years Europe would remain in a state of war.
A. Spanish Power in the Far West- The Spanish began to finally make peace with the
Indians that had previously threatened their settlements in New Mexico and Texas. The Spanish
enjoyed a monopoly of the western coast and sent out its “Manila galleons” every year. But, they
were being challenged by Russian fur traders who sailed to Alaska to trade for pelts, which they
sold to the Chinese.
1. “China Trade”- James Cook revealed the wealth such pelts were bringing to the
Russians. British and American traders began trading with the Northwest Indians as well as the
Hawaiians and Chinese.
2. Responding to these inroads Spain expanded its territory and created “New
California”. Immigration failed and the colony was sustained primarily by missions. The Indians
initially welcomed the Spanish but grew to hate them because of the missionaries that sought to
convert and civilize them and the diseases the Spanish brought. Spain also attempted to befriend
the Indians in present day Arizona and thus expand their empire from Louisiana to the west
coast, but the Indians resisted.
B. Trans-Appalachian Frontier- East of the Mississippi Spain, Britain and the US fought
for territory that was the Indians homeland. Spain tried to win the newcomers allegiance by
offering them citizenship. Even leading citizens were open to foreign manipulation as the
Spanish bribed some well-known politicians.
1. Washington pursued a policy of patient diplomacy as Spain unexpectedly
opened the port of New Orleans but at the cost of a 15% duty. He moved to weaken the Spanish
influence in the West by neutralizing Spain’s most important ally, the Creek Indians.
Washington forced Georgia to return the Yazoo Tract to the Creeks.
2. Washington adopted a harsher policy with Great Britain’s allies in the Great
Lakes. He tried to force peace through military action, which failed twice. While employing war,
Henry Knox (secretary of war) sought to pacify the Indians through a benevolent policy.
a. Congress passed laws forbidding trespassing on Indian lands, outlawing
alcohol and in the Indian Non-Intercourse Act regulated trade. Knox also tried to influence the
Indians to become civilized which meant adopting private property and a strictly agricultural
way of life.
3. This American plan with the Indians began to fail as they were defeated in the
North and the Spanish persuaded the Creeks to renounce their contract. Many believed only an
alliance with France would counterbalance the combined strength of Britain, Spain and the
Native Americans.
C. France and Factional Politics- America remained sympathetic to the French as they
tried to write a constitution and repel invading armies. Americans hoped that after France went to
war with the Spanish and the British that they would be too militarily exhausted to continue
meddling in the West.
1. Southern reactions to the Revolution- There was a slave uprising supported by
the British in France’s Caribbean colony of Saint Domingue. White southerners grew alarmed at
the future of slavery as French planters fled to the US. The southern planters concluded that the
British would spark the same slave uprisings in the south and an Anti-British hysteria gripped the
south. Jefferson and Madison proposed steep duties against the British. Many southern planters
also feared for the land holdings in the West they ha acquired by fighting in the war. Jefferson
and Madison advocated strong measures against the British and Spanish.
2. Northern Reactions to the Revolution- The North believed that conservatism
and good relations with the British were essential to their region’s prosperity. They feared that an
alliance with France would provoke British retaliation but friendly intentions could win valuable
concessions.
3. After declaring war on the British and the Spanish, the French sent over
Edmond Genet to mobilize the American sentiment into attacking the British and Spanish. But,
Washington issued a proclamation of American neutrality. Still, Citizen Genet found support in
the south. He made George Rogers Clark and Elisha Clark into generals and directed them to
seize Spanish holdings in New Orleans and St. Augustine. They openly defied the American
neutrality but things fell apart because while southerners were willing to fight, the French
couldn’t pay them.
D. The British Crisis- Even though the Americans quickly requested Genet’s recall his
shenanigans provoked an Anglo-American conflict. The English decided that only a show of
force would deter American aggression so they issued secret orders to confiscate foreign ships
trading with the French islands in the Caribbean. The released a statement after many American
ships had already left port and were as a result able to seize 250 American ships.
1. Thousands of British sailors had fled to join the US merchant marine where
they hoped to find an easier life than under the British system. British naval officers began to
routinely inspecting American crews for British subjects and impressing them as the king’s
sailors.
2. Next the British challenged the US control of the West. Canada’s royal
governor delivered a speech urging people to destroy white settlements in the Northwest and
denying the US claims to the Ohio River Valley. Meanwhile the Spanish pushed farther north.
a. Hoping to prevent war, Washington dispatched John Jay to Great
Britain, Thomas Pinckney to Spain and Anthony Wayne to negotiate with the Indians. Having
defeated federal armies the Indians just scoffed at Washington’s peace offer but “Mad Anthony”
Wayne began to ruthlessly destroy every Indian village he came upon until the twelve
northeastern tribes signed the Treaty of Greenville which opened the area up to white settlement
and ended hostilities for 16 years.
b. Wayne’s success allowed John Jay to gain victory in London—the
British agreed to withdraw troops from American soil and gained access to the West Indian
market but only by bargaining away the US rights to load cargoes of sugar, molasses and coffee
from the Caribbean. Jay’s treaty left Britain free to violate American neutrality and ruin a
profitable commerce by restricting US trade with the French Caribbean. But still the treaty was
passed by a one-vote margin. The treaty did prevent war and stimulate an expansion of American
trade to the British Empire.
c. Treaty of San Lorenzo (Pinckney’s Treaty)- It won westerners
unrestricted duty free access to world markets via the Mississippi River. Spain recognized the
31st parallel as the southern boundary of the United States and agreed to dismantle all
fortifications on American soil.
IV. Battling for the Nation’s Soil- Americans distrusted organized political parties but, by the
end Washington’s second term, Americans had split into two hostile parties—the Federalists and
the Republicans.
A. Ideological Confrontation1. Northern Federalists- They opposed the French Revolution. Most were militant
Protestants whose middle class and elite citizens came to detest the French government’s
disregard for civil rights. The middle states that were less religious condemned the French as
radicals who incited the poor against the rich. The Federalist worried that this mob rule was in
America’s future and as a result they concluded that it was too dangerous to involve the public
too deeply in politics. They believed that the public should choose between elite candidates
according to their personal merits.
2. Southern and Urban Republicans- They entrusted the power of liberty to the
citizens and wanted property to be open to all rather than monopolized by the rich. They
interpreted the American and French revolutions as establishing a stable society responsive to the
needs of all. Southern slave owners were among the biggest proponents of republicanism but
believed that liberty and equality applied to white men only.
a. The
republicans began an organized effort to turn public opinion against the Federalists with the
publication of the National Gazette. Popular dissatisfaction led to the formation of dozens of
Democratic (or Republican) societies in seaboard cities, the rural south and the frontier.
Federalists feared these societies would grow into revolutionary organizations. Washington
denounced the societies and sided with the Federalists.
B. The Republican Party- Jefferson and Madison weren’t in any of these societies, but
they would later support Jefferson and Madison’s republican party. The Constitution’s framers
neither wanted nor planned for political factions but the controversy surrounding Hamilton’s
plans created a political split and Jefferson even resigned from the cabinet.
1. After Washington sided with the Federalists, followers of Jefferson,
Republicans (rather than the radical-sounding Democrats) began attacking the Federalists and
won a slight majority in the House of Representatives, which signaled that they were a broadbased party.
2. Federalists and Republicans used the press to mold public opinion. The number
of newspapers multiplied but they were unreliable. Still, it stimulated many citizens to become
politically active.
a. Republicans charged that the Federalists were only concerned with the
wealthy
b. Washington, stung by the attacks and lonely decided to retire after two
terms and return to Virginia. He condemned political parties and warned that the US should
avoid political connections with Europe and its wars.
C. The Election of 1796- Federalist John Adams v. Republican Thomas Jefferson- As the
election approached the Republicans cultivated a loyal body of voters to take an interest in
political affairs. The Republicans more specifically targeted immigrants to tip the scales in their
favor. The Republicans expected to win the south and the Federalists the North and South
Carolina. The critical swing states were PA and NY. In the end the Republicans took PA but not
NY and Jefferson lost by three electoral votes.
1. John Adams was better with ideas than people, more theoretical than practical
and rather inflexible. He ultimately proved unable to unify the country.
D. The French Crisis- The French interpreted Jay’s Treaty as an attempt to assist the
British in the war. Upon hearing of Jefferson’s loss the French ordered the seizure of American
ships carrying goods to British ports and every American on a British ship (even those
impressed) should be hanged.
1. XYZ Affair- Hoping to avoid war, Adams sent a peace commission to Paris but
the French minister Charles de Talleyrand refused to meet the delegation instead promising
through three unnamed agents (X,Y and Z) that talks could begin after he received $250,000 and
a loan for $12 million. In response, Congress armed 54 ships to protect American commerce and
in this quasi-war they seized 93 French ships. The Federalists also increased the size of the army
but more for a civil war as many Irish and French immigrants were near-hysteria. The
Republican Party had taken a blow due to the now anti-French sentiment. The Federalists were
well aware that the French had sent over a General Victor Collot to investigate creating a proFrench independent nation.
E. The Alien and Sedition Acts
1. Alien Enemies Act- Outlined procedures for determining whether the citizens
of a hostile country posed a threat to the US as spies or saboteurs. If so they would be deported
or jailed. It was to be used only if Congress declared war so it was not used until the War of
1812.
2. Alien Friends Act- It authorized the president to expel any foreign residents
whose activities were considered dangerous. It didn’t require proof of guilt and the Republicans
held that it was used to deport prominent immigrants critical of Federalist’s policies.
3. Naturalization Act- It increased the residency requirement for citizenship from
5-14 years, with the purpose of reducing the Irish vote.
4. Sedition Act- It forbade an individual or group from opposing any measure or
measures of the United States and also made it illegal to print any statement that would bring the
president into contempt. The Federalists wrote the law to expire in 1801 so that it couldn’t be
turned against them but the abuse could be heaped on Vice President Jefferson. The Federalists
intended to prosecute a couple of highly visible people to intimidate other reporters, not create
martyrs.
Criticism erupted in VA and KT where militia units signed petitions that the government respect
the Bill of Rights. It became clear that since Federalists controlled all three branches of
government neither the checks and balances nor the Bill of Rights would protect the people’s
rights. Madison and Jefferson anonymously wrote two manifestos on state’s rights, The Virginia
and Kentucky Resolutions, which the states officially endorsed. The intention was to invalidate
the enforcement of any federal law in a state that was deemed unconstitutional.
1. Fries Rebellion- Pennsylvania German farmers released prisoners from jail who
had refused to pay taxes needed to fund the national army’s expansion. The disturbance
collapsed just as the cavalry arrived. A civil war seemed imminent.
F. The Election of 1800- Thomas Jefferson and Aaron Burr v. Adams and more extreme
“High Federalists” who looked to Hamilton for guidance- The nation survived the election
without a civil war. Adams suddenly found the French willing to make peace. Adams obtained
the Senate’s approval only by threatening to resign, making Jefferson president. Once peace
seemed again within reach support for the Federalists eroded sharply because they had raised
taxes and national debt. PA and NY sided with the Republicans and popular concern in the
election jumped tremendously. The Federalists tried to play off religion but failed and Jefferson
and Burr won the presidency. But then the Electoral College was deadlocked in a Jefferson-Burr
tie. Jefferson was able to win by one vote.
V. Economic and Social Change- American society became more complex because there was a
shift away from small-scale subsistence farming, the migration of whites and their slaves
westward on to Indian lands and the renewal of slavery as a viable economic system. This
created tension and sharpened the lines separating races.
A. The Household Economy- The backbone of European societies had been an economy
where most of the production took place in the home by a patriarchal family and some outsiders.
Mostly it was farm families who produced food for their own consumption and bartered with the
neighbors.
1. After the Revolution, things began to change in New England where the rocky
soil just could support a family. Some couples move out west while unmarried women helped to
make cloth in the home. Merchants would come around to collect the cloth and pay the families
in cash. These were the merchants and businessmen of America, who created things like the
Pennsylvania Society for Encouragement of Manufacturers and Useful Arts in 1787 to promote
the immigration of English artisans familiar with the latest technology. NY merchants also
organized the first association for trading government bonds, which became the NY stock
exchange.
B. Indians in the New Republic- The Indian populations were decreasing dramatically
and the whites violated their Indian Non-Intercourse Act and began taking Indian lands and
crowding them on to small reservations. Many Indians became demoralized and turned to
alcohol for solace. Handsome Lake a Seneca Iroquois tried to end the alcoholism among his tribe
by appealing to religion and brought in Quaker missionaries to teach new farming techniques to
the Iroquois men who had to look for new livelihoods.
C. Redefining the Color Line- The first years of the US existence (1780s) brought
changes for African Americans who gained new freedoms. More of them became free and in
some states they were allowed to vote. By 1794 most states had outlawed the Atlantic slave
trade. But a countertrend began reversing many of the Revolutionary era advances (1790s).
Federal law led the way in restricting blacks’ rights.
1. Fugitive Slave Law- This law required judges to award possession of a
runaway slave upon any request by a master or his representative. The slaves were denied a jury
trial and this law denied free blacks the protection of the Bill of Rights.
2. The bloody slave revolt in Saint Domingue undermined the trend towards
abolition and reinforced the fears that spawned racism. White fears were kindled as a slave
insurrection broke out in VA. A slave named Gabriel thought that the split among whites
afforded blacks the opportunity to gain their freedom. More than 1000 slaves secretly assembled
weapons and planned to march on Richmond. But the plan was leaked on the even of the
rebellion and the leaders including Gabriel were hanged.
3. During the 1790s the cotton industry began growing in South Carolina and
Georgia. Eli Whitney invented the cotton gin to separate the cotton fibers from the seed. This
required slaves, which further reinforced slavery.