LAUNCHING THE NEW
SHIP OF STATE -17891800
Chapter 10
A New Ship On An Uncertain Sea
 Population growth.
 Kentucky, Tennessee, and Ohio
 Trans-Appalachian population was
dubiously loyal
 Economy in poor shape.
 Much of rest of world hostile.
Washington’s Pro-Federalist Regime
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George Washington
elected unanimously in
1789
Washington view of the
presidency and
presidential power
Cabinet
First Executive Departments
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Secretary of State:
Thomas Jefferson
Secretary of
Treasury:
Alexander Hamilton
Secretary of War:
Henry Knox
The Bill Of Rights


First Congress addressed
matters left undone by
Constitution
Bill of Rights
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Drafted by Madison
Ratified in 1791 as first 10
Amendments to the
Constitution.
Designed to protect rights
of the people against
actions of the government.
Key Provisions of Bill of Rights
First--Religion, speech, assembly
 Fourth--search and seizure
 Fifth-- life, liberty and property (Due
Process); freedom against selfincrimination; double jeopardy
 Sixth--Speedy trial, trial by jury,
assistance of counsel; public trial.
 9th—List not exclusive

10th Amendment
Explicitly reserves all rights to the states
not specifically delegated to federal
government.
 Makes clear the national government is
one of specific and limited powers.

Judiciary Act of 1789

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Created federal courts.
Organized the Supreme
Court
Established the office of
Attorney General
1st Chief Justice = John Jay
Hamilton’s Financial Plan
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Alexander Hamilton was a key
figure in new govt.
Secretary of Treasury.
Fought in revolutionary war. Led
key charge at Yorktown.
Aid to Washington.
Key figure at Constitutional
convention.
Author of many of the federalist
papers.
Ally of Madison during the drafting
and ratification process.
Strongly federalist.
Hamilton’s Financial Plan
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
Hamilton wanted to correct the economic
problems that plagued the young nation.
Plan: shape fiscal policies in a way to favor the
wealthier groups.
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
Plan has three parts:
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Why?
Funding and Assumption of the Debt
Tariffs and Excise Taxes
National Bank
Goals?
Funding and Assumption


Nat. credit terrible because of all the unpaid debt
Plan:

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

This increases debt of US, but restores credit
rating.
Makes a lot of wealthy people wealthier, too.


Pay national debt “at par” (full value) and
assume the state’s debts.
Why?
Hamilton believed that assuming the nation and
state debt would strengthen the unity of young
nation.

Why?
Hamilton's
Financial
Structure
Supported by
Revenues
Customs Duties And Excise Taxes


National debt had soared to $75 million because
of Funding and Assumption
How to Pay?
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Tariff depended on a vigorous foreign trade.
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Tariff
Excise Taxes
Britain is main trading partner
This is VIP to understanding Hamilton’s foreign policy
toward GB
Tariff has value beyond raising money. What?
National Bank


Third leg of Hamilton’s plan
Modeled on Bank of England,
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Nature and purpose?
Benefits:
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Increase money in circulation by making US funds
available for loans—stimulate business
Provide stable bank notes (paper money)

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Increases money in circulation
Stabilizes the money in circulation
Stabilizes private banks
Debate over Constitutionality of Bank

Jefferson argued that the bank was
Unconstitutional.
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Hamilton argued was constitutional
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10th Amendment
Nec. and Proper Clause.
Jefferson’s response
Washington sides with Hamilton. Is a Federalist
at heart.
Bank of the US chartered in 1791 for 20 years

located in Philadelphia with capital of $10 million.
Whiskey Rebellion

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1794 in Southwest
Pennsylvania
Hamilton’s high excise
tax hurt pioneers


This Mountain Tea Kettle as it was
referred to in the 1800's is an
authentic replica of the whiskey
stills the pioneers hand forged out
of pure copper to brew their shine
Why?
Defiant distillers brought
collections to a halt.
Tarring and feathering.

Saw as little different than
taxes imposed by the
Brits.
Whiskey Rebellion
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G. Washington
alarmed.
He and
Hamilton lead
troops to put
down.
Easily defeated
Significance?
The Emergence Of Political Parties
Framers attitude toward political parties.
 Began to arise in Washington
Administration.
 Reasons?
 Hamilton—Federalists
 Jefferson—Democratic Republicans

The Impact Of The French Revolution
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French Revolution starts a few
weeks after Washington
inaugurated.
Dramatically affects US foreign
policy for next 26 years.
Reign of terror.
Soon France and England at war.
Hamilton and Federalists tend to
be nervous of revolution and
favor the Brits.

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Why?
Jefferson and Dem.-Rep. favor
revolution and France. Why?
Washington’s Neutrality Proclamation
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The Franco-American alliance of 1778 was to
last forever.
What did the treaty require of US?
Many Dem-Rep. wanted to honor alliance and
take another shot at GB
President Washington felt war should be
avoided at all costs.
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Why?
Why do Federalists argue the treaty isn’t valid?
Neutrality Proclamation

Washington issued the Neutrality
Proclamation of 1793
 stated
government’s official neutrality
 sternly warned American citizens to be
impartial
Significance:
 Jeffersonians were mad. Why?
 Citizen Edmond Genet
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Embroilments With Britain
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British won’t leave forts.
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British aiding and stirring up
Indians
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Reasons
Battle of Fallen Timbers
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Reasons
“Mad” Anthony Wayne
Treaty of Grenville
Significance
British seize ships and
impress sailor.
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Reasons
Consequences
Jay’s Treaty

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, Washington sent John Jay
to London in 1794 to try to
settle difference.
Why Jefferson suspicious
Hamilton sabotaged the
negotiations.
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How? Why?
Jay comes home with a very
bad treaty.
Dem.-Rep. and Southerners
outraged. Why?
Jay’s Treaty

Terms
 Britain
will evacuate the chain of forts
 Agreed to pay damages from seizures of
American ships.
 But, refuses to stop future ship seizures or
impressments
 Refuses to stop supplying arms to Indians.
 U.S. must ensure that Americans pay the
debts still owed to British merchants on preRevolutionary accounts.
Jay’s Treaty
Consequences
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Furthers the development of political parties
Leads to Pinckney’s Treaty of 1795. Why?
US gets:
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31st parallel established as the border between the
U.S. and West Florida
Spain agreed to allow the U.S. free navigation of
Mississippi River to Gulf of Mexico and granted the
right of deposit in New Orleans for 3 years.
Both nations agreed not to incite Indian attacks
against each other.
Washington’s Farewell Address

Washington
 Extols
the benefits of the federal government
 Warns against the party system
 Stresses the importance of religion and
morality
 Warns against permanent foreign alliances.
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Washington’s Accomplishments
Election of 1796
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Why do Federalists pick John Adams over
Hamilton?
Jefferson runs for Dem.-Rep.
Nasty and personal campaign
John Adams won 71 to 68 in the Electoral
College on the strength of the NE vote.
As runner-up Jefferson is vice president (that
isn’t changed until the 12th Amendment in 1804)
John Adams
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Adams tactless, prickly, stuffy,
intellectual. “His Rotundity.”
In first 36 years of presidency,
only president not a Virginian.
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Only one-term president.
Inherits problems with England
Hamilton fights him for control
of party
Unofficial Fighting With France

Jay’s Treaty
outraged the
French
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Why?
French
retaliation
Adams wants to
avoid war. Why?
Adams political
courage
XYZ Affair
Results of XYZ Affair
War hysteria. “Millions for defense, not
one cent for tribute.”
 War Preparations:

 Navy
Department was created
 The U.S. Marine Corps was established
 New army of 10,000 men was authorized

Leads to 2 ½ years of undeclared naval
warfare with France.
French Back Down
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French actions are
backfiring on France.
How?
French receive new
American envoy
Bonaparte takes power
and agrees to new treaty
with US.
Convention of 1800
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Terms
Significance
The Federalist Witch Hunt
Alien Laws
 Sedition Act

 Causes
 Significance

Virginia and Kentucky Resolves
 Compact
Theory
 Significane
FEDERALISTS V. DEMOCRATIC REPUBLICANS
Federalists
 Founder — Hamilton
 wanted rule by “best people”
and advocated a strong central
government
 Government should support
private enterprise not interfere
— this was liked by merchants,
manufacturers, and shippers.
 pro-British in foreign affairs
 a powerful central bank
 Restrictions of free speech and
press.
 Concentrated on seacoast
 Strong navy to protect
shippers.
Democratic-Republicans
 Thomas Jefferson
 appealed to middle class and
underprivileged (common
man)
 Weak central government.
 States should have the bulk of
power.
 Strict interpretations of
Constitution.
 Did not favor the national debt.
 No special privileges for
special classes like
manufacturers.
 Agriculture was favored branch
of economy
 Followers were from the South
and Southwest.
 Rule of people
 Pro-French.