Early Republic and the Federalist Era

1789-1800

A. America in 17901. Population nearly 4 million

a. doubling every 25 yearsb. 90% of Americans lived on farmsc. Public debt large ($52 million) – revenue low.d. Threats from GB and Spain threatened fragile unity of US

B. Washington’s Presidency

1. Electiona. Unanimously elected

President by Electoral College in 1789

b. Took oath of office on April 30, 1789 in temporary capital of NYC.

c. John Adams had 2nd most votes and elected VP.

2. Washington’s Cabineta. Constitution does not provide

for this.b. Only 3 department positions

created with appointmentsc. Cabinet shaped by ideological

feud between T Jeff and A Ham

i. State – Thomas Jeffersonii. Treasury – A. Hamiltoniii. War – Henry Knoxiv. Attorney General – Edmund

Jennings Randolph (after passage of Judiciary Act of 1789)

C. Bill of Rights1. First priority of new government

a. Anti-Feds sharply criticized Const. for not having one

b. Feds saw Bill of Rights as unnecessaryi. Most states already had bills of rightsii. Checks and Balances/Separation of Powers

protected rights.iii. However feared another convention would

reverse support they had already secured

2. James Madison drafts and submitted 12 amendments to Congress

a. Largely based off of George Mason’s VA Bill of Rights

b. 10 passeda. I – RAPPSb. II – bear armsc. III – no qtring troops during peacetimed. IV – no unlawful search and seizuree. V – rights of accused personsf. VI – right to an atty and trial by juryg. VII – civil suits over $20 get jury trialh. VIII – no cruel and unusual punishment or

excessive baili. IX – citizens have more rights than are listed herej. X – reserved rights of the states

D. Hamilton’s Financial Plan1. Report on Public Credit

(1790)

a. Plan to shape fiscal policies of admin to favor wealthier groups.

b. In return wealthy would loan money to gov’t

c. Prosperity would trickle down to the masses

2. Report on Manufactures (1791)

a. Advocated promotion of factory system and capitalism (Adam Smith’s Wealth of Nations written in 1776)

b. Basis of his tariff plan to protect American manufacturers

3. 5 Components of A-Ham Plan

a. Funding at Pari. Pay back gov’t debt to

bondholders them off with interest

ii. Purpose to bolster national credit

b. Assumption of State Debtsi. Cement states to national

gov’tii. States with large debts

favored (MA); states with little to no debt did not (VA)

iii. Became a north v. south issue

iv. Compromise: north got assumption of debts while south got national capital moved to Potomac

c. Tariffsi. 8% tariff on importsii. Source of revenue but

also aimed at protecting infant US industries.

d. Excise Taxesi. 1791 – $.07/gal tax on

whiskeyii. Flowed freely in

backcountry areasiii. A Ham not worried of

effects on these ppl as they were mostly Anti-Feds

e. National Banki. Biggest issueii. Treasury would place surplus revenue

hereiii. Gov’t would be major stock holder, but

bank would be private institutioniv. “Loose Constructionism” – powers not

delegated to the national gov’t in Constitution are not prohibited by virtue of necessary and proper (elastic) clause.

v. Strongly Opposed by Anti-Fedsvi. GW signed bank measure into law Feb.

1791• “Strict Constructionism” – Bank NOT

within power of Congress to create• Jefferson and Madison felt states’ rights

would be jeopardized by huge central bank.

• Moneyed interests would take precedence over farmers

• State banks would not be able to compete.

4. Whiskey Rebelliona. SW Penn ppl hit hard by

excise taxb. “Whiskey Boys” torched

bldgs, tarred and feathered tax collectors, talked of “secession”

c. GW summoned militia of several states (13,000) – escorted by GW and A Ham themselves

d. First display of fed’l gov’t “ensuring domestic tranquility”

e. Jeffersonians condemned action as a “brutal display of force” and gained more followers.

E. Birth of Two-Party System

1. Founding Fathers feared of “factions” as going against spirit of national unity.

2. Madison’s Federalist #10 advised that factions cannot be prevented but they could be controlled

a. Frequent elections and separation of powersb. Majority rule, but minority rights

3. FEDERALISTSa. Emerged from the “federalists” who supported the

Constitution in 1780sb. Believed in gov’t run by the elite

i. Rich had more time to study problems of governingii. Intelligent, educated and culturally literateiii. John Jay – “Those who own the country ought to govern it”

c. Distrusted the common peoplei. Feared rule by “mobocracy”ii. Believed democracy too important to be left to the

ppl.Supported a strong central gov’td. Fed’l gov’t should encourgae business, not interfere with

it.i. Dominated by merchants, manufacturers and shippersii. Most lived on eastern seaboard where commerce flourished.

e. Pro-British in Foreign Policyi. Trade with GB was key to Hamilton’s planii. Many Feds were mild Loyalists

4. JEFFERSONIAN REPUBLICANSa. Advocated for rule of the ppl, for the pplb. Should be literate, but believed that “masses” could

be taughtc. Appealed to middle-class (farmers, laborers,

artisans, small shopkeepers)d. Government that governed best, governed least

i. Bulk of power should be retained by states.ii. Limit federal power through strict interpretation of

Constitution.iii. National debt was a curse that should be paid off ASAP

e. Believed in freedom of speechf. Basically pro-French

5. First Test: French Revolution

a. French declared themselves a “republic” but carnage heavier than in American Rev.

i. Jeffersonians thought it unfortunate, but probably necessary

ii. Hamiltonians thought it downright frightening

iii. US?• GB got dragged into conflict

and now US had to take sides• US still obligated under

Franco-American Alliance of 1778

• US military weak

b. Washington’s Neutrality Proclamation (1793)

i. US would be neutralii. Warned US citizens to be

impartial to both sides.• Jefferson furious – GW

did not consult Congress• Hamilton supported it.

iii. Citizen Genet• French diplomat in US

who felt Neutrality Proclamation not a true reflection of US feelings towards France

• Went to ppl directly to ask for money and supplies for war cause

• GW booted him out of country.

6. Second Test: Jay’s Treatya. GB a thorn in US side

i. constantly harrassing US frontier settlers ii. Seized 300 US ships and impressed (stole) US

sailors.iii. GB stayed in posts in violation of 1783 peace

treatyiv. Sold firearms and alcohol to Natives who

attacked US settlers.b. Feds did NOT want war with GB (75% of

import duties from GB trade)c. Jeffersonians wanted embargod. GW sent J. Jay to work some magic in

1794i. A Ham tipped Brits off as to what Jay would

offerii. John Jay’s hands tied

• GB renewed pledge to leave posts• GB would pay for recent seizures of ships,

sailors• GB did not guarantee they would not do it in

the future though• AND US forced to pay PRE-Revolution debts

owed to GB• Good one Jay! But did avert war with GB

which would have been disaster.

e. Jeffersonian outrage resulted in creation of Democratic Republican Party

7. Pinckney Treatya. Now Spain??b. Spain worried about

Anglo-American alliance – ready to give up some rights in North America

i. Granted US rights to navigate Mississippi and port of New Orleans

ii. Yielded large tract of land north of Florida (north of 31st parallel)

F. Washington’s Farewell Address1. Refused third term

i. Set precedent for two-term presidency

ii. GW exhausted physically and tired of verbal abuse from TJ for becoming partisan

1. Farewell Addressi. Warned of evils of political

partiesii. Warned of entangling alliances

(like treaty with France)iii. Isolationism became dominant

foreign policy for next 100 yrs.

G. John Adams1. Election

a. 1796 - Defeats TJ 71 -66 in Electoral College

b. TJ becomes VP2. Foreign Flare-Ups

a. Francei. Saw Jay’s Treaty as a violation of 1778

Franco-American Treatyii. Seized 300 merchant vessels by mid-

1797.b. XYZ Affair

i. John Adams sent delegation to France to work it out

ii. Approached by 3 French agents (“X, Y and Z”) who demanded loan and bribe of 250,000 to talk to French foreign minister Talleyrand.

iii. US delegates scoffed, “Millions for defense, but not one cent for tribute (bribes)”

iv. Negotiations broke down • Undeclared Hostilities with France

1798-99• US expanded its 3 ship Navy• US Marine Corps established• Embargo with France imposed• Adams tried to avoid full-blown war

3. War Avoideda. John Adams sent new

envoy to France in 1800b. Napoleon accepted –

more bent on European conquest, not war with US

c. Improved Relations made Louisiana Purchase possible 3 years later.

d. Adams felt dodging this bullet was his finest achievement.

i. 22 year alliance between US and Fr. Dissolved.

ii. US would pay US shippers damage claims

4. Alien and Sedition Acts (1798)a. Purpose: to reduce power of

Jeffersonians and silence anti-war opposition

b. Alien Act i. Attack on pro-Jeffersonian

“aliens”ii. Raised residency requirements

for US citizenship from 5 yrs to 14 yrs.

iii. President could deport “dangerous” foreigners.

c. Sedition Acti. Anyone who impeded policies of

the gov’t or falsely criticized its officials would get heavy fine and imprisonment.

ii. Direct violation of 1st Amendment

iii. Expired day before Adams left office.

5. Virginia and Kentucky Resolutions (1798)

a. Republicans felt Alien and Sedition Acts were unconstitutional

b. Jefferson and Madison secretly penned two resolutions that asserted that states have the right to nullify unconstitutional laws passed by Congress.

c. Federalists retorted that the people, not states created Constitution and that the Supreme Court and not states determined the constitutionality of laws.

d. No other states but VA and KY adopted resolutions, but southern states would use this later in 19th century to support nullification and secession.