US History 1 Honors Unit 6 - New Nation

Problems facing the new government

Problems facing the new government

• Not much inherited from the Confederation (starting from scratch)

• No cabinet, judiciary

• Very spread out → 4 million in 14 states from first census (1780)

  • Logistical travel nightmare

• Foreign relations: no respect from other countries, most were actively hoping for failure

• Enormous Debt (11-12m foreign, 27m domestically + 13m unpaid interest)

  • Have to pass taxes, executive, judiciary`

Tariff Act of 1789

This put a tariff on imports → 5% with a higher price on some goods (8% average)

• Provides a little revenue

• Saves market from the British flood

Thomas Jefferson

A Democratic Republican who became the third president. He was secretary of state in Washington’s Cabinet

Henry Knox

Secretary of War under Washington

Alexander Hamilton

A prominent Federalist and an avid fan of Washington. Secretary of the Treasury in Washington’s Cabinet

Edmund Randolph

A prominent attorney from Virginia. Attorney General under Washington in his cabinet.

Federal Judiciary Act of 1789

Sets up the Judiciary. Congress creates, and the president appoints the justices

• Chief Justice: John Jay

• 5 other justices

• 13 district courts, along with an army of prosecutors, marshalls, police

  • Needed honorable people interested in success of the government

Hamilton and Loose Construction

• Hamilton wants the new government to succeed-- for that, he needs economic success 

• Needed to “sell” the wealthy investing class on the government and had to have them have a stake (meanwhile, Jefferson was “Champion of the farmers”

  • Needed to pay off all bills  

Report on Public Credit

One of Hamilton’s three bills to make the economy sound.

Federal Debt:

• Domestic and Foreign Debt should be paid off “at par” (face value)

• During the revolutionary war, the Government issued “war bonds” with small interest.

  • He needs to pay them off at face value (full + interest)

    • Some people sold war bonds to others, and it felt wrong

    • But it was necessary to make the economy sound

State Debt (Assumption Bill):

• Need to pay off state debts on behalf of them fighting for the new country

• There was unequal debt, and large states like Massachusetts and New York had the most

  • Some states already raised taxes to pay their debts, and they had to be raised again to pay off other states

Assumption Bill

Part of Hamilton’s Report on Public Credit which concerned state debts and forced other states to assume the debt of states with larger debts.

DC Deal

Hamilton struck this deal: If Thomas Jefferson secures the votes from his Southern states to agree to pay the state debt from the Assumption bill, Alexander Hamilton would move the capital to DC (South)

National Bank

One of Hamilton’s three actions to make the economy sound:

(Not an enumerated power → elastic clause)

• Calls for a bank to be chartered for 20 years

• Jointly owned: 80% private stock, 20% government stock

  • Place for the government to deposit loans, bonds

• Thomas Jefferson was against it, and said that according to the 10th amendment, a national bank was a state right

  • Southerners felt that the bank would only benefit the commercial north

  • They didn’t need many loans due to them working with cash crops

• James Madison said that it was unauthorized

  • Washington sides with Hamilton, and the plan is followed through until Andrew Jackson

Report on Manufacturers

One of Hamilton’s Three actions to make the economy sound. It was rejected because it would lead to the government interfering with the economy.

The Tariff Act was not generating enough revenue to cover all expenses and debt

• The government would raise taxes (whiskey)

• Bounties: Money would be given to people who start a new business and would encourage its growth

• Awards for excellence in manufacturing

• Goal: grow infrastructure so it could compete with Europe

  • Reduce the need for foreign goods

• Foreigners were already taxed, and they didn’t want taxes to rise more

The South was producing large cash crops, and would be the most affected by retaliating tariffs from the foreigners

• The price of goods would increase (buying retail, selling wholesale)

• Rejected this system

Had the South accepted, they would have been forced to develop their own manufacturing and diversify the economy. Instead, they were left stuck while the North diversified

Bounties

As part of the Report on Manufacturers, money would be given to people to start a new business and it would encourage its growth

Excellence in Manufacturing

Hamilton’s Report on Manufacturers provided bounties and also awards for this.

Mint Act of 1792

This act creates a currency to fix the coin shortage

Whiskey Rebellion

Is caused by a tax on whiskey

8c per gallon was added as a domestic tax

• More invasive due to the need for tax collectors (expansion of governmental power)

This heavily affected small farmers, because whiskey was used to barter and pay (esp PA)

• Whiskey was cheaper and had a greater profit than wheat

Alexander Hamilton said that these farmers “drank too much”

In the summer of 1794, people began harassing and killing tax agents and marched on Washington

• GW raised an army to put down the rebellion and successfully scattered it

Key Precedent: Taxes must be payed, even unfavorable ones

This showed an expansion and fortification of the executive branch, which was previously powerless under the Confederation

Political Parties

Groups of like minded individuals that shared similar political visions yet didn’t have the power that these groups have now.

French Problems

- Franco-American Alliance and Responsibilities

- Debt

- Disloyalty with the treaty of Paris

- French Revolution

England Problems

- Market flood

- Northwest territory forts

- Before war debts

- Loyalist Properties

- Inciting Natives in SW

Spain Problems

- Florida

- Mississippi River

- Inciting Natives in SW

Anglophiles

The Federalists were thought of as this. Supporters of English elitism.

Francophiles

The Democratic Republicans were thought of as this. Supporters of the French liberty rather than English Elitism

Franco-American Alliance

The following is the fallout of this treaty:

Hamilton points out that they were dealing with the French monarchy, who currently lack a head: void

• Only France would benefit from American intervention    

Thomas Jefferson wants to honor the deal

Washington fears a loss, which would lead to Britain being emboldened

• “Militarily feeble” → wants to avoid conflict

Ben Franklin: “Wait and let the birth rate fight the battles”

Proclamation of Neutrality

George Washington proclaims that the US is at peace with both sides

• Encourages citizens to not be hostile to either side

• Doesn’t want to tick off the British

• Thomas Jefferson is angry → The president nulled the treaty w/o Congressional approval

  • Resigned at secretary of state, DRs angry

Citizen Genet (ambassador) gets sent to the US

Genet Affair

Genet thinks that the country / general population has turned on GW

• Begins hiring privateers before presenting documents to GW

  • Recruiting US citizens to serve in the French Army

This offends George Washington, Thomas Jefferson. GW sends warning and asks France to recall

• However, Genet would be killed if he went back to France

George Washington allows him to stay

Neutrality Act

1794

This is an official endorsement of George Washington’s proclamation of neutrality

Relationship with France begins to worsen

Act of War

Great Britain orders all ships in the French West Indies to be seized (including ~300 US Ships) in 1793. This is seen as an ______

Jay’s Treaty

1795

This treaty comes to the following resolution:

• British withdraw troops from Northwest Territories

• Set up a joint commission to settle pre revolutionary war debts, ship owner claims

• Maine and Canada disputed Boundary settlement

* Impressment does not make it onto the treaty

The Federalists Approve: War was avoided

DR sees as a joke: Didn’t address the real issue, just reinforces Treaty of Paris

• Unintended consequence: Spain → wants to get out of war without making GB mad

• Spain needs to be nice to the US so it doesn’t get ganged up on and kicked from North A.

Pinckney's Treaty / Treaty of San Lorenzo

October 1795

A treaty with Spain that decided the following:

• East of Mississippi (31st parallel) belongs to the US

• Free navigation of the Mississippi

  • Restrain natives

Miami Confederacy

This was a group of natives led by chief LittleTurtle who caused many problems for the United States

Battle of Fallen Timbers

Mad Anthony Wayne defeats the Miami Confederacy in this battle

Treaty of Greenville

A treaty with the Miami Confederacy that decides the following:

• US gives $70,000 and $9000 yearly

• Natives cede most of Ohio, Indiana, Michigan

• The natives thought they were getting recognized as foreign government

• This legalizes inequality

First Federal Land Act

This act sells government land in the North West to facilitate MovementW

Washington’s Farewell Address

Washington had several incredible accomplishments

• 1796: Government is set up and functioning

• Debt is being payed off, revenue is coming in

• Authority of the Constitution is established

• European treaty is signed

Voluntary Relinquishment of Power: Greatest precedent

• Makes known his intention to retire, published in newspapers

Farewell Address: His advice to his countrymen on the management of Government affairs

• “Timely and Timeless” (applicable both then and now)

• Spoke in enduring terms → concerns + advice for going forward

• Hamilton wrote it and respected Washington by keeping his opinions out of it

3 Key Warnings:

• Factions (political)

• Geographical Divisions

• Interference of Foreign powers

Voluntary Relinquishment of Power

One of George Washington’s greatest precedents. The willing surrender of power to someone else

Factions, Geographical Divisions, Foreign Powers

3 Key Warnings in GW’s farewell address

Election of 1796

First peaceful transfer of power

Emerging parties weren’t strong enough like they are now

• Caucus: Talking about which candidates will make the vote

  • Federalists: John Adams, Thomas Pinkney 

  • Democratic Republican: Thomas Jefferson

  • Aaron Burr leaned republican but got support from both sides

Hamilton tries to get Southern Feds to vote only for Pinkney

• North ends up voting only for Adams

Adams: 71, Jefferson: 68, Pickney: 59 (resulting in Fed president, DR vice president)

Adams Presidency: transitional, Diplomatic

• Very little administrative experience, prickly personality

• Mainly extension of GW presidency

Key Mistakes: Kept GW’s cabinet which was controlled by Hamilton

Caucus

Among the party: Talking about which candidates will make the vote

XYZ Affair

The French saw Jay’s Treaty as a violation of the Franco-American Alliance

• Refuse to accept the ambassador, begin seizing ships

• Adams wants to avoid war, sends delegation: Cece Pinkney, John Marshall, Elberts Gerry

• The French PM didn’t recognize delegation, sent 3 low level French ministers (XYZ) who demanded a $250,000 bribe to meet

  • Newspapers go after the French

  • People rally around Adams: Popularity rises, Federalists want war

John Adams prepares for war

Adams authorizes a navy, enlarges an army, increases taxes to pay (avoids war by __________)

Sends commissioners to negotiate with Napoleon at the same time

• Deal ends Franco-American alliance, French respect the US on high seas but don't pay for damage

Federalists win majorities with anti French sentiment and pass acts that decrease popularity

Alien and Sedition Acts

A series of Federalist acts made at the end of Adams’ term that greatly enraged the public and cost them political influence

Naturalization Act

A part of the Alien and Sedition Acts

This act increases the naturalization waiting period from 5 to 14 years

Alien Act

This Act authorized the president to deport any “enemy aliens” considered dangerous in times of warS

Sedition Act

This act made it illegal for newspapers to criticize the president or Congress, violating the first amendment

Nullification Doctrine

After the Alien and Sedition Acts, this dangerous idea of the power of the states to declare a law “null and void” gains popularity

Virginia and Kentucky Resolution

Written by James Madison and Thomas Jefferson, it says that the laws are unconstitutional

• The states entered a compact when forming the  government

  • The compact was broken, meaning that it did not have to apply in their state.

Election of 1800

People were angry over the tax hikes for a war that never came and the Alien and Sedition Acts

Federalists lost the House, the Senate, and the Presidency

• Adams and C.C. Pinckney vs Thomas Jefferson and Aaron Burr

• The DRs were determined to secure the presidency and the vice presidency, and made sure all the electors voted for both the Democratic Republican Candidates

  • This resulted in a tie, and went to Hamilton in the House who supported TJ

* This event demonstrates that the Constitution works and that opposing parties may peacefully transfer power

The Virginia Dynasty of Democratic Republicans

Thomas Jefferson began a time period of incredible Democratic Republican influence

Thomas Jefferson emphasized that the two parties were just different aspects of the same principles

• “We are all Democratic Republicans, we are all Federalists”

The second census showed that the US had 5,308,483 citizens. The population had risen, but it was still ⅓ of the size of Great Britain’s.

• 1,000,000 were Black, mostly slaves

• 500,000 lived west of the Appalachians

• ⅔ lived within 30 miles of Eastern Coast (a very seafaring nation)

• Overland travel was still very difficult

James Watt

Inventor of the shaft and flywheel, which allowed the spinning wheel to be mechanized using waterE

Eli Whitney

Inventor of the cotton gin, which increased profits from slavery, and also inventor of interchangeable parts, which were a huge step in manufacturing

Gabriel Prosser’s Rebellion

This first of 3 slave rebellion ends in the execution of 26 people, showing none of the leniency seen in the Whiskey Rebellion.

Slavery was treated as a “conspiracy of silence” or the elephant in the room

Public Land Act of 1796

This, along with the following land acts encouraged settlement where Natives were defeated

• $2 / acre minimum with a minimum of 640 acres to be purchased ($1280)

  • Not everyone could afford, and land speculators would resell at a higher price

1800 - Only have to buy 320 acres, 25% down ($650)

1804 - minimum down to 160a ($40) to get rid of speculation

• Territories begin to fill up

Marbury vs Madison

• “Lame duck period” between the election and the inauguration / approval of Congress

• Federalists pass a judiciary act to expand and grow the court

  • 6 new circuit courts, 6 new appeals courts, 16 new judges

  • DRs were mad because the size of government increased

  • Feds wanted to fill the positions before they were out of office

  • John Adams stayed up late signing commissions

• Thomas Jefferson realizes that some commissions were not delivered, and tells James Madison to not deliver them at all

• One was supposed to go to William Marbury

  • He petitions the SCOTUS for a “writ of mandamus”

    • Would have served as a court order to get JM to deliver commission

• John Marshall: New chief Justice

  • If he refused: would’ve showed that the court was afraid to stand up

  • If accepted: TJ could have ignored, would’ve showed court’s weakness

• John Marshall says that a writ of mandamus is unconstitutional because it does not fall in the “original jurisdiction” category of the Supreme Court

• This creates Judicial Review

  • Constitution is followed over the federal law

    • New power = equal footing with other branches

William Marbury

A commission was supposed to go to this person to appoint him as judge. However, it got intercepted by Madison and a writ of mandamus was rejected by the Supreme Court

John Marshall

Chief Justice of the Supreme Court during the Marbury v Madison Case

John Jay

First Chief Justice of the Supreme Court

Writ of Mandamus

Essentially a court order.

Was declared unconstitutional in the Marbury vs Madison case

Samuel Chase

This Supreme Court Justice had gone after Democratic Republican newspapers during the Sedition acts. He was targeted by Thomas Jefferson after the Marbury vs Madison Case

The House impeached him, however the Senate did not convict and he was allowed to stay