Unwritten Constitution

  • Includes elements of American politics and government derived from customs, traditions, and precedents rather than written laws.

Hamilton's Financial Plan

  • Hamilton's financial plan significantly influenced the early U.S. government, impacting the country from Washington's presidency through to the present.

Key Figures

  • George Washington: His administration set many precedents in governance and conflict resolution.
  • Alexander Hamilton: Designed the financial plan.
  • Thomas Jefferson: Key opponent of Hamilton’s policies.

Major Components of Hamilton's Financial Plan

  1. Assumption of State Debts

    • The federal government agreed to assume all the states' debts, which were incurred during the American Revolutionary War.
    • This created a sense of national unity and established credit.
    • Controversy arose particularly from southern states that had already paid off their debts.
    • Compromise proposed by Hamilton: the capital would be moved south to Washington, D.C., in exchange for support of his financial plan by southern leaders.

  2. Excise Tax

    • An excess tax on whiskey was introduced as a means to generate revenue to pay off national and state debts.
    • This was particularly unpopular with farmers, leading to the Whiskey Rebellion, where farmers protested the tax.
    • President Washington sent troops to quell the rebellion, signaling that the federal government would enforce its laws decisively.
    • Dissenters remarked that the government's response was akin to “killing a horsefly with a hammer.”

  3. Protective Tariff

    • Implementation of a tariff to protect Northern industries from foreign competition, benefiting Northern manufacturers but angering Southern farmers.
    • Revenue from tariffs could also be used to pay debts.

  4. Creation of the First National Bank

    • Establishment of a national bank to stabilize the currency and provide loans to stimulate economic growth.
    • Controversy over the bank’s constitutionality; Hamilton argued for its necessity under the Elastic Clause (Article I, Section 8 of the Constitution - allows Congress to pass laws deemed necessary and proper).
    • This clause provided a flexible interpretation of federal power, leading to debates about states’ rights versus federal authority.

Washington's Foreign Policy

  • During the Napoleonic Wars, the U.S. faced pressures from France and Britain, particularly concerning trade and maritime rights.
  • Impressment of Sailors: British ships were seizing American sailors, which escalated tensions.
  • Jay’s Treaty: A treaty with Britain that was perceived as weak. Washington believed the country wasn't strong enough to confront British aggression directly.
  • Proclamation of Neutrality: Washington declared the U.S. neutral concerning conflicts between European powers, particularly avoiding a military alliance with France.

Washington's Farewell Address

  • Advised against:
    • Permanent political alliances
    • Political parties and factions
    • Sectionalism (regional loyalty over national loyalty)

The First Political Parties

  1. Federalists

    • Leaders: Hamilton
    • Supported a strong central government, loose interpretation of the Constitution, a national bank, and protective tariffs.
    • Predominantly Northern, made up of merchants and traders.

  2. Democratic-Republicans

    • Leaders: Jefferson
    • Advocated for states’ rights, strict interpretation of the Constitution, and opposed the national bank.
    • Predominantly Southern, made up of farmers and rural voters.

John Adams' Presidency

  • Attempted to assert U.S. independence and respect internationally; faced challenges with France.

XYZ Affair

  • Diplomatic incident where French officials demanded bribes from U.S. diplomats, leading to a quasi-war mentality in the U.S. with the rallying cry: “Millions for defense, but not a cent for tribute.”

Alien and Sedition Acts

  • Laws passed by Federalists aimed at suppressing dissent and opposition, particularly targeting Democratic-Republicans:
    • Increased the residency requirement for citizenship from 5 to 14 years.
    • Allowed the president to deport any immigrant deemed dangerous.
    • Made it illegal to criticize the president or Congress, leading to arrest of several editors and writers.

Virginia and Kentucky Resolutions

  • Response to the Alien and Sedition Acts, authored by Jefferson and Madison, articulating the principle of nullification, where states could refuse to enforce federal laws they found unconstitutional.

Election of 1800 (Revolution of 1800)

  • Peaceful transfer of power from Federalists to Democratic-Republicans, highlighting the strength of democracy in the U.S.
  • Marked by the defeat of John Adams by Thomas Jefferson.
  • Established the precedent of a peaceful parliamentary transition and the model for future elections.

Jefferson's Presidency

Domestically

  • Louisiana Purchase: Doubled the size of the U.S. with a purchase of land from France for $15 million; controversial due to Jefferson’s strict interpretation of the Constitution versus perceived necessity.
  • Embargo Act of 1807: Halted trade with foreign nations, negatively impacting American merchants and leading to economic distress.

Foreign Policy

  • Continued struggles with Britain and France, where Jefferson struggled to find effective diplomatic solutions, primarily resulting in economic sanctions that largely hurt American merchants.

Madison's Presidency

War of 1812

  • Significant conflicts against Britain, prompted by issues like impressment of sailors and support for Native American resistance.
  • Important battles: Battle of Tippecanoe—led by William Henry Harrison against Native American forces; discovered British armaments fueling American hostility.

Reasons for War

  1. Impressment of American sailors.
  2. Trade restrictions imposed by Britain.
  3. Support for Native American attacks on American settlers.
  4. Desire for land expansion into Canada.

Outcome

  • The War of 1812 did not resolve key issues but ended with a surge of nationalism and led to the Era of Good Feelings characterized by a spirit of unity and lack of Federalist opposition.