Ch. 8
1. Judiciary Act of 1789
The Judiciary Act organized the Supreme Court (with a chief justice and five associates)
as well as federal district and circuit courts. It established the office of Attorney General.
John Jay became the first chief justice.
2. Tariff of 1789
This was the first tariff law; it was very low, just 8% on the value of dutiable imports.
It was passed to raise revenue for the federal government and was to protect infant
industries.
3. Bill of Rights
Several states ratified the Constitution with the proviso that a bill of rights be added to
protect the rights of individuals from the power of the new federal government. In the
first session of Congress, Representative James Madison introduced a set of amendments
that were submitted to the states for ratification. Ten were approved in 1791.
Note that until 1925 when the Supreme Court began the process known as selective
incorporation, the Bill of Rights did not apply to the states, only to the federal
government.
5. “Report on Public Credit” (AKA Assumption and Funding Bills) —1790
Assumption Bill - Hamilton argued that the federal government should assume and repay
the Revolutionary War debts of the states. By doing so, he hoped to bind the states more
closely to the federal government.
Southern states that had already taxed themselves and paid off their debts objected.
Hamilton brokered a deal that located the national capital in the South in return for
Southern support for his plan.
The Funding Bill regarded the nation’s domestic debt. Speculators had purchased
government bonds from their original owners at prices far below face value. The original
owners (and those who would be paying the taxes to repay the debt, e.g., western
farmers) protested that repaying the domestic debt in full would enrich the speculators.
Hamilton successfully argued that the measure was necessary to establish the nation’s
credit.
The term funding “at par” meant that the federal government would repay the bonds at
face value plus accumulated interest.
By doing this, Hamilton hoped to make the wealthy (who had purchased the bonds)
financially interested in the success of the new government.
6. “Report on a National Bank” (AKA The Bank of the United States) – 1790
Alexander Hamilton, the first secretary of the treasury, proposed the Bank of the United
States. This Bank would issue paper currency, sell government bonds, and assist in tax
collection. Thomas Jefferson opposed this idea, pointing out that Congress was not
specifically authorized to establish a national bank by the Constitution.
Hamilton pointed out that the Bank was “necessary and proper” for carrying out the
delegated power “to coin money” and “regulate the value thereof.” George Washington,
who signed the bill chartering the bank, accepted Hamilton’s loose interpretation of the
Constitution.
This conflict between Hamilton and Jefferson over the Bank led to the development of
competing political parties.
7. “Report on Manufactures” – (includes the Excise Tax on Whiskey, below) – 1791
Besides the Excise Tax on Whiskey, the “Report on Manufactures” was another report
shaking the establishment following the creation and ratification of the Constitution. In
this report, Hamilton argued for the United States to base its economy off industry and
manufacturing, rather than agriculture.
The report was rejected by Congress at the time due to heavy opposition from Thomas
Jefferson, Madison, and the fledging political base of the Democratic-Republicans. The
yeomen farmers, who supported Jefferson, would not approve of an industry based
economic plan for the U.S.
Despite its rejections, many of the report’s principles are now the cornerstones of the
American School of economics and put to practice in the U.S. economy.
8. Excise Tax on Whiskey—1791
This was designed to raise revenue for Hamilton’s funding and assumption program.
The tax was paid chiefly by farmers in the West where bad roads made it hard to
transport bulky crops such as grain; they distilled the grain into more condensed and
easily transported whiskey.
9. First Party System, 1796 – 1828
The framers of the Constitution hoped there would be no permanent political parties and
Washington even warned against the dangers of parties, but the fight between Jefferson
and Hamilton over the Bank of the United States led to what became known as the First
Party System (or Era).
Jefferson and Madison were the leading figures for the Democratic-Republicans (also
known as the Republicans, the Democrats, the Jeffersonians, and the Anti-Federalists).
They formed the basis of what eventually became today’s Democratic Party.
Hamilton and John Adams were the leading figures for the Federalists. This party
continued through the War of 1812, but the Hartford Convention and the shift in
population away from New England resulted in their demise.
With the disappearance of the Federalists, the country entered what became known as the
Era of Good Feelings, a period with only one political party.
10. Federalist Party
Led by John Adams and Alexander Hamilton.
Favored a strong central government and a loose interpretation of the Constitution.
Feared the excesses of democracy.
Supported Hamilton’s economic program.
Supported by merchants, bankers, and large landowners.
11. Democratic-Republican Party
Led by Thomas Jefferson and James Madison.
Favored states’ rights and a strict interpretation of the Constitution. Feared the tyranny of
a strong central government.
Opposed Hamilton’s economic program.
Supported by farmers, shopkeepers, and urban workers.
12. Loose Construction (in a constitutional sense)
Loose interpretation allows the government to do anything that the Constitution does not
specifically forbid it from doing.
Its constitutional basis is the elastic clause in Article I, Section 8.
13. Strict Construction
Strict interpretation forbids the government from doing anything except what the
Constitution specifically empowers it to do.
Its constitutional basis is the Tenth Amendment.
14. French Revolution
The Democratic-Republicans supported the French Revolution. They believed that the
French were fighting for democracy; they had overthrown their king, written a
declaration of the rights of man, and proclaimed democratic ideas of liberty, equality, and
fraternity.
The Federalists were unsympathetic toward the French and in the war between France
and England generally sided with England. Federalists saw in the excesses of the French
Revolution the lesson that it was dangerous to give too much power to the common
people.
15. Neutrality Proclamation—1793
Washington urged Americans to be impartial in the conflict between Great Britain and
France. He feared American involvement in the European war would be dangerous for
the young nation.
Washington also feared that America would be called on for military assistance because
of the Franco-American treaty of 1778.
This was a beginning for the American tradition of isolationism.
16. Citizen Edmond Genêt
France’s ambassador to the US, Genêt was swayed by the pro-French enthusiasm of the
Democratic-Republicans. Defying Washington’s Proclamation of Neutrality, he outfitted
privateers in American harbors and commissioned them to raid British and Spanish ships
and colonies.
Fearing that Genêt would involve America in the war, Washington ordered Genêt to halt
his activities and eventually requested Genêt’s recall by the French government.
17. Jay’s Treaty—1795
Britain seized American merchant ships bound for French ports, impressed American
seamen into British naval service, and still held posts in the Northwest Territory (despite
the promise to evacuate those forts made in the Treaty of Paris).
The treaty provided that Great Britain would withdraw her troops from the American
Northwest. It also created commissions to settle financial claims of the two nations
against each other.
This treaty was highly unpopular (Jay was burned in effigy) because it did not guarantee
freedom of the seas or halt the seizure of American ships and impressment of American
seamen. Nonetheless, the treaty did secure peace with Britain.
18. Impressment
Britain claimed the right to board ships, seize deserters from the British navy, and press
them back into military service. The British navy would even seize US-born seamen and
former Britons who had become American citizens, as well as British citizens.
Between 1808 and 1811, 6,000 Americans were impressed by Britain.
19. Pinckney’s Treaty—1795
In 1784 Spain closed New Orleans to American goods shipped down the Mississippi
River. This meant that 100,000 Americans who lived west of the Appalachians could
only move their goods to market by crossing the almost-roadless mountains. Talk of
secession was heard. In addition, Spain and the US disputed the southern and western
American boundaries.
Jay’s Treaty led Spain to fear a secret Anglo-American alliance to seize Spanish
territories. So Spain agreed to negotiate disputes it had with the US.
The resulting treaty established the Mississippi River as the westward boundary and the
31st parallel as the southern boundary of the United States, guaranteed the Americans
free navigation of the Mississippi River, and the right of deposit in New Orleans. (The
right of deposit was the right to transfer of goods from riverboat to ocean boat without
paying a tariff to Spain.)
20. Toussaint L’Ouverture
L’Ouverture led an army of ex-slaves against Napoleon when he tried to recapture the
island of Santo Domingo. Aided by yellow fever, L’Ouverture turned back the French.
This defeat at the hands of L’Ouverture and Napoleon’s fear that Britain might take
control of Louisiana led Napoleon to sell Louisiana to America.
21. Whiskey Rebellion—1794
Farmers in Pennsylvania rebelled against Hamilton’s excise tax on whiskey, and several
federal officers were killed in the riots caused by their attempts to serve arrest warrants
on the offenders. The army, led by Washington, put down the rebellion.
The incident showed that the new government under the Constitution could react swiftly
and effectively to such a problem, in contrast to the weakness of the government under
the Articles of Confederation.
22. Washington’s Farewell Address
Although largely drafted by Hamilton, Washington reflected on his time as president,
offering two major warnings:
o Washington warned the nation to avoid permanent alliances with foreign nations
and to rely instead on temporary alliances for emergencies.
o Avoid political partisanship (and geographical partisanship)
23. The Quasi War: Undeclared Naval War with France—1798-1800
The US still had a treaty of alliance with France (1778), but Washington’s Neutrality
Proclamation and Jay’s Treaty created tension with France.
French warships seized hundreds of American merchant vessels. The US established a
Department of the Navy, built warships, and captured over a hundred French vessels.
Despite demands for war, President Adams relied on negotiations with Napoleon. The
two sides agreed to end the naval conflict and to abrogate the 1778 treaty of alliance.
24. XYZ Affair—1797
Seeking to ease tensions with France, President Adams sent a delegation to Paris. The US
delegation was told by three French intermediaries (known as X, Y, and Z) that if they
wanted to meet with the French foreign minister, they would have to pay a huge bribe
and make a $12 million loan to France.
Americans were outraged. South Carolina Congressman Robert Goodloe Harper captured
the national mood with his statement, “Millions for defense, but not one cent for tribute.”
Republicans attempted to excuse French behavior; Federalists condemned the French and
rode a wave of patriotism to victory in the 1798 elections.
25. Alien Act & Alien Enemies Act—1798
These laws, along with the Sedition and Naturalization acts, were purportedly designed to
deal with alien, especially French and Irish, agitators. In reality, they were Federalist
efforts to weaken the Democratic-Republicans.
The Alien Act empowered the president to arrest and deport dangerous aliens during
peacetime.
The Alien Enemies Act allowed for the detention and deportation of individuals from
countries at war with the US if those persons were thought to be spies or saboteurs.
Neither of these two laws was invoked by Adams.
26. Sedition Act—1798
The Sedition Act made it illegal to publish defamatory statements about the federal
government or its officials.
This law, unlike the other three, could be used against US citizens. Ten Republicans
including a member of Congress were convicted under the Sedition Act.
27. Naturalization Act—1798 (is this an update from 1790?)
The Naturalization Act increased the waiting period for an immigrant to become a citizen
from five to fourteen years.
The Federalists passed this law because most immigrants, once citizens, became
supporters of the Democratic-Republicans.
28. Virginia & Kentucky Resolutions—1798
Kentucky and Virginia passed resolutions drafted by Jefferson and Madison condemning
the Alien, Alien Enemies, Sedition, and Naturalization acts as unconstitutional.
The resolutions presented the states’ rights doctrine claiming that 1) the federal
government was created by the states to serve as their agent and 2) state legislatures
could declare laws of Congress unconstitutional and 3) since there are no legitimate
implied powers, these acts were therefore null and void.
29. Revolution of 1800
Jefferson felt his election was a revolution in the sense of a return to the ideals of 1776.
He favored agrarian interests over business, reduced government expenditures and debt,
and repealed some Federalist legislation.
More importantly, the election was a revolution in the sense that a peaceful transition of
power from one party to another took place and was accepted by all.
30. Twelfth Amendment
The Twelfth Amendment said that electors (members of the Electoral College) were to
cast separate ballots for president and vice president. According to the original
Constitution, each elector voted for two persons. The candidate with the most votes
became president and the runner-up the vice president. The framers had not anticipated
the emergence of political parties.
In the election of 1800, there was a tie between Thomas Jefferson and Aaron Burr; this
amendment was meant to keep such a tie from occurring again.
31. Tripolitan War/Barbary Pirates
The rulers of several countries on the Mediterranean coast of North Africa had long
demanded tribute in exchange for refraining from attacking ships in the Mediterranean.
From 1795-1801, the U.S. paid these states for protection against the Barbary pirates.
Jefferson stopped paying the tribute, and the U.S. fought the Barbary Wars (1801-1805)
against the countries of Tripoli, Tunisia, Morocco, and Algeria.
After four years of fighting, Jefferson succeeded in acquiring a treaty of peace. It was
secured at a price of $60,000, a sum representing ransom payment for captured
Americans, about half the amount that the US had been paying annually
32. “Era of Good Feelings”—1815/6-1824
The years following the end of the War of 1812 have been called the “Era of Good
Feelings” because of their apparent lack of partisan political strife. In the election of
1816, James Monroe trounced Rufus King, the last of the Federalist candidates. Monroe
was overwhelmingly reelected in the election of 1820 with no opposition whatsoever.
Despite the lack of party conflict, this was a time of increasing sectional tension over
tariffs, internal improvements, and slavery.
33. Midnight Judges
In the election of 1800, the Federalists lost the presidency and much of Congress to the
Republicans. The lame-duck Federalist Congress passed the Judiciary Act of 1801,
creating new federal judgeships in an attempt to retain control of one of the three
branches of government.
Adams worked until late in the evening of his last night in office filling these positions
with Federalist appointees.
34. John Marshall
John Marshall was appointed by President John Adams as the chief justice to the
Supreme Court. He served for thirty-four years.
Marshall was notable for his many decisions that solidified the power of the central
government at the expense of the states.
Marshall wrote the Marbury v. Madison decision that established the power of judicial
review for the Supreme Court.
35. Marbury v. Madison and Judicial Review—1803
William Marbury, one of Adams’s last-minute judicial appointments, did not receive his
commission. He sued Jefferson’s new secretary of state, James Madison, for its delivery,
following the provisions of the Judiciary Act of 1789.
Marshall dismissed the suit, giving Jefferson a victory. However, Marshall made this a
victory for the power of the Supreme Court. He said that the Judiciary Act of 1789 on
which Marbury was trying to base his appeal was unconstitutional. With this action,
Marshall greatly magnified the authority of the court and gave the Supreme Court the last
word on the question of constitutionality. In other words, this is the case that established
the principle of judicial review.
36. Constitutionality of Louisiana Purchase—1803
Thomas Jefferson purchased 828,000 square miles of land for 15 million dollars from
Napoleon. But the Constitution did not expressly grant the president the power to
purchase territory, and Jefferson was a strict constructionist.
Jefferson considered asking for a constitutional amendment to legitimize the purchase.
But he feared that Napoleon would change his mind, so he submitted the treaty to the
Senate, which enthusiastically approved it. In doing so, Jefferson adopted Hamilton’s
doctrine of implied powers.
37. Lewis and Clark—1804-1806
This expedition solidified the American claim to the Oregon territory, brought back a
wealth of scientific and geographical data, and stimulated interest in settlement of the
West.
38. British Orders in Council—1806-1807
Britain, at war again with France, issued the Orders in Council, restricting the trade of
neutral nations (such as the US) with France by closing all French ports to foreign
shipping, including American, unless the vessels first stopped at a British port. There they
would pay the necessary fees, and if acceptable, secure clearance papers.
39. Berlin & Milan Decrees—1806-1807
The French similarly blocked trade of neutral nations with Britain. Napoleon ordered any
ship entering British ports to be seized.
As a result of the Orders in Council and the Berlin and Milan decrees, US foreign trade
was severely limited. However, those American captains who managed to reach
European ports successfully received top prices for their cargoes, and Americans
continued to send ships to sea.
40. Chesapeake Affair—1807
A British ship, the Leopard, fired on a US military vessel, the Chesapeake, off the
Virginia coast. British forces boarded the Chesapeake and seized four men, one a
deserter; the other three were US citizens.
This outraged the nation. But Jefferson sought peace, first through fruitless negotiations
with Britain and then through the Embargo Act.
41. Embargo Act—1807
This act forbade American trading vessels from leaving the US and forbade US exports to
any country. It was meant to force Britain and France to change their policies towards
neutral vessels by depriving them of American trade.
The Embargo Act severely damaged the New England shipping as well as agricultural
producers in the South and West.
The Embargo did, however, stimulate domestic industry since foreign products were not
available.
42. Non-Intercourse Act—1809
Faced with widespread opposition to the Embargo Act, Congress replaced it with the
Non-Intercourse Act. This new act opened trade with all nations except France and
Britain. It promised to restore trade with those two countries if they stopped violating
neutral rights.
They did not.
43. Tecumseh and the Prophet
Tecumseh, a Shawnee chief, and his brother Tenskwatawa, known as the Prophet, sought
to halt the flood of whites into the Ohio and Indiana territories. They urged Indians to
return to traditional ways and renounce alcohol. They pledged not to cede any land to
whites unless all Indians agreed.
44. William Henry Harrison
In 1811, Harrison, the governor of Indiana Territory, led an army against Tecumseh and
the Prophet. He was victorious at the Battle of Tippecanoe.
As a result, Harrison became a national hero (and later president). The defeat forced
Tecumseh into an alliance with the British.
45. Macon’s Bill No. 2 – 1810
Macon’s Bill No. 2 replaced the Non-Intercourse Act. It allowed trade with all nations
including Britain and France. But it promised to reimpose a trade embargo against either
of the warring nations if the other lifted its trade restrictions and promised to respect
America’s neutral rights.
Later that year, Napoleon said the French commercial restrictions would be lifted. But he
attached the contingency that the British Orders in Council must also be lifted, a
contingency that essentially made his offer meaningless. Nevertheless, in February of
1811, Madison reestablished non-intercourse against Britain (even though the French
continued to seize American ships). Britain refused to repeal its Orders in Council, and
Madison recalled the American ambassador to England.
The continued tension over trade between the US and Britain was a key factor in the US
decision to declare war against Britain in June of 1812.
46. War Hawks
These were a group of young, pro-war members of Congress first elected in 1810 and led
by Henry Clay and John C. Calhoun.
The war hawks favored war as a means of dealing with the threat posed by Native
Americans (thought to be supported by the British), of responding to British insults to
America’s neutral rights, and of expanding American territory by conquering Canada and
Florida (held by Britain’s ally, Spain).
47. USS Constitution (Old Ironsides)
The Constitution won more battles than any other early American naval vessel, most
notably against the British warship Guerrière in 1812.
Americans ships on the whole were more skillfully handled, had better gunners, and were
manned by nonpress-gang crews who were eager to avenge violations of neutral rights by
Britain.
48. Oliver H. Perry—1813
American invasions of Canada in the War of 1812 were fruitless, but Captain Perry’s
naval victory on Lake Erie (“We have met the enemy and they are ours.”) inspired the
nation.
49. Thomas Macdonough—1814
The British attempted an invasion through the New York lake-and-river route.
Macdonough won a significant naval battle on Lake Champlain—the Battle of
Plattsburgh.
Macdonough’s victory at Plattsburgh saved New York from conquest, kept New England
from drifting away from the Union, and strengthened the position of American peace
negotiators in Europe.
50. Treaty of Ghent—1814
The treaty essentially restored the pre-war conditions. The two sides agreed to stop
fighting and return to pre-war boundaries.
No mention was made of neutral rights, but the war between France and Britain had
ended, so these were no longer pressing issues.
51. Hartford Convention—1814
This was a convention of New England Federalists hurt by trade restrictions and who
opposed the War of 1812. They proposed several amendments to the Constitution (repeal
of the Three-fifths Compromise to limit Southern representation in Congress and a
requirement of a two-thirds vote in Congress to declare war, admit new states, or impose
a long-term embargo). They also discussed (but rejected) the idea of seceding from the
US if their desires were ignored.
News of the Hartford Convention arrived in Washington at the same time as news of
Jackson’s victory. This talk seemed disloyal; it turned public sentiment against the
Federalists and led to the demise of the party.
52. Battle of New Orleans—1815
A large British invasion force was repelled by Andrew Jackson’s troops at New Orleans.
About 2500 British soldiers were killed or captured, while in the American army only
eight men were killed.
The Treaty of Ghent had ended the War of 1812 two weeks before the battle.
Nonetheless, this victory inspired American nationalism and made Jackson a national
hero (and later president).