Chapter 6: A New Nation

Introduction

On July 4, 1788, Philadelphians celebrated the new national constitution with a "grand federal procession," showcasing unity and prosperity. Workers demonstrated their trades, and religious leaders marched together, symbolizing the hopes for a cohesive nation. George Washington's inauguration in April 1789 and his call for a day of thanksgiving further emphasized unity. However, the nation was not as unified as hoped, with the Constitution itself being a controversial document adopted to manage internal conflicts.

Shays's Rebellion

In 1786 and 1787, western Massachusetts farmers faced heavy debt and economic struggles due to a weak national economy under the Articles of Confederation. The state government favored lenders over the farmers, leading to armed protests led by Daniel Shays. These “Shaysites” used tactics similar to those of the pre-Revolution patriots, blockading courthouses to prevent foreclosures. Governor James Bowdoin saw them as rebels and deployed the militia to disperse them, arresting over a thousand Shaysites by January 1787. Shays's Rebellion sparked national debate, with some, like Thomas Jefferson, seeing it as a necessary check on government, while others, like James Madison, saw it as a sign of potential anarchy, highlighting the need for a strong central government.

The Constitutional Convention

The uprising in Massachusetts prompted leaders to convene the Constitutional Convention in Philadelphia in 1787, with delegates from twelve states (Rhode Island excluded). The primary goal was to address the federal government's inability to levy taxes under the Articles of Confederation. James Madison proposed the Virginia Plan, advocating for a strong federal government with three branches: legislative, executive, and judicial. Representation in the legislature would be based on population size or tax base, and the national legislature would have veto power over state laws.

Debates and Compromises

Delegates debated the method of representation in Congress. The New Jersey Plan, proposed by William Patterson, suggested maintaining equal state representation, while Roger Sherman advocated for state legislatures to appoint members of Congress. James Wilson supported the Virginia Plan, arguing for representation drawn directly from the public to increase the national government's powers. The Great Compromise, proposed by Roger Sherman, established a bicameral legislature: the House of Representatives based on population and the Senate with equal representation for each state, with each state having two senators who could vote independently. The compromise also included counting three-fifths of a state's enslaved population for representation and tax purposes. The form of the national executive branch was also debated extensively, with the decision to elect the president through a special electoral college.

Ratifying the Constitution

The proposed Constitution was sent to Congress and then to special state ratification conventions. Opponents, known as Anti-Federalists, raised concerns about the lack of a national bill of rights. Federalists, like Alexander Hamilton, John Jay, and James Madison, authored the Federalist Papers to argue in favor of the Constitution. Massachusetts ratified the Constitution with proposed amendments, a pattern followed by other states. Virginia's ratification convention in June 1788, featuring debates between Federalists (James Madison, Edmund Randolph, John Marshall) and Anti-Federalists (Patrick Henry, George Mason), was particularly significant. On July 2, 1788, Congress announced the Constitution's ratification, though debates continued in North Carolina, New York, and Rhode Island.

Rights and Compromises

Despite ongoing debates, George Washington's election as president solidified the Constitution's authority. By 1793, the term Anti-Federalist lost its meaning. The Bill of Rights, comprising ten amendments, was added in 1791 as a political compromise. However, it did not address protections for women or guarantee them a voice in government, and many states continued to restrict voting to men who owned property. Slavery was condoned and protected by the Constitution.

The Slave Trade Compromise

The compromise over the slave trade was particularly significant. New England states agreed to protect the foreign slave trade for twenty years in exchange for South Carolina and Georgia supporting a clause that made it easier for Congress to pass commercial legislation. The Atlantic slave trade was outlawed in 1808 due to:

  1. Britain's similar actions in 1807

  2. The Haitian Revolution (1791-1804)

  3. The Louisiana Purchase in 1803.
    However, the ban lacked effective enforcement. The new federal government protected slavery while expanding democratic rights for white men.

Hamilton's Financial System

Alexander Hamilton envisioned America as a metropolitan, commercial, and industrial society, contrasting with Thomas Jefferson's agrarian vision. As Secretary of the Treasury, Hamilton implemented policies to promote industry and link wealthy Americans' interests to the federal government's financial health.

Key Components of Hamilton's Plan

  1. Federal Assumption: The federal government assumed state debts, totaling about 25 million. This aimed to establish federal credit and incentivize state creditors to support the federal government.

  2. Bank of the United States: Hamilton proposed creating a national bank to act as a depository for federal funds, print banknotes, control inflation, and provide a vested interest in the government's finances for wealthy individuals.

The bank was granted a twenty-year charter in 1791, creating over 70 million in new financial instruments and spurring the growth of securities markets and private business corporations. A federal excise tax on goods, including whiskey, was introduced to generate revenue for the government.

The Whiskey Rebellion and Jay's Treaty

In 1791, western Pennsylvania farmers protested Hamilton's whiskey tax, viewing it as a burden. Disguised men assaulted a tax collector, leading to widespread resistance. In July 1794, armed farmers attacked federal marshals and tax collectors. President Washington responded by sending a committee to negotiate and assembling an army of thirteen thousand militiamen. The rebellion was quelled, demonstrating the federal government's capability to suppress internal unrest.

Jay's Treaty

Hamilton also sought a friendly relationship with Great Britain to promote foreign trade. John Jay negotiated a treaty with Britain in 1794, requiring Britain to abandon military positions in the Northwest Territory and compensate American merchants for losses. The United States agreed to treat Britain as its most prized trade partner. However, the treaty failed to end impressment, leading to opposition from Jefferson and Madison, who saw it as favoring Britain over France. The treaty deepened divisions between Federalists and Republicans, solidifying them as distinct political parties.

The French Revolution and the Limits of Liberty

Federalists grew wary of radical democratic thought due to events like Shays's Rebellion and the French Revolution. Initially, Americans praised the French Revolution, but Citizen Genêt's controversial actions and the Reign of Terror led many to question their support. Federalists sought closer ties with Britain, while Republicans remained hopeful about the revolution. The XYZ Affair in 1797, where French officials demanded a bribe from American envoys, further strained relations and led to the Quasi-War.

The Alien and Sedition Acts

Amidst fears of foreign agents, Congress passed the Alien and Sedition Acts in 1798 to suppress internal subversion. The Alien Act allowed the deportation of foreign nationals, while the Sedition Act targeted those who criticized the government. These acts sparked backlash, with opponents articulating a new vision for liberty. James Madison and Thomas Jefferson organized opposition from state governments, arguing that the states could declare federal laws unconstitutional through the Kentucky and Virginia Resolutions.

Religious Freedom

Attitudes toward religion and government began to shift. States gradually moved toward disestablishment, with Massachusetts being the last to end support for an official religious denomination in 1833. Political leaders like Thomas Jefferson and James Madison advocated for disestablishment, viewing the relationship between church and state as oppressive. The First Amendment, ratified in 1791, guaranteed religious liberty at the federal level.

The Election of 1800

By 1800, President Adams had lost the confidence of many Americans. In the election of 1800, Republicans defeated Adams in a contested presidential race. The election resulted in a tie between Thomas Jefferson and Aaron Burr, leading to a tie-breaking vote in the House of Representatives, where Jefferson emerged victorious. Republicans viewed this as a revolution, rescuing the country from an aristocratic takeover.

Jefferson's Presidency and Judicial Review

In his first inaugural address, Jefferson pledged to respect the rights of the Federalist minority. Despite attempts to tame party politics, tensions between federal power and state and individual liberties persisted. Chief Justice John Marshall, in the Marbury v. Madison case of 1803, established the principle of judicial review, allowing the Supreme Court to decide the constitutionality of acts of Congress.

Conclusion

The young United States grappled with debates over political power. The Constitution established a strong federal government but could not resolve conflicting interests. Events like the Whiskey Rebellion and Hamilton's financial system highlighted these tensions. The French Revolution and debates over religious freedom further divided Americans. Despite national unity celebrations, political controversies underscored the fragility of the union, testing the limits of American democracy.