ch 8 reading pt 1

Responsibilities and Financial Strategies Under Hamilton

  • Hamilton's Financial Plan

    • National Debt: Hamilton took responsibility for repaying the national debt from the War of Independence as well as state debts.

    • Creation of New National Debt:

    • Old debts replaced by new interest-bearing bonds issued to creditors.

    • Aim: Link the interests of economically powerful individuals to the stability of the new nation.

    • Strong federal government perceived as more likely to fulfill debt obligations.

  • Creation of the Bank of the United States:

    • Modeled after the Bank of England.

    • Characteristics:

    • Private corporation, not a government branch.

    • Purpose: Hold public funds, issue banknotes as currency, and facilitate loans to the government.

    • Profit returned to stockholders.

  • Revenue Generation:

    • Whiskey Tax: Tax proposed on producers of whiskey.

    • Tariffs: Proposed tariffs on imported goods to stimulate domestic manufacture.

    • Government Subsidies: Encouragement for factory development to reduce dependence on foreign goods.

Emergence of Opposition

  • Supporters and Detractors of Hamilton's Vision:

    • Hamilton's plans gained support from American financiers, manufacturers, and merchants.

    • Alarmed critics, including Jefferson and Madison, who favored independent farming over commercial capitalism.

  • Jefferson and Madison's Vision:

    • Advocated for a republic of independent farmers.

    • Believed close ties with Britain could threaten American liberties.

    • Critique of Hamilton's plans as adverse to liberty, which could lead to corruption and wealth inequity.

  • Backcountry Farmers:

    • Utilized whiskey distillation due to poor transportation; saw Hamilton's whiskey tax as unfairly targeting them to benefit bondholders.

The Jefferson-Hamilton Bargain

  • Political Opposition from the South:

    • South less interested in manufacturing and more critical of Hamilton’s economic plans.

    • Many southerners became strict constructionists, arguing limited powers for the federal government.

  • Negotiated Compromise:

    • Jefferson facilitated a deal where southerners supported Hamilton's plan (excluding manufacturer subsidies) in return for locating the national capital on the Potomac.

  • Capital City Design:

    • Designed by Major Pierre Charles L'Enfant, reflecting European urban centers with wide boulevards and parks.

    • Construction heavily reliant on slave labor.

The Impact of the French Revolution

  • Initial American Support for the Revolution:

    • Most Americans initially welcomed the French Revolution in 1789, inspired by their own struggle for independence.

    • Shift occurred in 1793 with the radicalization of the revolution (execution of King Louis XVI, war with Britain).

  • Political Polarization:

    • Jefferson and followers celebrated the revolution as a triumph of self-government; meanwhile, Hamilton's faction worried about anarchy.

  • American Neutrality:

    • Despite the 1778 treaty with France, there was no intention to engage in European conflict.

    • Washington issued a proclamation of neutrality in April 1795 amid British impressment issues.

  • Jay’s Treaty:

    • Negotiated by John Jay; led to controversy due to lack of British concessions on impressment and rights of American ships.

    • Britain agreed to abandon frontier outposts as required by 1785.

Political Parties Develop

  • Formation of Parties:

    • By the mid-1790s, two political factions emerged: Federalists and Republicans (not the same as today’s Republican Party).

    • Each party claimed the language of liberty and accused the other of attempting to destroy it.

  • Federalists:

    • Supported Hamilton’s economic program and advocated closer ties with Britain.

    • Typically backed by merchants, lawyers, and established leaders, opposing the more populist Jeffersonian ideals.

    • Believed in a fixed societal hierarchy and a restricted vision of public service.

  • Republicans:

    • Led by Jefferson and Madison, aligned closely with French interests.

    • Drew support from both wealthy southern planters and ordinary rural farmers, emphasizing participation in democracy.

  • Political Language Escalation:

    • Heated exchanges: Federalists labeled Republicans as anarchists, while Republicans branded Federalists as monarchists.

Whiskey Rebellion and Response

  • Whiskey Rebellion (1794):

    • Occurred when farmers in Western Pennsylvania resisted the whiskey tax.

    • Protesters displayed revolutionary symbolism: “Liberty or Death.”

    • Washington’s Response: Sent 13,000 militiamen to suppress the rebellion, marking the only time a president commanded troops in the field.

Expansion of the Public Sphere

  • Democratic Engagement:

    • The 1790s saw increased citizen engagement in politics, with a rise in attendance at political meetings and newspaper readership.

    • Nearly 1,000 post offices established, enhancing communication.

    • Rapid growth of the American press—number of newspapers increased from ~100 to ~400 by 1810.

  • Democratic-Republican Societies:

    • Formed in response to the Washington administration, they espoused ideas of liberty and political involvement.

    • Disbanded by 1795, but their approach influenced the nascent Republican Party.

Women’s Rights Discussion

  • Mary Wollstonecraft's Influence:

    • Published "A Vindication of the Rights of Woman" in 1792 advocating for women’s access to education and paid work.

    • Suggested women should have representation in government.

  • Growth of Women’s Voices in Public:

    • Increasing willingness of women to express their views in print; example: Judith Sargent Murray contributed essays under the pseudonym "The Gleaner."