Federalists in Power Notes
Essay 2 Material
Material for essay 2 on exam 2: Chaps 9 & 10 and related lectures.
Chap. 9 and related lectures: Federalists in power. This era saw the implementation of Alexander Hamilton's financial plan, which included the establishment of a national bank, assumption of state debts, and promotion of manufacturing. Key figures included George Washington and Alexander Hamilton.
Chap. 10 and related lectures: Republicans in Power. This period marked a shift in political ideology, with figures like Thomas Jefferson and James Madison advocating for states' rights and a more agrarian-focused economy.
Timeline of governance:
Federalists: 1790s. Their policies favored a strong central government and economic development through manufacturing and trade.
Republicans: 1800-1820s. Focused on agrarianism and limited government intervention.
Essay theme: Democratic-Republicans' departure from their Federalist predecessors. This includes differences in economic policy, views on the power of the federal government, and foreign policy orientations.
National Unity Before Party Conflict
Despite bitter party conflict, some factors helped bind the fledgling country together. These included shared experiences during the Revolutionary War, the unifying influence of George Washington, and a common language and culture.
Building a National Culture: Republican Motherhood
Republican motherhood:
A form of domestic education in civics. Women were seen as crucial in instilling civic virtue and republican values in their children. This concept elevated the social and political importance of women within the domestic sphere.
Republican values endow the role of mother and wife with new political significance. This ideology emphasized the role of women in nurturing the next generation of virtuous citizens, thus shaping the moral and political landscape of the nation.
Biographies of the mothers of great men like Washington. These biographies highlighted the influence of mothers on the character and success of their sons, reinforcing the idea of republican motherhood.
Idea that behind every great man there is an influential mother. This notion underscored the belief that women played a vital role in shaping the leaders of the nation through their moral and intellectual influence.
Building a National Culture: Education
Idea for a National University. Proposed by leaders like Washington and Jefferson to promote national unity and intellectual development.
Washington supports and sets aside funds. His support demonstrated the importance of education in fostering a sense of national identity and civic responsibility.
Benjamin Rush: biggest proponent of public education to create “republican machines.” He believed that education should instill patriotism and moral values in citizens to support the republic.
Rush’s focus on patriotism in terms of subject matter. Emphasized the importance of teaching American history, values, and principles to cultivate national pride and unity.
Washington's Farewell Address and National Unity
Document 9.5, Reading the American Past. In this address, Washington warned against the dangers of political factions and urged Americans to prioritize national unity and common interests.
Building National Culture: History & Language
Federalist David Ramsay and national Revolution.
Writes the first “national” history of Rev, not a “state” history. Ramsay's work aimed to create a shared national narrative of the Revolution, fostering a sense of unity and common identity among Americans.
Noah Webster and national language:
Makes distinctions between Britain and the US. Webster sought to establish an American English distinct from British English, reflecting the cultural and political independence of the United States.
Argues that in the 18th century, the language on the British Isles became corrupted. Webster believed that American English retained its purity and simplicity, untainted by the perceived corruption of British society.
The colonies/US are insulated from this corruption.
Building a National Culture: population & communication
1790 national censuses established (to be completed every decade). These censuses provided valuable data about the population, demographics, and resources of the United States, aiding in governance and policy-making.
1792 Postal Act encourages dissemination of information nationally (cheap rates for newspapers). This act facilitated the spread of news and ideas across the country, promoting national unity and informed citizenship.
Emergence of Parties: Federalists
Some ideological positions of the Federalist party of the 1790s had antecedents in the Federalists who promoted the Constitution in the late 1780s (and their Federalist papers). Key figures included Alexander Hamilton and John Adams. They advocated for a strong central government and a diversified economy.
Emergence of Parties: Democratic- Republicans
Some ideological positions of the Democratic Republicans of the 1790s had similarities to the anti-Federalists of the 1780s. Leaders included Thomas Jefferson and James Madison. They favored states' rights and an agrarian-based economy.
Ideology: Federalists
Liberal interpretation of the Constitution. They believed in implied powers and a broad interpretation of the Constitution to strengthen the federal government.
National government plays an important economic and political role. Federalists supported government intervention in the economy to promote growth and stability.
Economic and political alliance with Britain. Federalists favored close ties with Britain due to trade and shared political values.
Republicans’ ideology
Strict reading of Constitution. Republicans adhered to a strict interpretation of the Constitution, emphasizing limited government and states' rights.
Concerns about the power of the federal government over states. They feared that a strong central government would infringe upon the autonomy of individual states.
Support for aspects of the French Revolution. Republicans initially supported the ideals of the French Revolution, viewing it as a continuation of the American Revolution's fight for liberty and equality.
Washington's Farewell Address and Party conflict
Party conflict can be dangerous in a Republic. Washington warned against the divisive effects of political parties and urged Americans to prioritize the common good.
Federalist Economic vision of Alexander Hamilton
Commercial Empire. Hamilton envisioned the United States as a major player in international trade and commerce.
Manufacturing Vision. He advocated for the development of domestic manufacturing to reduce dependence on foreign goods.
Link wealthy to the new government. Hamilton sought to create a strong alliance between the government and the wealthy elite to ensure stability and economic growth.
Demonstrate Government’s power. His policies aimed to demonstrate the authority and effectiveness of the federal government.
Anchor commercial and political ties with Britain. Hamilton believed that close economic and political ties with Britain were essential for the prosperity and security of the United States.
Implementation of Hamilton’s Vision
Report of Manufacturing. This report laid out Hamilton's plan for promoting domestic manufacturing through tariffs, subsidies, and other government interventions.
Federal Assumption of War Debt. The federal government assumed the debts of the states to establish national credit and strengthen the union.
Taxation. Hamilton implemented taxes, including an excise tax on whiskey, to generate revenue for the federal government and demonstrate its authority.
National Bank. The establishment of the national bank provided a stable currency, facilitated credit, and promoted economic growth.
Report on Manufacture, Reading American Past, 9-1
Report inspired by the need for military supplies during the war for independence. The experience of the Revolutionary War highlighted the importance of domestic manufacturing for national security.
Great Britain is the model: textile industry. Hamilton looked to Great Britain's successful textile industry as a model for American manufacturing.
No “invisible hand”: government intervention needed. Hamilton rejected the idea of laissez-faire economics and argued that government intervention was necessary to promote industrial development.
Hamilton says “infant industries” in new nations need government support. He believed that new industries in the United States required government assistance to compete with established foreign industries.
Foreign nations give subsidies, so the US must do the same to compete. Hamilton argued that the United States should implement similar policies to remain competitive in the global economy.
Hamilton’s Justifications for Manufacture
Machine power greater than human power. Hamilton emphasized the superior productivity and efficiency of machines compared to manual labor.
Division labor and productivity. He recognized the benefits of dividing labor into specialized tasks to increase output and efficiency.
Create jobs (including for women and children). Hamilton argued that manufacturing would provide employment opportunities for a wider range of people, including women and children.
Greater diversity in types of jobs. Manufacturing would create a more diverse and dynamic economy with a wider range of employment opportunities.
Attract immigrants. Hamilton believed that manufacturing would attract skilled immigrants to the United States, contributing to economic growth and innovation.
Hamilton’s justification and sectional interests
Hamilton is seen as promoting Northern manufacturing. His policies were perceived as favoring the industrial interests of the Northern states over the agricultural interests of the Southern states.
Hamilton knew that agrarian interests would oppose him.
To counter charges of Northern preference:
Hamilton shows manufacturing and agriculture are complementary. He argued that manufacturing and agriculture were interdependent and could benefit each other through trade and innovation.
Limited short-term impact of Report on Manufacture
The report does not pass: Jefferson, Madison, and others are concerned about the large role of government. Opposition to Hamilton's plan stemmed from concerns about the power of the federal government and its potential impact on individual liberties and states' rights.
Another problem for passage is that the report is a general recommendation; not targeted at a specific industry. The lack of specific industry targets made it difficult to garner support from diverse economic interests.
The report gets shelved, and Hamilton does not push it.
The First protective tariffs are not implemented until 1816. The War of 1812 created a greater need for domestic manufacturing and led to the implementation of protective tariffs to support American industries.
National Bank
Capitalized with million dollars, more than any existing bank. This substantial capitalization demonstrated the bank's financial strength and stability.
Rationale: expand money supply; extend credit to government and business; handle foreign exchange; make debt payments. The bank was intended to promote economic growth by providing a stable currency, facilitating credit, and managing government finances.
Theory: increasing money supply will speed up circulation. Following A. Smith: Gold and Silver in a chest mean nothing, but in a bank on road to prosperity. Hamilton believed that increasing the money supply would stimulate economic activity and investment.
Private board directors rationale: they will give bank independence from the government so as to not just follow the government’s immediate needs. The private board was intended to ensure that the bank operated in a sound and prudent manner, insulated from political influence.
The Bank’s Opponents
Madison and Jefferson oppose. They argued that the bank was unconstitutional and posed a threat to states' rights and individual liberties.
No provision for its creation in the Constitution. Opponents argued that the Constitution did not explicitly grant the federal government the power to create a national bank.
Paper wealth (as opposed to wealth rooted in labor). Critics viewed the bank as promoting speculation and paper wealth at the expense of real wealth derived from labor and agriculture.
Sectional concerns: the bank will lend to Northern industrial interests at the expense of southern agrarian interests. Southern states feared that the bank would favor the industrial interests of the North over the agricultural interests of the South.
Fears that it will aid/only loan to the rich (since board directors wealthy).
Redeem War bonds: favor the wealthy
Redeemed at full value. This policy benefited speculators who had purchased war bonds at discounted prices.
Rewards speculators since they have purchased them very cheaply; ties wealthy to new system. Hamilton aimed to create a vested interest in the success of the new government among the wealthy elite.
Justified under “security transfer.”
Critics said returns should have been divided between original holders and speculators who bought them.
Public Credit
million war debt (price liberty).
Federal assumption of war debt. This policy strengthened national unity and established the creditworthiness of the federal government.
Nation-building: if the government owes you money, you will have an alliance to it, not the states. Hamilton believed that assuming state debts would create a stronger sense of national identity and loyalty.
Assumption is a sectional issue since the south had already paid off its war debt. Southern states argued that they should not be forced to pay for the debts of Northern states.
Taxation: not imports
The Federal government has been given the power to tax under the Constitution.
Fear taxing imports since they might decrease; the tax might have a negative effect on relations with G.B.
Excise tax on whiskey
This tax mostly hurts western (Penn) farmers. The tax disproportionately affected farmers in western Pennsylvania who relied on whiskey production as a means of income.
They have grain distilled because it’s cheaper to ship that way. Farmers distilled their grain into whiskey to reduce transportation costs and increase its market value.
So Hamilton’s tax hurts lower strata.
Tax and state building
Deemed a way to create greater ties between the people and the national government. Taxation was seen as a way to establish the authority and legitimacy of the federal government.
For if feds don’t tax, local governments will.
Whiskey “Rebellion”
Since conflict with G.B. Americans have had concerns about taxes.
The new tax makes western whiskey sent to eastern markets unprofitable. The excise tax made it difficult for western farmers to compete with eastern producers.
Protest meetings start in W. Penn in 1792.
Like opponents tea, fear that oppression will result if the tax is accepted. Protesters viewed the tax as a violation of their rights and a threat to their economic livelihood.
In 1794, farmers who don’t pay are prosecuted in court; brings more protest.
Federal Response to Whiskey “Rebellion”
troops (and Hamilton and Washington) go to PA to put down the rebellion, which disbands. The swift and decisive response demonstrated the power and resolve of the federal government.
Washington’s Farewell Address and taxes.
Significance of Whiskey “Rebellion”
Shows that the government fears internal conflict and is willing to use force to stop it (equate dissent with disloyalty). The government's reaction underscored its commitment to maintaining order and suppressing dissent.
Political significance: Western areas make alliances with Republicans. The rebellion contributed to the growing divide between Federalists and Republicans, with western areas aligning with the latter.
Republican newspapers attack government’s actions.