1. The New Government Chapter 10

2. Objective #1 Identify and explain issues that the infant government had to handle that became the foundations of stability and change in the areas of political participation, challenges to the Constitution, and change in power.

3. Objective #2 Examine the events and debates of the Federalist Period including Washington’s conception of the Presidency, Alexander Hamilton’s financial planning, struggles with France and England over U.S. sovereignty, the Whiskey Rebellion, and the Alien and Sedition Acts, and their contribution to the development of the two-party system.

4. Post-Constitution Stats Population doubling every 25 years 4 million people in U.S. in 1790 90% of America still rural 95% still live east of Appalachian Mts. –Most of those who lived west, lived in KY, OH, TN

5. Presidential Election of 1789 Washington elected unanimously by the Electoral College. First Cabinet Alexander Hamilton became the first Secretary of Treasury –Sec. of State: Thomas Jefferson –Sec. of War: Henry Knox –Attorney General: Edmund Randolph

6. Judiciary Act of 1789 Created Federal Court System Organized Supreme Court (which was already created by Article III)--example: 5 justices+chief John Jay became the first Chief Justice

7. Bill of Rights Bill of Rights ratified in 1791 Pushed by Anti- Federalists Written by Federalist James Madison

8. Alexander Hamilton Had to correct economic problems Believed national government was to promote economic enterprise Should be a close alliance between national gov’t and rich

9. Hamilton Con’t Rich (“Ambitious Entrepreneurs”) would then lend money and political support to the gov’t Country’s prosperity would then trickle down to the masses.

10. Hamilton’s Economic Plan Phase 1: –Allow the exchange of depreciated paper currency for government bonds “Funding at Par” Nat’l gov’t is taking on national debt (and all state debts) $75 million in debt –A little debt links the country –Motivates people to work hard to rid itself of debt Also puts them in charge of economy Gives credibility/stability to national economy

11. Hamilton’s Economic Plan Phase 2: –Formation of National Bank Created in 1791 Copied Bank of England –Private institution –National government would be the largest “stockholder” Could print needed paper money Provide a stable and national system Opposed by Democratic-Republicans (Thomas Jefferson) as unconstitutional Hamilton sited elastic (necessary and proper) clause

12. Hamilton’s Economic Plan Phase 3: –National taxes Protective tariff against imports from Europe –First tariff passed by Congress in 1789 –Would protect future industry against foreign competition Proposed national excise taxes –Small excise tax approved in 1791 Constitutional? –Jefferson opposed stating it was a state power –Tenth Amendment v. Elastic Clause (Art. I, Sec. VIII)

13. Whiskey Rebellion 1791: Excise tax on whiskey: 7 cent/gallon Farmers in western Pennsylvania distilled their corn for profit –Also used whiskey as a form of currency 1794: Farmers protest tax by tarring and feathering tax collectors Washington sent in national militia sent in to enforce taxes Showed power of national gov’t Also forecasted the battle between national and state governments (and future political parties)

14. Democratic-Republicans Also referred to as “Jeffersonian Republicans” People who came together in opposition of Federalist politics Believed in states rights Hamilton’s economic policies brought them closer together Birth of our two-party system

15. Federalists v. Democratic Republicans

16. French Revolution 1793: French revolution leads to conflict with Britain D-Rs side with France (republicanism over monarchy) Federalists believed that supporting France would be anarchy –Disturbed by violence and executions Feds. Support Britain (economics) in the ensuing war with France

17. French Revolution Con’t France helped colonists in American Rev. 1778: Treaty of Alliance D-Rs feel compelled to enter war and honor treaty.

18. Neutrality Proclamation of 1793 Washington remains neutral –France started war –Neutral countries can trade with both sides –Would hurt American growth and economy Jefferson resigned in protest Britain largely ignored America’s neutrality –Seized ships and impressed sailors

19. Citizen Genet French minister from France to U.S. Organized expeditions of American privateers against Spanish colonies and Britain (violating U.S. neutrality) Tried to rally Americans to defy national gov’t Disrespect turned D-Rs against him Washington (w/Jefferson’s support) demands his recall

20. Jay’s Treaty Jay sent to negotiate with Britain to get them to honor Treaty of Paris (1783) and American neutrality –Many D-R’s calling for war against England Jay goes to London in 1793 –D-R’s did not trust Jay –Felt a “sell out” coming –Treaty took approximately one year to finalize

21. Jay’s Treaty Con’t Hamilton, in an attempt to appease Britain, told them Jay’s negotiation demands and strategy –Hamilton knows US needs Britain as a trade partner if we are to grow our economy –Cut Jay’s bargaining power The Treaty: –England vacated western posts (which it had already agreed to do in Treaty of Paris of 1783) –Compensated U.S. for seized ships

22. What Jay’s Treaty Did NOT Do… Did not address compensation for impressment, stolen cargo, confiscated slaves, arming Native Americans, future seizures Did not acknowledge America’s neutrality Did not forgive American debts from pre- Revolution –Largest debts were in the D-R dominated South –Southerners felt betrayed

23. Impact of Jay’s Treaty Vitalized the D-R party South had more debt to England--became largely D-R New England merchants benefited from payment for seized ships and trade--remain strongly Federalist Pinckney Treaty (1795): Spain gives U.S. free navigation of Miss. River and large disputed territory north of Florida –Did this to avert a possible alliance between U.S. and Britain

24. 1797: Washington’s Farewell Address Washington leaves office after two terms –Did not run in 1796 Gives Farewell Address warning Americans to: –Not split into political parties –Stay out of European affairs –Avoid permanent alliances with foreign countries –Avoid sectionalism

25. 1796 Election Results (16 states in the Union) John AdamsMassachusettsFederalist7151.4% Thomas JeffersonVirginiaDemocratic- Republican 6849.3% Thomas PinckneySouth CarolinaFederalist5942.8% Aaron BurrNew YorkDemocratic- Republican 3021.7% Samuel AdamsMassachusettsFederalist1510.9% Oliver EllsworthConnecticutFederalist118.0% George ClintonNew YorkDemocratic- Republican 75.1% Other--1510.9% Total Number of Electors138 Total Electoral Votes Cast276 Number of Votes for a Majority 70

26. Election of 1796

27. Problems with France France believes Jay’s Treaty is an alliance with Britain and a violation of the treaty of 1778 France begins seizing American ships Refuses to see American diplomats

28. XYZ Affair (1797) Foreign Minister Talleyrand sends three subordinates to see American diplomats (X, Y, Z) –American diplomats led by John Marshall They demand $250,000 bribe and $12 million loan to see Talleyrand –These “bribes” were actually normal in Europe Insulted Americans break off negotiations and prepare for war –“Millions for defense, but not one for tribute” –Vaulted John Marshall into hero status for standing up to the French

29. Undeclared War (1798-1800) Fought principally in W. Indies U.S. creates Navy Department and Marine Corps. Talleyrand agrees to see new ministers Group of Federalists (“War Hawks”), led by Hamilton, want war to continue. President John Adams goes against his party and negotiates peace. –Napoleon took over France in 1800 Convention of 1800: Treaty of Alliance (1778) is annulled, France pays for damage, and fighting stops.

30. Alien and Sedition Acts (1798) Laws designed to hurt D-R party –Came during war w/France –Feds trying to take advantage of their momentum to hurt D-R party Alien Acts: Raised residence requirements for citizenship from 5 years to 14 years (Naturalization Act) Made it easier to deport aliens Sedition Act: Made it a crime to impede the policies of the gov’t or falsely defame the gov’t Congress set both to expire in 1801

31. Virginia and Kentucky Resolutions Pro-Federalist Supreme Court would not declare them unconstitutional –1st Amendment Further, there was no judicial review as of yet. Virginia and Kentucky respond to the Alien and Sedition Acts by passing state resolutions nullifying them. –Secretly written by Jefferson and Madison

32. “Compact Theory” States were sovereign and the federal government existed because states had entered into a compact with it. Federal government was an agent of the states States are the final judges and authority States could nullify national law –“Nullification” –Stance of D-R’s –No other state approved the resolutions

33. Federalist Response to “Compact Theory” Federal government gets its authority from the people, not the states. Therefore, states cannot nullify. Only the Supreme Court could nullify “unconstitutional” legislation –“Judicial Review”

34. 1800 Election Results (16 states in the Union) Thomas JeffersonVirginia Democratic- Republican 7352.9% Aaron BurrNew York Democratic- Republican 7352.9% John AdamsMassachusettsFederalist6547.1% Charles PinckneySouth CarolinaFederalist6446.4% John JayNew YorkFederalist 1 0.7% Total Number of Electors138 Total Electoral Votes Cast276 Number of Votes for a Majority 70

35. 1800 Election Results (Into the House of Representatives!!)  1 vote for each State  1800 Election Results (Into the House of Representatives!!)  1 vote for each State  Thomas JeffersonVirginiaDemocratic-Republican1062.5% Aaron BurrNew YorkDemocratic-Republican 425.0% Blank------- 212.5%