Readings: Constitutional Crisis and the First American Political Parties

The Whiskey Rebellion

From PBS’ American Experience, http://www.pbs.org/wgbh/amex/duel/peopleevents/pande22.html

Nearly twenty years after the revolutionary War began, the United States government faced a small-scale revolution by some of its own citizens. As in the previous war, taxes were a central issue. And Alexander Hamilton understood that putting down this rebellion was critical to the life of the nation.
In order to create a self-supporting and effective government, Treasury Secretary Hamilton knew he needed to find a steady source of revenue (money). He proposed an excise tax on whiskey (think Jack Daniels) produced in the United States, and Congress instituted the levy (tax) in 1791. In general, the citizens of that time felt negatively toward the idea of taxation. The farmers of western Pennsylvania, many of whom distilled whiskey and profited from its sale, proved outright hostile (violent) to the idea.


In July of 1794, a force of disaffected whiskey rebels attacked and destroyed the home of a tax inspector. The rebellion grew in numbers, if not in actions, and threatened to spread to other states. Hamilton knew that the presence of a large and potentially hostile force in Pennsylvania could not be tolerated. If the government were to survive, it would have to show itself capable of keeping control.
Hamilton advocated the use of military force; President George Washington instead put state militias on the ready and sent in negotiators. When talks proved fruitless, Washington acquiesced (gave in) to Hamilton's view. A force of 13,000 militia troops, led by Hamilton and Virginia governor Henry Lee, marched into western Pennsylvania.
By the time the federal force arrived, the rebellion had collapsed and most of the rebels had fled. Two men were convicted of treason and later pardoned by Washington. Alexander Hamilton was elated. The fledgling federal government had proven it could keep order -- a necessity if the U.S. was to avoid instability. But many, in particular Thomas Jefferson, thought that this resort to military force was a dangerous mistake. It convinced them that Hamilton was a dangerous man.

National Bank

Articles are from Wikipedia.org

In 1791, the original Bank of the United States, sometimes referred to as "The First Bank of the United States", was proposed and brought into being under the aegis of the first Secretary of the Treasury Alexander Hamilton.

Along with establishing a mint and an excise tax, the purpose of Hamilton's proposed bank was to:

·  Establish financial order, clarity and precedence in and of the newly formed United States.

·  Establish credit—both in country and overseas—for the new nation.

·  To resolve the issue of the fiat currency, issued by the Continental Congress immediately prior to and during the United States Revolutionary War—the "Continental".

Opposition

Like most southern members of Congress, both in the Senate and in the House (indeed like most members of Congress in general) neither Secretary of State Thomas Jefferson nor Representative James Madison had any particular interest in two of Hamilton's tripartite recommendations: the establishing of an official government Mint, and the chartering of the Bank of the United States. They believed the south would not benefit from either a central mint or bank, as these were mostly to the benefit of business interests in the commercial north, not southern agricultural interests. But like their fellow southerners, Jefferson and Madison had a great deal of interest at stake in Hamilton's third recommendation: The matter of increasing the excise tax on imported and domestic spirits (liquor/alcohol); that this money was to facilitate the operations of the Bank of the United States was, for the most part, inconsequential.

Southern congressmen feared the burdens of this proposed excises tax would fall disproportionaly heavy on the South, where, declared Jackson, "hard liquor was a necessity of life."[5]

The establishment of the bank also raised early questions of constitutionality in the new government. Hamilton, then Secretary of the Treasury, argued that the Bank was an effective means to achieve the authorized powers of the government implied under the of the Constitution. Secretary of State Thomas Jefferson argued that the Bank violated traditional property laws and that its relevance to constitutionally authorized powers was weak. The decision ultimately fell to President George Washington.

Kentucky and Virginia Resolutions (Nullification)

Articles are from Wikipedia.org

The Kentucky and Virginia Resolutions (or Resolves) were important political statements in favor of states' rights written secretly by Vice President Thomas Jefferson and James Madison (then in retirement) in 1798. They were passed by the two states in opposition to the federal Alien and Sedition Acts. Though often mentioned as a pair in modern historical discussions, they were actually two separate documents. The Kentucky Resolutions (plural) were written by Jefferson and passed by the state legislature on November 16, 1798, with one more being passed the following year on December 3, 1799. The Virginia Resolution (singular) was written by Madison and passed by the state legislature on December 24, 1798. Jefferson and Madison collaborated on the writing of the two documents, but their authorship was not known for many years. The resolutions attacked the Sedition Act, which extended the powers of the federal government over individuals inside the states. The resolutions declared that the Constitution was a "compact." That is, it was an agreement among the states. The federal government had no right to exercise powers not specifically delegated (given) to it; should the federal government assume such powers, its acts under them would be void (canceled). Thus it was the right of the states to decide as to the constitutionality of such laws passed by Congress.

. . .Alexander Hamilton, then building up the army, suggested sending it into Virginia, on some “obvious pretext.” Measures would be taken, Hamilton hinted to an ally in Congress, “to act upon the laws & put Virginia to the Test of resistance.” [2]

Election of 1800

from Wikipedia.org

In the United States Presidential election of 1800, sometimes referred to as the “Revolution of 1800”, Vice President Thomas Jefferson defeated President John Adams. . .The election exposed one of the flaws (problems) in the original Constitution. Members of the Electoral College could only vote for President; each elector could vote for two candidates, and the Vice President was the person who received the second largest number of votes during the election [This meant that technically, Thomas Jefferson, a Democratic-Republican, would have been President, with John Adams, a Federalist, as his vice-President].

The Twelfth Amendment, ratified in 1804, was added to the United States Constitution. The Twelfth Amendment stipulates that electors make a distinct choice between their selections for President and Vice President.

Louisiana Purchase

Articles are from Wikipedia.org

The Louisiana Purchase was the acquisition by the United States of approximately 530 million acres (828,000sqmi or 2,100,000km²) of French territory in 1803, at the cost of about 3¢ per acre (7¢ per ha); totaling $15 million or 80 million French francs. Including interest, America finally paid $23,213,568 for the Louisiana territory.[1] The land purchased contained all of present-day Arkansas, Missouri, Iowa, Oklahoma, Kansas, Nebraska, Minnesota south of Mississippi River, much of North Dakota, nearly all of South Dakota, northeastern New Mexico, northern Texas, the portions of Montana, Wyoming, and Colorado east of the Continental Divide, and Louisiana on both sides of the Mississippi River, including the city of New Orleans. (The Oklahoma Panhandle, and southwestern portions of Kansas and Louisiana were still claimed by Spain at the time of the Purchase.). . .The purchase was an important moment in the presidency of Thomas Jefferson. At the time, it faced domestic opposition as being possibly unconstitutional. Although he felt that the Constitution did not contain any provisions for acquiring territory, Jefferson decided to purchase Louisiana because he felt uneasy about France and Spain having the power to block American traders' access to the port of New Orleans.

Jefferson disliked the idea: purchasing Louisiana from France would imply that France had a right to be in Louisiana. A strict constructionalist, Jefferson also believed that a U.S. president did not have the authority to engage in such a deal because it was not specified in the constitution, and that to do so would moreover erode states' rights by increasing federal executive power. On the other hand, he was aware of the potential threat that a neighbor like France would be for the young nation, and was prepared to go to war to prevent a strong French presence in the region. . .

Domestic Opposition

The American purchase of the Louisiana territory was not accomplished without domestic opposition. Jefferson's philosophical consistency was in question because of his strict interpretation of the Constitution. Many people believed he was being hypocritical by doing something he surely would have argued against with Alexander Hamilton. The Federalists strongly opposed the purchase, favoring close relations with Britain over closer ties to Napoleon, believing the purchase to be unconstitutional, and concerned that the U.S. had paid a large sum of money just to declare war on Spain. The Federalists also feared that the political power of the Atlantic seaboard states would be threatened by the new citizens of the west, bringing about a clash of western farmers with the merchants and bankers of New England. There was concern that an increase in slave holding states created out of the new territory would exacerbate divisions between north and south, as well.