Unit 5 - SmallRepublic, Big Shoulders (1789-1815)
I. MOVERS and SHAKERS (Founding Father Giants)
A. Who was one Founding Father that was a mover and a shaker and why?
* George Washington
B. Who was another Founding Father that was a mover and a shaker and why?
* John Adams
C. Who was another Founding Father that was a mover and a shaker and why?
* James Madison
D. Society of Cinncinnati = a group of elite veteran soldiers with privileges not allowed
II. CREATING THE CABINET
A. What was one of President Washington’s most important contributions to American Constitutionalism?
* His immediate creation of the Presidential Cabinet
B. Who did President Washington appoint to his cabinet?
(The US Senate had to approve the Presidents appointments)
1. Thomas Jefferson as Secretary of State
2. Alexander Hamilton as Secretary of Treasury
3. Henry Knox as Secretary of War
III. HAMILTON’S THREE REPORTS
A. What were two important issues Congress attended to in President Washington’s 1st two years?
1. Bill of Rights
* ratified by all 13 States in 1791
2. Judiciary Act 1789
* the US Judicial System
- 13 Federal District Courts (one in each state)
- 3 Circuit Courts of Appeals
- Supreme Court with 6 Justices
( John Jay as 1st Chief Justice of Supreme Court )
B. What issues superseded all other issues?
* economic issues
C. What plans did the Secretary of Treasurer, Alexander Hamilton, create to solve the economic
issues of America?
1. What was Report # 1? Report on Public Credit in Jan 1790
(Congress votes to accept Report # 1)
a. What was the financial status of America?
* Nations debt = $ 70 million
* States debt = $ 25 million
* IOU’s from US Generals debt = $ 7 million
* TOTAL =$ 102 million
b. Who held that debt? (Who US owe money?)
* 75% were American speculators (investors)
c. What is a bond?
* certificate of debt issued by a government guaranteeing
d. What was Hamilton’s problem?
* How to pay off the bondholders (American speculators) while at same time re-finance the nations many upcoming expenses to establish sound fiscal policy and good credit rating.
e. What was Hamilton’s solution?
1. National (Federal) Government assume (take over) all state debts
despite the state inequities and combine with Nation’s debt and IOU debt.
2. Pay off the bond debt to American speculators at face value of 100 cents. They paid (loaned) 15 cents on the dollar and received 100 cents making 85 cents on every dollar.
3. National Government to issue new bonds to borrow money at better terms creating permanent national US debt to finance the US Government
WHY?
To create confidence in new Government and good credit rating for Government among creditors (investors) at home and abroad to ally creditors with new US government to ensure its success
NOTE: Hamilton did not want constant bondage of DEBT; however, he realized monetary growth fueled investment and economic expansion (an Adam Smith principle).
f. What was Jefferson’s concern?
* The ever growing debt. He wanted a generational limit of 19 years.
g. What was Hamilton’s response?
* functional limit of debt in a sinking fund where Government pays off old debt before issuing new bond debt (pay the balance not just interest)
(Generational limit and Functional limit in essence the same)
* TJ view = believed tying the rich to Government increased their power
* AH view = believed tying the rich to Government weakened their power
2. What was Report # 2 = Report on a National Bank in Dec 1790
(Congress votes to accept Report # 2)
a. What did Hamilton want to create?
* US Bank (BUS)
WHY?
1. To safeguard all income from Federal taxes and land sales
2. To carry out Government financial affairs
3. To pay Government payroll
4. To issue and circulate currency (resulting in regulating of small banks)
5. To create source of credit to Government
b. How long would the US Bank last?
* Re- charter of US Bank voted on approx. every 20 years by Congress
c. Who held most of the stock in the US BANK (BUS)?
80% held (owned) by private investors
WHY?
1. To provide its stockholders with access to public funds for private ventures to develop and stimulate the economy
2. To bring sound fiscal practices and a strong currency to Government
through an alliance lucrative to private bankers
d. Why did Hamilton emphasize the private sector?
* Hamilton trusted markets more than he trusted people. He believed markets are generally constrained by reality and he wanted that reality to enforce its discipline on US finances. He wanted to create a system where markets would constrain the US not the people. Also, as Government got bigger it would be constrained by the private sector and its market forces (Adam Smith principles)
e. Did Hamilton’s Plan work?
* in 1791 debt per capita = $197.00
* in 1811 debt per capita = $49.00
3. What was Report # 3?Report on Manufactures in Dec 1791
(Congress votes to reject Report # 3 for its neo mercantilism tendencies)
a. How did Hamilton view capitalism (Adam Smith principles)?
* He understood that the economic system of capitalism created wealth quickly
b. What did Hamilton want to do with the wealth created from capitalism?
* accelerate the path to wealth for America
c. How did Hamilton plan to accelerate the path to wealth?
* US federal protective tariffs
* US federal subsidies
(Hamilton also wanted skilled immigrants, improvements on transportation, and a
strong military all to help US acquire and maintain wealth)
D. How did leaders like James Madison and others react to Hamilton’s 3 Reports?
* James Madison defects to the ANTI-FEDS
- Too much like British mercantilism
- Too inequitable as Virginia (Madison’s home state) already had paid off its own debt
- Too many rewards for stockholders of US bonds
- Too many Un-Constitutionalities (funding, assumption, permanent debt, US Bank)
E. What compromise settled the dispute over permanent national debt?
* Capital moved from NY to Philly and then to Washington DC to gain southern support
F. How did Hamilton handle the criticism of the US Bank being unconstitutional?
* Article I, section 8 = Hamilton used the Necessary and Proper Clause (Elastic)(Implied)
stating that if taxation Constitutional then the means of achieving it was also Constitutional.
- The US Bank (BUS) would be carrying out the enumerated (listed) powers of the following:
- taxation- coining of currency- commercial regulation
G. How did Jefferson respond to Hamilton’s argument?
* Necessary and Proper Clause only referring to powers indispensable to carrying out
enumerated powers and US Bank not indispensable
IV. FUEDING PATRIOTS
A. What did Hamilton create as part of his fiscal policies that stirred up rebellion on the American
frontier in 1791?
* a 25% tax on all products made from corn (like moonshine whiskey)
*WHY?
1. subsidize assumption of debt payments
2. demonstrate US Govt. authority to tax
B. How did western frontier settlers respond to the tax?
* firestorm of protest
* protests erupted into violence led by D. Bradford and J. Marshall where tax officials
were terrorized and courts closed
C. How did President Washington respond to the WHISKEY REBELLION?
* A mass show of force (13,000 man army) and Whiskey Rebels dispersed. The Feds prove
the ability of the New US Government to enforce the laws.
D. How did Jefferson and the Republicans view the response of Washington and the Government?
* compare to Britain and liken to stamp and tea revolts
(many westerners become Jefferson supporters)
E. How did Feds try to stop the rising power of Anti-Feds (Jefferson Republicans)?
* block western territories from becoming states
F. What happened to the feud between Jefferson and Hamilton by Washington’s 2nd term?
* spun out of control with foreign policy being the boiling point
X. BEYOND the OCEANS
A. Was America truly independent as a result of the Treaty of Paris 1783?
* Britain = North* Spain = South* France = N & S
* Indians = West* Barbary Pirates = seas like the Mediterranean
B. How should America respond to threats?
* ally with Britain* ally with France* neutrality
C. How did America start to respond to the threats?
* Secretary of War Henry Knox
- Army of 5000
- 6 Navy frigates with Marines on board (Department of Navy established 1798)
D. What was happening in the Ohio Valley that threatened American sovereignty?
* flood of pioneers across the Appalachian Mountains into Indian land resulting in warfare
(mainly led by Miami Chief LITTLE TURTLE)
* US respond by sending General St. Clair into NW Territory but lost horribly to the Indians
(Miami, Shawnee, Delaware, Chippewa, Ottawa, Potawatomi)
* US then send General “MAD” Anthony Wayne and he defeated Little
Turtle and his alliance at the Battle of FALLEN TIMBERS leading to the TREATY of
GRENVILLE 1795
* British actions towards Indians suspicious
E. Were Britons and Spaniards aiding and encouraging Indians?
* YES, as violence on Ohio and Mississippi Valleys continued for another 15 years
* Britons in Northwest = forts and outposts and ties to tribes who were attacking settlers in
violation of Treaty of Paris 1783
* Spainards in Southwest = not allowing US citizens to use sail goods down the Mississippi
River to port of New Orleans
* PINCKNEY’S TREATY (San Lorenzo) 1795 = Spain allow US 3 year privilege to have
right of passage on Miss. River and New Orleans
VI. The FRENCH REVOLUTION and NEUTRALITY
A. How did Jefferson and the Anti-Feds view the French Revolution?
* pleased and supportive of removal of corrupt King Louis XVI
*worry as French Revolution turned into a dictatorship of the mob and Robespierre
B. What did John Adams predict about the French Revolution?
* it would pit France against every monarchy in Europe
Britain v. France again
C. What did Feds leaders conclude?
* cannot afford or even survive involvement in an European War and too many problems at
home
* President Washington issued and declared NEUTRALITY in April 1793 against the
advice of Jefferson and against the Constitution (Senate not approve). US would not aid or
hurt Britain or France.
D. What constituted NEUTRALITY?
(Whose side are we, the US, really on?)
* 75% of US exports from Britain and 90% of imports from Britain
* Britain stop all French ships bound for US and US traders and US Navy not object
* Britain board, inspect, seize cargo of US ships in 1790 to 1810
* Britain impress (enslave) US sailors into British Navy
(France denounced a NEUTRALITY that so easily “bowed down” to Britain)
(TJ resigned as Sec. of State and plots political revenge from his home Monticello)
E. Who did the French send to America as ambassador?
* Citizen Genet
- Washington let him into America as long as not recruit or agitate but he did both
- verbally attacked Feds and helped organize French clubs
- engaged in military campaigns against British in the west
- hired privateers to attack British ships bound for America
- went public in the press against Britain
(Washington had had enough and Genet lost his job)
VII. JAY’S TREATY
A. What were the numerous conflicts with Britain?
* Maine/Canadian boundary dispute
* British outposts and forts in Northwest
* Compensation to US slave holders for when Britain liberated slaves in Revolution
* Freedom of the Seas (seizing US ships and impressing of sailors)
B. Who did Washington send to negotiate a treaty with Britain?
*John Jay (Federalist and Chief Justice of Supreme Court)
C. How did JOHN JAY handle the negotiations?
* remember US had small military and little ability to talk tough so he went with a tone
of APPEASEMENT
* the details of Jay’s Treaty 1794
- British compensation for freed slaves dropped
- Br/US submit Maine/Canadian border dispute to commission in near future
- Britain agree to neutrality of sea rights of America
- US to pay all debts owed to British merchants from Revolution
- British evacuate (forts and outposts) Northwest by 1796
- Br/US agree to grant each other FAVORABLE trading status with each other
D. What did JEFERSONIAN REPUBLICANS conclude about JAY’S TREATY?
* treasonous and nicknamed it Damn JAY’S TREATY
(Pinckney’s and Jay’s Treaty did help greatly to open the west for expansion)
(Madison believed that conflicts result in clearly defined opposing viewpoints which he saw as a strength)
VIII. REPUBLICANS v. FEDERALISTS
A. How did Washington and others view POLITICAL PARTIES?
* they tried to avoidthem in America
B. Were the Parties of REPS and FEDS easy to define?
* NO, not simply REPS v. FEDS but also rich v. poor, slave v. anti-slave, big govt. v. small govt.
C. Were the Parties more complex and more like the Feds v. Anti-Feds of 1787-89?
* YES
FEDERALISTSREPUBLICANS
CharacteristicsCosmopolitan and businessRural and agrarian
Suspicious of masses (majorities)Trust in masses
Not all rich (mid class tradesmen)Not all poor (southern planters)
Northeast regionSouthwest region
IdeologyBig central governmentSmall de-centralized government
Loose construction of ConstitutionStrict construction of Constitution
General welfare of all peopleBill of Rights
Power to tax, regulate, and militarySuspect power to tax, regulate, military
Pro-BritainPro-France
SimilaritiesBoth division of power
Both avoid authoritarianism and Constitution to govern fairly
Both reject violence to attain goals
Both fear Tyranny
Fear tyranny of massesFear tyranny of big central government
Missing
Both not addressing SLAVERY
Headed toward anti-slavery Headed toward pro-slavery
(General welfare of all) (States rights)
D. How to recognize a 1790’s FEDERALIST and REPUBLICAN?
See Pages 146 to 147
E. What impact did James Madison on the creation of political parties in America?
* He was largely responsible for officially creating the Jefferson Republicans (DR’s)
IX. DEMOCRACY’S FIRST TEST
A. Could the people transfer power without bloodshed from one group to another group holding
views diametrically opposed to the 1st group?
* Washington retires after 2nd term in 1796
* Hamilton craft much of Federalists ideas and John Adams represent them
* Madison craft much of Republicans ideas and Jefferson represent them
ELECTION of 1796 = John Adams v. Thomas Jefferson
B. What were the advantages of the Federalists?
* popularity of Washington and his late announcement of retirement as nobody would
announce their candidacy for President if they were to run against him
C. What were the issues to be debated in the election of 1796?
* Jay’s Treaty* US Bank* Tax (Whiskey)* national debt
D. What Federalist distrusted John Adams?
* Hamilton, he viewed Adams as being too moderate so he nominated Thomas Pinckney
E. What was the result of the ELECTORAL COLLEGE?
* Adams 71* Jefferson 68* Pinckney 59 * Burr 30
(2nd place finisher becomes Vice President = Jefferson)
G. What did Washington say in his FAREWELL ADDRESS?
GW’s Farewell Address
* nationalism = national union over regionalism and States rights
* neutrality = friendship and commerce with all nations with no permanent alliances
* non-partisanship = look beyond parties interests to country’s interests
* religion and morality = indispensable to future of nation
(build country on the backs of citizens behavior)
H. What did Washington’s no permanent alliance mean in all likelihood?
* not an unwillingness to make allies but an admittance of how weak America was at time and
likely in 20 years approx. alliances permissible and acceptable
I. What was the impact of Washington on America?
* oversaw the sale of public lands, the credit rating of America rise, removing of British from
west, and allowed US to have time to develop, and demonstrated virtuous behavior as
example to all
X. QUASI WAR
A. How to summarize the Presidency of John Adams 1797-1801?
* domestic = great difficulty
* foreign = excelled rising above factionalism and partisan politics
B. What did France decide to do to America in 1797?
* bully America on high seas and in treaties just like Britain
(seized 300 US ships)
* France upset with Brit/US trade relations and Jay’s Treaty
* Feds who bent hard to avoid war with Britain now calling for war against France
C. Who did President Adams send to France to negotiate?
* Pinckney, John Marshall, E. Gerry
* P, M, G snubbed and not allowed to meet with French Foreign Minister Charles Talleyrand
* 3 unknown men dubbed X , Y, and Z demand $240,000 before meeting officially with
Talleyrand
* P, M, G refuse and return home
“Millions for defense not one cent for tribute”
D. What was the result of the XYZ Affair?
* Feds call for war and Reps say Britain is much worse over last 10 years
* President Adams readies Navy and Army for war
* in Feb. 1799 numerous US and French ships engage in fighting in an undeclared quasi war
* citizen George Logan goes to France to seek peace on his own on behalf of US but fails
(Logan Act 1799 = private citizens cannot negotiate in name of US)
E. What do the Federalists in Congress do in 1798 (Feds have majority)?
* call for war against France
* fear treason in US so create extreme laws called the Alien and Sedition Acts
- Naturalization Act = raise requirement from 4 to 14 years for citizenship
- Alien Act = deport immigrants in times of peace
- Alien Enemies Act = deport immigrants in times of war
- Sedition Act = forbade conduct or language leading to rebellion
(aimed at recent immigrants who mainly support the Republicans)
(Federalists Judges jailed or fined 25 Republicans most being Newspaper editors. One
Republican Matthew Lyon ran for House of Representation while in jail)
(malicious slurs often resulted in duels because personal honor held most dear)
F. What did President Adams do with the Alien and Sedition Acts?
* Adams not veto nor protest the Alien and Sedition Acts (evaded them)
G. What did the Republicans do with the Alien and Sedition Acts?
* Jefferson and Madison created the Virginia and Kentucky Resolutions
- State sovereignty
- 10th Amendment basis for nullification
- Compact Theory = States formed the Union of America so could judge
Constitutionality of Federal laws
(no state other than Virginia and Kentucky support Resolutions)
XI. ADAMS METTLE and the ELECTION of 1800
A. How did President Adams handle the QUASI WAR with France?
* Against objections by Hamilton and other Feds he dispatched W.V.Murray to negotiate with
Talleyrand
* Agreement reached where France leave US ships alone and peace ensued.
* Adams went against his party for his country and was rewarded by being voted out of office