Transcript Hamiltonian Economics: The National Debt

 1. As a result of the 1800 presidential election results,
A. A constitutional amendment set up separate electoral
votes for president and vice-president.
B. Hamilton's economic program was dismantled.
C. John Adams joined the Republican Party.
D. The Federalist Party gained power.
 2. In the video, Professor Joseph Ellis observes that
the creation of political parties allows
A. the elite to control elections.
B. political dissent to coexist without violence.
C. minority groups to gain political leverage.
D. incumbent politicians to maintain their offices.
George
Washington
President of the
Constitutional
Convention;
First President
of the United
States, 17891797
Hamiltonian Economics: The
National Debt
 Alexander Hamilton
 Secretary of Treasury
 Report on Public Credit
(1790)
 Foreign debt paid promptly
and fully $11 m
 Domestic debt— $24 m x 2
government issue securities
to debt holders that pay 4%
interest
Hamiltonian Economics:
The Bank and the Excise Tax
 Bank of the United States
 Handle government revenue and
disbursements
 Privately owned and controlled 1/5 – 4/5
 Taxes
 Excise taxes: alcohol, tea, coffee, etc
 Whiskey tax to set precedent of federal
government imposing and collecting internal
tax
“City of Magnificent Distances”
 The Rise of Opposition
 Madison led congressional
opposition to Hamilton’s
proposals
 Jefferson joins Madison’s
opposition
 Compromise reached:
 In exchange for accepting
Hamilton’s proposals on debt
 permanent capital of the
United States would be
located on the Potomac River
Americans and the
French Revolution
 Americans sympathetic to French Revolution
 Jeffersonian Republicanism
 Grateful for French help in American revolution
 Washington declares American neutrality
 U.S. commerce and financial health depended
on good relations with Great Britain
 Jefferson and Madison lead French sympathizers
Citizen Genêt
 Edmond Charles
Genêt
 Ignored neutrality of
the U.S.
 British Orders in
Council
 Engaged in overt
and covert acts of
war
Western
Troubles
 Shawnee attack
frontier settlers
 “Mad” Anthony Wayne
and the Battle of Fallen
Timbers (1794)
 Whiskey Rebellion
 George Washington
orders militia troops
against Whiskey
Rebellion
The Jay Treaty
 Jay’s Treaty
 British agree to abandon forts on U.S. soil
 U.S. grants Britain Most-Favored-Nation trading
status
 Nothing said of impressment or other British
violations
 New England and port cities for it
 South opposed
 Pinckney Treaty
 Thomas Pinckney
 Favorable Florida border
 Americans can use Mississippi River and port of New
Orleans
Washington’s Farewell
Set 2-term limit
Secured U.S.
control of West
Farewell address
warnings
“entangling
alliances”
“factions”
Democratic
Republicans
The Election of 1796
 John Adams, Federalist
candidate
 Thomas Jefferson,
Democratic Republican
candidate
 John Adams won
Presidency
 Thomas Jefferson won
Vice-Presidency
Troubles with France,
1796-1800
 France breaks off relations because of Jay’s Treaty
 XYZ Affair
 France vs. U.S. in the Caribbean
The Crisis at Home, 1798-1800
 Federal property tax
 Alien and Sedition Acts
 Alien
 Extend naturalization
 Detain
 Deport
 Sedition
 William Duane of the Philadelphia Aurora
 Matthew Lyon republican congressman
 Both Jailed
 Virginia and Kentucky Resolves
The Politicians and the Army
 Federalists implemented request
that Congress create standing
army
 Damages Federalist position
 Many believe Federalist using war with France to
impose their rule and destroy opposition
 Alien and Sedition Acts
 Federalist military buildup
Video Question Time!
 1. As a result of the 1800 presidential election results,
A. A constitutional amendment set up separate electoral
votes for president and vice-president.
B. Hamilton's economic program was dismantled.
C. John Adams joined the Republican Party.
D. The Federalist Party gained power.
 2. In the video, Professor Joseph Ellis observes that
the creation of political parties allows
A. the elite to control elections.
B. political dissent to coexist without violence.
C. minority groups to gain political leverage.
D. incumbent politicians to maintain their offices.
The Jeffersonians in Power:
The Republican Program
 Plea for unity, “we are all Republicans, we
are all Federalists”
 Jefferson’s “wise and frugal government”
 Simplified social tone of administration
 Reduced size and expense of government
 Substantial cuts in military
Louisiana
 Purchase of Louisiana Territory from
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France, 1803
New Orleans
Dilemma for Jefferson:
no constitutional power to buy the
territory, but offer could not be refused
Jefferson easily reelected in 1804
Lewis & Clark
Explore newly
acquired land
May 1804
Began St Louis along
Missouri River
Wintered in Mandan
Village
Toussaint
Charbonneau
Sacajawea
November 1805
reached Pacific
Continuation of Shays
Rebellion
Cosmopolitans versus
Localists
 Cosmopolitans
 Urban classes, large scale farmers and
planters, Continental Army officers
 Aggressive trade policy, hard money,
 Localists
 Rural classes
 Paper money and debt relief
 Localists win most local debates
 but speculators thrive
 Cosmopolitans began to look beyond local to national
stage
 A national stage with problems. Congress –
difficulties
 Financial
 Annual income $400,000
 Interest on debts $2.4 million
 Foreign relations
 Lack of protection for trade
 Barbary Pirates
 Jay-Gardoqui Treaty
 John Jay
 Access to Spanish colonies
in exchange for closing
Mississippi to US shipping
 North for
 South Against
 Washington – Potomac
River
 Annapolis's meeting
 Plan for Philadelphia
Constitutional
Constitutional Convention
meets
Convention
in Philadelphia
May 1787
In attendance are delegates from
all states, except Rhode Island
74 Delegates
Only 3 attended Stamp Act
Congress
8 signed declaration
½ continental congress
22 served in continental army
Many unknown
 Shift of the
guard of
America
 Personified by
Hamilton
Key issues at convention
 Question of power
 Congress needs power to
 Tax in states
 Regulate trade
 Issue money
 Maintain national armed forces
Key issues at convention II
 Ensuring liberty rather than tyranny
through checks and balances (Separation
of Powers)
 Meant to ensure cooperation - often leads to
gridlock
Virginia and New Jersey Plan
 Compromise
 New Congress to have two chambers
 different electoral methods
Key issues at convention III
 Strong executive
 Question of representation of
southern states
 3/5 clause
 protection of slave trade until 1808
 Establishment of Supreme Court
 power to strike down federal and state
laws
THE CONSTITUTION OF THE
UNITED STATES OF AMERICA,
1787
Passing the
Constitution
 Needed to be ratified by 9 of the
13 states
 Heated debate over ratification
 Competing sides known as
 Federalists and Anti - federalists
 ‘Federalists’ supported
the Constitution as it
stood
 Principal figure James
Madison
 No problem with a
powerful central
government
 constitution had
sufficient checks and
balances to prevent
abuses.
 ‘Anti-federalists’
 Principal figures Sam
Adams & Patrick
Henry
 More powerful States
 strong federal government
was dangerous.
 Stressed need for
rights to be built into
constitution
 Votes close in
several states
 constitution
ratified when
New Hampshire
voted for
acceptance in
June 1788
Bill of Rights
 Constitution silent on issues of rights
 ammunition to Anti-Federalists
 Several states ratified on understanding that
bill of rights would be passed amending the
constitution
Bill of Rights, passed 25th
Sept 1789, ratified 15th Dec
I
1791 an establishment of religion,
Congress shall make no law respecting
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 or prohibiting the free exercise thereof; or abridging the freedom of
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speech,
or of the press, or the right of the people peaceably to assemble,
and to petition the Government for a redress of grievances.
II
A well-regulated militia, being necessary to the security of a free
State, the right of the people to keep and bear arms, shall not be
infringed.
X
The powers not delegated to the United States by the Constitution,
nor prohibited by it to the States, are reserved to the States
respectively,
or to the people.
George
Washington
President of the
Constitutional
Convention;
First President
of the United
States, 17891797
Bank of the United
States
 Vital to have stable and reliable currency.
 Pound remains in circulation for many years
while new currency gets established.
 Bank of the United States chartered 1791
 established paper money, and controlled the minting
of coins.
 New currency termed the dollar
 slang term in use throughout colonies for Pieces of
Eight (widely circulated)
 Dollar Sign ($) comes from union of P and S
(abbreviation for Peso)
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Jeffersonian
Republicanism
Jefferson believed
in wider political participation
 especially among middle classes
 Women to have greater role
 virtuous republic - ideologies of republican motherhood
 greater stress on public education, and charitable activity
with a reforming purpose.
 Emphasis on small government, and personal
responsibility.
New Territory
 New USA is significantly larger than boundaries
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of former colonies
Creates two problems
1: what to do with new territories in terms of
white settlement.
Solution: all unorganized territory belongs to
Federal Government.
First new trans-appalachian states
 Kentucky (1792) and Tennessee (1796)
Second problem is
what to do about
Indians
Indian Problem
Treaty of Paris gave USA control over most lands east
of Mississippi River
Problem: lands really under control of some powerful
Indian tribes
Treaties signed at Fort Stanwix NY (1784) and
Hopewell SC (1786) between federal government and
Indian representatives, problem – were the Indian
signatories really representative?
Resistance to these treaties met with military force of
the US army
 Northwest Ordinances (1784-7) organizes much of the
old Northwest
 Ohio Company set out to settle this territory
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led to war with Miami, Shawnee and Delaware tribes
Major defeats inflicted against US army 1791
US victory at Fallen Timbers 1794 was decisive
Treaty of Greenville (1795) sets trend that USA has to treat
with Indians for land.
 Louisiana Purchase doubles size of USA, brings many
more tribes under white rule
 New space - new approach
America’s relationship with
France
 Ally in Revolutionary
War vs Great Britain
 Outbreak of French
Revolution 1789
initially welcomed in
USA
 concerns due to terror
and violence
 not virtuous
republicanism like in
USA
 France tries to get US to honour
1778 alliance and join war vs Great
Britain
 US refuses
 economic links with GB too
important
 By 1798 French seizing US ships –
undeclared war at sea.
America’s Relationship with
Great Britain
 Close cultural, linguistic and economic ties
 biggest trading partner
 Britain sees itself as superior & more powerful than
USA
 still smarting over Revolution.
 Problems over European trade and impressments of
American sailors during Napoleonic wars
 leads to war of 1812
 Washington steps down 1796
 1. As a result of the 1800 presidential election results,
A. A constitutional amendment set up separate electoral
votes for president and vice-president.
B. Hamilton's economic program was dismantled.
C. John Adams joined the Republican Party.
D. The Federalist Party gained power.
 2. In the video, Professor Joseph Ellis observes that
the creation of political parties allows
A.
B.
C.
D.
the elite to control elections.
political dissent to coexist without violence.
minority groups to gain political leverage.
incumbent politicians to maintain their offices.
INDIAN REMOVAL WEST
 Removals and relocations of
American Indians occurred
throughout the 17th and 18th
centuries
 Developed to massive proportions
during the 19th century
 Indian Renewal Act of 1830
 Provided for the exchange of
American Indian land in any state or
territory of US
Indian Removal Act 1830
 Instrumental in relocating
Southeastern Indians
 Shifted to lands in the transMississippi west
 Exceptionally tragic was the
removal of the Cherokee
 Occurred during the late 1830s
nunna dual Tsunyi,
 In Cherokee means literally,
“the trail where we cried.”
 Become known in English as
the “Trail of Tears.”
Brief History of Cherokee
 Estimated that there were over 22,000
Cherokee during the 1600s.
 In the 18th century they suffered from
smallpox epidemics
 Epidemic in 1738-1739 severe, reduced tribe
by half
 Another smallpox epidemic depopulated
them in 1760
 From the 1760s to the early 1780s the
Cherokee were also in almost constant
warfare with the colonists on their lands
 They sided with the British in the
Revolutionary War, and by 1782 they
were “reduced to the lowest depth of
misery”
 Then in the following year another
small pox epidemic devastated the tribe
 By end 18th century the Cherokee
numbered slightly more than 13,000
 With natural increase by 1835 about
22,000
 What the population is estimated to
have been some 200 years earlier
 Cherokee tribal lands had once been
immense comprising much of the
southeastern region of the US
 By 1830s, Cherokee Country, as it was
called, encompassed area where the
states of NC, TN, GA, and AL, more or
less come together
 Subjected to continued harassment by
Georgia and pressures from the US
government
 particularly President Andrew Jackson
 to cede remaining lands and move west
of the Mississippi
 Cherokee resisted
 After three years and much
harassment
 Treaty was signed between the
Cherokee and the US government
 But not by the principal officers of
the Cherokee nation
 Signers ceded to the US the
Cherokee lands in the Southeast in
exchange for lands in Indian
Territory and 15 million
 Leaders of the Cherokee
nation protested violently
during the next years that the
treaty should not be ratified.
 Protests were to no avail
 The Cherokee were disarmed
and removal began in 1838
 Ordeal did not end on arrival in Indian
Territory
 Many survived the journey only to be
stricken with disease in the new lands
 Or to die there of starvation
 As many as one-half of the early
immigrants died before the year was
out
 Estimated that over 8000 Cherokee
may have died as more or less direct
result of the Trail of Tears