Transcript Launching the New Ship of State 1789-1800

Chapter 10
A.P. US History
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In February 1789, George Washington was elected
president by unanimous vote of the electoral college – a
man considered the embodiment of republican ideals
As president, he carefully calculated his decisions – aware
that his administration set precedents that could ensure or
jeopardize success of the new federal government
Washington’s genius for leadership lay in (1) an ability to
implant his own reputation for integrity into the office of
president, and (2) chose talented and experienced men to
preside over newly created executive departments –
regardless of their philosophical differences
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No one foresaw that 20
years of political
turbulence would emerge
from the brilliant, but
explosive mix of
personalities in
Washington’s first cabinet
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Thomas Jefferson was
appointed ‘Secretary of
State’
Alexander Hamilton as
‘Secretary of the
Treasury’
Henry Knox as ‘Secretary
of War’
Edmund Randolph
became ‘Attorney
General’
John Jay was appointed
‘Chief Justice’ of the
Supreme Court
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In 1790, the federal debt
amounted to
$42,414,000; State debts
tallied another $21,500,00
dollars; and Foreign debt
amounted to $11,710,000
These figures represented
principle + interest owed
by the ‘Second
Continental’ Congress
and the States to citizens
and foreign countries for
Revolutionary War loans
Hamilton’s Financial Structure Supported by
Revenues
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In January 1790, Treasury Secretary Alexander Hamilton
issued his ‘Report on Public Credit’ – the first of three
reports recommending courses of action to improve the
country’s finances
Known as ‘Funding and Assumption at Par,’ this plan
recommended, (1) that old ‘Certificates of Debt’ be rolled
over into new government bonds – with principle and
interest to be repaid at ‘par value’ [full face value] over 20
years, (2) the federal government ‘assume’ responsibility
repayment of all state debts, and (3) an excise tax of 25%
on whiskey – to raise additional revenue to help repay the
combined federal and state debts
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Hamilton’s excise tax on whiskey proved extremely
unpopular with cash-starved western grain farmers and
whiskey drinkers
In 1792, Congress lowered the tax on whiskey – but
opposition to it remained high in the western regions of
Pennsylvania, Virginia, Maryland, the Carolinas, and
Kentucky
The whiskey tax proved hard to enforce and collect – a
consequence of, (1) simple evasion, (2) harassment of
federal tax collectors, (3) underreporting of production by
distillers, and (4) petitions to Congress complaining about
the law
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Jefferson and Madison, the leading ‘Republicans’, believed
(1) the country’s future lay in agriculture, the most noble
of occupations , and (2) that commercial interests were
potentially dangerous to ‘Republican’ ideals
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‘Federalists’ and ‘Republicans’ were political ‘factions’, not
fully developed and organized political ‘parties’ – the latter
a term that newspapers and politicians used freely
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The ‘Constitution’ did not provide for political parties and
leading citizens like Washington and Madison believed
political parties tended to undermine ‘Republican’ ideals
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Since 1789, the ‘French Revolution’ had captured the
attention of Americans sympathetic with the overthrow
of monarchy and privilege – until the ‘Reign of Terror’
with its mass executions began to undermine support
In 1793, the ‘Napoleonic Wars’ between England and
France began – with England fighting to save Europe
from Napoleon and protect her own monarchy
In May 1793, President Washington issued his ‘Neutrality
Proclamation’, proclaiming American neutrality in the
conflict and warning Americans to remain impartial
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Jay’s instructions were to
(1) get compensation for
seized cargoes, (2) stop
impressment of U.S.
sailors, (3) negotiate trade
treaties with the British
West Indies, (4) negotiate
removal of British
soldiers from U.S. soil,
and (5) seek
compensation for
southern planters who
lost slaves lured away by
the British during the
Revolutionary War
American Posts Held by
Britain After 1783
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Unbeknownst to Jay,
Treasury Secretary
Hamilton had secretly
informed the British of
Jay’s instructions and his
bargaining position – he
feared Jay’s negotiations
might be too forceful,
anger the British, and
thus jeopardize his
financial plan for the
United States
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The resulting ‘Jays Treaty’ contained few concessions to
the United States, angered many, and politically split the
country
Among its provisions, ‘Jay’s Treaty’ called for (1)
repayment of money owed by American planters to
British merchants before the war, (2) British troops to
vacate U.S. soil within 18 months, (3) giving the U.S.
limited trading rights in the British West Indies, and (4)
future settlement of boundary disputes with Canada, as
well as damage and loss claims by ship-owners for seized
cargoes, ships, and crews
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In September 1796,
President Washington
issued his ‘Farewell
Address’ which (1) set a
‘precedent’ in his
decision not to seek a
third term, (2) called for
“unity of government” in
the body politic, and (3)
warned the country to
steer clear of permanent,
entangling alliances with
foreign powers
George Washington ‘Stands
Outside of Time’
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Following Washington’s announcement, ‘Federalists’ chose
John Adams of Massachusetts and Thomas Pinckney of
S. Carolina as their nominees for the 1796 election - the
‘Republicans’ chose Thomas Jefferson of Virginia and
Aaron Burr of New York
The election of 1796 focused heavily on personalities and
emotions ran very high – to the point that ‘Federalists’
and ‘Republicans began to drink their ale in separate
taverns
Moreover, Hamilton, who had resigned from the Treasury
in 1795, hated John Adams and secretly plotted to deprive
him of the presidency – even though Hamilton and
Adams were both ‘Federalists’
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Adams’s inaugural
address called for
neutrality and respect for
the French – an attempt
to bridge the rift between
Federalists and
‘Republicans
Adam’s kept 3 men from
Washington’s cabinet,
Treasury Sec. Oliver
Wolcott, Sec. of State
Timothy Pickering, and
Sec. of War James
McHenry - all Federalists
loyal to Hamilton
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In the fall of 1797,
President Adams ordered
three diplomats to Paris
to meet with French
Foreign Minister
Talleyrand
Upon arriving in Paris,
the three American
diplomats were secretly
contacted by three
French agents – later
identified in the
American press as X, Y,
and Z
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The French agents [X, Y, and Z] demanded a $250,000
bribe, plus a $12 million dollar [32 million florins] loan to
the French government merely to arrange a meeting with
Talleyrand
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Incensed, the three American diplomats returned home
and informed President Adams of their failed mission –
known as the ‘XYZ Affair’, it aroused extreme antiFrench anger in America
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By 1798, the ‘Quasi-War’ had begun – an undeclared war
by the United States against France that strained political
relations between ‘Federalists’ and ‘Republicans’ at home
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The Congress also passed two ‘Alien Acts’ that
empowered the President to deport dangerous foreigners
in time of peace or to deport or imprison them in time of
war [aimed at resident aliens critical of ‘Federalist’
policies]
Jeffersonian ‘Republicans’ were highly critical of the ‘Alien
Acts’ and the ‘Sedition Act’ – calling them
unconstitutional and in conflict with the ‘Bill of Rights’
‘Republicans’ in Congress did not have the numbers to
override the legislation, nor could the federal judiciary,
dominated by Federalists, be counted on to mount a legal
challenge
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Despite passage of the ‘Alien and Sedition Acts’,
President Adams exercised restraint in using them against
opponents, and he refused to declare war against France –
shrewdly realizing that France did not desire war and
might be open to negotiation with the U.S.
In January 1799, President Adams received a French peace
initiative inviting him to send new peace negotiators to
Paris – an offer the president accepted by appointing a
new commissioner
Adams’ acceptance of the French offer to negotiate cost
him political support within his own party - virtually
assuring that he would be a one-term president
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The ‘Election of 1800’ began as both ‘Federalists’ and
‘Republicans’ openly campaigned along party lines – the
self-designated national leaders of both ‘factions’ met to
handpick their presidential and vice-presidential
candidates