Chapter 10 Notes: Launching the New Ship of State

Growing Pains
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In 1789 the population was doubling every 20 years

o Population 90% rural
o Vermont became 14th state in 1791
o Foreigners to America looked down upon the pioneering people
America in very heavy debt
o Paper money worthless and it was a bit overwhelming

Washington for President

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George Washington was elected by Electoral College in 1789

o Didnt really want to leave Mount Vernon but did
o Took office on April 30, 1789
Washington made a cabinet (not necessarily in the Constitution)
o Thomas Jefferson as Secretary of State
o Alexander Hamilton as Secretary of State
o Henry Know as Secretary of War

The Bill of Rights

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The Bill of Rights had been a way to convince the states to ratify the
Constitution
o In 1791 the states adopted the Bill of Rights written by James Madison
Freedom of speech, religion, press, petition
Right to bear arms
Right to a speedy and public trial
Unlisted powers belong to the state
Etc.
Judiciary Act of 1789 created the federal courts
o John Jay became the first Chief Justice

Hamilton Revives the Corpse of Public Credit

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Alexander Hamiltons loyalty to America was criticized and questioned

Wanted the gov. to pay off its debts, with interest and take on state debts
(assumption)
o Virginia against this so as a bargain they got the District of Columbia
(D.C.) built on its land
Funding Par would gain support of the rich for the federal government
o Instead of the states

Customs, Duties and Excise Taxes

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Hamilton used the $75 million debt to his advantage

o The more people owed to the gov., the more they cared about the
welfare of the nation
o Custom duties put forward
Dutiable import tariff of 8% in 1789

Made an excise tax on a few domestic items

o Notably whiskey at 7 cents a gallon

Hamilton Battles Jefferson for a Bank

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Hamilton wanted a bank modeled after the Bank of England

o Gov. is the major stockholder and makes the paper money to pass out
o Jefferson thought this was very unconstitutional
What Hamilton thought
o What was not forbidden in the Constitution was permitted
o A bank was necessary for America to unite
o The Elastic Clause was developed that was a loose interpretation of the
Constitution
What Jefferson thought
o What the Constitution did not permit was forbidden
o The states should control their own banks
o Constitution should have a strict interpretation
Washington agreed with Hamilton and signed for the bank
o The Bank of the United States created by Congress in 1791

Mutinous Moonshiners in Pennsylvania

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In 1794 a rebellion flared up in western Penn.

o Called the Whiskey Rebellions
o Revolting against Hamiltons excise tariff
o Thought it was unfair since Tennessee and Kentucky were not states
yet
o Washington sent 13,000 troops to put down revolt
When they got there, the rebellious group had scattered
Washington now had new respect but was criticized by the anti-federalists

The Emergence of Political Parties

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Many states thought Hamiltons policies were going against their rights
o Jefferson and Hamilton found that they both had political followings
Went from personal to political
Hamilton had Federalists
Jefferson had Democratic-Republicans
Founding Fathers had not envisioned political parties
o Thought that they would weaken the new country
o Would end up strengthening the U.S. as another check and balance

The Impact of the French Revolution

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The French Revolution affected the U.S. greatly

o At first people supported the oversea revolution
It started much like Americas own revolution from Britain
When France declared itself a republic, America was almost
proud of themselves
o The Revolution turned bloody (Reign of Terror)
Federalists quickly became nervous and changed their support

Some Jeffersonian agreed you cant have revolution without

bloodshed
America drawn into the revolution when France declared was on Britain

Washingtons Neutrality Proclamation

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Political parties did not agree on what to do

o Jeffersonians wanted to support France, against Britain
o Hamilton wanted to support the British because it would help the
economy
Washington saw that the nation was still weak militarily and economically and
not united
o Entering a war could mean very dangerous consequences
o Neutrality Proclamation of 1793
U.S. would stay out of wars and stay out of the issues
Angered political parties and France and England
Edmond Genet landed in the U.S. as a representative
o Stirred up troubles with privateering and tried to go over Washingtons
head
Was kicked out soon after
o The neutrality helped France since they still got goods from America
France still a little peeved the U.S. didnt help them

Embroilments with Britain

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Britain still had some posts on American soil and supplied the Indians
o Treaty of Greenville in 1795
Indians ceded their Ohio county to the Americans
General Wayne had crushed them at Battle of Fallen Timbers
1794
o Made Americans a bit peeved at the British
British ignored U.S. neutrality after seizing American merchant ships and
imprisoning seamen
o Jeffersonians wanted war but Washington refused so economy was not
ruined

Jays Treaty and Washingtons Farewell

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John Jay sent to England to avoid war and work something out
o Negotiations sabotaged by Hamilton
Gave the British details about Jays bargaining strategy
o The results of the treaty were ugly
Britains would repay for the money lost from the seizing of
merchant ships
America has to pay its pre-Revolutionary War debts to Britain
The South was furious since farmers would have to pay
o But war was avoided
Pinckneys Treaty of 1795 with Spain
o Americans free Navigation of the Mississippi

The British treaty made the Spanish nervous that America would
become friends with Britain
Washington stepped down after his second term
o Created a two term precedent
o His farewell address warned against two things
Political parties
Building permanent alliances with foreign nations
o

John Adams Becomes President

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Hamiltons financial plan had made him unpopular when it came to being
president
Adams won 71 to 68 against Thomas Jefferson, who became vice president
o Adams also hated Hamilton
o Had a volatile situation with France close to coming to war

Unofficial Fighting with France

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France was pissed about the Jays Treaty (went against Franco-American
treaty)
o Began to seized Americans merchant ships
XYZ Affair
o Adams sent three envoys to France to try to work out peace
o Approached by three agents who demanded 32 million florins and
$250,000 bribe
Americans thought it wasnt worth it and was too much money
Envoys returned to America
o Americans wanted war with France but Adams determined to keep
them out
An undeclared war confined to the seas continues for over two
years

Adams Puts Patriotism Above Party

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France sent another envoy to the U.S. because they didnt want another
enemy
o
o 1800 the envoys met by Napoleon
o The treaty signed the same year ended the 1778 alliance
Americans had to pay the claims of its shippers as alimony
Keeping the U.S. at peace, Adams lost popularity with the American people
o Wouldnt get to have a second term

The Federalist Witch Hunt

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Federalists didnt like the poor, who the Jeffersonians welcomed

The Alien Laws
o Federalists raised the residence requirements for those who wanted to
become citizens
Five to fourteen years
President could deport or jail dangerous aliens

Sedition Act
o Anyone who spoke negatively or falsely about its officials could be
imprisoned or fined
Aimed at Jeffersonians and newspapers
o The act was unconstitutional but was still passed
Federalists had majority in Congress and the courts
Would expire in 1801

The Virginia (Madison) and Kentucky (Jefferson) Resolutions

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The Jeffersonians were angry at these new laws and Jefferson feared more
from the Federalists
o Wrote legislation Kentucky approved in 1798-99
James Madison wrote another approved by Virginia
o Stressed the compact theory
Individual states were the final judges of the laws passed in
Congress
States made the federal gov. so states can nullify laws
Wanted to get rid of Sedition and Alien Laws
o Only two states adopted the laws
o Federalists thought people had made the gov. so it was up to the
Supreme Court

Federalists Versus Democratic-Republicans

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The Federalists
o Most were the old Federalists from before the Constitution
o Wanted strong gov. ruled by the educated, the best people
o Most were merchants, manufacturers and shippers
o Mostly pro-British and wanted foreign trade was key for the U.S.
The Democratic-Republicans
o Lead by Thomas Jefferson, who was a great leader
o Wanted rule by informed classes and a weaker central gov.
o Mostly pro-French
o Jefferson emphasized with the common people
o Mostly farmers and wanted no privileges for the upper class
Wanted economy based on agriculture
o Didnt want ignorant people ruling
o Encouraged free speech