Chapter Nine

Launching a Nation (1789 – 1800)

Pages 266 – 295

Section One – Laying the Foundations of Government – Page 268

The First President

• George Washington concerned that age and lack of experience, education would make him a poor president
  
• Washington was revered as a symbol of freedom for most Americans
  
• Jan, 1789 – First Electoral College meets. They actually select the President, even today.
  
• April, 1789 – Washington selected unanimously, with John Adams as VP.
  
• Washington accepts and travels to New York City among great fanfare to be sworn in.
  
• NYC is the first capital of the US – a capital is where the government is located
  
• Martha Washington, George’s wife, thus becomes First Lady. Her role is to entertain guests and attend social events.
  

Life in the New Republic

• 1790 – US has 4 million citizens
  
• Most live in countryside
  
• Most are farmers
  
• Farmers want fair tax laws and right to move west
  
• Laborers and merchants are interested in trade laws with other countries in order to sell goods for a profit
  
• Only NY and Philly have over 25,000 people – NY had 33,000
  

Setting Precedents

• New government had to make important decisions about policies and procedures
  
• Precedent – an action or decision that serves as an example for later generations to follow
  
• Precedents set by Washington’s Government – the Precedent President
  
• Judiciary Act of 1789 - Set up the Federal judicial branch with district courts, courts of appeals, and Supreme Court with six justices
  
• President nominated federal judges, who needed Senate approval. John Jay is the first Chief Justice
  
• Two term presidency limit
  
• Creation of a Cabinet – no where in the Constitution does it say that the President could have advisors, but Washington knew he wasn’t the brightest guy, so he picked four specialists to help him
  
• Secretary of the Treasury - Alexander Hamilton from New York, a banker and lawyer
  
• Secretary of State (foreign policy) - Thomas Jefferson of Virginia
  
• Attorney General (Top law enforcer) – Edmund Randolph
  
• Secretary of War – Henry Knox
  
• Neutrality Policy
  

Section Two – Hamilton and National Finances – Page 272

Settling the Debt

• Hamilton’s biggest challenge as Sec. Treasury was to pay of the national debt (the amount of money the country owes) of $11.7 million to foreign countries and $40.4 million to those in the US
  
• US lent out bonds (I.O.U’s) during war, but had trouble paying them back
  
• Many farmers sold bonds they thought would never be paid back to investors called speculators (people who buy items at low prices hoping the value will rise)
  
• Hamilton wanted to pay all bonds, giving speculators (many of whom were his friends) face value
  
• Thomas Jefferson and southern farmers are upset, saying farmers got ripped off
  

States’ Debts

• Hamilton plans to pay off state debts
  
• Southern states already paid off their debts, North did not
  
• Compromise was to move the capital of the US to Washington, DC
  
• Debts were paid off
  
• Philly was the temporary capital until DC was finished
  

Hamilton vs. Jefferson

• Two different points of view caused constant argument
  

• Hamilton –
  

• Northerner
  

• lawyer/banker
  

• Federalist
  

• little faith in common man
  

• supports the wealthy, manufacturing and business
  

• Wanted high tariffs (taxes on foreign goods) to protect US companies
  

• Pro-British
  

• Jefferson –
  

• Southerner
  

• Farmer
  

• Saw education as key to helping commoners/farmers take control of country
  

• Wanted low tariffs to keep prices down
  

• Pro-French
  

The Debate over the Bank

• Hamilton wants to create a national bank for the govt. to keep its money
  
• Bank could make loans to businesses
  
• Hamilton also wanted to build a mint to create money
  
• Jefferson and James Madison disagree and say govt. doesn’t have the power to create a national bank because no where is one mentioned in the Constitution
  
• Hamilton looks to Article I, Section 8 which says Congress has the power to “make all laws that are necessary and proper” for governing the nation. Says a national bank is okay.
  
• Loose Construction – Federal govt can take any reasonable action that the Constitution does not specifically forbid.
  
• Jefferson and Madison are angry.
  
• Strict Construction – Federal government should only do what the Constitution says specifically it can do.
  
• Washington and Congress agree with Hamilton
  
• Bank of the United States – created in February, 1791 and chartered for 20 years
  

Section Three - Troubles Abroad - Page 278

The French Revolution

• July 14, 1789 – French citizens storm the Bastille, a French prison that held enemies of the French King and released the prisoners
  
• This starts the French Revolution, throwing out Louis XVI and declaring a republican government
  
• Most in US feel France is going to create a republic similar to ours and are very happy
  
• Some Americans fear the violence of the riots and the beheading of King Louis XVI and his wife, Marie-Antoinette
  

US Neutrality

• Britain attacks France a few months later
  
• Proclamation of Neutrality - Washington decides US should not pick sides
  

Jay’s Treaty

• Britain begins to capture US ships trading with France
  
• Impressment – US sailors kidnapped and forced to serve on British ships
  
• Rumors also fly that the British, who still haven’t left the Northwest Territories, are pushing the Native Americans to attack the US
  
• Washington sends Chief Justice John Jay to England to get a treaty
  
• Britain knows US navy is weak and US needs British trade, so they hold the cards
  

Jay’s Treaty –

• Brits will pay for ship damage
  
• US can trade in Caribbean
  
• Britian will leave the Northwest Territories
  
• US will pay pre-Rev war debts
  
• NO mention of impressments
  
• NO mention of Indian attacks
  
• Senate approves the treaty as the best we could do
  

Pinckney’s Treaty

• US / Spanish border along Florida is in dispute
  
• Spain closes city of New Orleans, shutting off trade on the Mississippi River
  
• US ambassador to Spain, Thomas Pinckney talks to Spain
  

Pinckney’s Treaty

• Gets right of US to trade in New Orleans which opens west up for expansion
  
• Border between Spain and US in Florida is settled
  

Section 4 – Challenges at Home – Page 283

Conflict in the Northwest Territory

• Americans continue to settle in the west despite Native American protest
  
• With British weapons, Indians attack Americans under Little Turtle in 1790 and 1791 and win
  
• Washington sends “Mad” Anthony Wayne to lead US Army
  
• Battle of Fallen Timbers – Wayne’s troops burn Indian villages and fields
  
• Treaty of Grenville –US has access to all Indian Land and guaranteed safety there. Indians get $20,000 and acknowledge of land claims there
  

The Whiskey Rebellion

• US puts a tax on whiskey in March, 1791
  
• Farmers made whiskey from corn – easier to ship in barrels
  
• Whiskey Rebellion (1794) – Protester refuse to pay Whiskey tax and even tar and feather some tax collectors
  
• Washington knows US govt has power to tax, and has an executive branch.
  
• Sends 13,000 to western PA and crushes the rebellion
  
• Shows the new govt under the Constitution has power and will work
  

Washington’s Farewell Address

Two term president
Urges to stay neutral and out of foreign alliances
Urges to stay away from political parties

Section 5 – John Adams’ Presidency – Page 287

The Election of 1776

Political parties (groups that help elect govt officials) are formed for the first time

Democratic-Republicans

Led by Jefferson and James Madison
Called Republicans but are not the same as the Republicans of today
Seek to limit federal power
Popular in the south and western frontier
Support France
Chose Jefferson as Pres and Aaron Burr as VP

Federalist Party –

Strong Federal govt
Promote industry and trade
Popular in New England
Support Britain
Founded by Alexander Hamilton
Ran John Adams for Pres and Thomas Pinckney for VP
Adams narrowly defeats Jefferson
Rules at the time were that highest number of votes becomes president, second highest will become VP. Thus Adams is president with Jefferson (opposite party) the VP

President Adams and the XYZ Affair

Adams seeks to better friendship with France
France demands a bribe of $250,000 to talk to US, as well as a $12 million loan and call the three Frenchman who ask for bribe X, Y, and Z.
US citizens are outraged
Federalists, who support Britain, call for US to declare war on France to make the Republicans, who support France, look bad
Adams refuses to ask Congress to declare war
His own party, the Federalists, insult him

The Alien and Sedition Acts

Two laws passed by the Federalist controlled Congress
Alien Act – Allowed president to remove foreign residents from US if he thought they were involved in a plot against the govt.
Used to kick out Republicans who wrote articles in newspapers who spoke out against the government. Goes against the First Amendment
Sedition Act – Made it illegal to critcize the govt. Illegal under the First Amendment, but the Federalists did it anyway.
Kentucky and Virginia Resolutions – These states decide that they can declare that the Alien and Sedition Acts are unconstitutional, so the states have the right to ignore ANY federal laws they found unconstitutional
Starts an important concept of States’ Rights. Does a state have the power to overrule federal laws? The Constitution says nothing on this issue. This is a cause of the Civil War sixty years later.

The Election of 1800

Jefferson and Burr vs. Adams and Charles Pinckney
Adams has little support from own party due to the XYZ Affair
Probably the most dirty presidential election in history– lies, name calling, vicious verbal attacks and negative campaigning for both sides

A Narrow Republican Victory

Jefferson/Burr get 73 electoral votes to Adams’ 65 and 64 for Pinckney – tie
House of Reps has to decide the tie – Feds vote for Burr, Republicans for Jefferson.
Revote over 30 times – finally Federalists refuse to vote and Jefferson wins
Twelfth Amendment (1803) – Separate ballot for President and VP
Adams retires from public life, and he and Jefferson refuse to speak for years
Jefferson sees win as a victory for common man and faith in everyday citizen
Aaron Burr and Alexander Hamilton hold a duel over differences. VP Burr kills Hamilton.