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New National Government
SC involvement in the new National
Government
8-3.4
Analyze the position of South Carolina on the
issues that divided the nation in the early
1800s, including the assumption of state
debts, the creation of a national bank, the
protective tariff and the role of the United
States in the European conflict between
France and England and in the War of 1812.
Focus Question
What problems did the US face
at the end of the 1700s and
beginning of the 1800s?
Assumption of state debts
Role of US in foreign affairs
Creation of a national bank
Issues that divided the Nation in
the early 1800s
New Federal Government Established
1789
War of 1812
Protective tariff
European conflict
between England and
France
First President
• George Washington
Why important?
Everything he did
set a precedent for
future presidents
Secretary of Treasury
• Alexander Hamilton
Wanted an
economic policy
that would
strengthen
National
Government
Hamilton proposed…
• Federal government pay debt incurred as a result
of the Revolutionary War
• National government assume debt of states from
the war
• High protective tariff on imported goods
– Increase cost of imported goods
– Encourage Americans to make goods at home (US)
rather than buy overseas
• National Bank
– Improve economic position of the US
– Issue bank notes
– Collect taxes
Two political parties
Developed as a result of disagreements over Hamilton’s
proposals
• Federalists
– Led by Alexander Hamilton
– Favored Hamilton’s policies
– Most Federalists were from New England
– Low Country Elite from SC tended to
support
– Believed in a strong central government
• Promote trade
• Industry
• Democratic-Republicans
– Led by Thomas Jefferson & James Madison
– Opposed Hamilton’s proposals
– Upcountry in SC supported
Assumption of state DEBTS
• Most S. Carolinians supported this idea
So much of the war was fought in SC and the
state had more debt
• Democratic – Republicans opposed assumption
• Compromise
• DR agreed to assume state debt because…
• Federalists agreed to support moving the
nation’s capital to the banks of the Potomac
River in the South
• Alexander Hamilton agreed to move the capital
because he won more support for his
economic proposals
Creation of a National Bank
• Democratic – Republicans
– Constitution should be interpreted strictly
– Constitution did not specifically grant Congress the
right to create a national bank
• Federalists
• Loose interpretation of Constitution
• Congress had been granted authority to make all laws
that were “necessary and proper” to the execution of its
powers
Both of these were
• Bank was necessary
powers granted to the
national government in
• For power to tax
the Constitution
• To control commerce
• Washington sided with Federalists.
• He agreed with Hamilton that a national
bank was necessary to improve the economic
position of the United States,
– Signed into law a bill after it passed the
legislature creating the First National Bank
Protective Tariff
Tax or duty on imported goods
increase cost of imported goods
Encouraged the growth of American
manufacturing; rather than buy overseas
• The Democratic-Republicans objected
– To this extension of the power of the central
government and
– Wanted to balance federal power with state
rights.
• SC opposed a high protective tariff because it would
raise the price of imported goods.
Federalists
and
Democratic-Republicans
also disagreed over
foreign policy
The policy of a nation in
its interaction with other
nations
French Revolution
When the French Revolution began in 1789,
• The Democratic-Republicans supported the French
and the ideals of the Revolution and in the
overthrow of their king
• The Federalists were
– Appalled at the bloodshed and, when the French declared
war on Britain (Napoleonic Wars),
– Sided with the British (former mother country) hoping to
Secure more trade
keep trade we had re-established
– George Washington issued a Proclamation of Neutrality
The United States will remain neutral in the Napoleonic
Wars between Britain and France
The XYZ Affair
President John Adams (2nd President 1797–1801) sent
South Carolinian Charles Cotesworth Pinckney
to negotiate peace with France.
We were not officially at war with
France but they had attacked several of
our ships because of our trade with
Britain
• Pinckney and two other Americans met with three
representatives of the French government (in letters
referred to them as X, Y, & Z) who asked for a bribe
before they would even discuss a solution.
• Furious, Pinckney replied, “No, no, not a sixpence,
sir!”
• Insulted, the US negotiators left France without a
deal
This incident became known as the X, Y, Z Affair
and brought the political parties into conflict
While Federalists prepared for war,
Democratic-Republicans insult President John
Adams (a Federalist) in their party
newspapers.
Angered at this insult, federalists passed the
Alien and Sedition Acts (laws)
The Alien & Sedition Acts
• These acts increased the residency
requirement for American citizenship from
five to fourteen years
• Authorized the president to imprison or
deport aliens considered "dangerous to the
peace and safety of the United States"
• Restricted speech critical of the government.
Controversy over the Alien and Sedition Acts
contributed to the election
of Thomas Jefferson
as president in 1800.
The Napoleonic Wars continued…
• Americans traded with both the British and the French.
– The British practice of impressment became a major grievance
pressing into service American sailors they
claimed were British citizens
US passed the Embargo Act
to stop American trade with both Britain and France to avoid
conflict.
The embargo devastated the American shipping industry based in
New England a Federalist region
Federalists
opposed the
embargo and (Later)
the War of 1812
War of 1812?
Democratic-Republicans in the West
accused the British of urging
Native Americans to attack settlers.
When a British ship fired on an
American ship, protest meetings
were held all over South Carolina (and
other states).
In 1810, War Hawk John C. Calhoun
was elected to Congress from SC
and urged Congress
to declare war on Great Britain.
War Hawks
nickname given to
those urging war
with Britain
 invaded Canada
 where the American
army was defeated.
orleansstar.ca
• In 1812, the United States declared war on
Great Britain and
In 1814, a British army attacked Washington, D. C.
and
– set fire to the capital and
– the president’s house [later the White House].
A re-enactment of the British burning of the White House
in the History Channel documentary "First Invasion: The
War of 1812."
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