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Laws, Legislation, Documents
Report on the Public Credit
In this report to Congress, Secretary of the Treasury Alexander Hamilton put forth his plans to
retire debts remaining from the Revolution and put the new United States government on solid
economic ground. Each component of his plan would prove to be controversial and would lead
to divisions that created the nation’s first two-party system.
Hamilton’s Economic Program
Key aspects of Hamilton’s financial plan were funding the national debt, assuming state debts,
creating a national bank and raising revenue with a tax on whiskey. Funding the national debt
was wisely accepted as essential, but Hamilton’s plan to pay the current holders of national
bonds, rather than the original owners (many of whom had given up on the government and sold
their bonds to speculators) proved very controversial. Assuming state debts from the revolution
made sense in that the war was fought by the nation, not by individual states, but the reality was
that most southern states had paid their debts while most northern states had not. The national
bank seemed to be advantageous to northern commercial interests. Southern and middle state
farmers could see no advantage and claimed its creation was not constitutional. Finally, the tax
on whiskey was a hardship to western farmers who made whiskey from corn as a way of
preserving their produce and making it easier to market.
Bill of Rights
The first ten amendments to the U.S. Constitution, authored by James Madison. These
amendments list the most cherished rights held by Americans. Reading them one can see
specific governmental abuses suffered by American colonists before the American Revolution.
Washington’s Proclamation of Neutrality
In 1793, knowing the nation was in no way prepared for war, President Washington issued an
official proclamation declaring our neutrality in the war waging between Britain and France.
Some, including Madison, saw this as a violation of our 1778 alliance with France and
questioned whether the President had the power to make such a declaration under the
Constitution.
Excise Act of 1791
This key component of Hamilton’s economic plan raised revenue for the federal government by
placing a tax on distilled spirits such as whiskey. This led to the Whiskey Rebellion of 1791.
Census of 1790
The Constitution mandated a census to take place once every ten years for the purpose of
determining representation in the House of Representatives. The first census of 1790 showed the
nation to be primarily agrarian, with only five percent of the people living in towns and cities.
Washington’s Farewell Address
When he left office after two terms, Washington released a farewell speech to a Philadelphia
newspaper. His words are still resonant today in their encouragement of religion and morality
and their warning against intense party strife and permanent foreign alliances.
Alien and Sedition Acts
In 1798 the Federalists and President Adams reacted to Republican criticism of the Quasi-War
with France by passing two measures designed to deflect their critics. The Alien Act made it
much more difficult for immigrants to become citizens (many Republican critics were more
recent immigrants) and the Sedition Act provided punishment for “false and defamatory”
statements against government leaders. Clearly in conflict with constitutional liberties, the
Sedition Act in particular is among the most repressive acts ever passed by the U.S. government.
These measures ultimately led to a fall from power for the Federalists. They would never rule
again.
Virginia and Kentucky Resolutions
In response to the Alien and Sedition Acts, Madison and Jefferson penned the Virginia and
Kentucky resolutions, respectively. These documents put for the possibility that states could
nullify measures of the federal government deemed unconstitutional. Jefferson in particular in
the Kentucky Resolution implied that if the national government persisted, states might even
leave the union. This “compact theory” held that the union was a “compact” that states had
entered voluntarily and could thus leave voluntarily. This argument would be the foundation of
secessionist sentiment leading to the American Civil War.
Notes on the State of Virginia
Jefferson’s only book, it was originally published in 1781. The book reveals the diverse interests
of Jefferson in that it covers a multitude of topics relating to life in Virginia, including
agriculture, botany, climate, government, and anthropology.
Petition by the Pennsylvania Society for the Abolition of Slavery
In his last public act, Benjamin Franklin, serving as president of this society, sent this petition to
Congress calling for an end to the African slave trade and for Congress to work to end slavery in
America. This early call for abolition was a harbinger of the debate over the issue of slavery that
would only intensify in coming decades.
Treaty of Alliance (1778)
This treaty tied the French to the American side in the American Revolution. In the 1790s
Americans debated the relevance of this military alliance as Britain and France were at war. The
U.S. gained release from this alliance in the Convention of 1800.
Convention of 1800
In this agreement negotiated by the Adams administration, America achieved peace with France
after the tumultuous 1790s. The United States agreed to drop claims for twenty million dollars
in shipping seized by the French during the Quasi-War. In return, France agreed to release the
United States from the terms of the 1778 Treaty of Alliance. Bennett makes the point had
President Adams instead pursued war with France as some of his own Federalist supporters
desired, there is no possibility that France would have sold America the Louisiana Territory three
years later.
Treaty of Greenville
Negotiated by General Anthony Wayne after a victory over Native Americans at the Battle of
Fallen Timbers in 1794, Indians in the region turned over large parts of Ohio and the future sites
of Chicago and Detroit.
Jay’s Treaty
Also known as the Treaty of London, this treaty averted war between the United States and
Britain in 1794. At issue were American complaints that the British had not left forts in the Ohio
and Great Lakes region, as promised in the 1783 Peace of Paris. The British responded that they
would not leave those posts until America paid compensation for Tory property losses in the
Revolution, also promised in the 1783 treaty. To avoid war, Washington sent Supreme Court
Chief Justice John Jay to England to negotiate a settlement. The resulting treaty provided some
satisfaction for both sides (the British agreed to leave forts and the Americans agreed to Tory
compensation), but it did not address issues such as British impressments of American sailors
and was thus widely assailed as weak by Republican critics in Congress. The treaty barely
survived ratification in the Senate and debate over the document further contributed to the
formation of the first two-party system in America.