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THE FEDERALIST ERA: NATIONALISM TRIUMPHANT • Border Problems – interstate conflicts immediately reasserted themselves at the end of war – government faced struggle to assert control over territory granted by Treaty of Paris – Great Britain removed forces from 13 states but refused to surrender its outposts on frontier in – southwest, Spanish closed Mississippi • Foreign Trade – Americans could trade with European powers, and a Far Eastern trade developed – British import duties reduced American exports to England and its colonies in western hemisphere – British merchants poured inexpensive manufactured goods into United States – Congress could not pay the nation’s debts; states raised taxes to pay their debts; and the entire economy was cash poor – states experienced hard times from 1784 to 1786 – retaliatory tariffs on British goods would have dealt with some of problems, but Confederation lacked authority to levy them – a move to grant Congress power to tax imports failed when it did not gain unanimous consent of states • The Specter of Inflation – Continental Congress and states paid for Revolutionary War by printing paper money, which resulted in inflation – some states attempted to restore credit by raising taxes and restricting new issues of money – powerful deflationary effect had its greatest impact on debtors, particularly farmers – debtors clamored for the printing of more paper money; some states yielded to pressure resulting in wild inflation • Daniel Shays’s “Little Rebellion” – determined to pay off state debt and maintain sound currency, Massachusetts legislature levied heavy taxes resulting deflation leading to foreclosures – in 1786, mobs in western part of state began to stop foreclosures by forcibly preventing courts from holding sessions – Daniel Shays led a march on Springfield preventing state supreme court from meeting – state sent troops, and the “rebels” were routed • To Philadelphia and the Constitution – in 1786, delegates from five states met in Annapolis to discuss common problems – Alexander Hamilton, who advocated a strong central government, proposed calling another convention for following year to consider constitutional reform – meeting approved Hamilton’s suggestion, and all states except Rhode Island sent delegates to convention in Philadelphia • The Great Convention – remarkably talented group of delegates assembled in Philadelphia to revise Articles of Confederation – framers agreed on basic principles – should be a federal system with independent state governments and a national government – government should be republican in nature, drawing its authority from the people – no group within society should dominate – framers were suspicious of power and • The Compromises that Produced the Constitution – after voting to establish a national government, delegates faced two problems: what powers should government be granted and who would control it? – first question generated relatively little disagreement – delegates granted central government right to levy taxes, to regulate interstate and foreign commerce, and to raise and maintain an army and navy – larger states argued for representation based on population; smaller states wanted equal representation for each state – Great Compromise created a lower house based on population and an upper house in which each state had two representatives – issue of slavery occasioned another struggle and another compromise – three-fifths of slaves were counted for purposes of taxation and representation, and Congress was prohibited from outlawing slave trade until 1808 – creation of a powerful president was most radical departure from past practice – only faith in Washington and assumption that he would be first president enabled delegates to go so far – delegates also established a third branch of government; the judiciary – founders worried that powerful new government might be misused, so they created a system of “checks and balances” to limit authority of any one branch • Ratifying the Constitution – framers provided their handiwork be ratified by special state conventions – this gave people a voice and bypassed state legislatures – new Constitution would take effect when nine states ratified it – Federalists (supporters of the Constitution) and Antifederalists (their opponents) vied for support in state conventions – Federalists were better organized than their opponents – the Federalist Papers brilliantly explained and defended proposed new system – most states ratified Constitution readily once its backers agreed to add amendments guaranteeing civil liberties of people against encroachments by national government • Washington as President – first electoral college made George Washington its unanimous choice – Washington was a strong, firm, dignified, conscientious, but cautious, president – he was acutely aware that his actions would establish precedent, so he meticulously honored the separation of powers – Washington picked his advisors based on competence and made a practice of calling his department heads together for general advice • Congress Under Way – first Congress created various departments and federal judiciary – it also passed first ten amendments to Constitution known as the Bill of Rights • Hamilton and Financial Reform – one of its first acts, Congress imposed a tariff on foreign imports – Congress delegated to Alexander Hamilton, Secretary of Treasury – he proved to be farsighted economic planner – He suggested that debt be funded at par and that United States assume remaining state debts – Congress went along because it had no choice – Southern states stood to lose, since they – Madison and Jefferson agreed to support Hamilton’s plan in exchange for latter’s support for plan to locate permanent national capital on banks of Potomac River – Hamilton also proposed a national bank – Congress passed a bill creating the bank, but Washington hesitated to sign it – Jefferson argued that Constitution did not specifically authorize Congress to charter corporations or engage in banking – Hamilton countered that bank fell within “implied powers” of Congress – Washington accepted Hamilton’s reasoning, and the bank became an immediate success – Hamilton hoped to change an agricultural nation into one with a complex, selfsufficient economy – toward that end, his Report on Manufactures issued a bold call for economic planning – a majority in Congress would not go so far, although many of the specific tariffs Hamilton recommended did become law • The Ohio Country: A Dark and Bloody Ground – western issues continued to plague new country – British continued to occupy their forts, and western Indians resisted settlers encroaching on their hunting grounds – Westerners believed that federal government was ignoring their interests – Compounding their discontent was imposition of a federal excise tax on whiskey – Resistance to tax was especially intense in • Revolution in France – French Revolution and subsequent European wars affected America – Alliance of 1778 obligated United States to defend French possessions in Americas – Washington issued a proclamation of neutrality – France sent Edmond Genet to United States to seek support – Genet licensed American vessels as privateers and commissioned Americans to mount military expeditions against British and Spanish possessions in North America – Washington requested that France recall Genet – European war increased demand for American products, but it also led both France and Britain to attack American shipping – larger British fleet caused more damage – American resentment flared, but Washington attempted to negotiate a settlement with British • Federalists and Republicans: The Rise of Political Parties – Washington enjoyed universal admiration, and his position as head of government limited partisanship – his principal advisors, Jefferson and Hamilton, disagreed on fundamental issues, and they became leaders around whom political parties coalesced – Jefferson’s opposition to Hamilton’s Bank of the United States became the first seriously divisive issue – disagreement over French Revolution and American policy toward France widened split between parties – Jefferson and the Republicans supported France; Federalists backed the British • 1794: Crisis and Resolution – several events in 1794 brought partisan conflict to a peak – attempts to collect whiskey tax in Pennsylvania resulted in violence – in July, 7,000 rebels converged on Pittsburgh and threatened to burn the town – the sight of federal artillery and liberal dispensation of whiskey turned them away – Washington’s large army marched westward, when he arrived, the rebels had dispersed • Jay’s Treaty – Washington sent John Jay to negotiate treaty with England – American indebtedness to England and fear of Franco-American alliance inclined British to reach accommodation with United States – Jay obtained only one major concession; British agreed to evacuate posts in west – they rejected Jay’s attempts to gain recognition of neutral rights on high seas – Jay agreed that America would not impose discriminatory duties on British goods – America would pay pre-Revolutionary debts – terms of treaty raised opposition at home • 1795: All’s Well That Ends Well – Washington decided not to repudiate the Jay Treaty, and Senate ratified it in 1795 – Jay’s Treaty became basis for regularization of relations with Britain – Spain, fearing an Anglo-American alliance, offered United States free navigation of Mississippi and right of deposit at New Orleans – this treaty, known as Pinckney’s Treaty, also settled disputed boundary between Spanish Florida and United States – Treaty of Greenville, signed with Indians after Battle of Fallen Timbers, opened west to settlement – Before decade ended, Kentucky and Tennessee became states, and Mississippi and Indiana territories were organized • Washington’s Farewell – settlement of western and European problems did not end partisan conflict at home – at end of his second term, Washington decided to retire and in his farewell address, he warned against partisanship at home and permanent alliances abroad • The Election of 1796 – Washington’s retirement opened gates for partisan conflict – Jefferson represented Republicans – the Federalists considered Hamilton too controversial, so they nominated John Adams for president and Thomas Pinckney for vice-president – Adams won, but partisan bickering split Federalist vote for vice-president, so Jefferson received second highest total and therefore became vice-president – Federalists quarrel among themselves, and Adams was also unable to unite bickering party • The XYZ Affair – in retaliation for Jay Treaty, the French attacked American shipping – Adams sent commission to France to negotiate settlement – mission collapsed when 3 French agents (X, Y, and Z) demanded a bribe before making deal; the commissioners refused – Adams released the commissioners’ report, which embarrassed the Republicans – Congress, controlled by the Federalists, abrogated the alliance with France and began preparations for war – although a declaration of war would have been immensely popular, Adams contented himself with a buildup of armed forces • The Alien and Sedition Acts – Federalists feared that Republicans would side with France if war broke out – refugees from both sides of European war flocked to United States – Federalists pushed a series of repressive measures through Congress in 1798 – Naturalization Act increased residence requirement for citizenship – Alien Enemies Act empowered president to arrest or expel aliens in time of declared war – Sedition Act made it a crime “to impede operation of any law,” to instigate insurrection, or to publish “false, scandalous and malicious” criticism of government officials – Federalists attempted to silence leading Republican newspapers • The Kentucky and Virginia Resolves – Jefferson did not object to state sedition laws, but believed that Alien and Sedition Acts violated First Amendment; he and Madison drew up resolutions arguing that laws were unconstitutional – Jefferson further argued states could declare a law of Congress unconstitutional – neither Virginia nor Kentucky tried to implement these resolves; Jefferson and Madison were in fact launching Jefferson’s campaign for president – Taken aback by American reaction, France offered negotiations, and Adams accepted offer – Adams resisted strong pressure from his party for war – Negotiators signed the Convention of 1800, which abrogated Franco-American treaties of 1778