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Launching the New Ship of State 1789-1800 Chapter 10 A.P. US History I. The Search for Stability A. Washington as First President • In February 1789, George Washington was elected president by unanimous vote of the electoral college – a man considered the embodiment of republican ideals • As president, he carefully calculated his decisions – aware that his administration set precedents that could ensure or jeopardize success of the new federal government • Washington’s genius for leadership lay in (1) an ability to implant his own reputation for integrity into the office of president, and (2) chose talented and experienced men to preside over newly created executive departments – regardless of their philosophical differences I. The Search for Stability A. Washington as First President (cont.) • No one foresaw that 20 years of political turbulence would emerge from the brilliant, but explosive mix of personalities in Washington’s first cabinet I. The Search for Stability A. Washington as First President (cont.) • Thomas Jefferson was appointed ‘Secretary of State’ • Alexander Hamilton as ‘Secretary of the Treasury’ • Henry Knox as ‘Secretary of War’ • Edmund Randolph became ‘Attorney General’ • John Jay was appointed ‘Chief Justice’ of the Supreme Court I. The Search For Stability C. Hamilton’s Economic Policies • In 1790, the federal debt amounted to $42,414,000; State debts tallied another $21,500,00 dollars; and Foreign debt amounted to $11,710,000 • These figures represented principle + interest owed by the ‘Second Continental’ Congress and the States to citizens and foreign countries for Revolutionary War loans Hamilton’s Financial Structure Supported by Revenues I. The Search For Stability C. Hamilton’s Economic Policies (cont.) • In January 1790, Treasury Secretary Alexander Hamilton issued his ‘Report on Public Credit’ – the first of three reports recommending courses of action to improve the country’s finances • Known as ‘Funding and Assumption at Par,’ this plan recommended, (1) that old ‘Certificates of Debt’ be rolled over into new government bonds – with principle and interest to be repaid at ‘par value’ [full face value] over 20 years, (2) the federal government ‘assume’ responsibility repayment of all state debts, and (3) an excise tax of 25% on whiskey – to raise additional revenue to help repay the combined federal and state debts I. The Search For Stability D. The ‘Whiskey Rebellion of 1794’ • Hamilton’s excise tax on whiskey proved extremely unpopular with cash-starved western grain farmers and whiskey drinkers • In 1792, Congress lowered the tax on whiskey – but opposition to it remained high in the western regions of Pennsylvania, Virginia, Maryland, the Carolinas, and Kentucky • The whiskey tax proved hard to enforce and collect – a consequence of, (1) simple evasion, (2) harassment of federal tax collectors, (3) underreporting of production by distillers, and (4) petitions to Congress complaining about the law II. Federalists & Republicans A. Emergence of Political Parties (cont.) • Jefferson and Madison, the leading ‘Republicans’, believed (1) the country’s future lay in agriculture, the most noble of occupations , and (2) that commercial interests were potentially dangerous to ‘Republican’ ideals • ‘Federalists’ and ‘Republicans’ were political ‘factions’, not fully developed and organized political ‘parties’ – the latter a term that newspapers and politicians used freely • The ‘Constitution’ did not provide for political parties and leading citizens like Washington and Madison believed political parties tended to undermine ‘Republican’ ideals III. Foreign Conflicts & American Politics A. France & England • Since 1789, the ‘French Revolution’ had captured the attention of Americans sympathetic with the overthrow of monarchy and privilege – until the ‘Reign of Terror’ with its mass executions began to undermine support • In 1793, the ‘Napoleonic Wars’ between England and France began – with England fighting to save Europe from Napoleon and protect her own monarchy • In May 1793, President Washington issued his ‘Neutrality Proclamation’ proclaiming American neutrality in the conflict and warning Americans to remain impartial III. Foreign Conflicts & American Politics A. France & England (cont.) • Jay’s instructions were to (1) get compensation for seized cargoes, (2) stop impressment of U.S. sailors, (3) negotiate trade treaties with the British West Indies, (4) negotiate removal of British soldiers from U.S. soil, and (5) seek compensation for southern planters who lost slaves lured away by the British during the Revolutionary War American Posts Held by Britain After 1783 III. Foreign Conflicts & American Politics A. France & England (cont.) • Unbeknownst to Jay, Treasury Secretary Hamilton had secretly informed the British of Jay’s instructions and his bargaining position – he feared Jay’s negotiations might be too forceful, anger the British, and thus jeopardize his financial plan for the United States III. Foreign Conflicts & American Politics A. France & England (cont.) • The resulting ‘Jays Treaty’ contained few concessions to the United States, angered many, and politically split the country • Among its provisions, ‘Jay’s Treaty’ called for (1) repayment of money owed by American planters to British merchants before the war, (2) British troops to vacate U.S. soil within 18 months, (3) giving the U.S. limited trading rights in the British West Indies, and (4) future settlement of boundary disputes with Canada, as well as damage and loss claims by ship-owners for seized cargoes, ships, and crews IV. Federalists & Republicans A. Hamilton & the Election of 1796 • In September 1796, President Washington issued his ‘Farewell Address’ which (1) set a ‘precedent’ in his decision not to seek a third term, (2) called for “unity of government” in the body politic, and (3) warned the country to steer clear of permanent, entangling alliances with foreign powers George Washington ‘Stands Outside of Time’ IV. Federalists & Republicans A. Hamilton & the Election of 1796 (cont.) • Following Washington’s announcement, ‘Federalists’ chose John Adams of Massachusetts and Thomas Pinckney of S. Carolina as their nominees for the 1796 election - the ‘Republicans’ chose Thomas Jefferson of Virginia and Aaron Burr of New York • The election of 1796 focused heavily on personalities and emotions ran very high – to the point that ‘Federalists’ and ‘Republicans began to drink their ale in separate taverns • Moreover, Hamilton, who had resigned from the Treasury in 1795, hated John Adams and secretly plotted to deprive him of the presidency – even though Hamilton and Adams were both ‘Federalists’ IV. Federalists & Republicans A. Hamilton & the Election of 1796 (cont.) • Adams’s inaugural address called for neutrality and respect for the French – an attempt to bridge the rift between Federalists and ‘Republicans • Adam’s kept 3 men from Washington’s cabinet, Treasury Sec. Oliver Wolcott, Sec. of State Timothy Pickering, and Sec. of War James McHenry - all Federalists loyal to Hamilton IV. Federalists & Republicans B. France & the XYZ Affair (cont.) • In the fall of 1797, President Adams ordered three diplomats to Paris to meet with French Foreign Minister Talleyrand • Upon arriving in Paris, the three American diplomats were secretly contacted by three French agents – later identified in the American press as X, Y, and Z IV. Federalists & Republicans B. France & the XYZ Affair (cont.) • The French agents [X, Y, and Z] demanded a $250,000 bribe, plus a $12 million dollar [32 million florins] loan to the French government merely to arrange a meeting with Talleyrand • Incensed, the three American diplomats returned home and informed President Adams of their failed mission – known as the ‘XYZ Affair’, it aroused extreme anti-French anger in America • By 1798, the ‘Quasi-War’ had begun – an undeclared war by the United States against France that strained political relations between ‘Federalists’ and ‘Republicans’ at home IV. Federalists & Republicans C. The Alien & Sedition Acts (cont.) • The Congress also passed two ‘Alien Acts’ that empowered the President to deport dangerous foreigners in time of peace or to deport or imprison them in time of war [aimed at resident aliens critical of ‘Federalist’ policies] • Jeffersonian ‘Republicans’ were highly critical of the ‘Alien Acts’ and the ‘Sedition Act’ – calling them unconstitutional and in conflict with the ‘Bill of Rights’ • ‘Republicans’ in Congress did not have the numbers to override the legislation, nor could the federal judiciary, dominated by Federalists, be counted on to mount a legal challenge IV. Federalists & Republicans C. The Alien & Sedition Acts (cont.) • Despite passage of the ‘Alien and Sedition Acts’, President Adams exercised restraint in using them against opponents, and he refused to declare war against France – shrewdly realizing that France did not desire war and might be open to negotiation with the U.S. • In January 1799, President Adams received a French peace initiative inviting him to send new peace negotiators to Paris – an offer the president accepted by appointing a new commissioner • Adams’ acceptance of the French offer to negotiate cost him political support within his own party - virtually assuring that he would be a one-term president IV. Federalists & Republicans C. The Alien & Sedition Acts (cont.) • The ‘Election of 1800’ began as both ‘Federalists’ and ‘Republicans’ openly campaigned along party lines – the self-designated national leaders of both ‘factions’ met to handpick their presidential and vice-presidential candidates