Chapter 10: Launching the New Ship of State: 1789-1800

By: Michelle Poncelet

Problems with America

• Mississippi controlled by Spanish.
• Foreign agents in U.S.
• Extreme growth in population and expansion
• Debt (about $54 million)

Washington

• Takes office in 1789
• esablishes cabinet with Secretary of State- Jefferson and Secretary of Treasury-Hamilton

Bill of Rights (1791)

• Written by James Madison
• Adopted by states and passed by congress, as written in the Constitution

Hamilton

• Corrected American ecomony by

                   1) bolstering credit

                   2) funding debt at par (pay off face value plus interest)

                   3) pay off bonds

                   4) assume state debt

                   5) favor wealth so they will loan the government money

                   6) create a National Bank

The bank became very controvercial because it pitted Hamilton versus Jefferson over whether the Constitution should be interpreted loosely or strictly. The aruments were:

Hamilton: A bank would be a convenient strongbox. It would simulate business and print paper money.

Jefferson: There is no authorization in the constitution for a national bank. All powers not granted to the federal government are the states'.

Hamilton won in the end and the First National Bank in 1791

Whiskey Rebellion (1794)

• people in Pennsylvania rebel because of tax on whiskey
• whisky was a medium of exchange in those days, and so was very important to economy
• "Whiskey Boys" tar and feather revenue officers and stop collections
• Washington, under the guidance of Hamilton, sends an army to stop them

Effects: New government can solve problems and is respected

Parties:

• evolve from the Hamilton vs. Jefferson fued
• were not envisioned in the Constitution
• two-party system has existed since this time

Neutrality Proclaimation of 1793

• brought on by French Revolution, because Jeffersonians want to help French, but Washington felt that we can't have entangling alliances and enter wars with the country at such a young stage.
• Proclaims that America will not enter any alliances
• Britian wants more control in North America, and almost brings about a war by ignoring our liberties
• John Jay is sent to Britian and signs a treaty (Jay's Treaty) that isn't very useful

Effect: Increased hostility from France towards America. Increased hostility from Democratic-Republicans (Jeffersonians) towards Federalists.

John Adams: 2nd President

• wins first true election against Thomas Jefferson by a narrow margin (Federalist)
• XYZ affair-Americans go to France to try to smooth over problems in the Franco-American alliance. France refuses to meet with them unless they pay a large sum of money. The insulted Americans leave. This problem makes Americans eager to enter war with France, and leads us into two and a half years of "underclared hostility"(Quasi War)
• In 1799, he submits to France a new Minister. This is the last try for peace, 
• treaty is reached (The Convention of 1800). It annuls the Franco-American alliance and the U.S. will pay for damage to American Shippers.
• John Adams sacrificed his second term for the good of the country.

Alien and Sedition Acts:

• Alien Acts made it harder for people to immigrate (especially French)
• Sedition Act made it illegal to write ill of government actions
• Passed by Federalists
• Contrary to Constitution, but never really enforced

Virginia and Kentucky Resolutions:

• Written by Madison and Jefferson as a response to the Alien and Sedition Acts
• States that states are entering a "compact" , and states are judges of whether the federal government had overreached its authority. States can refuse to accept laws.
• Hoped to give more power to the states, but no other states adopted this belief

Effect: used by southerners to support nullification and succession in later years.