The Federalist Presidents:

Washington and Adams

Washington Sets the Tone Washington designs the role of

the President Dignified, but not ostentatious

Travels in a coach “Mr. President” Formal receptions – all invited

Forms cabinet based on talent This establishes a precedent

Schools of Political Thought Federalists

Need for a strong central government Respected at home - put down rebellion within the borders Gain international respect Build economy through industry

Democratic Republicans Government should be limited in power. The government that governs best, governs least. The more you educate people the better their decisions will

become. America should be a nation of yeoman farmers

Hamilton Economics Funding and Assumption Plan.

Fund the national government Federal government assumes all debts Federal government uses funding proceeds to pay

down debt United States owed

$12 million to foreign creditors $42 million to domestic creditors

Assumption of Debt: Domestic IOUS The Issue: Speculators & IOUs Hamilton:

Pay current bondholder Must pay debt to gain respect… financial responsibility

Jefferson: Pay original holders They deserve it

Hamilton argued, How would we find them? Speculators took the risk

Assumption of Debt: State Debt Hamilton:

Government should assume all state debt

Jefferson: Unfair to responsible states

Compromise: Southern Capitol for

Jefferson’s support

First National Bank The First Bank of the United States, chartered 1791.

Privately managed Government owned the majority of the stock Only bank with federal charter Things it did

Depository for all revenue from land sales and taxes It would pay government bills Authorized to issue paper money The bank’s decisions had an effect on interest rates.

Problem It was a monopoly

Funding Plan – National Bank Jefferson:

Felt it would not serve the little guy

Argued it is not constitutional Hamilton:

Federal revenue and debt servicing had to be done

Necessary and Proper clause

Washington agreed with Hamilton and signed the legislation

Funding Plan – Tariffs Hamilton favored high tariffs to protect

American industry which was developing Jefferson disagreed – said it gave an unfair

advantage to the upper class

Revenue Sources Under Hamilton Selling Western land Tariff duties – 8-10% on mfg items

imported into the United States Excise taxes

Whiskey Rebellion The distillation of whiskey – a vital economic commodity on the frontier Government places an excise tax on whiskey – 1794 Western Pennsylvania farmers hold protests and demonstrations

Not represented well What about rum?

Response Harass tax collectors Washington calls in the militias Protestors back down Organizers are sentenced to death, but Washington pardons them.

Significance The new government proved that it would enforce its laws,

Issues with France French Revolution breaks out in 1789 They desire democracy Degenerates into Reign of Terror

Emperor takes power – Napoleon (1799) War in Europe springs from Revolution…England

declares war on France and it lasts from 1792-1814

American Response Some sympathize with British (Hamilton) Some sympathize with French (Jefferson) Neutrality Proclamation

“Citizen” Edmond Genet French ambassador - 1793 Received well by the people

French democracy He was a rock star

Blew off the Neutrality Proclamation Began to license privateers Handed out French military commissions

Washington received him and told him to knock it off Genet ignores him

Washington called for him to be deported Genet requested asylum

Neutrality of the Seas Violated American Trade Merchant shipping became

dangerous French warships would stop

American merchants English warships would stop

American merchants Seized merchant vessels Impressment of sailors

America’s Response to England Still steaming from Revolution British troops in NW forts British restrictions on trade with the US Now this…

Americans were calling for war Washington recognized that war would be

stupid and sent Chief Justice John Jay to work things out

Jay’s Treaty British didn’t give into US

demands Terms

Brits agree to … abandon western forts compensate merchants

for seized ships Open up trade in British

Asian colonies to America

America agrees to… Pay pre-revolution debts

(despised in America) Problems

No freedom of seas

Americans got little Burning effigies

Results of Jay’s Treaty American Indian Relations Pinckney Treaty of 1795

Spanish open the Mississippi River to Americans Treaty antagonizes the French

Washington’s Farewell Washington steps down Farewell Address

Avoid partisanship Mend east and west

sectionalism Maintain neutrality

Adams Takes the Reins XYZ Affair Alien & Sedition Acts

XYZ Affair – 1797 French raid American

merchant ships Adams sent diplomats to

France They were not well received

by the French French agents (X, Y, & Z)

demand bribes The Americans left insulted “Millions for defense, but not

one cent for tribute” US builds navy Led to Quasi-War (1798-

1800)

Alien and Sedition Acts -1798 Demo-Rep disliked military buildup Newspapers criticized Adams French-Americans perceived as threats Congress passed Alien and Sedition Acts

as a result

Alien and Sedition Acts Alien Enemies Act – During war, the President

can arrest and deport aliens subject to an enemy power

Sedition Act – High misdemeanor for Americans to speak out against the gov’t.

25 are indicted, 10 convicted - $2,000 max fine.

Treaty of Mortefontaine Also called French Convention of 1800 Ends Quasi War French/Americans dissolve their military

and political alliance of 1778 French debt forgiven – raids on

merchants Many people wanted full war with France

Adams knew war was a bad option This cost him popularity points