The New Nation

Early Struggles with Constitutional Issues

Question for Consideration

• How will the new government of the US sustain itself financially?

• What powers does the federal government have and not have?

• How will these powers be exercised?• What is to be the foreign policy of the New

Republic?

Issues of Critical Importance to Consider

• Why did some not like Alexander Hamilton’s financial plan?

• What is the Unwritten Constitution?• What are some of the implied powers of the

federal government?

Washington for President

• Washington was unanimously elected as President by the Electoral College in 1789

• He took the oath of office on April 30, 1789• He established the cabinet– Not specifically provided for in the Constitution

Washington’s InaugurationApril 30, 1789

Federal Hall New York City

Federal Hall in NYC

The Bill of Rights• Madison wrote the Bill of Rights and got them

passed by Congress in 1791• Fulfilled promise to Sam Adams & others– 1st: free speech/religion– 2nd: right to bear arms– 4th: illegal search & seizure– 9th: prevents gov’t from claiming individual has

only the rights listed in the Bill of Rights– 10th: powers not reserved for the federal gov’t

belong to the states or people

Judiciary Act of 1789

• The Judiciary Act of 1789:– created the Supreme Court, with a chief justice

and five associates, as well as federal district and circuit courts, and established the office of attorney general.

• John Jay became the first Chief Justice

Implied Powers

• powers not specifically stated in the Constitution– part of the “unwritten constitution”– Hamilton’s Financial Plan– Strict construction– Loose construction– The Cabinet– Judicial Review & the Marshall Court

Washington’s Cabinet

• cabinet members “advise” President– no mention of cabinet meetings in Constitution– an implied power

• Washington established “precedent” of cabinet meetings

Washington’s Cabinet

• The Cabinet was set up to assist the President in his daily duties.– Secretary of State (Foreign Relations)-- Jefferson– Secretary of War (Military)-- Knox– Secretary of Treasury (Financial)-- Hamilton– Attorney General (Legal Obligations)-- Randolph

President Washington’sCabinet

Regroup

• What are Implied Powers?• Some examples?• Who established the precedent of the

Cabinet?• Who was in the first Cabinet?

Hamilton’s Financial Plan

• Hamilton believed that a national debt would be the glue to hold the new country together– The more money owed by the government to

creditors meant the more people that would want to see the new nation succeed

– To pay for the interest on the national debt, money (revenue) was to be raised through the passage of a tariff

Tariff of 1789• Passed to raise revenue for federal

government– Importers had to pay tariffs (8%)– Shippers had to pay tonnage charges– Southerners would take the brunt of the tariff and

complained bitterly

• Revenue generated would not be enough– US would need to be able to borrow– Had to pay back original debts first

Hamilton’s Financial Plan

• In order to create a thriving federal government, Hamilton created a plan to shape the policies of the administration to favor the wealthier groups– WHY?!– wealthier groups would then gratefully lend their

money and political support to the government– The wealth in the government would then trickle

down through society

Hamilton’s Financial Plan• Hamilton persuaded Congress to fund the

entire national debt at par ($54 million)– federal government would pay off its debts at face

value plus accumulated interest– strengthen the national credit by creating public

confidence in the small Treasury department– Get Congress to take on the states' debts, which

would create confidence in the government by the states ($21.5 million)

Hamilton’s Financial Plan

• Opposition from the south– Paid the tariffs/tonnage fees– Had the smallest debts– Northerners owned the bonds that would be paid

in full by tax money raised in the south

Hamilton’s Financial Plan

• States with large debts, like Massachusetts were in favor– states with small debts, like Virginia, were

opposed

• Virginia did want the federal district on the Potomac– would bring commerce and prestige

Hamilton’s Financial Plan

• Virginia made a deal with the government• the government would assume state debts

if the District of Columbia was placed on the Potomac River. The deal was passed by Congress in 1790

Regroup

• What was Hamilton’s Financial Plan supposed to accomplish?

• How did Hamilton want the Congress to assume the debt? At what level?

• Why were the southerners opposed to the debt assumption plan?

• Why did Virginia agree to go along with Hamilton’s plan?

Whiskey Tax

• Hamilton believed that the federal government had the right to impose taxes directly on the people

• Proposed excise tax of 7 cents per gallon on whiskey– Farmers enraged & attacked tax collectors which

led to short-lived Whiskey Rebellion

Whiskey Rebellion• Pennsylvania farmers revolted over an excise

tax on whiskey• President Washington put down rebellion

with 12,000 troops– pardoned rebel leaders

• Whiskey Rebellion demonstrated power of Federal Government to enforce its own laws– improvement over Articles of Confederation

{Shays’ Rebellion}

Attacking a TaxCollector

How can you defend Washington’s actions in the Whiskey Rebellion?

Hamilton’s Financial Plan

• The Bank of the United States (BUS)• Hamilton proposed a Bank of the United

States that could print paper money and thus provide a stable national currency– No states would be able to coin own money– BUS would be where government accounts were

held

Hamilton’s Financial Plan• Jefferson opposed BUS on grounds that it was

unconstitutional– Never specifically provided for in Constitution– Jefferson was a strict constructionist who believed

in interpreting the Constitution according to its specifically stated delegated powers

– Hamilton was a loose constructionist who sought to expand the meaning of the Constitution through implied powers not specifically stated

Hamilton’s Financial Plan

• BUS based on the power of Congress to do the following:– coin money {delegated}– pay debts {delegated}– pass laws “necessary and proper” {implied power}

• Hamilton argued BUS was acceptable under the “necessary and proper” clause of the Constitution

Hamilton’s Financial Plan

• Washington signed Bank bill & BUS was established in 1791 with a 20 year charter

• Bank was temporary so as to give opponents a chance to revisit issue later

Regroup

• Why did Hamilton want to create the BUS?• Why was Jefferson opposed to the BUS?• What argument did Hamilton use to defend

the BUS?• What did Jefferson argue in response?

The Emergence of Political Parties

• The Debate over the BUS led to the development of factions or parties– Hamilton’s supporters became known as

Federalists – Jefferson & Madison’s supporters become known

as Democratic-Republicans or simply Republicans (NOT today’s Republican Party)

– SEE HANDOUT ON THE TWO PARTIES

Federalists v Democratic-Republicans

Judicial Review & the Marshall Court

• Marshall Court:– Supreme Court under leadership of Chief Justice

John Marshall

• Judicial Review– power of the court to declare law unconstitutional

{checks and balances}• an implied power• part of “unwritten constitution”• by using judicial review the Marshall Court established

“supremacy” of federal{national} government over state governments

LANDMARK CASES OF MARSHALL COURT

• Marbury v Madison {1803}- Supreme Court establishes power of “judicial review” by declaring Judiciary Act of 1789 to be unconstitutional

• Fletcher v Peck {1810}- Supreme Court establishes power to review state laws

• Dartmouth College v Woodward {1819}- Court ruled that states may not pass laws that violate private contracts

LANDMARK CASES OF MARSHALL COURT

• McCulloch v Maryland {1819}- Court upheld that U.S. Bank constitutional; states can not tax a federal agency

• Gibbons v Ogden {1824}- established that only federal government has authority over interstate trade

Establishing FederalSupremacy

Regroup

• What were the legal precedents that were established in:– Marbury V. Madison– Fletcher V. Peck– Gibbons V. Ogden– McCulloch V. Maryland– Dartmouth College V. Woodward

Early US Foreign Policy

• Neutrality:–President Washington felt U.S. militarily and

economically weak:•wanted to keep America out of European

problems• therefore issued Proclamation of

Neutrality {1793}

Early US Foreign Policy

• At first, the Federalists supported the French Revolution but that view changed when the attitude of the revolution changed

• Louis XVI was beheaded in 1793, the church was attacked, and the head-rolling Reign of Terror was begun.

• France declared war on Austria, with Britain joining in, April 1792

Early US Foreign Policy

• Jeffersonian Democratic-Republicans wanted to get into the French and British War to fight for France. The Federalists were opposed.

• Washington’s Farewell Address {1796}:– encouraged trade with foreign countries– warned against political entanglements {strict

neutrality}

Early US Foreign Policy

• Washington’s Farewell Address– He explained that the nation was bankrupt from

the war.– America should develop their own trade and not

depend on others.– Permanent alliances not in nation’s best interests – Washington would not run for another term as

president.

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o: Political map of the US

Early US Foreign Policy• In a last attempt to avoid war with Britain,

President Washington sent Chief Justice John Jay to London in 1794 to negotiate

• Jay's Treaty– the British promised to evacuate the chain of

posts on U.S. soil and pay for damages for the seizures of American ships

– the U.S. to continue to pay the debts owed to British merchants on pre-Revolutionary War accounts

Early US Foreign Policy

• Jay's Treaty caused Spain, which feared an Anglo-American alliance, to strike a deal with the U.S.

• Pinckney's Treaty (1795)– Spain granted the Americans free navigation of

the Mississippi River and the large disputed territory north of Florida.

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Regroup

• What foreign policy did Washington establish in his Farewell Address?

• What precedent did Washington establish in his Farewell Address?

• What did Jay’s Treaty ultimately provide for the new United States?

• What did Pinckney's Treaty provide for the US?

Problems With France

• France resented American foreign policy over:– Washington’s Proclamation of Neutrality

(1793)– The Jay Treaty (1794)

• French navy & privateers attacked & seized American merchant ships– Anti-French sentiments on rise– Many Federalists demanded war with France

X Y Z Affair• 1797: Adams wanted peace with

France as GW had suggested– Sent 3 ministers to France to negotiate– French demanded $250K for privilege to

talk to Talleyrand• Bribes SOP in 18th century European politics• US refused to pay & returned home• John Marshall hailed as hero upon return

X Y Z Affair

• Adams reported incident to Congress–Refused to publish names of 3 French go-

betweens instead calling them X, Y & Z– Incident called ….– “Millions for defense, but not one cent for

tribute.” (Robert Goodloe Harper)

• Adams looked like hero as result of not caving in to French demands

X Y Z Affair• War could bring the Louisiana territory should

war against France be successful• Adams refused to get swept up in war fever– Realized, like Washington had, that the new US

was still weak & could not risk a general conflict

Impact of Napoleonic Wars

• War between France and Britain caused following problems for America:– both countries prevented trade by neutrals as

necessary war measure– Britain impressed American sailors– both countries captured Americans ships

Undeclared Naval War With France

• 1798-1800:–Congress increased defense spending• Navy Department created• USMC reborn• Authorized 10K man army to be raised–Washington would command; Hamilton 2nd

–American warships & privateers captured more than 100 French ships

Undeclared Naval War With France

• Hamilton had pushed for a larger, declared war with France– Adams realized the dangers and turned against

Hamilton

• Talleyrand let it be known that US should send new ministers to France– Adams sent them & peace was maintained– Fractures in Federalist party developed

Undeclared Naval War With France

• 1800: Napoleon in power & willing to negotiate– Signed Convention of 1800• Treaty of 1778 annulled • US gov’t would pay for damages done by

French• Undeclared naval war to end

Regroup

• What was at the heart of the XYZ Affair?• Why did Adams not want to name X, Y and Z

to the Congress? • Why could war with France be both good and

bad for the US?• What was the practice of impressment?• Why did Adams turn against Hamilton?

Alien & Sedition Acts (1798)• Naturalization Act– Increased time required for immigrants to

become American citizens from 5 to 14 years• Federalists did not want them voting for Republicans

anytime soon

• The Alien Act– Empowered the president to expel

“dangerous” aliens on pain of imprisonment

Alien & Sedition Acts (1798)

• The Sedition Act– Jail terms/fines for• those who advocated disobedience to federal law• Writing/speaking “false, scandalous & malicious”

statements against “the government of the US or the President of the US…with intent to defame…or to bring them or either of them, into contempt or disrepute.”

Alien & Sedition Acts (1798)

• Adams never used the powers granted by the Alien Acts but the Sedition Act resulted in the prosecution of 14 Republicans– One person fined $100 for “wishing Adams to

be hit in the rear” with wading from a cannon salute

VA & KY Resolutions

• Opponents based their defense on the unconstitutionality of the Alien & Sedition Acts– Federalist judges weren’t buying the

argument–Republicans loathe to have federal

courts assume the authority to declare laws unconstitutional

VA & KY Resolutions• To avoid trouble with the law, Jefferson &

Madison secretly wrote the Virginia & Kentucky Resolutions–Passed by both states in Nov & Dec 1798–Resolutions denounced A&S Acts as

unconstitutional–Advanced state-compact theory of

government already familiar and popular in England

VA & KY Resolutions

• The states together created the Constitution & they should be the judges to say when Congress had overextended its powers

–Madison (in KY Resolution):• “the states have the right and are in duty

bound to interpose for arresting the progress of evil.”

VA & KY Resolutions

• This idea of “states’ rights” set the stage for future conflict– Federal gov’t was created by states to serve

states– States could declare laws “null & void”– Such laws would remain null & void until an

amendment was made to the Constitution

VA & KY Resolutions

• Nullification & states’ rights doctrine would divide nation – Virginia called up the militia but no other state

did so– Talk of armed resistance to Federalist policies

was limited to the South

• Federal supremacy not fully established until Civil War ended

Regroup

• How are the Alien and Sedition Acts unconstitutional?

• What is the state-compact theory of government?

• What argument set the stage for future conflict, including the Civil War?

Impact of Napoleonic Wars

• Embargo Act (1807)– President Jefferson asked Congress to pass

Embargo Act, which did the following• American ships forbidden to sail to any foreign ports• all American exporting forbidden• called policy of “peaceful coercion”• hoped to change British and French policy without

force

Impact of Napoleonic Wars

• The Embargo was repealed in 1809 and a substitute act was enacted: The Non-Intercourse Act – `It opened up trade to every country except

France and Britain.

• Britain & France not reliant on US for trade• Merchants very angry with Embargo

Embargo Act1807

WAR!• War of 1812–Causes• Britain’s continued capture of American

ships• impressment of American sailors• belief that British in Canada encouraged

Indian raids on American frontier settlements• American ambitions to annex Canada and

Florida

WAR!• War Hawks– members of Congress demanding war with Britain

• Results of War of 1812:– Americans became more isolationist and turned

away from European affairs– many Americans went westward for new

opportunity {Manifest Destiny}– with British imports cut off, American

manufacturing grew– American nationalism grew

Regroup

• What did Washington establish as US foreign policy in 1793 & 1796?

• What should the US avoid according to GW?• What were Jay’s & Pinckney’s Treaties?• What issue was increasing tension between

the US & France/Britain?• How did Jefferson propose to remedy the

situation?

The New Nation Grows• Manifest Destiny:–belief that Americans had “divine mission”

to expand America westward to Pacific Ocean

• Louisiana Purchase {1803}:– Jefferson purchased Louisiana Territory from

Napoleon for $15 million

Louisiana Purchase1803

The New Nation Grows

• Significance:– doubled size of United States– gave United States control of Mississippi River and

port of New Orleans

• Constitutional Problem:– Jefferson a strict constructionist– wanted an amendment to allow for the purchase

of territory

The New Nation Grows

• Constitutional Problem (continued)– used Presidential power to make treaties to

conclude purchase– loose construction therefore used

The New Nation Grows

• Monroe Doctrine{1823}:– major foreign policy announcement by President

Monroe– North and South America no longer open to

European colonization– America would not interfere in Europe’s affairs,

Europe should not interfere in America’s affairs

• Monroe Doctrine a major part of U.S. foreign policy

Monroe Doctrine1823