The Federalist Presidents: Washington and Adams

1
The Federalist Presidents Washington and Adams
2
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

3
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

4
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

5
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

6
Assumption of Debt State Debt

• Hamilton Government should assume all state debt
• Jefferson Unfair to responsible states
• Compromise
• Southern Capitol for Jeffersons support

7
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 banks decisions had an effect on interest
  rates.
• Problem
• It was a monopoly

8
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

9
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

10
Revenue Sources Under Hamilton

• Selling Western land
• Tariff duties 8-10 on mfg items imported into
  the United States
• Excise taxes

11
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,

12
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 RevolutionEngland
  declares war on France and it lasts from 1792-1814

13
American Response

• Some sympathize with British (Hamilton)
• Some sympathize with French (Jefferson)
• Neutrality Proclamation

14
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

15
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

16
Americas 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

17
Jays Treaty

• British didnt 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

18
Results of Jays Treaty

• American Indian Relations
• Pinckney Treaty of 1795
• Spanish open the Mississippi River to Americans
• Treaty antagonizes the French

19
Washingtons Farewell

• Washington steps down
• Farewell Address
• Avoid partisanship
• Mend east and west sectionalism
• Maintain neutrality

20
Adams Takes the Reins

• XYZ Affair
• Alien Sedition Acts

21
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)

22
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

23
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 govt.
• 25 are indicted, 10 convicted - 2,000 max fine.

24
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