APUSH Chapter 10, Launching the New Ship of State

Launching the New Ship of State covers the Federalist Era and the Presidencies of George Washington and John Adams. During this time, political parties emerged, leading to the Revolution of 1800.

The Federalist Era and the New Ship of State

Following the American Revolutionary War, the United States transitioned from the Articles of Confederation to the United States Constitution. However, the new Federal Government was quickly faced with challenges in terms of domestic policy and foreign policy. During the debate over the Constitution, two factions emerged — Federalists and Anti-Federalists.

Although the two factions agreed on the addition of a Bill of Rights to the Constitution, they disagreed on many issues related to domestic and foreign policy. The Federalists supported a strong central government and a broad interpretation of the Constitution, while the Anti-Federalists favored a weak central government and a strict interpretation of the Constitution.

One of the key domestic issues was how to handle debts accrued by the Confederation Congress and the States during the American Revolutionary War. Alexander Hamilton, a Federalist, took the lead in crafting an economic plan that consolidated the debts under the new Federal Government. Although Anti-Federalists were wary of the plan, they agreed after the location of the nation’s capital was chosen to be on the Potomac River.

To help pay the debt, Congress passed the Tariff of 1789 and then Hamilton pushed for an excise tax on the production of domestic spirits that included whiskey. This led to outrage on the Western Frontier and a short-lived uprising known as the Whiskey Rebellion. This was the first major test for the new Federal Government, which successfully raised a volunteer army to deal with the insurgents. Despite the success, Anti-Federalists criticized the use of the military to deal with the situation.

These domestic issues contributed to the formation of America’s first two political parties:

The Federalists, led by Secretary of the Treasury Alexander Hamilton.
The Democratic-Republicans, led by Secretary of State Thomas Jefferson.

In regard to foreign policy, the United States was struggling to force Great Britain to comply with the provisions of the Treaty of Paris (1783). John Jay traveled to Britain and negotiated a treaty that was viewed as favorable to Britain, however, Federalists believed it was necessary to strengthen the U.S. trade relationship with Britain. France was outraged, as were the Democratic-Republicans who favored the old alliance with France and were skeptical of the British.

However, the outbreak of the French Revolution (1789-1799) changed the situation and had a significant effect on the United States. At first, Americans enthusiastically supported the Revolution but grew increasingly alarmed by the violence that took place, known as the “Reign of Terror.”

In the late 1790s, conflicts between France, Britain, and Spain led President George Washington to issue the Proclamation of Neutrality (1793) regarding foreign affairs. To preserve neutrality, the United States negotiated the Jay Treaty with Britain (1794) and the Pinckney Treaty with Spain (1795). In his Farewell Address, Washington advised against forming “entangling alliances” with European powers.

John Adams, a Federalist, succeeded Washington as President and inherited the political turmoil with France. During his term in office, Adams was plagued by the XYZ Affair (1797–1798), a diplomatic scandal that turned American sentiment further against the French. At the request of President Adams, Congress approved a military buildup that included the establishment of the United States Navy. The undeclared Quasi-War with France lasted for two years and was fought primarily on the high seas.

Adams received intense criticism from Democratic-Republicans, including his Vice President, Thomas Jefferson. In response, the Federalist-controlled Congress passed the controversial Alien and Sedition Acts. Public backlash against these laws led to the election of Thomas Jefferson as President in 1800. The Federalists, including Adams, were swept out of power in what is known as the “Revolution of 1800,” ushering in the “Age of Jefferson.”

America’s Early Challenges

America’s Early Government Struggles

The new government of the United States, under the Articles of Confederation, faced challenges.
Lawbreaking and changes in government were common.
The Articles were not ideal for a stable government.
Central authority was seen as a necessary evil.
Distrust and need to monitor central authority.

Financial Problems of the New Government

Government finances were unstable.
Revenue was very low.
Public debt was very high with unpaid interest.
Worthless paper money was common; real money was rare.
Attempted to create a large republic.
Seen as impossible by traditional political ideas.
The world was skeptical and watching the U.S.

Growing Pains

Early Growth of the Republic

The United States Constitution went into effect in 1789.
Under the Constitution, the Republic rapidly grew.
The population doubled every 25 years.
1790 census recorded almost 4 million people.
Major cities’ populations:
- Philadelphia — 42,000
- New York — 33,000
- Boston — 18,000
- Charleston — 16,000
- Baltimore — 13,000

Demographics and Settlement Patterns

About 90% of America’s population was rural.
Only 5% lived west of the Appalachian Mountains.
Population beyond the Appalachians was mainly in Kentucky, Tennessee, and Ohio.
Kentucky, Tennessee, and Ohio became states within 14 years.
Vermont became the 14th state in 1791.
Foreign visitors criticized the rough and crude pioneer lifestyle of many Americans.

Challenges in the Western Territories

Settlers in Kentucky, Tennessee, and Ohio were restless and unsure of their loyalty.
The Mississippi River’s mouth was controlled by Spain.
Spanish and British agents offered settlers promises of independence.
There was doubt about the United States’ ability to grow and mature.

Washington for President

Election and Characteristics of George Washington

George Washington was unanimously elected president in 1789.
He is the only presidential nominee ever unanimously honored.
Washington’s physical presence was impressive — 6 feet 2 inches, 175 pounds, broad shoulders, pointed chin, pockmarked face.
He preferred the quiet of Mount Vernon over political life.
Washington did not actively seek the presidency.
He was known for his strength of character rather than political skills.

Washington’s Inaugural Journey and Oath

Washington’s journey from Mount Vernon to New York City was a triumphal procession.
He was greeted by roaring cannons, pealing bells, flower-covered roads, and cheering citizens.
Washington took the oath of office on April 30, 1789.
The ceremony took place on a crowded balcony overlooking Wall Street.
Some regarded the Wall Street location as a bad omen.

Establishment of the Cabinet

Washington established the cabinet in the new government.
The Constitution does not explicitly mention a cabinet.
The Constitution allows the President to require written opinions from executive department heads.
The initial system was cumbersome, leading to the evolution of cabinet meetings.
Initially, three department heads served:
- Secretary of State Thomas Jefferson
- Secretary of the Treasury Alexander Hamilton
- Secretary of War Henry Knox

The Bill of Rights

Unfinished Business and the Bill of Rights

The new nation faced unfinished business regarding individual rights.
Anti-Federalists criticized the Constitution for lacking guarantees of individual rights like freedom of religion and trial by jury.
Many states ratified the Constitution with the understanding that it would be amended to include these guarantees.
Creating a Bill of Rights was a top priority for the new government.

AHC Note — Massachusetts only agreed to ratify the Constitution when Federalists agreed to add a Bill of Rights. This agreement is known as the “Massachusetts Compromise.” The promise to add a Bill of Rights also helped convince Virginia to ratify the Constitution.

Process for Amending the Constitution

Amendments could be proposed by a new constitutional convention requested by two-thirds of the states.
Alternatively, amendments could be proposed by a two-thirds vote of both houses of Congress.

James Madison

James Madison feared a new convention might undo the Federalist victory.
Madison decided to draft the amendments himself.
He successfully guided the amendments through Congress.
Madison’s intellectual and political skills made him a leading figure.

Adoption and Content of the Bill of Rights

The Bill of Rights was adopted by the necessary number of states in 1791.
Protects freedom of religion, speech, and the press.
Ensures the right to bear arms and to be tried by a jury.
Guarantees the right to assemble and petition the government.
Prohibits cruel and unusual punishments.
Forbids arbitrary government seizure of private property.

Ninth and Tenth Amendments

The 9th Amendment was added to prevent the conclusion that only enumerated rights are protected.
It states that specifying certain rights shall not deny others retained by the people.
The 10th Amendment reassures States’ Rights supporters.
It reserves all rights not explicitly delegated or prohibited by the Constitution to the States or the people.
Madison’s amendments balanced a strong central government with protections for minority and individual liberties.
This shift partially appeased Anti-Federalists.

Establishment of the Federal Judiciary

The first Congress created Federal Courts with the Judiciary Act of 1789.
It organized the Supreme Court with a chief justice and five associates.
It established Federal District and Circuit Courts.
It created the office of the Attorney General.
John Jay, a key figure in the Federalist Papers and an experienced diplomat, became the first Chief Justice of the United States Supreme Court.

Hamilton Revives the Corpse of Public Credit

Alexander Hamilton’s Role and Reputation

Treasury Secretary Alexander Hamilton was a key figure in the new government.
Hamilton was originally from the British West Indies.
He was known for his unquestioned genius.
Critics claimed he loved his adopted country more than its people.
His character and loyalty to the republican experiment were often questioned.
Some have argued Hamilton saw himself as a “prime minister” in Washington’s Cabinet.
He occasionally involved himself in the affairs of other departments, including those of his rival, Thomas Jefferson, the Secretary of State.

Hamilton’s Economic Plan

Hamilton aimed to address economic issues that carried over from the government under the Articles of Confederation.
He sought to shape fiscal policies to benefit wealthier groups, believing wealthy individuals would support the government monetarily and politically.
Hamilton believed the Federal Government would prosper, propertied classes would gain wealth, and that prosperity would eventually benefit the masses.

Bolstering National Credit

Hamilton’s first goal was to strengthen national credit.
He needed public confidence to secure funds for his plans.
Hamilton urged Congress to fund the entire national debt at par.
He proposed that the Federal government assume state debts from the American Revolutionary War.

Funding at Par

“Funding at Par” meant paying off federal debts at face value plus accumulated interest.
Total debt was over $54 million.
Many doubted the Treasury’s ability to meet these obligations.
Government bonds had depreciated to 10-15 cents on the dollar.
Speculators held many bonds and sought more when Hamilton’s measure passed in 1790.
Speculators bought depreciated bonds from farmers, war veterans, and widows at low prices.

Assumption of State Debts

Hamilton supported the new government taking on additional obligations.
He advocated for the federal government to assume state debts.
Total state debts amounted to approximately $21.5 million.

Rationale for Assumption of State Debts

Hamilton argued that state debts were a national obligation, incurred during the war for the benefit of the entire nation.
The assumption would strengthen ties between states and the Federal Government.
Wealthy creditors’ allegiance would shift from states to the federal government.
Gaining support from wealthy creditors was key to Hamilton’s strategy to strengthen the government.

Compromise of 1790

States with heavy debts, like Massachusetts, supported Hamilton’s proposal.
States with small debts, like Virginia, were less supportive.
Virginia wanted the federal district — District of Columbia — located on the Potomac River for commerce and prestige.
Hamilton persuaded Thomas Jefferson to gather enough votes in Congress for the assumption of state debts.
In return, Virginia secured the federal district on the Potomac River.

Customs Duties and Excise Taxes

Overloaded National Debt

The national debt increased to $75 million due to Hamilton’s policies.
Hamilton insisted on honoring both federal and state debts.
A less determined approach could have avoided $13 million in back interest and state debts.

Hamilton’s Perspective on National Debt

Hamilton, known as the “Father of the National Debt,” was not worried about the debt.
His goals were both political and economic.
He believed a national debt was a “national blessing” within limits.
Debt served as a union adhesive, aligning creditors’ interests with the government’s success.
Transformed debt from a liability into an asset to strengthen the financial system and government.

Financing the Debt and Government Operations

Hamilton proposed customs duties as the primary source of revenue.
These duties would come from a tariff.
Tariff revenues depended on strong foreign trade.
Vigorous foreign trade was a key part of Hamilton’s economic strategy.

Tariff Act of 1789 — America’s First Tariff

The first tariff law imposed a low tariff of about 8% on dutiable imports.
Passed by the first Congress in 1789, before Hamilton took office.
The main goal was revenue generation.
Designed to provide some protection for emerging industries.

AHC Note — The Tariff of 1789 was the first major piece of legislation enacted by the First Congress.

Hamilton’s Economic Vision

Hamilton foresaw the coming Industrial Revolution and advocated for more protection for manufacturing groups.
Congress, dominated by agricultural and commercial interests, only approved two slight tariff increases during Washington’s presidency.

Excise Tax on Whiskey

Hamilton looked for ways to raise additional revenue from internal sources.
In 1791, Congress approved an excise tax on a few domestic items, including whiskey.
The tax was 7 cents per gallon.
The tax burden fell mainly on Backcountry distillers.
Poor roads led farmers to convert bulky grain into whiskey for easier transport.
Whiskey was so common on the frontier it was used as currency.

Hamilton Battles Jefferson for a Bank

Proposal for the Bank of the United States

Hamilton proposed a Bank of the United States as the capstone of his financial system.
It was modeled after the Bank of England.
Hamilton saw it as a powerful private institution with the government as the major stockholder.
The Federal Treasury would deposit surplus funds in the bank.
The bank would serve as a “strongbox” for federal funds and stimulate business by keeping funds in circulation.
It would print needed paper money, providing a stable national currency.
Aimed to address the unstable currency situation since the devaluation of the Continental dollar.
The proposal’s constitutionality was questioned.

Opposition to the Bank of the United States

Thomas Jefferson argued strongly against the proposed bank.
He believed there was no specific authorization in the Constitution for such a bank.
Jefferson held that powers not granted to the central government were reserved to the states, as stated in the 10th Amendment.
He concluded that only states, not Congress, had the power to charter banks.
Jefferson advocated for a “literal” or “strict” interpretation of the Constitution.

Hamilton’s Defense of the Bank of the United States

Hamilton prepared a detailed response to Jefferson’s arguments.
He believed the Constitution permitted what it did not explicitly forbid.
Hamilton cited the “necessary and proper” clause of the Constitution (Article I, Section VIII, Paragraph 18).
He argued that a national bank was “proper” and “necessary” for collecting taxes and regulating trade.
Hamilton supported the concept of “implied powers” for establishing the bank.
He advocated for a “loose” or “broad” interpretation of the Constitution.
His stance set a precedent for expansive federal powers, known as “loose construction.”

Outcome of the Bank Debate

Hamilton’s financial views prevailed.
Washington accepted Hamilton’s arguments and signed the bank measure into law.
The issue was debated in Congress and was largely along sectional lines.
Support for the bank came mainly from the North’s commercial and financial centers.
The strongest opposition came from the agricultural South.

Creation and Reception of the Bank of the United States

The First Bank of the United States was chartered by Congress in 1791 for 20 years.
It was located in Philadelphia.
Capitalized at $10 million, with one-fifth owned by the Federal Government.
The stock was available for public sale.
The stock was quickly oversubscribed in less than two hours, surprising Hamilton and excluding many would-be purchasers.

Mutinous Moonshiners in Pennsylvania

The Whiskey Rebellion

The Whiskey Rebellion occurred in southwestern Pennsylvania in 1794.
The incident challenged the new national government.
Hamilton’s high excise tax impacted pioneer farmers.
Farmers saw the tax as a burden on an economic necessity and medium of exchange.
Whiskey was used as currency, including payment to preachers.
Distilled alcohol from rye and corn was easier to transport than grain.
Defiant distillers erected Whiskey Poles and cried “Liberty and No Excise.”
Revenue officers were harassed, halting tax collections.

Washington’s Response to the Whiskey Rebellion

President Washington was alarmed by the rebellious “self-created societies.”
Encouraged by Hamilton, he summoned the militia from several states.
There was uncertainty about whether men from other states would respond to crush a rebellion in another state.
Despite opposition, an army of about 13,000 assembled.

AHC Note — George Washington is the only sitting President who personally led troops in the field. He led the army on a month-long march over the Allegheny Mountains, to the town of Bedford, Pennsylvania. Upon arrival, Washington turned command of the army over to General Henry Lee.

Outcome of the Whiskey Rebellion

Troops arrived in western Pennsylvania to find no active insurrection.
The “Whiskey Boys” were overawed, dispersed, or captured.
Washington pardoned the two minor offenders convicted.
The rebellion was small, with only three rebels killed.
Consequences were significant, as the government’s strength and respect were bolstered.
Critics condemned the government’s heavy-handed response, likening it to using a sledgehammer to crush a gnat.

AHC Note — Ultimately, the Whiskey Rebellion showed the supremacy of Federal law in the early days of the United States under the Constitution. It also affirmed the right of Congress to levy and collect taxes on a nationwide basis. However, the incident contributed to the growing divide between the Federalists and the Democratic-Republicans. Thomas Jefferson believed the government had used the army to stifle legitimate opposition to unfair government policies.

The Emergence of Political Parties

Establishment of Government Credit Rating

Hamilton’s fiscal policies quickly established a strong government credit rating.
The Treasury gained the ability to borrow funds from the Netherlands on favorable terms.

Political Liabilities of Hamilton’s Financial Policies

Hamilton’s financial successes included funding, assumption, the excise tax, the bank, and the suppression of the Whiskey Rebellion.
These measures slowly encroached on States’ Rights.
Many Americans, initially doubtful about the new Constitution, might not have approved it if they had foreseen the strong federal government.
Resentment grew against Hamilton’s revenue-raising and centralizing policies.
The personal feud between Hamilton and Jefferson developed into a bitter political rivalry.

Early Political Factions in America

National political parties did not exist when Washington became President.
Previous political groups included Whigs and Tories, Federalists and Anti-Federalists.
These groups were factions, not formal parties.
Factions emerged around specific issues and disbanded once their cause was resolved.

Emergence of Political Parties

The Founders did not envision permanent political parties.
Organized opposition to the government was seen as disloyal.
Opposition contradicted the spirit of national unity from the American Revolution.
The concept of formal parties was new in the 1790s.
Jefferson and Madison initially limited their opposition to Hamilton’s program within Congress.
They did not foresee creating a lasting and popular party.
As opposition to Hamilton grew, newspapers spread political messages widely.
Primitive forms of political parties began to emerge.

Development of the Two-Party System

The two-party system has existed in the United States since the 1790s.
Initially, there were doubts about the legitimacy of political parties.
Competition between parties has become essential for a healthy democracy.
The party out of power, known as the “loyal opposition,” plays a critical balancing role.
This ensures that politics aligns with the people’s wishes and prevents excessive drift.

Impact of the French Revolution

Formation of Political Camps

By the end of Washington’s first term in 1793, two political camps had formed.
These were the Jeffersonian Democratic-Republicans and the Hamiltonian Federalists.
Domestic policies by Hamilton spurred this division.
During Washington’s second term, foreign policy issues intensified the differences between these groups.

AHC Note — The Federalist Party was America’s first political party and was led by Alexander Hamilton. It was followed by the Democratic-Republican Party, which was led by Thomas Jefferson and James Madison. Although President Washington was not officially affiliated with either party, he tended to lean toward the Federalists.

Impact of the French Revolution

The French Revolution started shortly after Washington’s inauguration in 1789.
It lasted 26 years and engulfed Europe in war. The continent was eventually exhausted and peace was restored.
The Revolution affected American political and social life.
The Revolution’s influence extended far beyond France, impacting much of the civilized world.

American Reactions to the Early French Revolution

The early stages of the French Revolution were relatively peaceful.
Initially, it involved imposing constitutional limits on King Louis XVI.
Americans, valuing liberty and opposing despotism, supported the Revolution.
Many saw the French Revolution as an extension of the American Revolution.
Ultraconservative Federalists were skeptical or hostile, fearing change and “mobocracy.”
Jeffersonians were enthusiastic and supportive of the Revolution.

Escalation of the French Revolution

The French Revolution became more intense in 1792 when France declared war on Austria.
News reached America that French armies repelled invaders and France declared itself a republic.
Americans celebrated by singing French Revolutionary songs like “The Marseillaise.”
Streets were renamed with democratic themes — King Street in New York became Liberty Street, and Royal Exchange Alley in Boston became Equality Lane.

The Reign of Terror and American Reaction

The French Revolution turned violent, leading to the “Reign of Terror.”
The guillotine was used, and King Louis XVI was beheaded in 1793.
The church was attacked during this period of intense violence.
In America, Federalists became fearful and suspicious of supporters of the French Revolution.
Early Federalist approval of the Revolution shifted to strong condemnation, referring to the revolutionaries as “blood-drinking cannibals.”

AHC Note — French revolutionaries carried out an insurrection on August 10, 1792. This led to the establishment of the National Convention. Six weeks later, the Convention became the government of France by abolishing the monarchy and declaring a new republic. The National Convention also established a commission to investigate King Louis XVI.

Jeffersonian Perspective on the Reign of Terror

Jeffersonians were saddened by the violence and bloodshed that took place during the Reign of Terror.
They believed, following Jefferson, that the transition from despotism to liberty would not be easy.
Viewed the loss of a few thousand aristocratic lives as a small price for human freedom.

AHC Note — The National Convention was divided over the fate of King Louis XVI, however, both favored the new republican government. The Montagnards (also called the Jacobins), who were more radical, sought the execution of the former King. The moderate Girondins were unsure if the King’s death was necessary.

Broader Implications of the French Revolution

Initially, the French Revolution did not directly impact America.
The situation changed when Britain became involved in the conflict.
The war quickly spread to the New World, affecting the young American Republic.
This conflict mirrored previous European wars, starting in 1689, which often involved battles for control of the Atlantic Ocean.

AHC Note — After he was removed from power, King Louis XVI was known as Citizen Louis Capet. He was found guilty of committing crimes against France and was executed by guillotine on January 21, 1793. The former Queen, Marie Antoinette, was also tried, convicted, and executed by guillotine on October 16, 1793. These executions, along with public executions of “enemies of the revolution” were part of the Reign of Terror. European nations, feeling threatened by the new regime in France, organized an alliance called the First Coalition. Some of the nations involved were Russia, Spain, and Holland.

Washington’s Neutrality Proclamation

Franco-American Alliance of 1778

Despite the outbreak of the French Revolution, the Franco-American Alliance of 1778 was still in effect.
The Treaty of Alliance was intended to last “forever.”
It obligated the United States to assist France in defending its territory in the West Indies.
The British fleet was likely to target these strategic islands.

Democratic-Republican Support for the Franco-American Alliance

Many Democratic-Republicans supported honoring the alliance with France.
Enthusiastic about the French Revolution’s liberal ideals, they wanted to join the conflict against Britain.
They argued that America owed its freedom to France and should support its ally.

Washington’s Policy of Neutrality

President Washington, supported by Hamilton, sought to avoid war at all costs.
Washington recognized the nation’s military, economic, and political weaknesses in 1793.
He believed avoiding European conflicts would allow the nation to grow stronger.
Washington reasoned that, within a generation, America would be populous and powerful enough to defend itself.
He aimed to avoid catastrophe by delaying involvement in foreign wars.
Hamilton and Jefferson agreed with this strategy despite their differences on other issues.

Washington’s Neutrality Proclamation

The Proclamation of Neutrality was issued by Washington in 1793 after the war between Britain and France started.
He declared the U.S. government’s official neutrality in the conflict.
Washington warned American citizens to remain impartial toward both sides.
It was the first time the United States took a formal stance on European conflicts.
Became a cornerstone of America’s isolationist tradition.
The decision was controversial and enraged pro-French Democratic-Republicans due to its unilateral announcement without Congressional approval.
It was supported by pro-British Federalists.

AHC Note — The French Neutrality Crisis was a diplomatic incident between France and the United States that took place from 1793–1794. At the time, France was caught up in the French Revolution, which was popular in America. In 1793, France declared war on Britain and Spain and then sent Edmond Charles Genêt to the United States to negotiate with Congress and raise volunteers to fight against Britain and Spain.

The Citizen Genêt Affair

Citizen Edmond Genêt, a representative of the French Republic, arrived in Charleston, South Carolina on April 8, 1793.
He hired Privateers and leveraged the Franco-American alliance to his benefit.
Genêt was received enthusiastically by Jeffersonian Republicans.
He misjudged the Neutrality Proclamation, believing it did not reflect American public opinion.
Genêt engaged in unauthorized, unneutral activities, including recruiting armies to invade Spanish Florida, Louisiana, and British Canada.
Madison and Jefferson became disillusioned with his conduct.
After threatening to appeal over President Washington to the voters, Washington demanded Genêt’s withdrawal.
Genêt was replaced by a more restrained emissary.

AHC Note — President Washington issued the Proclamation of Neutrality on April 22, two weeks after Genêt arrived. In June, the Jacobins took control of the French Government. The United States officially asked for Genêt to be recalled to France on August 1, 1793. The Jacobins suspected Genêt of remaining loyal to the previous government and a warrant was issued for his arrest. Genêt responded by asking for asylum from the United States, which was granted. Genêt remained in the United States and lived the rest of his life on a farm he called “Prospect Hill” in East Greenbush, New York, along the Hudson River. He married Cornelia Tappen Clinton, the daughter of George Clinton, the Governor of New York. The entire incident with Genêt is known as the Citizen Genêt Affair.

Self-Interest and Washington’s Neutrality Proclamation

The Neutrality Proclamation illustrates that alliances are based on self-interest.
In 1778, both France and America benefited; in 1793, only France stood to gain.
Technically, the United States did not violate its obligation, as France never officially requested American assistance.
American neutrality actually favored France, providing necessary food supplies to the French West Indies.
Entering the war would have led to a British blockade of the American coast, cutting off these supplies.
America was more valuable to France as a neutral provider than as a blockaded ally.

AHC Note — The treaties with France were made with the government of King Louis XVI, not the government of the French Republic. It can be argued that when King Louis XVI was overthrown the treaties were voided and the United States had no obligation to the new French government.

Embroilments with Britain

British Provocations and Frontier Conflicts

Washington’s neutrality policy faced challenges from the British.
For 10 years, the British maintained forts on the frontier, defying the 1783 Treaty of Paris.
The British sought to maintain the lucrative Fur Trade and create an Indian buffer state.
British agents sold firearms and alcohol to the Indians of the Miami Confederacy.
The Miami Confederacy, an alliance of eight Indian nations, resisted American expansion.
Little Turtle, the Miami war chief, declared the Ohio River as the boundary between U.S. and Indian lands.
In 1790 and 1791, Little Turtle’s forces defeated U.S. armies led by General Josiah Harmar and General Arthur St. Clair, resulting in significant American casualties.

Battle of Fallen Timbers and the Treaty of Greenville

In 1794, General Anthony Wayne defeated the Miamis at the Battle of Fallen Timbers.
The British refused to help Indians fleeing from the battle.
The Indians, feeling abandoned, sought peace with Wayne.
The Treaty of Greenville was signed in August 1795.
The confederacy ceded vast tracts of the Old Northwest, including most of present-day Indiana and Ohio.
In return, the Indians received a lump-sum payment of $20,000 and an annual annuity of $9,000.
They retained the right to hunt on the ceded lands.
The treaty included what the Indians hoped was recognition of their sovereign status.
Although unequal, the treaty was seen by the Indians as a way to limit U.S. control over their fate.

AHC Note — Anthony Wayne was a hero of the American Revolutionary War. The army he led was the Legion of the United States, which was the first standing army authorized by Congress. After the Jay Treaty was signed with Britain, the Legion was transitioned in 1796 into the Army of the United States.

British Aggression on the Sea Frontier

As part of its conflict with France, Great Britain intended to starve the French West Indies.
Britain expected the United States to provide support to France under the Franco-American Alliance.
The British Royal Navy ignored American neutrality.
Seized about 300 American merchant ships in the West Indies.
Impressed American seamen into service on British ships.
Imprisoned hundreds of American sailors in harsh conditions.

American Response to British Aggression

British actions angered Americans.
Democratic-Republicans called for fighting George III again to defend American liberties.
Proposed a nationwide embargo to cut off supplies to Britain.
Federalists resisted demands for drastic measures.
Hamilton opposed the war with Britain.
His economic plans relied on trade with Britain and war would hurt his financial system.

Jay’s Treaty and Washington’s Farewell

John Jay’s Mission to London

In 1794, President Washington sent Chief Justice John Jay to London to prevent war and negotiate a treaty with British officials.
Democratic-Republicans were unhappy with the choice, fearing Jay would favor British interests.
Jay’s reputation as a Federalist concerned them.
Democratic-Republicans were further alarmed when Jay kissed the Queen’s hand during the presentation ceremony.

Jay’s Treaty Negotiations

Jay entered negotiations in a weak position, which was further undermined by Hamilton.
Hamilton, fearing war, secretly gave the British details of America’s bargaining strategy.
Jay secured a few concessions from the British.
Britain promised to evacuate posts on U.S. soil, a promise made previously in 1783.
Britain agreed to pay damages for recent seizures of American ships.
However, Britain did not promise to stop future maritime seizures or impressments and made no pledge to stop supplying arms to Indians.
Jay agreed that the U.S. would pay debts still owed to British merchants from before the American Revolutionary War.

Reaction to Jay’s Treaty

Jay’s Treaty energized the Democratic-Republican Party led by Thomas Jefferson.
Democratic-Republicans were enraged by Jay’s concessions, viewing the treaty as a surrender to Britain.
The treaty was seen as a betrayal of the Southern planters, who would bear the cost of pre-Revolutionary debts.
Wealthy Federalist shippers benefited by receiving damages for recent British seizures.
Anti-British mobs expressed their anger by hanging, burning, and guillotining effigies of Jay.
Even George Washington’s popularity was affected by the controversy over the treaty.

Pinckney’s Treaty of San Lorenzo

Jay’s Treaty led Spain to fear an Anglo-American alliance.
In response, Spain quickly sought to make a deal with the United States.
Pinckney’s Treaty of 1795 granted Americans free navigation of the Mississippi River.
The treaty also gave the U.S. the large disputed territory north of Florida.

AHC Note — Pinckney’s Treaty — also known as the Treaty of San Lorenzo — resolved issues between the United States and Spain. The provisions of the treaty were largely favorable to the United States and established the border between the United States and Spanish West Florida as the 31st parallel. The treaty contributed to the Westward Expansion of the United States. Thomas Pinckney negotiated on behalf of the United States.

Washington’s Retirement and Farewell Address

Exhausted after his second term in office, President Washington decided to retire.
His retirement established the tradition of a two-term limit for American Presidents.
In his Farewell Address (1796), Washington advised against “permanent alliances.”
He specifically referenced the Franco-American Treaty of 1778.
Washington did not oppose all alliances, but supported “temporary alliances” for “extraordinary emergencies.”
His advice was suitable for the weak and divided nation of 1796.
Acknowledged that such counsel might not apply to a stronger, more mature nation in the future.

AHC Note — Washington’s Farewell Address was printed in the Philadelphia Daily American Advertiser on September 19, 1796.

Washington’s Presidential Legacy

Washington’s Presidency made significant contributions despite Hamilton’s prominence.
Washington established a solid central government with stable finances.
During his time in office, Westward Expansion was encouraged.
He supported a thriving merchant marine.
Washington maintained the nation’s neutrality and avoided foreign wars.
He transitioned the Presidency from its experimental stage to a stable institution.
Upon leaving office in 1797, he faced partisan criticism instead of the acclaim he received at his inauguration.

John Adams Becomes President

Federalist and Democratic-Republican Candidates

Alexander Hamilton was the most prominent Federalist after Washington’s retirement.
Hamilton’s financial policies, which benefited speculators, made him too unpopular to be elected president.
The Federalists chose John Adams, Washington’s Vice President, as their candidate.
Adams was experienced but lacked charm.
The Democratic-Republicans supported Thomas Jefferson for President.

The Presidential Campaign of 1796

Political passions were intense during the Presidential Election of 1796.
Washington’s previous presence had imposed some restraint, but now the political climate was unrestrained.
Federalists, like Fisher Ames, used harsh language against Jeffersonians, calling them “fire-eating salamanders” and “poison-sucking toads.”
Federalists and Democratic-Republicans even frequented separate taverns.
Campaign issues focused heavily on personalities.
Democratic-Republicans criticized the Federalists for using the military to suppress the Whiskey Rebellion and the unpopular Jay Treaty.

Election of John Adams

John Adams won the election by a narrow margin, securing 71 votes to Jefferson’s 68 in the Electoral College.
As the runner-up, Jefferson became Vice President.
Adams was a prominent statesman but was perceived as being difficult.
Described as sharp-featured, bald, relatively short (5 feet 7 inches), and thickset (“His Rotundity”).
Adams was known for his stern principles and stubborn devotion to duty.
He was seen as learned and upright but also tactless and prickly.
Adams had little appeal to the masses and made no effort to connect with them.
Viewed by many citizens with “respectful irritation.”

Handicaps of John Adams’ Presidency

John Adams faced significant challenges as he succeeded George Washington.
Adams was disliked by Alexander Hamilton, who led the war faction of the Federalist Party, known as the “High Federalists.”
Hamilton, having resigned from the Treasury in 1795, secretly conspired with certain cabinet members against Adams.
Adams saw Hamilton as a ruthless and unprincipled intriguer.
Adams inherited a volatile conflict with France, which was on the brink of war.

Unofficial Fighting with France

French Response to Jay’s Treaty

The French were enraged by Jay’s Treaty, viewing it as a step toward an alliance with Britain.
They saw the treaty as a blatant violation of the Franco-American Treaty of 1778.
In retaliation, French warships started seizing American merchant vessels, capturing around 300 by mid-1797.
The French government refused to receive America’s newly appointed envoy, Charles C. Pinckney, and threatened to arrest him.

Adams’ Diplomatic Efforts with France

President Adams remained calm despite the nation’s agitation.
Following Washington’s policy of avoiding war, Adams sought to negotiate with France.
He appointed a three-man diplomatic commission, including John Marshall, the future chief justice.

AHC Note — The three commissioners were John Marshall, Charles C. Pinckney, and Elbridge Gerry. Marshall and Pinckney were Federalists, and Gerry was a Democratic-Republican.

XYZ Affair

The commissioners arrived in Paris in 1797 to negotiate with French Foreign Minister Talleyrand.
They were approached by three intermediaries, later known as X, Y, and Z.
The intermediaries demanded an unneutral loan of 32 million florins and a bribe of $250,000 to arrange a meeting with Talleyrand.

Breakdown of Negotiations

The Americans found the French demands intolerable.
Bribes were common in European diplomacy, but $250,000 for mere negotiations was unacceptable.
Negotiations collapsed.
Upon returning to New York in 1798, John Marshall was celebrated as a hero for his steadfast refusal.

AHC Note — Marshall and Pinckney left France, but Gerry remained. This tarnished his reputation and made it look like he was trying to undermine President Adams.

War Hysteria and Public Sentiment

War hysteria surged in the United States, affecting even President Adams.
The popular slogan became “Millions for defense, but not one cent for tribute.”
Federalists were pleased with this shift in public opinion.
Most Democratic-Republicans, except the most fervent, felt embarrassed by the actions of their French allies.

War Preparations in the United States

War preparations accelerated despite opposition from Democratic-Republicans in Congress.
The United States Navy was established.
The three-ship navy was expanded.
The United States Marine Corps was created.
A new standing army of 10,000 men was authorized, though it was never fully raised.

AHC Note — The XYZ Affair had major implications for the United States, starting with the Quasi-War, an undeclared naval war with France. It also increased party politics and criticism of the Presidency. The Federalists responded by enacting the Alien and Sedition Acts. Democratic-Republicans responded with the Virginia and Kentucky Resolutions, which established the concept of Nullification. In the 1830s, South Carolina threatened to secede from the Union during the Nullification Crisis.

The Quasi-War with France

Fighting was mainly at sea, particularly in the West Indies.
Between 1798 and 1800, American Privateers and the United States Navy captured more than 80 armed French vessels.
Several hundred American merchant ships were lost to the French.
Tensions were high, with the possibility of a full-scale war looming.

Adams Puts Patriotism Above Party

France Seeks to Avoid War

France, preoccupied with European conflicts, wanted to avoid war with the United States.
Talleyrand realized that fighting the U.S. would add another enemy to France’s challenges.
The British, supplying Americans with war materials, grew closer to the U.S. than they would be for many years.
Talleyrand signaled through indirect channels that a new American minister would be received with proper respect.

Adams’ Response to French Overture

The crisis with France brought Adams unprecedented personal acclaim.
Adams recognized that a full-scale war, potentially leading to the conquest of Florida and Louisiana, could benefit the Federalist Party and his re-election prospects.
Despite the popularity boost, Adams remained focused on the nation’s long-term interests.
Like other Founding Fathers, he understood that war should be avoided while the country was still relatively weak.

Favorable Conditions for Peace in 1800

America’s three envoys found a more favorable political climate in Paris in early 1800.
Napoleon Bonaparte seized power in France
Napoleon wanted to resolve the conflict with America to focus on his European ambitions and possibly a New World empire in Louisiana.
The dynamics of the Old World again benefited America’s position.

The Convention of 1800 — Treaty of Mortefontaine

The Treaty of Mortefontaine was signed in Paris
France agreed to annul the Franco-American alliance, ending the 22-year-old alliance
The United States agreed to pay damage claims of American shippers.
Ended the nation’s only peacetime military alliance for 150 years
The alliance’s troubled history influenced American reluctance toward foreign entanglements

John Adams and the Path to Peace

John Adams pursued peace with France despite internal political rivalries
He avoided the hazards of war with France
His actions facilitated the peaceful purchase of Louisiana in 1803
Had America been at war with France in 1800, Napoleon likely would not have sold Louisiana

John Adams and His Legacy

President Adams was aware of his contribution to national peace
Proposed the epitaph: “Here lies John Adams, who took upon himself the responsibility of peace with France in the year 1800.”
The suggested epitaph was not used.

The Federalist Witch Hunt

Federalist Legislation in 1798

Federalists used anti-French sentiment to push controversial legislation through Congress.
Laws aimed to suppress or minimize opposition and criticism of Federalist policies.

Naturalization Act of 1798

The Naturalization Act (1798) was aimed at pro-Jeffersonian European immigrants.
Federalists sought to discourage less wealthy immigrants.
Raised the residence requirement for citizenship from 5 to 14 years.
Critics argued that it contradicted the traditional American policy of open-door hospitality and speedy assimilation.

Alien Laws of 1798

The Alien Friends Act (1798) and the Alien Enemies Act (1798) empowered the President to deport dangerous foreigners in peace and to deport or imprison them during hostilities
Justified as a war measure with potential conflict with France
Critics argued they contradicted American tradition and the spirit of the Constitution.
The stringent laws were never enforced.

Sedition Act of 1798

The Sedition Act targeted Freedom of Speech and Freedom of the Press, which are protected by the First Amendment.
Made it illegal to impede government policies or defame officials, including the President
Imposed heavy fines and imprisonment for violations.
Justified by the Federalists due to the unrestrained verbal violence and criticisms of Adams’s anti-French policy.

Trials and Convictions Under the Sedition Act

Ten newspaper editors were indicted and convicted under the Sedition Act.
Trials were often influenced by biased Federalist judges and packed juries.
Notable convicted individuals included:
- Congressman Matthew Lyon was sentenced to four months in jail for criticizing Adams.
- Another individual was fined $100 for a derogatory comment about Adams.
- Many victims were seen as harmless partisans rather than serious threats.

Constitutional Conflict and Impact of the Sedition Act

The Sedition Act appeared to conflict with the Constitution, particularly with free speech protections.
The Federalist-dominated Supreme Court did not rule the law unconstitutional.
The law was designed to expire in 1801 to avoid repercussions if Federalists lost the next election.
The Federalists’ attempt to suppress free speech and opposition likely increased support for Democratic-Republicans.

Popular Support for the Alien and Sedition Acts

The Alien and Sedition Acts faced criticism mainly from Democratic-Republicans.
Despite this, the acts received widespread popular support.
Anti-French hysteria bolstered conservative positions.
The Federalists achieved their largest electoral victory during the 1798–1799 congressional elections.

The Virginia (Madison) and Kentucky (Jefferson) Resolutions

Democratic-Republican Opposition to the Alien and Sedition Acts

Democratic-Republicans opposed the Alien and Sedition Acts.
Thomas Jefferson feared the suppression of free speech and press.
Democratic-Republicans had concerns about the erosion of other constitutional rights.
There was a perceived risk of the Federalists eliminating the Democratic-Republican Party and a one-party dictatorship.

Jefferson and Madison’s Resolutions

Thomas Jefferson wrote resolutions fearing prosecution for sedition.
His resolutions were approved by the Kentucky legislature in 1798 and 1799.
James Madison drafted similar resolutions for Virginia.
The Virginia legislature adopted Madison’s resolutions in 1798.

Compact Theory and Nullification

Jefferson and Madison advocated the “Compact Theory.”
The theory viewed the states as sovereign entities that created the Federal Government.
The States were seen as final judges of federal authority.
Kentucky Resolutions argued that the Federal Government exceeded its powers.
Jefferson’s resolutions suggested “nullification” as the rightful remedy for the Alien and Sedition Acts.

Reactions to the Resolutions

No other state legislatures supported the Kentucky and Virginia Resolutions.
Some States refused to endorse the Resolutions.
Federalist states condemned the Resolutions.
Federalists argued the people, not the States, created the compact.
Federalists believed only the Supreme Court could nullify unconstitutional laws.
This practice was later adopted by the Supreme Court in 1803.

Implications and Intent of the Resolutions

The Virginia and Kentucky Resolutions were extreme States’ Rights arguments.
Later, they were used by Southerners to justify Nullification and Secession.
Jefferson and Madison did not intend to break up the Union.
Their goal was to preserve the Union and counter Federalist abuses.
The resolutions were primarily campaign documents aimed at opposing the Federalist Party.
Jefferson’s focus was on nullifying Federalist policies rather than the Union itself

Federalists Versus Democratic-Republicans

Federalist Ideology and Stance

Federalists advocated rule by the “best people.”
Federalist leaders like John Jay believed that those who owned the country should govern it.
Federalists were largely pre-Constitution period advocates, organized by Hamilton by 1793.
Distrusted full democracy and feared the influence of the common people.
The Federalists have been accused of exhibiting intellectual arrogance.

Hamiltonian Federalist Beliefs and Support

Federalists advocated for a strong central government to manage democratic excesses.
They supported government intervention to protect the wealthy and subordinate states’ sovereignty.
They believed government should support, not interfere with, private enterprise.
Federalists were supported by merchants, manufacturers, and shippers along the Atlantic seaboard.
There were fewer Federalists in the American West.

Federalist Foreign Policy and Sentiments

The Federalists were pro-British in foreign affairs.
Some members retained mildly Loyalist sentiments from pre-Revolutionary times.
They recognized foreign trade, particularly with Britain, as crucial to Hamilton’s fiscal policies

Thomas Jefferson — Leadership and Appeal

Thomas Jefferson led the Anti-Federalists, later known as Democratic-Republicans.
Jefferson is characterized as lanky, relaxed, and weak-voiced; lacking personal aggressiveness.
He was a master political organizer through leadership rather than force.
Jefferson appealed to the middle class and underprivileged, including farmers, laborers, artisans, and small shopkeepers.

Jefferson’s Inconsistencies and Sympathies

Jefferson was a Virginia aristocrat and slaveowner, living in a mansion at Monticello.
Despite his aristocratic background, he had a deep sympathy for the common people, including the downtrodden and oppressed.
He expressed strong opposition to tyranny, as stated in his 1800 declaration of “eternal hostility against every form of tyranny over the mind of man.”

Jefferson’s Republican Beliefs

Jefferson advocated for a weak central government that did little.
He believed power should be retained by the states for closer public oversight.
Jefferson feared the potential development of a dictatorship with a strong central authority.
He supported a strict interpretation of the Constitution to limit central authority.
Jefferson viewed the national debt as a curse and aimed to pay it off.

Jefferson’s Republican Economic Views

Jefferson opposed special privileges for manufacturers or specific classes.
He supported agriculture as the preferred economic activity.
Jefferson believed farming was ennobling, keeping people away from corrupt cities.
He viewed agriculture as closer to nature and God.
His supporters primarily came from the agricultural South and Southwest.

Jefferson’s Views on Governance and Suffrage

Jefferson advocated for government by the people, but not by all individuals.
He supported suffrage for literate, informed citizens only.
Jefferson believed universal education should precede universal suffrage.
He argued that the ignorant were incapable of self-government.
Jefferson had faith in the reasonableness and wisdom of the educated masses.

Jefferson’s Views on Landownership and Slavery

Jefferson believed landlessness threatened popular democracy alongside illiteracy.
He feared propertyless individuals could become political pawns.
Jefferson believed that a system of black slave labor helped maintain white yeoman farmers as independent landowners.
He argued that without slavery, poor whites would have to provide cheap labor, preventing them from owning property.
Jefferson reconciled slaveholding with democratic ideals through the economic necessity of slavery.

Jefferson’s Views on Free Speech and Press

Jefferson was confident that white, free men could become responsible and knowledgeable citizens.
He championed Freedom of Speech as essential for exposing tyranny.
Jefferson preferred “newspapers without a government” over “a government without newspapers.”
He endured significant criticism from the Federalist press.
It can be argued that only Abraham Lincoln suffered more from the press than Jefferson.

Jefferson’s Foreign Policy

Jefferson was pro-France, contrasting with the Federalists’ pro-British position.
He supported the liberal ideals of the French Revolution
Jefferson believed it was advantageous for America to align with French ideals rather than British and former Loyalists.

End of the First Decade of the Republic

The Founders’ hopes seemed imperiled by domestic and foreign conflicts.
Unity from the Revolutionary era was undermined.
There were concerns about the viability of American Democracy.
The Presidential Election of 1800 approached amidst fears of national instability.
The historical precedent of nascent nations failing before achieving stability made America’s future uncertain.

Additional Resources for Launching the New Ship of State

The notes on this page are based on the 16th edition of The American Pageant. We have expanded on the source material with additional details, corrections, and links to Encyclopedia Entries that explain topics in more detail. For more information, including terms and definitions, see the following:

Written by Randal Rust