Chapter 6: Establishing National Institutions AMERICAN

--Launching the New Government: Washington = easily and unanimously elected President. Adams = Veep: "complicated man, vain enough to invite laughter, but so quick, so keen, so talented" that no one dared. Adams set trend for Veep by keeping himself i n background.

--A Strong Executive: Washington's strength = in his simplicity of mind. Completel devoted to making the new government a success. First job = to establish respect for his own office: Experiences with England equated executive power with hereditary, i rresponsible monarchy in minds of most Americans. Also, extent of executive power = not clearly defined in Constitution, and it = up to Washington to set the precedents.

--Just by taking office, Washington helped prestige greatly. Also surrounded himself almost regally.

--Washington's head advisor = Madison

--Washington quickly seized departments of Treasury, State, and War for executive, thus establishing executive independence. But still, treated his secretaries as simple assistants to himself: he still made all the decisions. Washington did not invol ve himself in legislation, though. Very reluctant to use veto. Thought his business = to administer laws, not make them. Took no active part in formation of public policy by legislation. Instead, Madison, Hamilton (Treasury), and Jefferson (State) guided Congress.

--The Bill of Rights: Madison first opposed it: thought explicit enumeration of people's rights = ineffective in republican government, where people = lawmakers, and and could limit people's freedom instead of their authority. But when people demnled it, he wrote it to make sure these did not happen.

--Bill of Rights = first 10 Amendments to Constitution. 9th said that enumeration in Constitution of certain rights shall not be construed to deny or disparage others retained by the people. 10th gave state governments or the people all powers not ex plicitly given to United States in Constitution. In writing Bill, Madison saw its effectiveness, and became a strong supporter.

--Meanwhile, Judiciary Bill of 1789 = passed, establishing the Supreme Court and 13 district courts. Supreme Court = given power to review decisions of state courts and nullify state laws violating US Constitution, laws, or treaties.

The Shaping of Domestic Policy

--National Credit and National Debt: Hamilton demanded that America repay entire national and state debt, foreign and domestic, at face value to establish a firm credit. Thus, many speculators who bought bonds cheap during war got rich. Congressmen al so combed country for bonds.

--The Hamiltonian Program: Hamilton believed that future of USA depended on large-scale expansion of industry and commerce. To get the growth Hamilton wanted, the primary need = $, esp. money in the hands of people who = willing to risk investing. Ham ilton created such a class by paying national debt at face value to risk-taking speculators, now wealthy. These speculators now had interest in protecting national credit, if only to protect their own investments. Also, assumption of state debt took this loyalty away from the states. Many of these speculators = now Congressmen, who legislated in their own favor.

--Next job = national bank. Government would assume most of risk, making bank a safe place for investment. Government and individuals could also borrow. Through government-sponsored expansion of credit, bond between private capital and national gover nment = tightened.

--Madison attacked proposal. Very worried over shape of Hamilton's new plan: possibly make national government so powerful that could endanger Bill of Rights. Argued that since Constitution did not specificall allow Congress to issue charters of inco rporation, that Congress could not do so. Hamilton argued the necessary and proper clause. First argument over strict/loose interpretations of Constitution. Still, bill = passed and bank = created.

--Next = to direct expansion of manufacturing. Planned to make investment in industry attractive through protective tariffs and bounties. Goal = to direct USA to a balanced economy including manufacture as well as agriculture and commerce. But farmer s, fearing retaliatory tariffs from other nations, would not allow it. Also, most of government's income = from import duties.

--Jefferson = also against Hamilton's industry. Instead, he = for farmers, on whom he thought rested America's morality.

--Also, Hamilton's program = splitting North, where most of capital would accumilate, and agricultural South. Still, this disagreement did not seem threatening because both N. and S. = willing to make new government work, compromise, and because slav ery = yet unchallenged. In 1793, both N. and S. passed Fugitive Slave Law.

-But each side eventually turned to defeating the other. Dissension spread.

Foreign Affairs Under Washington

--Jeffersonian Neutrality: In 1790, great winds of war from Europe. European nations = increasingly friendly to USA. Jefferson, once diplomat there, = pro-French, even after their revolution. He supported treaty, saying that it was made with French pe ople, and was not nullified with Louis' fall. Hamilton, though, = pro-English, since they = America's major trading partner, and had much stronger navy. Commerce had to = protected. But both advised neutrality in coming conflict. Washington all but called neutrality.

--French sent Citizen Genet, who soon offended Washington's government. Lost friends for France.

--British lost friends for Britain by suddenly taking American ships to prevent trade with France, even though American ships = neutral. Washington = on brink of war. Great war hysteria in America. Washington immediately sent delegation to London to h ammer out a deal. John Jay got a very poor treaty, Grenville's TReaty, 1795, but it was the best America could get for the time, nd not to ratify ==> war. But treaty intimated joint collaboration of British and Americans against Spanish Louisiana, and Spa nish greatly feared the small addition of America in the precarious European balance. Thus, Spanish conceded free navigation of Mississippi, acknowledgement of American southern boundary at 31st parallel, and western boundary at Mississippi in new Pinckne y's Treaty, 1796. Danger of Kentucky and Tennessee seceding = gone.

Federalists Versus Republicans

--The Republican Challenge: Hamilton = too strong, successful. Madison and Jefferson united to form a political party.

--Dangers of Hamilton's program emerged only after well under way. Madison and Jefferson then consolidated to oppose it. At first, not very successful, because of Hamilton's influence with President. Also, Hamiltonian program gave corrupt Congressmen opporunities to get lots of $. But republican defeats only strengthened loyalty of its followers. Republicans thought their strength = in people at large. People, with French Revolution and discontent for government's support of England, formed popular p olitical societies called "Democratic Clubs."

--The Federalist Response: Hamiltonian faction eventually acquired name Federlists. They discredited Democratic Clubs in Washington's and thus people's eye during whiskey rebellions by suggesting that clubs had incited them. When Washington condemned them, Clubs disbanded because of Washington's popularity. Republican efforts to stop Jay's Treaty = shut up when Hamilton decried them as insult to President. Congress soon flooded with petitions supporting President.

--Election of 1796: Washington's late announcement of reitrement, and Republican's consequent late announcement of their presidential candidate. Problems of the 2-vote system. Federalist candidates: Adams, Pinckney. Republican candidates: Jefferson, B urr. Pinckney fails. Adams and Jefferson President and Veep, resp.

The Presidency of John Adams

--Thought that executive must stand above the other branches of government and mediate differences between them.

--The President and the Politicians: Condemned political parties. Did his best to minimize party differences, with strong appeal to Republicans. Republicns = happy. But 2 parties = suspicious of each other, would not work together. Also, a sorry cabin et inherited from Washington. This administration would not stay above party politics. Also, Adams degraded strength of his position by spending most of time at home in Massachussets, leaving country to his Cabinet.

--The End of the French Alliance: French = angered by America's seeming partiality to England. Jay's Treaty outraged France. France announced it would treat Americans serving on British ships as pirates, and would no longer communicate with American m inister in France. Adams immediately sent a delegation to negotiate. But Talleyrand refused to talk unless bribed, and delegation = disgusted. Adams reported the insult to Congress, which became more popularly known as the XYZ affair. Nation outraged. Tre aties of 1778 repudiated, other actions just short of war. Adams started to construct a navy, and High Federalists, or more extreme brnch of the party, built up army. High Federalists pressed hard for war.

--But attitude in France = changed with violent reaction to XYZ. American firmness had worked a change in French policy. To declare war now would be to lose all advantages of neutrality, a sacrifice of national interest to party politics. Peace, thou gh, would leave USA a free hand and reduce party tension, but displease High Federalists. Thus, Adams went for peace, negotited a new treaty with the French.

--The Alien and Sedition Laws

--Although he rose in XYZ above party politics, Adams = still stauch Federlist: he depicted himself and supporters as impartial patriots, and the Republican opposition as criminal conspiracy. In public, he obliquely, but harshly condemned the party. Soon, other Federlists persuaded Congress to pass Alien and Sedition acts, designed to harass or destroy Republicns.

--Alien Act, 1798: 3 parts:

1) restraint of enemy aliens in time of war. nonpartisan

2) Naturalization Act: harder requirements for alien nationalization. Aliens = generally thought to = Republican.

3) Alien Friends Act: allowed President to deport any hostile aliens.

--Sedition Act, 1798: punished any criticism or acts against government of the USA or President with intent to defame or bring into contempt or disrepute. Blatant maneuver to shut up Republican Party, since Act was to expire at the end of Adams' pres idency. In this act, Federalists = willing to abandon ideals of Enlightenment, Revolution, and Constitution.

--Republicans tried to get Acts nullified as unconstitutional within the states. But few other states would follow suit, and acts had to be allowed to die of their own accord.

--Election of 1800

--Republican party built a national organization, campaign.

--As Republicans tried to protest, Federalists cracked down with rhetoric and Acts.

--Republicans ultimately won, but Burr and Jefferson = tied. Jefferson wins in House.

--Federalists still held a legacy in the Judiciary, though. In judiciary act, Adams made more courts and filled them with Federalists. Appointed to Chief Justice John Marshall.