Revision notes on the Federalist Era of US Politics

1. Funding the National Debt

1. Funding at par—pay all bond debts 100% of it’s value

1. At the time millions of dollars were in debt (around 64 million to France) and the question was not about foreign debt but DOMESTIC debt, especially bonds from the war which promise cash in the future but soilders needed money right then so soilders would sell bonds  to speculators and would receive a bond 25c. to the dollar
2. Should speculators get what they paid for the bond or what the bond was worth? The decion was they should pay at par and so the bond was given at its value partly to gaurentee trust in the country

2. Assumption of State’s debts

1. Federal government should pay all of State’s bond debts; ensures loyalty of the wealthier classes
2. If the government paid off their debts then the country would trust them

3. Bank of the US (BUS)

1. Established principle of implied powers

1. Article 1 of constitution says congress has power to anything “necessary and proper” to carry out delegated authorities and bank was therefore constitution “implies” that Congress has power to create banking system and Hamilton believed in loose interpretation but Jefferson strongly disagreed.

2. Creating bank englarged power of central government

4. Excise tax on whiskey (sin taxes)

1. Tax on Whiskey- this would fall on farmers in the interior who turned corn to whiskey instead of corn. Hamilton wanted to impress the government’s power on farmers but farmers rebelled back in the whiskey rebellion

1. Revolt caused by farmers/whiskey producers angry about the tax on whiskey
2. Revolt put down by Washington

2. Shows strength of the new constitution

2.  

  Debt Owed Foreigners

        11.710.000

Federal Domestic Debt                

42.414.00

State Debt                                                        

Miscellaneos Revenue        Excise Revenue (on Whiskey ex.)        Customs Dutys

The Bank of the United States

        Jefferson’s View

• Tax system hurt the farming classes
• Money lent to industrialists came from farming classes
• Unconstitutional
• Dictatorial

Hamilton’s view

• Would provide a safe place to keep tax revenue for the US government
• Would regulate banks
• Would provide low- interest loan to industrial classes

The French Revolting!

• French revolution turned violent and radical and federalists drew back in horror from French regim
• Hamilton opposes supporting the revolutionaries “The Amerian Revoliton, it ought to be repeated, was not aomplished as the Frenh has been, by massares , assisinators…”
• Jefferson supports French still because he believes in the cause

Citizen Edmund Genet: wanted Americans to try and attack Spanish and British on behalf of the French but Washington was scared that this would spark a huge American – British war and so Hamilton encouraged Washington to declare American neutrality. Congress has right to declare war, but not necessarily neutrality

The Proclamation of Neutrality (1793)

• Authored by Hamilton
• Issued by Washington
• Led to the precedent of non-involvement and neutrality in foreign affairs

News arrived that a new and more radical French government demand that Gene to come back to France to become beheaded, however American politics became more fierce because of him. Democratic Republican societies were created and reflected that democracy and republicanism were the same. They thought only democracy.

British claimed naval blockade on French and supported an upbringing on Haiti which enraged the Americans. American merchant supplied France and so Britain retaliated by seizure of American ships on the precident that they were looking for escaped British navy men.

Washington’s Dilemma: War of Diplomacy-

        John Jay sent to negotiate with the British

        Jay’s Treaty Terms:

• US gains right of neutrals to ship goods to nations at war without harassment
• US gives Britian “Most Favored Nation” status  in trade
• US gets trade rights in India and British West Indies
• US promises to pay pre revolutionary war debts to Britain
• GB comensates for confiscated ships
• GB abandons 6 forts in Great Lakes region

Treaty caused uproar and is angry that it favors the North and takes away power from the south. When Jay’s treaty was signed it cause a problem and happened when the French started to win the war towards Europe. Spain got nervous and wanted to shift to French but they saw that Jay’s treaty could hurt them and so formed the Treaty of San Lorenzo (Pinckney’s Treaty)

-Spain accepts 31st parallel as northern boundary of Spanish Florida

        -American Farmers granted right of free transit through the port of New Orleans

The Retirment of George Washington

        Precedents set by GW:

• Two term tradition
• Use the Cabinet
• …

The Farwell Address

• December, 1796
• authored by Hamilton

• Emphasized neutrality in foreign affairs

1796 Contest for the Election of the Prez

• Election of 1796

• The Fedralists pick JOHN ADAMS and THOMAS PINCKNEY
• The Dem. Republicans THOMAS JEFFERSON and AARON BURR
• Campaining was not done in person but it was the friends of those running for prez that campaigned them
• Election was essentially decided between New York and Penslyvania
• Fedralists went for Jefferson
• Adams won national election 51% to 49% and his opponent Jefferson wins VP Hahahhaha

• Convention of 1800

• Abrogate earlier treaties between two powers
• Accept the principle that free ships make free goods
• Us should not seek indemnities for vessels illegally seized by Frane during the Quazi War