Alexander Hamilton established economic policies including a national bank and tariffs to encourage manufacturing, which led to the emergence of sectional differences between the North and South. This sparked the formation of the first political parties - the Federalists supported Hamilton's vision while the Democratic-Republicans opposed a strong federal government and championed states' rights. Tensions increased as America was drawn into international conflicts during the French Revolutionary Wars, leading to crises both foreign and domestic during Washington and Adams' administrations. The election of 1800 marked the first peaceful transfer of power between opposing political parties as Jefferson defeated Adams in a close election.

1. Chapters 7-8

2. ALEXANDER HAMILTON’S
VISION FOR THE NATION
Raising revenue
◦ Exchange war bonds for interest bearing bonds
◦ Bonds accepted at face value
Rewarded speculators
Economic policy: Tariffs
◦ Encouraging manufactures
◦ The emergence of sectional differences
Establishing the public credit
◦ A national bank
10 million in capital
4/5ths supplied by private investors
1/5th supplied by government
5 directors named by private investors
5 directors named by government
National currency back by government bonds
Source of capital loans
Safe Place to keep government funds

3. THE REPUBLICAN
ALTERNATIVE
Birth of the first political parties
◦ Federalists
◦ Republicans aka Democratic Republicans
Opposed to monarchy
Strict construction of Constitution
If it’s not spelled-out in the Constitution, the Federal government can’t do it.
No National Bank
Jefferson’s agrarian view
◦ Nation of small farmers
◦ Wage laborers were dependent on others for their livelihood.
Subject to political manipulation
Economic exploitation

4. CRISES FOREIGN AND
DOMESTIC
• Citizen Genet
• French Revolution 1789
• King Louis XVI executed in 1793
• Britain, Spain, Austria, Prussia allied against France
• US treaty with France following Revolutionary War (perpetual allies)
• Citizen Genet hired Spanish privateers to harass British shipping off
Florida coast
• Washington revoked his Diplomatic privilege and was sending him back
to France when Jacobins seized power from the National Assembly
• Genet requested and was granted asylum

5. CRISES FOREIGN AND
DOMESTIC
John Jay: US Supreme Court Chief Justice
Crisis with Britain during French Revolution
◦ 1793 Britain began confiscating any ship carrying French goods or sailing for French Port in the Caribbean
Impressment of American seamen
◦ 1794 British arming Indians on frontier along Ohio River valley
◦ British seized forts along Great Lakes
◦ Democratic Republicans support for embargo on British goods
Jay’s Treaty (1794)
◦ Accepted British definition of neutral rights
Tar, pitch and products for warships could not be shipped to enemy ports by neutral ships
Trade prohibited in peacetime could not be opened in wartime
Britain: most favored nation trading status
French privateers cannot be outfitted in American Ports
Forgive reparations for African slaves who escaped during Revolutionary War
◦ British concessions
Evacuation of British forts in Great Lakes by 1796
Reparations for seized American ships and cargo
Trade with British West Indies

6. JAY TREATY SLOGAN
BY DEMOCRATIC
REPUBLICANS
Damn John Jay!
Damn everyone that won't damn John Jay!
Damn every one that won't put lights in his
window and sit up all night damning John Jay!

7. WHISKEY REBELLION
Federal Tax on Liquor (1791)
Western Territories: Cheaper to ship liquor than grain or
corn
◦ Bushel of corn worth $.25= 2.5 gallons of liquor worth $2.50
◦ Farmers saw tax as a scheme by Hamilton to enrich urban
speculators by “picking the pockets of farmers.”
1794 in PA “Whiskey Boys”
◦ burned stills of farmers who paid the tax
◦ Threatened federal revenue officers
◦ Robbed the mails
◦ Interrupted court proceedings
◦ Threatened to assault Pittsburgh
◦ “The Copper Kettle”: A song about the Whiskey Rebellion

8. WASHINGTON
PROCLAMATION
• Called out 12,000 men in militias from Virginia, Maryland,
Pennsylvania and New Jersey
• General Henry Lee commanded 13,000 men
• Whiskey Boys vanished
• 20 men captured
• 2 convicted of treason
• Both pardoned by Washington
• Simpleton
• Insane

9. America, 8th Edition
Copyright © 2010 W.W. Norton & Company
Pinckney’s Treaty, 1795

10. SETTLEMENT OF NEW LAND
Land policy
◦ Cost of land
Parcels
Land Act of 1796: Townships-- 640 acre sections @ $2/acre
Land Act of 1804: Minimum unit 160 acre sections @ $1.64/acre
Daniel Boone and the Wilderness Road
◦ 1769 discovery of “Warrior’s Path” foot path through the
Cumberland Gap (over the Appalacian Mountains)
◦ 1771 Boone and 30 woodsmen cut a larger road called “Wilderness
Road” 300,000 settlers used the Wilderness Road over the next 25
years.

11. TRANSFER OF POWER
• Washington’s farewell
• Avoid political parties
• Avoid the entanglements of Europe
• The election of 1796
• Federalist Candidates
• John Adams (President)
• Thomas Pinckney (Vice President)
• Democratic Republicans
• Thomas Jefferson (President)
• Aaron Burr (Vice President)

12. John Adams

13. Thomas Jefferson

14. CAMPAIGN OF 1796
 Democratic Republicans called John Adams “his rotundity”
 Federalists called Jefferson “a French loving atheist”
 French ambassador public appeal for Jefferson
 Foreign interference in US election
 Adam’s elected: 70 electoral votes to 68 electoral votes

15. UNDECLARED WAR WITH
FRANCE
Europe: Napoleonic War
Caribbean: Jay Treaty required US to intercept ships bound for French ports
◦ French intercepted American shipping 300 times and broke diplomatic relations with
Americans by 1797
American delegation to Paris:
◦ Thomas Pinckney; John Marshall, Eldridge Gerry
◦ X,Y,Z (French Diplomats) negotiations could only begin if Americans paid $250,000.
“Millions for defense, not one cent for tribute!”
Logan Act (1799) private citizens may not negotiate with foreign governments
without authorization

16. AMERICAN MILITARY
American Navy 1797: The Constitution, The United States, The Constellation
1797 Congress authorized an army of 10,000 men to serve 3 years each
George Washington called from retirement to command
◦ Washington demanded that Hamilton be 2nd in command
Convention of 1800
◦ Suspension of quasi-naval war with France
◦ Suspension of Perpetual Alliance of 1778

17. ELECTION OF 1800
Federalists vs. Democratic Republicans
Adams vs. Jefferson
◦ James Callender: Muckraker & sex scandals
Maria Reynolds & Alexander Hamilton
The Prospect Before Us
Jailed for Sedition under Alien and Sedition
Acts
Pardoned by Jefferson but refused position as
Postmaster General
Published letters between Callender and
Jefferson that proved Jefferson funded
Callender’s pamphlets against Federalists
Jefferson supporters accused Callender of
abandoning his wife to die of a venereal
disease
Callender broke story of Thomas Jefferson &
Sally Hemming

18. DEFICIENCIES IN ELECTION
PROCEDURES
• No Distinction between votes for President & Vice President:
Electoral vote resulted in a tie.
• Constitution calls for a vote in the House of Representatives in case
of a tie
• House voted 36 times over 5 days: all votes tied
• Hamilton encouraged legislators to vote for Jefferson as
“lesser of two evils”
• On February 17,1801 on the 37th vote, Jefferson was elected
President

19. JEFFERSONIAN SIMPLICITY
• New President walked from his lodgings to the Senate on
Capitol Hill
• Administered oath by Chief Justice John Marshall
• Read his inaugural address
• Returned to boardinghouse for dinner

20. JEFFERSON IN OFFICE
• Adams’s Midnight Appointments
• Federalists wanted Federalist Judges
• Appointed Federalist Judges to positions before midnight on Adams’s last day in office
• Marbury v. Madison
• Jefferson’s administration refused to deliver the appointments
• Marbury requested Mandamus
• Court ruled:
• Jefferson could not withhold appointment
• Court had no jurisdiction to hear the case under the Constitution
• Supreme Court assumed the right of “Judicial Review”

22. PEACEFUL TRANSITION OF
POWER
We are all Republicans, we are all Federalists. If there be any among us who would wish to dissolve this
Union or to change its republican form, let them stand undisturbed as monuments of the safety with which
error of opinion may be tolerated where reason is left free to combat it. I know, indeed, that some honest
men fear that a republican government can not be strong, that this Government is not strong enough; but
would the honest patriot, in the full tide of successful experiment, abandon a government which has so far
kept us free and firm on the theoretic and visionary fear that this Government, the world's best hope, may by
possibility want energy to preserve itself? I trust not. I believe this, on the contrary, the strongest
Government on earth. I believe it the only one where every man, at the call of the law, would fly to the
standard of the law, and would meet invasions of the public order as his own personal concern. Sometimes it
is said that man can not be trusted with the government of himself. Can he, then, be trusted with the
government of others? Or have we found angels in the forms of kings to govern him? Let history answer this
question. --Thomas Jefferson, First Inaugural Address, March 4, 1801

23. DIVISIONS IN THE DEMOCRATIC-REPUBLICAN
PARTY
• John Randolph and the Old Republicans
• States rights
• Strict construction
• No tariffs
• No compromise—ever
• The Burr conspiracy
• Burr and General James Wilkinson
• Louisiana territory secede and rule
• Jefferson had him arrested for treason
• Executive Privilege
• Strict Construction of Treason as a crime
• Burr was acquitted

24. WAR IN EUROPE
• Harassment by Britain and France
• Trade with one led to harassment by the other
• Impressment
• The embargo 1807
• Commerce clause
• Hurt only U.S. Shipping (repealed in 1809)
• The drift to war
• The Chesapeake
• “…a dish of skim milk curdling at the head of our nation.”

26. Federalist Campaign Broadside (flyer)

28. ELECTION OF 1808
James Madison
Democratic-Republican
Electoral Vote 122 67
States Carried 12 5
Popular Vote 124,732 62,431
Percentage 64.7% 32.4%
Charles Pinckney
Federalist

29. THE WAR OF 1812
 Causes
 Violation of American shipping rights
 Seizure of cargo
 Impressment of seamen
 Incitement of Indians along the border with Canada
 Supported by the Northern States
 Opposed by the South who relied on British purchases
 Preparations
 Congress adjourned without providing for payment
 Madison unprepared for fight over whether to go to war

31. THE WAR OF 1812
 British strategy
 Invasion from Canada stopped by Naval battle on Lake Champlain
 Fighting in the Chesapeake
 British invaded and burned Washington D.C.
 Battle of Baltimore: Fort McHenry 1814
 “The Star Spangled Banner”

32. THE WAR OF 1812
 The Battle of New Orleans
 Jackson outnumbered 2:1
 “The Rifles of Kentucky”
 The Treaty of Ghent
 1814

33. THE WAR OF 1812
 The Hartford Convention
 Federalists and “Democrats” proposed demands that if not met would result in New
England’s secession from the Union.
 Demands arrived at the same time as news of the victory at the Battle of New Orleans
 Federalist Party did not survive the embarrassment
 The aftermath
 2ndWar for Independence
 Demonstrated that small nation could defeat a great power
 Spurred industrialization
 US could depend on internal rather than international markets
 Era of Good Feeling