Washington Through Jefferson
History M25 - Dr. Krister Swanson - Moorpark College

The Search for Stability

• Washington careful – setting precedents, places public good over personal interest
• sets up first cabinet with best people, not like minds – party differences come out of this

Hamilton’s Economic Policies

• Favors wealthy in hopes that they will extend credit to gov’t
• Boom in Agriculture, lots of improved roads, and boom in banking
• Consolidates national debt to pay at full value (speculators make mad cash) – this requires taxation
• Assumes state debts (asserting federal power) debt will bind nation together
• Works to boost US manufactures (subsidies and tariffs)

The Bank, & Loose vs. Strict

• Hamilton establishes First Bank of the United States with 20 year charter (fear of bankers running economy)
• Argues for loose interpretation (all laws necessary and proper)
• Jefferson argues there’s no constitutional authority for bank (state’s rights – strict interpretation, what’s not there is forbidden)
• Opposition to Hamilton leads to formation of political parties

Conflicts of the 1790s

• Whiskey Rebellion in response to unpopular tax – Wash puts down with troops
• Confederation of Indian tribes fights to resist western expansion and is defeated
• Spreads terror of Indians & image as enemies (scalping, etc.)
• France & England at war by 1793 – Washington issues Neutrality, tough to maintain trade, Jay’s treaty splits congress
• Successful slave revolution in Haiti (inspired by France) stirs fears of revolt in US

Federalists vs. Dem-Reps

• French Rev stirs pot, Feds more fearful as Rev gets more extreme
• GB enters war against France, Feds back GB
• Washington declares neutrality, but Jay’s Treaty makes it seem as if we fear the British, fires up the D-Rs

Election of 1796

• Adams (Fed/GB) wins narrow election over  VP Jefferson (Dem-Rep/F)
• Hamiltonian cabinet sets policy through Adams administration, Jefferson plays little/no role
• The XYZ Affair stirred up antagonism between Feds & D-Rs
• Alien and Sedition Acts make it illegal to criticize government, seen as Fed lockdown

Jefferson’s Presidency

• By 1800 – party politics are firmly entrenched.
• Jefferson defeats Adams in 1800, elections requires several ballots in the House to reach a decision
• peaceful transition in leadership shows the system works well
• Republican Simplicity – a turn away from the powerful executive of the Feds (simple style, cut spending, downsize government)
• Fears policies of Hamilton favored the powerful financiers and speculators, and took power from the people
• The Judiciary and the Midnight Judges
• 1803: Louisiana Purchase buys land from Mississippi to Rockies from France ($15m, or 3 cents/acre)
• Lewis and Clark Expedition

Transatlantic Troubles

• By now GB is in full blown war with Napoleon
• British Impressed United States sailors & harassed American Ships
• We respond with Embargo Act of 1807 (embargo on British goods) - commerce comes to a halt
• Each region hit hard - massive protests, economy almost shuts down