The Washington Administration | Hamilton and Jefferson

Hamilton’s Economic Plan | Foreign Affairs

The Adams Administration | The Election of 1800 

1. The Washington Administration (see Goldfield, pp. 211-218)

George Washington, President (1789-1797)

John Adams Vice President

Washington and Adams served as the first President and Vice-President of the United States.

Executive Departments and Secretaries

• Department of War—Henry Knox
• Department of State—Thomas Jefferson
• Department of the Treasury—Alexander Hamilton

Washington's first Cabinet.

Judiciary Act of 1789

• Creation of Supreme Court
• John Jay—Chief Justice
• Creation of 13 District Courts

Jay served as the first Chief Justice of the Supreme Court.

Tariff of 1789

• Tax of 5% on imports

2. Hamilton and Jefferson

Alexander Hamilton

 Hamilton served as the first Secretary of the Treasury

• Strong central government
• "Loose constructionist" (Constitutional interpretation)
• Closer ties to Great Britain
• Commercial development (esp. factories) for economic independence
• Fearful of total democracy; faith in wealthy classes

Thomas Jefferson

Secretary of State Jefferson's views contrasted with those of Alexander Hamilton on almost every important detail.

• Strong state governments
• Closer ties to France
• Stressed agriculture and international trade
• Faith in common man; fearful of power
• "Strict constructionist" (Constitutional interpretation)

3. Hamilton’s Economic Plan (se Goldfield, pp. 218-220)

Hamilton: Report on Public Credit (Jan. 1790)

• National debt = $54 million; state debts = $25 million
• Recommendations on funding and assumption
• Funding: US should fund national debt at full face value
• Assumption: Federal government should assume remaining state debts
• Funding and assumption bills pass Aug. 1790

Hamilton: Report on a National Bank (Jan. 1791)

• Recommended that federal government charter a national bank
• Purpose of bank
• Manage financial transactions
• Depository for government funds
• Issue currency
• Objection from Madison and Jefferson
• Proposal is unconstitutional
• Hamilton: doctrine of implied powers
• Bank bill signed into law Feb. 1791

Though controversial, the First Bank of the United States was established by Congress in 1791 with a twenty-year charter.

Hamilton: Report on Manufactures (Dec. 1791)

• Believed government must stimulate manufacturing through protective tariffs
• Objections from Madison: fears of consolidation of power in hands of federal government
• Objections from Jefferson: fear of growth of cities
• Proposal defeated

4. Foreign Affairs (see Goldfield, pp. 220-226)

Birth of formal political parties

• Republicans (followers of Jefferson)
• States’ rights
• Strict interpretation of Constitution
• Friendship with France
• Caution against wealthy
• Federalists (followers of Hamilton)
• Strong national government
• Central economic planning
• Closer ties to Great Britain
• Emphasis on public order

Problems with Great Britain

• Presence of British troops in Northwest Territory
• Unfair treatment in trade

Problems with France

• French Revolution spread republicanism, but also extremely violent
• Jacobins: Reign of Terror (1793-1794)
• Republicans supported French Revolution
• Federalists opposed French Revolution

France declares war on Britain, Feb. 1793

• US announces neutrality
• Questions about Franco-American treaties of 1778
• Jefferson: should boycott British; trade with France
• Hamilton: appease Britain

British actions

• Closed French ports to American shipping
• Captured American vessels in West Indies

Jay’s Treaty (1794)

• British would leave Northwest Territory in one year
• Small US ships could trade in British West Indies
• Rejection of American position on neutral rights
• Searches of American vessels would continue
• Impressment of sailors would continue
• No compensation for American ships taken
• No compensation for American slaves taken

Treaty ratified, June 1795 (20-10)

5. The Adams Administration (see Goldfield, pp. 226-231)

Election of 1796

• John Adams (Federalist): 71
• Thomas Jefferson (Republican): 68

Negotiations with France

• American commissioners attempt to see Talleyrand (French Foreign Minister)
• French agents demand loans and "gratuity"; rejected by Americans
• Known as XYZ Affair

Federalist reaction to XYZ Affair

• Creation of Navy Department and build up of naval force
• Called for creation of large army
• Alien Act: president could expel "dangerous" aliens
• Sedition Act: crime to conspire against government or be critical of government

Convention of 1800

• US formally released from alliance of 1778
• US gave up all claims for losses in undeclared war

6. The Election of 1800 (see Goldfield, pp. 228-231)

Election of 1800

• John Adams (Federalist): 65
• Thomas Jefferson (Republican): 73
• Jefferson tied with Aaron Burr
• House of Representatives determined outcome
• Jefferson wins on 36^th ballot

Twelfth Amendment

• Separate Electoral College ballots for President and Vice President
• Ratified in 1804