UNITED STATES HISTORY UNITED STATES HISTORY AND THE CONSTITUTIONAND THE CONSTITUTION

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USHC 1.6USHC 1.6

Concepts Concepts

How did the development of the two-How did the development of the two-party system during the presidency of party system during the presidency of George Washington influence George Washington influence controversies over domestic and foreign controversies over domestic and foreign policies?policies?

How did the regional interests How did the regional interests change/develop of the Democratic-change/develop of the Democratic-Republicans and the Federalists?Republicans and the Federalists?

2 Party System2 Party System

The two-party system developed as a The two-party system developed as a result of political differences between result of political differences between Alexander Hamilton and Thomas Alexander Hamilton and Thomas Jefferson during George Washington’s Jefferson during George Washington’s first administration. first administration.

Jefferson and Hamilton had both Jefferson and Hamilton had both supported the ratification of the supported the ratification of the Constitution and served in Washington’s Constitution and served in Washington’s cabinet. cabinet.

Treasury HamiltonTreasury Hamilton

Differences arose over Secretary of the Differences arose over Secretary of the Treasury Hamilton’s economic plan. Treasury Hamilton’s economic plan.

Secretary of the Treasury Hamilton Secretary of the Treasury Hamilton proposed that the government pay off the proposed that the government pay off the debt left from the Revolutionary War by debt left from the Revolutionary War by issuing new bonds (funding). issuing new bonds (funding).

Jefferson and MadisonJefferson and Madison

Secretary of State Jefferson and Secretary of State Jefferson and Representative James Madison opposed Representative James Madison opposed paying off current bondholders because paying off current bondholders because often these were investors who had often these were investors who had bought the bonds on speculation from the bought the bonds on speculation from the primary investor at a much reduced priceprimary investor at a much reduced price

War Debts of the StatesWar Debts of the States

Hamilton wanted the current Hamilton wanted the current bondholders, wealthy investors, to have a bondholders, wealthy investors, to have a stake in the national government. stake in the national government.

Congress authorized the funding plan. Congress authorized the funding plan. Secretary Hamilton also proposed that Secretary Hamilton also proposed that

the national government assume the the national government assume the debts of the states.debts of the states.

Compromise !Compromise !

Northern states supported assumption Northern states supported assumption because they had outstanding debts. because they had outstanding debts. Southern states, with the exception of South Southern states, with the exception of South Carolina, objected because they had already Carolina, objected because they had already paid their debts.paid their debts.

A compromise was reached that the capital A compromise was reached that the capital would be moved farther south (to the District would be moved farther south (to the District of Columbia) and state debts would be of Columbia) and state debts would be assumed.assumed.

National Bank?National Bank?

Hamilton also proposed that the Congress Hamilton also proposed that the Congress establish a establish a national banknational bank that would act as that would act as a repository for the nation’s revenues and a a repository for the nation’s revenues and a source of loans to spur economic growth. source of loans to spur economic growth.

Jefferson and Madison objected arguing Jefferson and Madison objected arguing that the Constitution did not specifically list that the Constitution did not specifically list the establishment of a the establishment of a bankbank as one of the as one of the powers of Congress. powers of Congress.

““Necessary and Proper”Necessary and Proper”

Hamilton argued that the bank was Hamilton argued that the bank was ““necessary and propernecessary and proper” to the exercise ” to the exercise of Congressional powers to establish a of Congressional powers to establish a national currency and regulate trade and national currency and regulate trade and so was allowed by the ‘so was allowed by the ‘elastic clauseelastic clause’ of ’ of the Constitution. the Constitution.

This established the basis for a This established the basis for a continuing political disagreement about continuing political disagreement about how the Constitution was to be how the Constitution was to be interpreted. interpreted.

Congress passed and Washington Congress passed and Washington signed a charter for the establishment of signed a charter for the establishment of the First Bank of the United States.the First Bank of the United States.

Protective TariffProtective Tariff

Disagreement between the two emerging Disagreement between the two emerging political factions was exacerbated by political factions was exacerbated by Hamilton’s proposal that Congress Hamilton’s proposal that Congress establish a protective tariff. establish a protective tariff.

A A protective tariff protective tariff is a high tax on is a high tax on imports designed to prompt consumers to imports designed to prompt consumers to purchase the lower priced goods purchase the lower priced goods produced in their home country.produced in their home country.

This would This would protectprotect America’s emerging America’s emerging industriesindustries. Jefferson believed that . Jefferson believed that democracy depended on the independence democracy depended on the independence of the farmer and did not want to promote of the farmer and did not want to promote the development of industry. the development of industry.

Congress Congress did not passdid not pass the the protective protective tarifftariff but the issue continued to divide the but the issue continued to divide the emerging political factions.emerging political factions.

Perhaps the most serious difference Perhaps the most serious difference between the parties was on an between the parties was on an excise excise tax on whiskeytax on whiskey. .

Hamilton wanted to control the drinking Hamilton wanted to control the drinking habits of Americans as well as raise habits of Americans as well as raise revenue for the national government.revenue for the national government.

Farmers and WhiskeyFarmers and Whiskey

Jefferson and Madison supported Jefferson and Madison supported western farmers who turned their grain western farmers who turned their grain into whiskey in order to transport it more into whiskey in order to transport it more easily and cheaply across the easily and cheaply across the Appalachian Mountains to markets in the Appalachian Mountains to markets in the east.east.

Whiskey RebellionWhiskey Rebellion

The resulting The resulting Whiskey Rebellion of Whiskey Rebellion of western Pennsylvaniawestern Pennsylvania farmers was the farmers was the first challenge to the authority of the new first challenge to the authority of the new national government but quickly national government but quickly evaporated when troops led by President evaporated when troops led by President Washington marched into the state. Washington marched into the state.

The Rebellion showed the seriousness of The Rebellion showed the seriousness of the split between the two political groups. the split between the two political groups.

Two-party system Two-party system developsdevelops

The two-party system developed as a The two-party system developed as a result of different political positions on result of different political positions on these economic issues. these economic issues.

The Federalists, supporters of Hamilton The Federalists, supporters of Hamilton and a strong central government, and a strong central government, included the wealthy merchants and included the wealthy merchants and emerging industrialists in the North as emerging industrialists in the North as well as a few elite southern plantation well as a few elite southern plantation owners.owners.

FederalistsFederalists

Federalists interpreted the Constitution Federalists interpreted the Constitution loosely, using the loosely, using the elastic clauseelastic clause to give to give the federal government more power. the federal government more power.

Democratic-RepublicansDemocratic-Republicans

Democratic-Republicans (known as Democratic-Republicans (known as Jeffersonian Republicans, later Jeffersonian Republicans, later Democrats) were supporters of Jefferson Democrats) were supporters of Jefferson and Madison who believed in a limited and Madison who believed in a limited central government and strong state central government and strong state governments because state governments governments because state governments are closest to the will of the people.are closest to the will of the people.

Jeffersonian RepublicansJeffersonian Republicans The Jeffersonian Republicans were The Jeffersonian Republicans were

supported by ‘the common man’ supported by ‘the common man’ including rural Northerners, Southerners including rural Northerners, Southerners and backcountry folk and supported a and backcountry folk and supported a strict construction of the Constitution. strict construction of the Constitution.

Jefferson opposed the development of an Jefferson opposed the development of an industrialized country. industrialized country.

Differences over domestic policy were Differences over domestic policy were exacerbated by even more emotional exacerbated by even more emotional differences of opinion over foreign policy.differences of opinion over foreign policy.

French RevolutionFrench Revolution

When the French Revolution turned When the French Revolution turned violent, Jefferson and Madison supported violent, Jefferson and Madison supported the French despite the bloodshed, the French despite the bloodshed, because the French because the French Declaration of the Declaration of the Rights of Man and the Citizen Rights of Man and the Citizen was very was very similar to the similar to the Declaration of Declaration of Independence Independence and because of the and because of the French alliance during the American French alliance during the American Revolution.Revolution.

Citizen Genet incidentCitizen Genet incident

Hamilton supported the British in their Hamilton supported the British in their war against the excesses of the French war against the excesses of the French Revolution because of long tradition and Revolution because of long tradition and trade relations with the former mother trade relations with the former mother country. country.

This basic disagreement was heightened This basic disagreement was heightened by such events as the by such events as the Citizen Genet incident,

Slanderous OppositionSlanderous Opposition

Jay’s TreatyJay’s Treaty and the and the XYZ AffairXYZ Affair which which led to the led to the Alien and Sedition Acts. .

These acts were designed to silence the These acts were designed to silence the outspoken and sometimes slanderous outspoken and sometimes slanderous opposition of the Democratic-opposition of the Democratic-Republicans to the Adams Republicans to the Adams administration.administration.

Sedition ActsSedition Acts

Jefferson and Madison objected to the Jefferson and Madison objected to the Alien and Sedition Acts in the Virginia Alien and Sedition Acts in the Virginia and Kentucky Resolutions, declaring that and Kentucky Resolutions, declaring that state legislatures could nullify, or declare state legislatures could nullify, or declare an act of Congress to be unconstitutional.an act of Congress to be unconstitutional.

ControversyControversy

The controversy contributed to The controversy contributed to Jefferson’s election in 1800. Jefferson’s election in 1800.

The traditional two party system that The traditional two party system that evolved in the 1790s became an evolved in the 1790s became an important part of the American political important part of the American political system.system.

Vocabulary Terms/WordsVocabulary Terms/Wordsto knowto know

Necessary and Proper clause National bank National bank Elastic clauseElastic clause’’ Protective tariffProtective tariff Excise tax on whiskeyExcise tax on whiskey Whiskey Rebellion Whiskey Rebellion Sedition ActsSedition Acts XYZ AffairXYZ Affair