Chapter 7

Creating the Courts

Congress created a court system with the Judiciary Act of 1789. The act established a federal district court in each state, affirmed that the Supreme Court exercised final jurisdiction in all legal matters, and set the number of Supreme Court judges at six. In 1796 the Supreme Court first asserted its power to determine the constitutionality of congressional statutes.

Embargo Act

Congress then passed the Embargo Act of 1807, which prohibited any ship from leaving a U.S. port for a foreign port, effectively ending both exportation and importation. Jefferson and Congress hoped that such a measure would so damage the British and French economies that the countries would be forced to honor U.S. neutrality. Yet such peaceable coercion failed: the Embargo Act hurt the U.S. economy more than England's or France's.

The Monroe Doctrine

1820 Unless American interests were involved, the United States would stay out of European wars. The "American continents", including both North and South America, were not subject to any further colonization by European powers. The United States would construe any attempt at European colonization in the New World as an "unfriendly act."

The Missouri Compromise

1820 Elements of the Missouri Compromise, in its final form: Maine admitted as a free state; Missouri admitted as a slave state; slavery prohibited in the Louisiana Territory north of 36º30'; Missouri prohibited from discriminating against black citizens of other states.

Midnight Judges and Judicial Review

Chief Justice John Marshall's ruling in the case of Marbury v. Madison asserted the Supreme Court's power of judicial review and marked the first time the Supreme Court declared an act of Congress unconstitutional.

The Marshall Court

Chief Justice Marshall issued significant rulings on judicial review, federal versus state power, the sanctity of contracts, and congressional control of interstate commerce. He transformed the Court into a formidable government force, equal to Congress and the president.

George Washington

George Washington was elected the United States' first president and took the oath of office on April 30, 1789. His vice president was John Adams.

Tariffs

Hamilton's major proposals for national finance: national assumption of state debt; a national bank; protectionist tariffs. All of these issues pitted Federalists against Anti-federalists, or loose constructionists against strict constructionists.

Lewis and Clark

He envisioned the U.S. as an agrarian republic, not an industrial powerhouse, and therefore sought to open up new farming along the vast and fertile frontier. Once the Louisiana Purchase was negotiated, Jefferson commissioned teams of explorers, including Meriwether Lewis, who was a captain in the army, and Lieutenant William Clark, to map out the new territory. In 1804, Lewis and Clark set off from St. Louis with 45 soldiers. In the Dakotas, they met Sacajawea, an Indian woman who proved indispensable as a guide. The group reached the Pacific Ocean in 1805 and landed back at St. Louis in 1806, having traveled nearly 3,000 miles in two and a half years. The success of the Lewis and Clark expedition inspired increased exploration and settlement of the new territory.

Washington's Farewell Address

In 1796, Washington retired from office, deciding not to run for a third term. He thereby set the precedent of presidents serving no more than two terms in office—a precedent that became law with the ratification of the Twenty-Second Amendment (1951). In his farewell address, Washington implored future generations to avoid embroilment in the affairs of other nations, and to concentrate on the creation of "efficient government" at home. He warned that the development of parties would destroy the government, fearing that special interest groups and foreign nations would come to dominate the two factions.

The Louisiana Purchase

In 1800, France acquired the Louisiana Territory from Spain. Fearing that the new French ruler, Napoleon, had plans to build an empire in the Americas, Jefferson sent negotiators to France in an attempt to purchase the territory. The envoy found that Napoleon had abandoned his plan for a colonial empire, in part because a massive slave revolt in Haiti, led by Toussaint L'Ouverture, had severely depleted Napoleon's forces. Napoleon thus agreed to sell all of the Louisiana territory in order to finance French efforts in the war in Europe. After some negotiation, the price was set at $15 million in April 1803. With the Louisiana Purchase, the U.S. gained a massive, uncharted piece of land, nearly doubling the country's size for the price of thirteen and a half cents per acre.

The Bill of Rights

The Bill of Rights was a concession made by the Federalists to the Anti-federalists, who were concerned that a strong government would usurp the rights of individuals and states. James Madison led the group that drafted the first ten amendments to the Constitution, collectively known as the Bill of Rights, which the state legislatures ratified in December 1791. The Bill of Rights sought to enumerate certain liberties that could not be invaded by the federal government.

Virginia and Ketucky resolutions

The Virginia and Kentucky Resolutions (1798) declared that state legislatures could deem acts of Congress unconstitutional, on the theory that states' rights superseded federal rights. They argued that the federal government was merely a representative of the compact of states, not an overriding power, and therefore states had the final say on federal laws. In 1799, Kentucky passed a further resolution that declared states could nullify objectionable federal laws. This doctrine of states' rights and nullification would emerge again in later political crises between the North and South concerning issues of tariffs and slavery.

First Congress

The first Congress under the Constitution convened in New York City in March 1789. Congress immediately set out to establish a judicial branch, develop the executive branch, set a legislative agenda, and meet the popular demand for a bill of rights. As Congress worked out the details of government bureaucracy and domestic policy, Washington focused primarily on matters of finance, diplomacy, and the military. He interacted very little with Congress. He rarely spoke publicly about policy, suggested few laws, and vetoed only two bills in all eight years of his presidency.

James Madison and the War of 1812

Under Madison, Congress first replaced the Embargo Act with the Non-Intercourse Act, which prevented trade with Britain and France only, thereby opening up all other foreign markets. But because the British and French were the largest and most powerful traders in the world, the Non-Intercourse Act did little to stimulate the struggling U.S. economy. In 1810, Congress substituted Macon's Bill No. 2 for the Non-Intercourse Act, as a ploy for either Britain or France to lift trade restrictions. Macon's Bill No. 2 resumed open trade with both Britain and France and stated that if either nation repealed its restrictions on neutral shipping, the United States would install an embargo against the other nation. Napoleon seized this opportunity and repealed French restrictions, provoking an American declaration of non-intercourse with Britain. Despite Napoleon's promise, the French continued to seize American ships.

Jay's Treaty

Desperate to avoid war, Washington dispatched negotiators to the warring European nations. John Jay negotiated Jay's Treaty (1795) with Britain, which secured the removal of British troops from American land and reopened very limited trade with the British West Indies, but he did not address the British seizure of American ships or the "impressment" of American sailors.

Westward Expansion

During the 1790s, the U.S. attempted to expand its territory westward. The government devised policies for settlement and admitted three new states to the union: Vermont (1791), Kentucky (1792), and Tennessee (1796). Such expansion efforts incited opposition from Spain and Britain, both of which still owned some western territory and wanted to own more. Native Americans who inhabited much of this coveted land also resisted U.S. expansion. Military efforts in 1790 and 1791, aimed at forcing peace with the Native Americans on U.S. terms, yielded little success. The tense relations continued in stalemate until 1794, when U.S. troops routed a group of Native American warriors at the Battle of Fallen Timbers. After this defeat, 12 Native American tribes signed the Treaty of Greenville, which cleared the Ohio territory of tribes and opened it up to U.S. settlement.

National Bank

Even more controversial was Hamilton's proposal to establish a national bank. Hamilton claimed the Bank of the United States would provide a secure depository for federal revenue, issue currency and federal loans, regulate the activities of smaller banks, and extend credit to U.S. citizens. Opposing the proposal, Anti-federalists such as Thomas Jefferson feared that the creation of the bank would tie private individuals too closely to government institutions. Anti-federalists also argued that the Constitution did not explicitly give the federal government the power to grant such charters.

The Rise of Political Parties

However, by the end of Washington's term, the division between the strict constructionists and the loose constructionists had hardened into two distinct political parties: the loose constructionists formed the core of the Federalist party, while the strict constructionists comprised the core of the Democratic-Republican party—or, simply, the Republicans The birth of the Republican Party can be traced to 1793, when Jefferson resigned from Washington's cabinet in opposition to Federalist policy decisions, especially the financial decisions of Alexander Hamilton. The Federalists, led by Washington and Hamilton, called for a strong central government. They represented the industrial and manufacturing interests, which were concentrated in the Northeast. The Republicans, led by Jefferson and Madison, advocated powerful state governments over centralized power, and represented the more rural and agrarian South, as well as the Western frontier.

Transportation Revolution

In 1817, ten years after the invention of the steamboat, New York began construction of the Erie Canal, the first major canal project in the United States. Upon its completion in 1825, the canal stretched 363 miles, from Albany to Buffalo, much farther than any other American or European canal. A system of canals soon developed around the nation, linking waterways from the Northeast to the frontier West. At the same time, the U.S. government invested in the National Road, which by 1818 stretched from Cumberland, Maryland, to Wheeling, Virginia. Added to this were webs of privately owned toll roads around each major U.S. city, which served as the foundation for the growing road system.

The Whiskey Rebellion

In July 1794, frontier farmers in western Pennsylvania who produced whiskey from corn violently protested against Hamilton's 1791 excise tax on domestically produced whiskey. This revolt, which became known as the Whiskey Rebellion, represented the first major test of the national government's ability to enforce its laws within the states.

The War of 1812

In June 1812, convinced of the inevitability of war against Britain, Madison sent a message to Congress enumerating British violations of U.S. neutrality rights, including the presence of British ships in American waters and the impressment of American sailors. In a conciliatory measure, Britain repealed the Orders in Council, its aggressive naval policy, but it was too late. Congress had already passed a declaration of war, and the War Hawks pushed for full engagement. The American forces, however, were outmatched by British forces, in part because the Republicans had drastically cut military expenditures and programs, leaving the U.S. forces seriously underfunded and under-trained. Nonetheless, the war ended in stalemate, mainly because the British were also occupied with events in Europe. The signing of the Treaty of Ghent in December 1814 ended the war and restored the status quo. The treaty did not mention free trade or sailor's rights. Two weeks after the signing of Treaty of Ghent, but before news of the treaty had reached America, American troops won a decisive victory in the Battle of New Orleans. General Andrew Jackson's troops defended the city, killing more than 2,000 British troops while losing only thirteen men. The timing of the Battle of New Orleans inspired the popular misconception that the U.S. had won the war and had forced the British to surrender and sign the treaty. Even without officially "winning" the war, the U.S. did succeed in protecting itself against one of the world's premier powers, for which reason the War of 1812 has been called the "second war of independence."

Economic Boom and Bust

Postwar economic prosperity enhanced political optimism in the United States. The economy dramatically expanded as a result of a postwar borrowing and buying frenzy. Banks lent money with little or no collateral to businessmen seeking to buy land, build factories, and develop industries.The high protective tariff of 1816 promoted further domestic development. Accompanying this expansion was the steady rise of inflation, the increase of paper money and credit leading to higher prices and less valuable currency. In 1818, the global demand for American goods declined, in part because Europe had recovered from the devastation of the Napoleonic Wars. As a result of the decline in trade, the U.S. economy began to collapse and banks contracted their lending practices. Many state banks folded and many borrowers declared bankruptcy. In what became known as the Panic of 1819, land values fell 50 to 75 percent, rich land speculators lost fortunes, and homesteaders became mired in debt. The depression lasted roughly three years.

The Transcontinental Treaty

Spain and the U.S. long debated whether or not the Louisiana Purchase included western Florida. In 1819, the matter was settled when Spain agreed to the Adams-Onís Treaty, also known as the Transcontinental Treaty. By the terms of this treaty, Spain ceded eastern Florida to the United States, renounced all claims to western Florida, and agreed to a southern border of the United States west of the Mississippi River extending all the way to the Pacific Ocean, thereby recognizing U.S. claims to the Oregon Territory. This treaty gave the United States its first legitimate claim to the west coast.

The Alien and Sedition Acts

The Alien Enemies Act, the first and least controversial act, defined the procedure by which, during wartime, U.S. authorities could deport a citizen of an enemy nation whom they deemed a threat to national security. The Alien Friends Act allowed the president to deport any citizen of any foreign nation whom he deemed a threat to the U.S., even in the absence of proof. The Naturalization Act changed the residency requirement for becoming a citizen of the United States from five to fourteen years. The Sedition Act, the final and most controversial act, forbade any individual or group to speak, write, or publish anything of a "false, scandalous and malicious" nature that brought the Congress and/or the president "into contempt or disrepute."

Building a Cabinet

The Constitution only provided the general framework of the executive branch without specifying the number and the duties of executive posts. In 1789, Congress established what came to be known as the cabinet: three executive posts (secretary of state, of war, and of treasury), as well as the office of Attorney General. Washington appointed Thomas Jefferson as secretary of state, Alexander Hamilton as secretary of treasury, Henry Knox as secretary of war, and Edmund Randolph as attorney general.

Federalists vs. Anti-federalists

The conflict between the Federalists and the Anti-federalists shaped much of the nation's early political debate and policy. The Federalists, led by Secretary of Treasury Alexander Hamilton, pushed for a strong central government, while the Anti-federalists, led by Secretary of State Thomas Jefferson, advocated states' rights over central power. Anti-federalists argued that the federal government should be limited to issues of national defense and interstate commerce, with all other powers left to the states. The Anti-federalists were mainly southern and agrarian, while the Federalists were concentrated in the Northeast and represented mercantile interests. The growing divide between Federalists and Anti-federalists revealed itself most in the debate over national finances. In 1790, Hamilton proposed that the national government assume the unpaid war debts of the states. Anti-federalists believed this plan granted the national government undue economic power over the states. Southern states particularly opposed the plan, since they had already paid off nearly all of their debts while the northern states lagged behind. Despite Southern and Anti-federalist opposition, the plan passed, in part because of a concession by the North to the South: in 1800, the nation's capital was moved from New York to a southern locale near the Potomac River, present-day Washington, D.C.

Monroe and the Era of Good Feelings

The demise of the Federalist Party was confirmed in the 1816 presidential election, which James Monroe won easily. Monroe was the first clear representative of the one-party system under the Republicans. His term in office became known as the Era of Good Feelings, in part because of the political cooperation stemming from one-party politics, and because of America's high morale after the War of 1812. This unifying nationalist spirit peaked in the election of 1820, which Monroe won in a landslide: 231 votes to his opponent John Quincy Adams's one. Monroe rarely departed from James Madison's nationalistic program. He supported federal funding for internal improvements, though he hesitated to authorize direct federal involvement, and he raised protective tariffs to spur American manufacturing.

The Election of 1796: Divided Government

The election of 1796 was the first major political contest between Republicans and Federalists. John Adams ran as a Federalist, and Thomas Jefferson as a Republican. Republicans controlled the South, while Federalists dominated New England, New Jersey, and South Carolina. Adams won the presidency by three electoral votes. Jefferson became vice president following Constitutional protocol, which stated that the candidate with the second highest number of votes would become vice president. The two rivals teamed together for what proved to be a tense and unproductive partnership.

Jefferson's Revolution: The Beginning of Republican Rule

The election of 1800 marked the beginning of a 28-year period during which Republicans dominated national politics. Jefferson's party won easily, in part because of the public outrage over the Federalist Alien and Sedition Acts; in many ways, the acts proved the undoing of the Federalist Party. Jefferson described his victory as the "Revolution of 1800." He believed that the Republican victory over the Federalists was "as real a revolution in the principles of our government as that of 1776 was in its form." Unlike the Federalists, who had pushed for a strong central government and had favored industrial and commercial interests, the Jeffersonian Republicans aimed to limit central government in favor of states' rights and individual liberties, and favored an agrarian republic over an urban, industrialized one. Once in office, Jefferson cut back on federal expenditures and federal bureaucracy. He persuaded Congress to cut almost all internal taxes, and balanced the cut with reductions in military expenditures and other government endeavors. For income, the government relied mostly on land sales and customs duties.

Federalism Under Adams

The neutrality that George Washington worked so hard to maintain was threatened soon after Adams took office. The French saw Jay's Treaty (between the U.S. and Britain) as a signal that the U.S. supported Britain in Britain's ongoing war against France. France had delayed retribution, hoping Jefferson would win the presidency because, as an Anti-federalist, he was sympathetic to the French. Upon his loss, France delayed no longer and began to seize American ships en route to British ports. Within one year, the French attacked more than 300 American ships and ordered that all Americans captured aboard British naval vessels be hanged.

Foreign Relations: U.S. Neutrality

Throughout his term in office, Washington worked to preserve U.S. neutrality in international relations. By keeping the U.S. out of European conflicts, he hoped to develop and enhance U.S. domestic policy and unite the nation under one strong, efficient government. Foreign affairs, however, grew increasingly difficult to ignore. The French Revolution (1789-1799) inspired opposing loyalties within the federal government. Jefferson and other Republicans sympathized with the revolutionary cause, which championed individual rights against the aristocratic government. Hamilton and other Federalists opposed it.

The Hartford Convention

met at the Hartford Convention, where the New England-based party enumerated its complaints against the ruling Republican Party. Some Federalists called for New England's secession, but cooler heads prevailed and called for a resolution summarizing New England's grievances, both general and those specifically relating to the War of 1812. These complaints included the charge that Republicans were neglecting the needs of New England industry and commerce. The war, and its accompanying trade restrictions in particular, hurt New England because of the region's concentration of seaboard manufacturers and merchants. The group at the Hartford Convention also drafted seven constitutional amendments meant to politically strengthen the Northeast, including an amendment to abolish the three-fifths clause, to change the policy by which Congress declared war, and to set a maximum time limit for trade embargoes.