[aunehing &e New Gcvermmemt ,*rkrr)k*;k,lk-r!*rrrrir-/ktt*rkrkr***rk***rr*.rt:,lkrk*iaikrFrk*rk*lirtrr**rt*rkrr*r4r*rlk*,krirbliltrrFrkrr Hmlorc Thce Auccffione E*ffine ;damffifu r How did George o inauguration o Judiciary Act Washington's actions set o precedent o District of Columbia an example for o Cabinet o Bank of the United future Presidents? nationaldebt States How did Alexander r o o Whiskey Rebellion Hamilton plan to o bond strengthen the nation's r speculator economy? o tariff o Why did some people r protective tariff oppose Hamilton's economic plan?
The new Congress met for the As the first President, Washington had GEffi first time in the spring of 1789. no one to imitate. While the Constitution Jnr+am Vice President John Adams provided a framework for the new govern- brought up a curious question. How should ment, it did not explain how the President people address the President? should govern from day to day. Washington For three weeks, members of Congress knew he was setting an example for future debated the issue. Some favored the simple generations. "There is scarcely any part of title "President Washington." Others felt that my conduct," he said, "which may not here- it lacked dignity. Instead, they suggested ti- after be drawn into precedent." Aprecedent tles such as "His Elective Highness" or "His (pnnHs uh dehnt) is an act or decision that Highness the President of the United States sets an example for others to follor,v. and Protector of the Rights of the Same." Washington set one important precedent Finally, Washington let Congress know at the end of his second term. In 1796, he he was content with "President of the United decided not to run for a third term. Not until States." By choosing a simple title, Washing- 1940 did any President seek a third term. ton showed he was not interested in the kind of power that European monarchs had. In Ttrcffi*stffimt The Constitution said little about how the this decision, Iike many others, Washington executive branch should be organized. It was set an example for later Presidents. clear, however, that the President needed tal- people help him carry out his duties. The New Government ented to George Washington was inaugurated in New York City on April 30, 1789. A Presi- dent's inauguration is the ceremony at which the President officially takes the oath The President who finally broke Washington's of office. A witness reported that the new two-term precedent was Franklin D. Roose- President looked "grave, almost to sadness." velt. ln 1940, he ran for and won a third term. Washington no doubt was feeling the awe- Four years later, Roosevelt was elected yet some responsibility of his office. He knew again. Today, the Twenty-Second Amend- thatAmericans were looking to him to make ment to the Constitution prohibits any Presi- their new government work. dent from being elected more than twice.
172 * Chapter 7 The First President t Mug honoring Jryf George Washington traveled on horseback to his inau- President guration in New York City. Along the way, crowds gathered to cheer Washington's their new President. Here, women and children scatter flower petals in Washington's path. * How can you tellthis painter greafly inauguration I admired Washington?
In 1789, the first Congress created five Supreme Court to have one Chief Justice and executive departments. They were the de- five Associate Justices.* Washington named partments of State, TYeasury, and War and John Jay to serve as the first Chief Justice of the offices ofAttorney General and Postmas- the United States. ter General. The heads of these departments The Judiciary Act also set up a system of made up the President's Cabinet. Members district courts and circuit courts across the of the Cabinet gave Washington advice and nation. Decisions made in these lower courts directed their departments. could be appealed to the Supreme Court, the Washington set a precedent by carefully highest court in the land. choosing well-known leaders to serve in his Cabinet. The two most influential were the Battling the National Debt Secretary of State, Thomas Jefferson, and the Secretary of the Tleasury, Alexander As Secretary of the T?easury, Alexander Hamilton. Hamilton wanted to build a strong economy. He faced many major problems, however. The federal court system Among the most pressing was the large na- The Constitution called for a Supreme tional debt. The national debt is the total Court. Congress, however, had to orgarrtze sum of money a government owes to others. the federal court system. In 1789, Congress - passed the Judiciary Act. It called for the Today, the Supreme Court has eight Associate Justices.
Chapter 7 * 173 Hamilton insisted that all these debts be re- paid. After all, he asked, who would lend money to the United States in the future if the country did not pay its old debts? Hamilton's Plan Hamilton developed a two-part plan to repay both the national and state debts. First, he wanted to buy up all the bonds is- sued by the national and state governments before 1789. He planned to sell new bonds to pay off those old debts. When the economy improved, the government would be able to pay off the new bonds. Second, he wanted the national government to pay off debts owed by the states. Many people, including bankers and in- vestors, welcomed Hamilton's plan. Others attacked it. Madison leads the opposition James Madison led the opposition to Hamilton's plan. Madison argued that the plan was unfair because it would reward Alexander Hamilton speculators. A speculator is someone will- ffi-*ffi'ephy ing to invest in a risky venture in the hope of Alexander Hamitton was born on the Caribbean island making a large profit. of Nevis in 1755. As a boy, he faced poverty, but he During the Revolution, the government worked his way up in a local trading company. He later came to New York, served as an officer in the Ameri- had paid soldiers and citizens who supplied can Revolution, and became the first Secretary of the goods with bonds. Many of these bondholders Treasury. This portrait was painted by John Trumbult, needed cash to survive. They sold their bonds one of the most famous early American aftists. to speculators. Speculators paid only 10 or 15 * How did Alexander Hamilton help strengthen the new nation? cents for bonds that had an original, or face, value of one dollar. If the government repaid the bonds at face value, speculators stood to make great During the Revolution, both the national fortunes. Madison thought that speculators government and the individual states needed did not deserve to make such profits. money to pay soldiers and buy supplies. They Hamilton disagreed. The United States borrowed money from foreign countries and had to repay its bonds in full, he said, in or- ordinary citizens. der to gain the trust and help of investors. Then, as now, governments borrowed The support of investors, he argued, was cru- money by issuing bonds. Abond is a certifi- cial for building the new nation's economy. cate which promises to repay the money After much debate, Hamilton convinced Con- loaned plus interest on a certain date. For ex- gress to accept his plan ofrepaying the na- ample, if a person pays $100 for a bond, the tional debt. government agrees to pay back $100 plus in- As a southerner, James Madison also led terest in five or ten years. the fight against the other part of Hamilton's By 1789, most southern states had paid plan. It called for the federal government to off their debts from the Revolution. Other pay state debts. Many southern states had states and the federal government had not. already paid their own debts in full. They
174 * Chapter 7 I thought other states should do the same. As facturing a boost. He proposed that Congress a result, southerners bitterly opposed Hamil- pass a tariff, or tax, on all foreign goods ton's proposal. brought into the country. Hamilton called for Hamilton's compromise a very high tariff. He wanted to make im- ported goods more expensive to buy than To win support for his plan, Hamilton goods made in the United States. Because suggested a compromise. He knew that many such a tariff was meant to protect American southerners wanted to move the nation's cap- industry from foreign competition, was ital to the South. He offered to persuade his it called aprotective tariff. northern friends to vote for a capital in the In the North, where factories were grow- South if southerners supported the repay- ing, many people supported Hamilton's plan. ment of state debts. Southern farmers, however, bought more im- Madison and other southerners accepted ported goods than northerners did. They did this compromise. In July 1790, Congress not want a protective tariff that would make passed bills taking over state debts and pro- these goods more expensive. viding for a new capital city. The capital would not be part of any state. Instead, it would be built on land along Money Problems of the the Potomac River between Virginia and llew llation, 1789-1791 Maryland. Congress called this area the District of Columbia. It is known today as Washington, D.C. Congress hoped that the Amount Owed new capital would be ready by 1800. Mean-
I while, the nation's capitai was moved from t"_ New York to Philadelphia. $77,228,000 $4,399,000 debt from tariffs Building Up the Bconomy Hamilton's compromise with the South had resolved the problem of the national debt. Now he took steps to build up the new nation's economy. $4,269,000 I $19,ooo A national bank to run I from other government I rorr""t Hamilton called on Congress to set up a rl national bank. In 1791, Congress passed a I bill creating the first Bank of the United @-l government States. The national deposited Total: $81 ,497,000 Total: $4,418,000 the money it collected in taxes in the Bank. The Bank, in turn, issued paper money. The Source: Historlcal Statistics of the United States government used the paper money to make Graph, loans to farmers and businesses. By making SAilo As Secretary of the loans to citizens, the Bank encouraged the Treasury, Alexander Hamilton sought ways growth of the economy. for the government to meet its expenses. The Bank also used the paper money to l. Gomprehension What was the pay government bills. The new government government's total income beiween 1789 had many expenses. had to pay its em- It and 1791? ployees, build the new capital, and keep up 2. Critical According to the the army and navy. Thinking graph, if the national debt was paid, Protecting Amerlcan industry would there be enough money to Another part of Hamilton's economic pro- run the government? Explain. gram was designed to give American manu- ffi Chapter 7 * 175 In the end, Congress did pass a tariff bill. 56 Some chaps whom freedom's However, its purpose was to raise money for spirit warms operating the government, rather than pro- Are threatening hard to take up tect American industries. For this reason, it arms.... was much lower than the protective tariff Their liberty they will maintain, called for by Hamilton. They fought for't, and they'll fight again.)) The Whiskey Rebellion In 1794, officials in western Pennsylva- Congress also passed a bill that taxed all nia tried to collect the tax. Farmers rebelled. liquor made and sold in the United States. Soon, thousands were marching through Hamilton wanted this tax to raise money for Pittsburgh. They sang Revolutionary songs the Tfeasury. Instead, the whiskey tax ]ed to and tarred and feathered tax officials. a rebellion that tested the strength of the new government. A show of strength Washington responded quickly to this A hated tax challenge to authority. He called up the mili- Like many other Americans, farmers in tia and sent them to Pennsylvania. When the the backcountry grew corn. However, corn rebels heard that 15,000 troops were march- was bulky to haul over rough backcountry ing against them, they scattered. Washington roads. Instead, farmers converted their corn later pardoned the leaders of the rebellion. into whiskey, which they could easily ship in The Whiskey Rebellion was a critical barrels to markets in the East. test of the strength of the new government. Backcountry farmers protested the whis- Washington had shown those who disagreed key tax. They compared it to the hated taxes with the government that violence would not Britain had forced on the colonies in the be tolerated. The President's quick response 1760s. Many farmers refused to pay the tax. proved to Americans that their new govern- A backcountry poet wrote: ment would act firmly in times of crisis.
Recall (b) Why did James Madison oppose Hamilton's repayment plan? 1. Identify (a) Judiciary Act, (b) District of Columbia, (c) Bank of the United States, 5. Describe two proposals Hamilton made to raise (d) Whiskey Rebellion. money for the new government. 2. Define (a) inauguration, (b) precedent, Gritical Thinking and Writing (c) Cabinet, (d) nationaldebt, (e) bond, By late 1990s, (0 speculator, (g) tariff, (h) protective tariff. 6. Linking Past and Present the the Cabinet included the heads of '13 separate Gomprehension departments. Why do you think the Cabinet has grown so much since Washington's time? 3. Describe one precedent that George Washington set for future governments of the United States. 7. Forecasting What do you think might have happened if 4. (a) Why did Alexander Hamilton think it was Washington had not taken strong put important to pay off government bonds? action to down the Whiskey Rebellion? * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ************
ACtivity Acting a Scene The year is '1789. Your family owns govern- ment bonds, but you are not sure whether the bonds will be repaid at full value. With a padner, act out a scene between two members of the family. Discuss whether you should hold onto the bonds or sell them to a speculator.
Chapter 7 * 177 Explore _____N These Questions Define ldentify o How did political differences o faction o Democratic lo, \ Iead to the rise of two o unconstitutional Republicans lyoo \ political parties? o Federalists o What role did newspapers I nead / play in politics? \/ o How did the election of 1796 increase political tensions?
EETMC When President Washington The two men differed in background, looks, took office in 1789, the United and personality as well as in politics. Born in Jnrt+,n States had no political parties. the West Indies, Hamilton had worked his In fact, most American ieaders opposed the way up from poverty. He dressed in fine very idea of forming parties. "If I could not go clothes and spoke forcefuily. Energetic, bril- to heaven but with aparty," said Thomas Jef- Iiant, and restless, Hamilton enjoyed politi- ferson, "I would not go at all." cal debate. [* Still, deep divisions began to form in the Jefferson was tall and lanky. Although he Cabinet and Congress. Jefferson described was a wealthy Virginia planter, he dressed the unpleasant mood: and spoke informally. One senator recalled:
55 Men who have been [friends] 55 His clothes seem too small for aII their lives cross streets to avoid him. He sits in a lounging manner, meeting, and turn their heads on one hip commonl;i, and with one another way, lest they should be of his shoulders elevated much obliged to touch their hats. !t above the other. His face has a sunny aspect. His whole frgure has a By the time Washington left office inl797 , there were two parties competing for power. Ioose, shackling air.... He spoke al- most without ceasing. [His conversa- A Distrust of Political Parties tionl was loose and rambling; and yet he scattered information wherev- Americans had reason to distrust politi- er he went. !t cal parties. They had seen how factions, or opposing groups within parties, worked in Britain. British factions were made up of a Differing Views few people who schemed to win favors from Alexander Hamilton did not agree with the government. Most were more interested Thomas Jefferson on many issues. At the in personal gain than in the public good. root of their quarrels were different views Americans political parties as a also saw about what was best for the young United threat to national unity. They agreed with States. George Washington, who warned Americans that parties would lead to "jealousies and Manufacturing or falming false alarms." First, Hamilton and Jefferson disagreed Despite the President's warning, parties about economic policy. Hamilton thought the grew up around two members of his Cabinet, United States should model itself on Britain. Alexander Hamilton and Thomas Jefferson. He felt the government should encourage
Chapter 7 * 181 ,..:
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rwo views of the Nation \/t6ffi#uJjlqlllJ Federatists and Repubticans disagreed. Shoutd the new nation build its future mainly on agriculture or on manufacturing? The farmer, above, and the ironworker, right, represent these two viewpoints. * Which of these pictures represents Hamilton's view? Which picture represents Jefferson's view?
manufacturing and trade. He also favored pleased. Jefferson feared that a strong fed- the growth of cities and the merchant class eral government might take over powers that who helped make cities prosperous. the Constitution gave to the states. Jefferson believed that farmers, rather loose '=) than merchants, were the backbone of the Strict or interpretation new nation. "Cultivators of the earth," he of the Constitution wrote, "are the most valuable citizens." He These disagreements led the two leaders feared that a manufacturing economy would to clash over the Bank of the United States. corrupt the United States by concentrating Jefferson worried that a national bank would pqwer in the hands of a small group of give too much power to the federal govern- wealthy Americans. ment and the wealthy investors who helped run it. Federal or state governments To oppose Hamilton's proposal, Jefferson Hamilton and Jefferson disagreed about argued that the law creating the bank was the power of the federal government. Hamil- unconstitutional, that is, not permitted by ton wanted the federal government to have the Constitution. Nowhere did the Constitu- greater power than state governments. A tion give Congress the power to create a strong federal government, he argued, could Bank, he argued. Jefferson thought that any encourage the growth of commerce. It would power not specifically given to the federal also have the power needed to restrain un- government belonged to the states. ruly mobs, such as the protesters who led the Hamilton did not agree with Jefferson's Whiskey Rebellion. strict interpretation of the Constitution. He In contrast, Jefferson hoped to make the preferred a looser interpretation. The Con- government as small as possible. Then, citi- stitution gave Congress the power to make {n, zens would have the freedom to act as they all laws "necessary and proper" to carry out
182 * Chapter 7 Federa[i$ts w$" ffiepublleams
i Led by Alexander Hamilton €) Led by Thomas Jefferson Wealthy and welleducated should ,4, People potiticalpower lead nation $ should have
p Strong central government @ Strong state governments
Emphasis on manufacturing, shipping, u Emphasis on agriculture and trade @
@ Strict inierpretation of the Constitution
,$,: Favored protective tariff €. Opposed protective tariff
Sraphic llrganiae* Sdrltr By the 1790s, there were two political parties in the United States-the Federalist party and the Republican party. {. Gomprehenslom Describe two ways the Republicans and Federalists differed on economic issues. E" Critieal ThEmking "The average person is far too ignorant to make wise political decisions." Do you think a Republican or a Federalist would bqmore likely to agree with this statement? Explain. (,6
its duties. Hamilton argued that the Bank its wildlife. In fact, Jefferson was interested was nei:essary for the government to collect in nature and did travel far into upstate New taxes and paSits bills. -/ork. Their main purpose, though, was to meet with important New York politicians Britain or France like Governor George Clinton and Aaron Finally, leaders for- the two clashed over Burr, a strong critic of Hamilton. Jefferson eign policy. Hamilton wanted to form close asked Clinton and Burr to help defeat ties an important part- with Britain, trading Hamilton's program by getting New Yorkers ner. Jefferson favored France, the frrst ally of to vote for Jefferson supporters. the United States and a nation struggling for its own liberty. Republicans and Federalists Soon, leaders in other states began orga- Party Rivalry nizing to support either Hamilton or Jeffer- son. Jefferson's supporters called themselves At first, Hamilton and Jefferson clashed Democratic Republicans, often shortened in private. However, when Congress began to to Republicans.* Republicans included small pass many of Hamilton's programs, Jefferson farmers, craftworkers, and some wealthy and James Madison decided to organize pub- planters. lic support for their views. Madison and Jefferson moved cautiously *Jefferson's Republican party was not the same as today's at first. In 1791, they went to New York, Republican party. ln fact, his party later grew into the Democra- telling people that they were going to study tic party.
184 * Chapter 7 Hargilton and his supporters were called against opponents. Often, articles mixed ru- Federalists because they wanted a strong mor and opinion with facts. Emotional at- federal government. Federalists drew most tacks and counterattacks fanned the flames of their support from merchants and manu- of party rivalry. Still, newspapers performed facturers in cities such as Boston and New a needed service. They kept people informed York. They also gained the backing of some and helped shape public opinion. southern planters. Newspapers take sides Election of 1796 In the late 1700s, the number of Ameri- Political parties played a major role in can newspapers more than doubled. This the election of George Washington's succes- growth met a demand for information. Avis- sor. In L796, Republicans backed Thomas itor from Europe noted with surprise that so Jefferson for President and Aaron Burr for many Americans could read: Vice President. Federalists supported John Adams for President and Thomas Pinckney 55 The common people [in the Unit- for Vice President. ed Statesl are on a footing, in point The election had an unexpected outcome, of literature with the middle ranks which created new tensions. Under the Con- of Europe. They all read and write, stitution, the person with the most electoral and understand arithmetic; almost votes became President. The person with the every little town now furnishes a next highest total was made Vice President. circulating library. t! JohnAdams, a Federalist, won office as Pres- As party rivalry grew, newspapers took ident. The leader of the Republicans, Thomas sides. In the Gazette of the United States, Jefferson, came in second and became Vice publisher John Fenno printed articles in fa- President. vor ofAlexander Hamilton and the Federal- With the President and the Vice Presi- ists. Philip Freneau (frih Nott), a friend of dent from different parties, political tensions Thomas Jefferson, started a rival paper, the remained high. Future events would further National Gazette. Freneau vigorously sup- increase the distrust between the two men. ported Republicans. Meanwhile, JohnAdams took office in March Newspapers had great influence on pub- 1797 as the second President of the United Iic opinion. In stinging language, they raged States.
Recall 5. What role did parties play in the 1796 election? 1. ldentify (a) Democratic Republicans, Gritical Thinking and Writing (b) Federalists. 6. Drawing Conclusions Why do you think 2. Define (a) faction, (b) unconstitutional*- political parties emerged even though most Gomprehension Americans opposed them? 3. Describe two issues on which Thomas Jefferson 7. Ranking Which of the disagreements you and Alexander Hamilton disagreed. between Jefferson and Hamilton do think was the most serious? Explain. 4. How did newspapers contribute to the rivalry between political parties? ************* * * * * * * * * * * * * * * * * * * * * * * * ************
ACtivity Writing a Newspaper Headline You are the publisher of either lhe Gazette of the United States or the National Gazette. Write three head- lines about the election of 1796. Be sure your headlines express the point of view of your own newspaper.
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