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Compare the
Federalist, Republican, and
Democratic Eras
p. 168-169 Hamilton and the Federalists
p. 169-170 Enacting the Federalist Program
p.154 Indians and Western Lands
p. 173-174 Jay’s Treaty and Pinckney’s Treaty
p. 170-171 The Republican Opposition
p. 198 Dollars and Ships
p. 206-208 The “Indian Problem” and the British
p. 209 Battles with the Tribes
p. 200-202 Jefferson and Napoleon and the Louisiana Purchase
p. 208 Florida and War Fever
p. 226 John Quincy Adams and Florida
p. 205 Peaceable Coercion
p. 209-213 Battles with the British and the Peace Settlement
p. 236-238 The Expanding Electorate
p. 245-247 The Five Civilized Tribes
p. 248-249 Jackson and the Bank War
I. Leadership
                A. Federalist Party founder:
                    Alexander Hamilton


                         B. Elitist
                                                      1. National
                    C. Planning policy
                                               2. British “Prime Minister”
                                                          model
A. Bank of the United
II. Economic Policy          States

                        B. National Debt      1. Customs duties

                          C. Central
                                               2. Internal taxes
                      Government revenue

                                                3. Land sales

                                              1. Favored national
                      D. Government role          mercantilism
                        in the economy        2. Except favored
                                              trade with Britain
III. Indian Policy
                     A. War – Battle of
                      Fallen Timbers
                      B. Treaty line –
                     Greenville Treaty
IV. Foreign Policy

                                                 Opened current territory:
                      A. Against expansion
                                                    Pinckney Treaty


                                                  1. Resuming full trade
                     B. Relations with Britain
                                                      2. Jay Treaty
I. Leadership
                  A. Republican Party
                founder: James Madison


                 B. “Gentlemen” style
                                         1. Diversity/states
                  C. Planning policy
                                            2. Congress
1. State banks
                           A. Banking
II. Economic Policy                           2. Mixed support of B.
                                                     of U.S.
                       B. Lowers national
                             debt
                                                1. Customs duties

                      C. Central government   2. Phase out internal
                            revenue                  taxes

                                                  3. Land sales

                                              1. Federal and foreign
                                              commerce: capitalism
                      D. Government role in
                          the economy
                                              2. State mercantilism
III. Indian Policy
                       A. Welcoming Indians
                     into the American nation

                       B. Indian “treaties”

                     C. Expansion into Indian
                            territory
                                                1. Tecumseh
                             D. War
                                                 2. Creeks
1. Jefferson:
                                         Louisiana Purchase
IV. Foreign Policy
                       A. Favored         2. Madison: West
                       expansion               Florida
                                         3. James Monroe:
                                              Florida

                                            1. Embargo
                     B. Relations with
                          Britain
                                           2. War of 1812
I. Leadership
                   A. Democratic party
                founder: Andrew Jackson

                                              1. diversity/states
                B. Democratic/demagogic


                   C. Planning policy        2. Mostly congress:
                                          executive branch free from
                                                 power limits
1. State banks
                             A. Banking
II. Economic Policy                               2. Bank war – ends B. of
                                                           U.S.
                      B. Lowers and temporarily
                        ends the national debt
                                                     1. Customs duties


                       C. Central government
                                                    2. No internal taxes
                             revenue


                                                  3. Phase out land sales


                                                   1. Federal and foreign
                                                   commerce: capitalism
                      D. Government role in the
                             economy
                                                   2. State mercantilism
III. Indian policy
       removal
IV. Foreign Policy
                          expansion


                           A. Texas


                       B. Polk: Oregon

                     C. Polk: Mexican War
                     and Mexican Cession
Compare the
Federalist, Republican, an
d Democratic Eras
FEDERALIST PARTY OVERVIEW
•   1790-1816 (ish) remnants lasting into the 1820’s))
•   First American political party
•   Supporters were largely urban bankers, businessmen
•   Platform:
     • Fiscally sound and nationalistic government
     • Creation of a national bank
     • High tariffs
     • Good relations with Britain
•   Presidents: John Adams (George Washington was sympathetic to the Federalist program
    but remained independent)
•   Party comes to an end during the Era of Good Feelings 1815-1825 (ish)
ALEXANDER HAMILTON
ELITIST
• Very aristocratic in personal tastes and political
  philosophy
   • (ironic…)
• Believed a stable and effective government required an
  enlightened ruling class
• Government needed the support of the wealthy and
  powerful and to get that support the elites needed to be
  given a stake in its success
   • Investing…
PLANNING POLICY:
NATIONAL
• Government needs to buy up/assume the debts of the
  states and pay them off in full to show the strength of
  the new government
PLANNING POLICY
BRITISH “PRIME MINISTER” MODEL
• Thought the government of England was the best in the
  world
• Considered his position of Secretary of Treasury as
  equal to that of Prime Minister under the British model
BANK OF THE UNITED STATES
• A national bank would help fill the void that existed in the United
  States with only a few principle banks in Boston and Philadelphia and
  New York
• Bank could provide loans and currency to businesses
• Bank could provide the government a safe place to deposit federal
  funds
• Bank could help collect taxes and disburse expenditures
• Bank could provide stability to a currently weak system
• If the U.S. government is to assume the debts of the states it would
  mean a need for an increase in revenue because the government
  would not have to pay interest on the loans (bonds) that it was taking
  on
BANK OF THE UNITED STATES
• The government would use these loans to pay on the debts
• Those loans (bonds) would then have to be paid back to the individual citizen
  who loaned the money to the government, plus interest
• Hamilton proposed two new taxes for this increase in revenue
    • 1. an excise tax on whiskey distillers
         • This would mainly impact back country farmers from PA to VA who
           used part of their crop (corn and rye) for whiskey
    • 2. a tariff on imports
         • This would protect American manufacturing from foreign countries
NATIONAL DEBT
• Proposal that the new government take responsibility for the
  existing public debt
• Old bonds and certificates issued by the “old” congress (Articles
  of Confed.) were now in the hands of the wealthy speculators
• Hamilton never really wanted to pay off the debt, rather continue
  to issue new bonds as old bonds were paid
    • The money from the new bonds would come from wealthy
      investors, thus ensuring their stake in the success of the
      government
CENTRAL GOVERNMENT REVENUE:
CUSTOMS DUTIES
• Tariffs on imports
• Rate increase was lower than Hamilton would have
  liked
CENTRAL GOVERNMENT REVENUE:
INTERNAL TAXES
• New proposal from Hamilton: tax on whiskey
   • Leads to Whiskey Rebellion
• Big issue over internal taxes is why should some states (citizens
  in those states like Virginia) pay equally in taxes even though
  their state debt was lower than other states (like Massachusetts)
• That matter is solved when Hamilton agreed to a new location
  for the national capitol on the Potomac River
   • Land donated by George Washington known as “Foggy
     Bottom”
CENTRAL GOVERNMENT REVENUE:
LAND SALES
• Primarily the only form of revenue the nation had
• Sales of land in the “west”
   • Actually it was land easy of the Mississippi R.
     acquired after the Revolutionary War
GOVERNMENT ROLE IN THE ECONOMY:
FAVORED NATIONAL MERCANTILISM
• The elite wealthy merchants have become more
  wealthy
• Followed the system in England
GOVERNMENT ROLE IN THE ECONOMY:
FAVORED TRADE WITH BRITAIN
• Believed England should be the biggest trade partner
  with the United States
BATTLE OF FALLEN TIMBERS
• General Anthony “Mad Anthony” Wayne lead a group of 4,000 soldiers into
  the Ohio Valley and defeated the Miami Indians led by Little Turtle
• This victory secured negotiations with the tribe and opened up the western
  portion of Ohio for white settlement
GREENVILLE TREATY
• Miami Indians are permitted to keep their claim to territory
• White settlement in the new northwest was opened
• Effect was that the United States affirmed that Indian lands
  could only be ceded by the tribes themselves
PINCKNEY TREATY
• Settled any conflict with Spain in North America
   • Spain thought the U.S. and England might join together to
     challenge Spanish possessions
   • 1. Spain recognizes the right of Americans to navigate the
     Mississippi River to its mouth and deposit goods at New
     Orleans for reloading and ocean-going ships
   • 2. fixed the northern boundary of Florida along the 31 st
     parallel (map)
   • 3. required Spanish authorities to prevent Native Americans
     from launching raids across the border
JAY TREATY
• John Jay was instructed to:
• 1. secure compensation for the British assaults on American
  shipping
• 2. demand withdrawal of British forces from the frontier posts
• 3. negotiate new commercial treaty
• The “Jay Treaty” failed to meet any of these goals, however it
  did do the following:
• 1. settled conflict with Britain and prevented a likely war
• 2. established American sovereignty over the Northwest
• 3. produced a satisfactory commercial relationship with Britain
• When terms became public in America it was bitterly opposed
  as it failed to secure concrete promises from England
DEMOCRATIC-REPUBLICAN PARTY OVERVIEW
(REPUBLICAN ERA)
• Founded in early 1790’s by James Madison and Thomas Jefferson
    • Formed first in Congress and then in every state to contest elections and
      oppose programs of Alexander Hamilton
• Supporters were strongest in the south
• Platform:
    • Favored states’ rights; farmers/planters over bankers/industrialists
    • Foreign policy: opposed Jay Treaty, supported good relations with
      France (until 1799)
    • Domestic policy: denounced the National Bank, opposed proposals that
      would give the federal government too much power
• Presidents: Thomas Jefferson, James Madison, James Monroe
• Party splits in 1824 with supporters of Andrew Jackson forming the
  “democratic party”; the other faction supported John Quincy Adams formed
  the “republican party” later becoming the Whig party
JAMES MADISON
• Federalist #10: (Madison writes…) “…measures are too often
  decided, not according to the rules of justice and the rights of the minor
  party, but by the superior force of an interested and overbearing
  majority.”
• Like George Washington, Madison was against political parties
    • Thought they would only tear a nation apart
• Disagreement on issues was inevitable, but should not lead to the
  formation of permanent factions
    • “the public good is disregarded in the conflicts of rival parties”
• Because Madison (and Jefferson, et. al.) were convinced that Hamilton
  and his elites had created an “overbearing majority” there was no other
  alternative than to create a vigorous opposition to the Federalists
    • This “Republican” party is NOT the ancestor to the current party
    • That is the republican party of 1850 and Abraham Lincoln (former northern
DIVERSITY/STATES
• Voted against the Alien and Sedition Acts
• Refused to convict anyone of violating the Alien and Sedition Acts
CONGRESS
• Major cases during the majority controlled Democratic-Republican party:
    • McCulloch v. Maryland
    • Missouri Compromise
    • Spain’s cession of Florida to the U.S.
    • Strict construction of the Constitution
BANKING:
STATE BANKS
• Supported state’s rights, especially with money
• Considered Hamilton’s, National Bank, plan
  unconstitutional
BANKING:
MIXED SUPPORT OF BANK OF U.S.
• Most were against the bank as it was deemed
  unconstitutional in their “strict” constructionist beliefs
   • Strict construction: congress (ie gov’t.) can only do what the
     Constitutional specifically says it can do
   • Loose construction: congress (ie gov’t.) has specific and implied powers
     given to it by the Constitution (“necessary and proper”)

• 1811, Jefferson and his party let the charter on the
  National Bank run out, refused to re-new the charter
LOWERS NATIONAL DEBT
• Unable to completely disovle the national debt
• Jefferson and his administration did cut it in half from
  $83 million to $45 million
CUSTOMS DUTIES
• Source of revenue continues for the government
PHASES OUT INTERNAL TAXES
• Congress was persuaded to eliminate all internal taxes in 1802
   • Whiskey tax, etc
LAND SALES
• Another source of
  revenue that continued
  under Jefferson
• Western land sales
(1802 “western” was
still east of the Mississippi
    River)
FEDERAL AND FOREIGN COMMERCE:
CAPITALISM
• Viewed capitalism and the economy of England as wrong as it
  constantly sought to make a profit off of members of society
   • Capitalism is “wrong” because it takes an item, places it on
     the open market for sale at a price higher than what its
     actual value was
• Favored an agrarian society overall (subsistence farming)


• Did support small business but not large scale manufacturing as
  Hamilton had proposed
STATE MERCANTILISM
• Let the state governments decide on limits
   • (there is really nothing else to be found on Jefferson’s views of mercantilism, so
     sources “assume” he was opposed; there are some sources that say he favored
     it)
   • (you have to look at other decisions he made and other remarks given on the
     topic of the economy and then eventually decide for yourself…)
WELCOMING INDIANS…
• Gave Native Americans two options:
    • 1. become settled farmers and assimilate into white society
    • 2. migrate to the west of the Mississippi River
• Either option would require that they give up their tribal land
  claims
INDIAN “TREATIES”
• By 1807 the U.S.
  had treaties with
  Native Americans
  in eastern
  Michigan, southern
  Indiana and most
  of Illinois
EXPANSION INTO INDIAN TERRITORY
• White settlers began moving into Native American territory in the
  southwest U.S.
    • Georgia, Tennessee, Mississippi
• Resistance was useless (“resistance is futile”)
    • Tribes were acting separately from one another rather than
      one body
TECUMSEH
• Attempted to unite the tribes of the Midwest against the U.S.
    • Claimed that lands taken by the U.S. in individual treaties with individual
      tribes was not legitimate as the land belonged to all tribes, not just one
• Battle of Tippecanoe – resulted in a disarray of Indian confederacy and the
  destruction of “Prophetstown” (Nov. 7, 1811…New Madrid Earthquake Dec. 11, 1811
   anniversary anyone?)
    • Prophet: Tecumseh’s brother and tribal religious leader
• British help the Shawnees with supplies, ammunition, weapons
    • Tecumseh dies at the Battle of the Thames as a Brigadier General for the
      British army, War of 1812
CREEKS
• Spanish supplying Creeks with weapons, ammunition (so much
  for the Pinckney treaty!)
• Gen. Andrew Jackson and his men slaughter Creek
  men, women and children at the Battle of Horseshoe Bend as a
  revenge for Creek attacks on white settlers in Florida
FAVORED EXPANSION (JEFFERSON)
• Misleading, because at first he did not
   • As a strict constructionist (view) of the
     Constitution, he could only do what the Constitution
     gave him explicit power to do
LOUISIANA PURCHASE
• Was unsure if he, as President, could sign a treaty purchasing
  the land from France
• The “treaty making” provision in the Constitution was used to
  justify the acquisition
• Article I, Section 8, Clause 18:
    • To make all Laws which shall be necessary and proper for carrying into
      Execution the foregoing Powers, and all other Powers vested by this
      Constitution in the Government of the United States, or in any
      Department or Officer thereof.
MADISON: WEST FLORIDA
• Wanted the land for future settlement for white
  Americans
• Rivers ran through the land provided access to the Gulf
  of Mexico
JAMES MONROE: FLORIDA
• Using Andrew Jackson’s raids on Native American in Florida
  (Seminole War), Monroe sent the message to Spain that the
  U.S. could take Florida by force if they wanted
• Spain signed the Adams-Onis Treaty ceding all of Florida to the
  U.S. (expansion policy???)
EMBARGO
• Prohibited trade with England 1811, as long as England
  enforced its blockade of Europe, mainly Spain
• The embargo worked!
• England removed the blockade but it came too late as war was
  imminent with England
WAR OF 1812
• Early in the war England was focused on defeating Napoleon (France) and
  Spain and did not send vast amounts of men to the U.S.
    • Once Napoleon was defeated England turned its full attention to America
    • British troops burn many important buildings in the capitol including the
      White House in retaliation for the burning of the Candadian capital at
      York
        (Dolly Madison is given credit for saving many portraits, including that   of
    George Washington)
• Fort McHenry was blockaded against the British with several old ships sunk
  in the Harbor
    • It was on a British ship – used as a prison – that Francis Scott Key wrote
      the poem, “The Star Spangled Banner” the morning following the battle
• British are turned back at the large Battle of Plattsburg
WAR OF 1812
• In New Orleans, Andrew Jackson and 1000 men stand against
  several waves of British attacks
   • The British finally leave with American casualties of only 8
     dead and 13 wounded
• Treaty of Ghent (Belgium) ends the war
   • Several treaties follow which allow for continued trade with
     England
DEMOCRAT PARTY OVERVIEW
(DEMOCRAT ERA)

•   Originally part of the Anti-Federalist group that formed the Democrat-Republican
    party under James Madison and Thomas Jefferson
•   After the War of 1812 the party split – those who favored the Jeffersonian style
    (Andrew Jackson, Martin VanBuren) created the Democrat party
     •   Their main opponent was the Whig party, which faded into almost non-existence over the
         slavery issue after the Mexican-American War.
     •   Anti-Slavery Democrats split from the Democrat party and joined the Whigs, forming the
         Republican party
•   Democrats split again, but not one that divided the party – merely a split over
    ideological issues          (slavery, civil war, successor to Pres. James Buchanon)
     • Northern Democrats split even further (War Dem.’s vs. Peace Dem.’s)
     • The Confederate States of America saw political parties as evil and did not have
       any in their “government”
DEMOCRATIC/DEMAGOGIC
•   (Formed from the split in the Democrat-Republican party)
     • (Republican arm becomes the “Whigs”)

• Andrew Jackson promises to make the government a
  government of all the people not just the aristocracy
• More voters than ever before
     • Land owning/tax paying requirements dropped to allow more
       white men the right to vote
     • Equal protection and equal benefits to all white make
       citizens
DIVERSITY/STATES
• Reduce the power of the federal government, but also believed
  in forceful presidential leadership
• Believed in state’s rights but vetoed the right of states to nullify
  federal laws (Nullification Crisis)
STATE BANKS
• Under retraining effect of the National Bank
• Wanted more money in circulation
BANK WAR
• Completely opposed to any institution that gave credence to the
  aristocracy – the bank was a symbol of power of the elite
• Jackson favors “soft money” supporters – more in circulation
  and declares he will not renew the charter in 1836
   • Soft money: paper money which hold little or not value but
     represents some sort of accepted value
   • Hard money: gold or silver
NATIONAL DEBT
• Paid off the entire national debt
• First and only time in history this has been done
• Short lived due to the economic depression of
  1837
CUSTOMS DUTIES
• Lowered tariffs, but not enough for some southern
  states
• The states nullified the tariff and demanded an even
  lower tariff policy
• Jackson threatened them with treason
• Tariffs helped pay off the national debt
NO INTERNAL TAXES
• Kept taxes low
• Believed it was the government’s way of keeping the
  people bound under the need for a National Bank
PHASES OUT LAND SALES
• Land sales helped pay off the national debt
• Many speculators and businessmen were buying
  government land with paper money which did not have
  the same value as coin money
CAPITALISM
• Like Jefferson, sided with agrarian over manufacturing
STATE MERCANTILISM
• Part of closing the national bank was to get the states
  more power in controlling their economies
REMOVAL
• Removal Act of 1830: forced evacuation of several
  tribes in the south (west) U.S. to west of the Mississippi
  River
   • Trail of Tears (The Trail Where they Cried)
   • Five “civilized” tribes: Choctaw, Chickasaw, Creek,
     Cherokee, Seminole
       • Seminole resisted more than the others and was
         more successful as they hid in the everglades of
         southern Florida
TEXAS
• Jackson refused Texas’s request for annexation as it
  would split the democratic party over the issue of
  slavery
• The issue came to light in the 1844 presidential election
• James K. Polk used the annexation of the Oregon
  Territory as a compromise and excuse to annex the
  Texas territory
OREGON (POLK)
• Keep the northern, anti-slave voters happy by allowing
  them to occupy the territory, free from slavery
MEXICAN WAR, MEXICAN CESSION
• Successes in battle during the Mexican-American War allowed
  for the suggestion an annexation of “All Mexico”, the entire
  country, to avoid future conflict
• This would mean giving citizenship and rights to a group of
  people who did not necessarily want to become American
• The Mexican Cession ended the “All Mexico” talks by annexing
  southern California and New Mexico

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American History I (DE) Unit 8 federalis, Republican and Democratic eras

  • 2. p. 168-169 Hamilton and the Federalists p. 169-170 Enacting the Federalist Program p.154 Indians and Western Lands p. 173-174 Jay’s Treaty and Pinckney’s Treaty p. 170-171 The Republican Opposition p. 198 Dollars and Ships p. 206-208 The “Indian Problem” and the British p. 209 Battles with the Tribes
  • 3. p. 200-202 Jefferson and Napoleon and the Louisiana Purchase p. 208 Florida and War Fever p. 226 John Quincy Adams and Florida p. 205 Peaceable Coercion p. 209-213 Battles with the British and the Peace Settlement p. 236-238 The Expanding Electorate p. 245-247 The Five Civilized Tribes p. 248-249 Jackson and the Bank War
  • 4. I. Leadership A. Federalist Party founder: Alexander Hamilton B. Elitist 1. National C. Planning policy 2. British “Prime Minister” model
  • 5. A. Bank of the United II. Economic Policy States B. National Debt 1. Customs duties C. Central 2. Internal taxes Government revenue 3. Land sales 1. Favored national D. Government role mercantilism in the economy 2. Except favored trade with Britain
  • 6. III. Indian Policy A. War – Battle of Fallen Timbers B. Treaty line – Greenville Treaty
  • 7. IV. Foreign Policy Opened current territory: A. Against expansion Pinckney Treaty 1. Resuming full trade B. Relations with Britain 2. Jay Treaty
  • 8. I. Leadership A. Republican Party founder: James Madison B. “Gentlemen” style 1. Diversity/states C. Planning policy 2. Congress
  • 9. 1. State banks A. Banking II. Economic Policy 2. Mixed support of B. of U.S. B. Lowers national debt 1. Customs duties C. Central government 2. Phase out internal revenue taxes 3. Land sales 1. Federal and foreign commerce: capitalism D. Government role in the economy 2. State mercantilism
  • 10. III. Indian Policy A. Welcoming Indians into the American nation B. Indian “treaties” C. Expansion into Indian territory 1. Tecumseh D. War 2. Creeks
  • 11. 1. Jefferson: Louisiana Purchase IV. Foreign Policy A. Favored 2. Madison: West expansion Florida 3. James Monroe: Florida 1. Embargo B. Relations with Britain 2. War of 1812
  • 12. I. Leadership A. Democratic party founder: Andrew Jackson 1. diversity/states B. Democratic/demagogic C. Planning policy 2. Mostly congress: executive branch free from power limits
  • 13. 1. State banks A. Banking II. Economic Policy 2. Bank war – ends B. of U.S. B. Lowers and temporarily ends the national debt 1. Customs duties C. Central government 2. No internal taxes revenue 3. Phase out land sales 1. Federal and foreign commerce: capitalism D. Government role in the economy 2. State mercantilism
  • 15. IV. Foreign Policy expansion A. Texas B. Polk: Oregon C. Polk: Mexican War and Mexican Cession
  • 16. Compare the Federalist, Republican, an d Democratic Eras
  • 17.
  • 18. FEDERALIST PARTY OVERVIEW • 1790-1816 (ish) remnants lasting into the 1820’s)) • First American political party • Supporters were largely urban bankers, businessmen • Platform: • Fiscally sound and nationalistic government • Creation of a national bank • High tariffs • Good relations with Britain • Presidents: John Adams (George Washington was sympathetic to the Federalist program but remained independent) • Party comes to an end during the Era of Good Feelings 1815-1825 (ish)
  • 19. ALEXANDER HAMILTON ELITIST • Very aristocratic in personal tastes and political philosophy • (ironic…) • Believed a stable and effective government required an enlightened ruling class • Government needed the support of the wealthy and powerful and to get that support the elites needed to be given a stake in its success • Investing…
  • 20. PLANNING POLICY: NATIONAL • Government needs to buy up/assume the debts of the states and pay them off in full to show the strength of the new government
  • 21. PLANNING POLICY BRITISH “PRIME MINISTER” MODEL • Thought the government of England was the best in the world • Considered his position of Secretary of Treasury as equal to that of Prime Minister under the British model
  • 22. BANK OF THE UNITED STATES • A national bank would help fill the void that existed in the United States with only a few principle banks in Boston and Philadelphia and New York • Bank could provide loans and currency to businesses • Bank could provide the government a safe place to deposit federal funds • Bank could help collect taxes and disburse expenditures • Bank could provide stability to a currently weak system • If the U.S. government is to assume the debts of the states it would mean a need for an increase in revenue because the government would not have to pay interest on the loans (bonds) that it was taking on
  • 23. BANK OF THE UNITED STATES • The government would use these loans to pay on the debts • Those loans (bonds) would then have to be paid back to the individual citizen who loaned the money to the government, plus interest • Hamilton proposed two new taxes for this increase in revenue • 1. an excise tax on whiskey distillers • This would mainly impact back country farmers from PA to VA who used part of their crop (corn and rye) for whiskey • 2. a tariff on imports • This would protect American manufacturing from foreign countries
  • 24. NATIONAL DEBT • Proposal that the new government take responsibility for the existing public debt • Old bonds and certificates issued by the “old” congress (Articles of Confed.) were now in the hands of the wealthy speculators • Hamilton never really wanted to pay off the debt, rather continue to issue new bonds as old bonds were paid • The money from the new bonds would come from wealthy investors, thus ensuring their stake in the success of the government
  • 25. CENTRAL GOVERNMENT REVENUE: CUSTOMS DUTIES • Tariffs on imports • Rate increase was lower than Hamilton would have liked
  • 26. CENTRAL GOVERNMENT REVENUE: INTERNAL TAXES • New proposal from Hamilton: tax on whiskey • Leads to Whiskey Rebellion • Big issue over internal taxes is why should some states (citizens in those states like Virginia) pay equally in taxes even though their state debt was lower than other states (like Massachusetts) • That matter is solved when Hamilton agreed to a new location for the national capitol on the Potomac River • Land donated by George Washington known as “Foggy Bottom”
  • 27. CENTRAL GOVERNMENT REVENUE: LAND SALES • Primarily the only form of revenue the nation had • Sales of land in the “west” • Actually it was land easy of the Mississippi R. acquired after the Revolutionary War
  • 28. GOVERNMENT ROLE IN THE ECONOMY: FAVORED NATIONAL MERCANTILISM • The elite wealthy merchants have become more wealthy • Followed the system in England
  • 29. GOVERNMENT ROLE IN THE ECONOMY: FAVORED TRADE WITH BRITAIN • Believed England should be the biggest trade partner with the United States
  • 30. BATTLE OF FALLEN TIMBERS • General Anthony “Mad Anthony” Wayne lead a group of 4,000 soldiers into the Ohio Valley and defeated the Miami Indians led by Little Turtle • This victory secured negotiations with the tribe and opened up the western portion of Ohio for white settlement
  • 31. GREENVILLE TREATY • Miami Indians are permitted to keep their claim to territory • White settlement in the new northwest was opened • Effect was that the United States affirmed that Indian lands could only be ceded by the tribes themselves
  • 32. PINCKNEY TREATY • Settled any conflict with Spain in North America • Spain thought the U.S. and England might join together to challenge Spanish possessions • 1. Spain recognizes the right of Americans to navigate the Mississippi River to its mouth and deposit goods at New Orleans for reloading and ocean-going ships • 2. fixed the northern boundary of Florida along the 31 st parallel (map) • 3. required Spanish authorities to prevent Native Americans from launching raids across the border
  • 33. JAY TREATY • John Jay was instructed to: • 1. secure compensation for the British assaults on American shipping • 2. demand withdrawal of British forces from the frontier posts • 3. negotiate new commercial treaty • The “Jay Treaty” failed to meet any of these goals, however it did do the following: • 1. settled conflict with Britain and prevented a likely war • 2. established American sovereignty over the Northwest • 3. produced a satisfactory commercial relationship with Britain • When terms became public in America it was bitterly opposed as it failed to secure concrete promises from England
  • 34. DEMOCRATIC-REPUBLICAN PARTY OVERVIEW (REPUBLICAN ERA) • Founded in early 1790’s by James Madison and Thomas Jefferson • Formed first in Congress and then in every state to contest elections and oppose programs of Alexander Hamilton • Supporters were strongest in the south • Platform: • Favored states’ rights; farmers/planters over bankers/industrialists • Foreign policy: opposed Jay Treaty, supported good relations with France (until 1799) • Domestic policy: denounced the National Bank, opposed proposals that would give the federal government too much power • Presidents: Thomas Jefferson, James Madison, James Monroe • Party splits in 1824 with supporters of Andrew Jackson forming the “democratic party”; the other faction supported John Quincy Adams formed the “republican party” later becoming the Whig party
  • 35. JAMES MADISON • Federalist #10: (Madison writes…) “…measures are too often decided, not according to the rules of justice and the rights of the minor party, but by the superior force of an interested and overbearing majority.” • Like George Washington, Madison was against political parties • Thought they would only tear a nation apart • Disagreement on issues was inevitable, but should not lead to the formation of permanent factions • “the public good is disregarded in the conflicts of rival parties” • Because Madison (and Jefferson, et. al.) were convinced that Hamilton and his elites had created an “overbearing majority” there was no other alternative than to create a vigorous opposition to the Federalists • This “Republican” party is NOT the ancestor to the current party • That is the republican party of 1850 and Abraham Lincoln (former northern
  • 36. DIVERSITY/STATES • Voted against the Alien and Sedition Acts • Refused to convict anyone of violating the Alien and Sedition Acts
  • 37. CONGRESS • Major cases during the majority controlled Democratic-Republican party: • McCulloch v. Maryland • Missouri Compromise • Spain’s cession of Florida to the U.S. • Strict construction of the Constitution
  • 38. BANKING: STATE BANKS • Supported state’s rights, especially with money • Considered Hamilton’s, National Bank, plan unconstitutional
  • 39. BANKING: MIXED SUPPORT OF BANK OF U.S. • Most were against the bank as it was deemed unconstitutional in their “strict” constructionist beliefs • Strict construction: congress (ie gov’t.) can only do what the Constitutional specifically says it can do • Loose construction: congress (ie gov’t.) has specific and implied powers given to it by the Constitution (“necessary and proper”) • 1811, Jefferson and his party let the charter on the National Bank run out, refused to re-new the charter
  • 40. LOWERS NATIONAL DEBT • Unable to completely disovle the national debt • Jefferson and his administration did cut it in half from $83 million to $45 million
  • 41. CUSTOMS DUTIES • Source of revenue continues for the government
  • 42. PHASES OUT INTERNAL TAXES • Congress was persuaded to eliminate all internal taxes in 1802 • Whiskey tax, etc
  • 43. LAND SALES • Another source of revenue that continued under Jefferson • Western land sales (1802 “western” was still east of the Mississippi River)
  • 44. FEDERAL AND FOREIGN COMMERCE: CAPITALISM • Viewed capitalism and the economy of England as wrong as it constantly sought to make a profit off of members of society • Capitalism is “wrong” because it takes an item, places it on the open market for sale at a price higher than what its actual value was • Favored an agrarian society overall (subsistence farming) • Did support small business but not large scale manufacturing as Hamilton had proposed
  • 45. STATE MERCANTILISM • Let the state governments decide on limits • (there is really nothing else to be found on Jefferson’s views of mercantilism, so sources “assume” he was opposed; there are some sources that say he favored it) • (you have to look at other decisions he made and other remarks given on the topic of the economy and then eventually decide for yourself…)
  • 46. WELCOMING INDIANS… • Gave Native Americans two options: • 1. become settled farmers and assimilate into white society • 2. migrate to the west of the Mississippi River • Either option would require that they give up their tribal land claims
  • 47. INDIAN “TREATIES” • By 1807 the U.S. had treaties with Native Americans in eastern Michigan, southern Indiana and most of Illinois
  • 48. EXPANSION INTO INDIAN TERRITORY • White settlers began moving into Native American territory in the southwest U.S. • Georgia, Tennessee, Mississippi • Resistance was useless (“resistance is futile”) • Tribes were acting separately from one another rather than one body
  • 49. TECUMSEH • Attempted to unite the tribes of the Midwest against the U.S. • Claimed that lands taken by the U.S. in individual treaties with individual tribes was not legitimate as the land belonged to all tribes, not just one • Battle of Tippecanoe – resulted in a disarray of Indian confederacy and the destruction of “Prophetstown” (Nov. 7, 1811…New Madrid Earthquake Dec. 11, 1811 anniversary anyone?) • Prophet: Tecumseh’s brother and tribal religious leader • British help the Shawnees with supplies, ammunition, weapons • Tecumseh dies at the Battle of the Thames as a Brigadier General for the British army, War of 1812
  • 50. CREEKS • Spanish supplying Creeks with weapons, ammunition (so much for the Pinckney treaty!) • Gen. Andrew Jackson and his men slaughter Creek men, women and children at the Battle of Horseshoe Bend as a revenge for Creek attacks on white settlers in Florida
  • 51. FAVORED EXPANSION (JEFFERSON) • Misleading, because at first he did not • As a strict constructionist (view) of the Constitution, he could only do what the Constitution gave him explicit power to do
  • 52. LOUISIANA PURCHASE • Was unsure if he, as President, could sign a treaty purchasing the land from France • The “treaty making” provision in the Constitution was used to justify the acquisition • Article I, Section 8, Clause 18: • To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.
  • 53. MADISON: WEST FLORIDA • Wanted the land for future settlement for white Americans • Rivers ran through the land provided access to the Gulf of Mexico
  • 54. JAMES MONROE: FLORIDA • Using Andrew Jackson’s raids on Native American in Florida (Seminole War), Monroe sent the message to Spain that the U.S. could take Florida by force if they wanted • Spain signed the Adams-Onis Treaty ceding all of Florida to the U.S. (expansion policy???)
  • 55. EMBARGO • Prohibited trade with England 1811, as long as England enforced its blockade of Europe, mainly Spain • The embargo worked! • England removed the blockade but it came too late as war was imminent with England
  • 56. WAR OF 1812 • Early in the war England was focused on defeating Napoleon (France) and Spain and did not send vast amounts of men to the U.S. • Once Napoleon was defeated England turned its full attention to America • British troops burn many important buildings in the capitol including the White House in retaliation for the burning of the Candadian capital at York (Dolly Madison is given credit for saving many portraits, including that of George Washington) • Fort McHenry was blockaded against the British with several old ships sunk in the Harbor • It was on a British ship – used as a prison – that Francis Scott Key wrote the poem, “The Star Spangled Banner” the morning following the battle • British are turned back at the large Battle of Plattsburg
  • 57. WAR OF 1812 • In New Orleans, Andrew Jackson and 1000 men stand against several waves of British attacks • The British finally leave with American casualties of only 8 dead and 13 wounded • Treaty of Ghent (Belgium) ends the war • Several treaties follow which allow for continued trade with England
  • 58. DEMOCRAT PARTY OVERVIEW (DEMOCRAT ERA) • Originally part of the Anti-Federalist group that formed the Democrat-Republican party under James Madison and Thomas Jefferson • After the War of 1812 the party split – those who favored the Jeffersonian style (Andrew Jackson, Martin VanBuren) created the Democrat party • Their main opponent was the Whig party, which faded into almost non-existence over the slavery issue after the Mexican-American War. • Anti-Slavery Democrats split from the Democrat party and joined the Whigs, forming the Republican party • Democrats split again, but not one that divided the party – merely a split over ideological issues (slavery, civil war, successor to Pres. James Buchanon) • Northern Democrats split even further (War Dem.’s vs. Peace Dem.’s) • The Confederate States of America saw political parties as evil and did not have any in their “government”
  • 59. DEMOCRATIC/DEMAGOGIC • (Formed from the split in the Democrat-Republican party) • (Republican arm becomes the “Whigs”) • Andrew Jackson promises to make the government a government of all the people not just the aristocracy • More voters than ever before • Land owning/tax paying requirements dropped to allow more white men the right to vote • Equal protection and equal benefits to all white make citizens
  • 60. DIVERSITY/STATES • Reduce the power of the federal government, but also believed in forceful presidential leadership • Believed in state’s rights but vetoed the right of states to nullify federal laws (Nullification Crisis)
  • 61. STATE BANKS • Under retraining effect of the National Bank • Wanted more money in circulation
  • 62. BANK WAR • Completely opposed to any institution that gave credence to the aristocracy – the bank was a symbol of power of the elite • Jackson favors “soft money” supporters – more in circulation and declares he will not renew the charter in 1836 • Soft money: paper money which hold little or not value but represents some sort of accepted value • Hard money: gold or silver
  • 63. NATIONAL DEBT • Paid off the entire national debt • First and only time in history this has been done • Short lived due to the economic depression of 1837
  • 64. CUSTOMS DUTIES • Lowered tariffs, but not enough for some southern states • The states nullified the tariff and demanded an even lower tariff policy • Jackson threatened them with treason • Tariffs helped pay off the national debt
  • 65. NO INTERNAL TAXES • Kept taxes low • Believed it was the government’s way of keeping the people bound under the need for a National Bank
  • 66. PHASES OUT LAND SALES • Land sales helped pay off the national debt • Many speculators and businessmen were buying government land with paper money which did not have the same value as coin money
  • 67. CAPITALISM • Like Jefferson, sided with agrarian over manufacturing
  • 68. STATE MERCANTILISM • Part of closing the national bank was to get the states more power in controlling their economies
  • 69. REMOVAL • Removal Act of 1830: forced evacuation of several tribes in the south (west) U.S. to west of the Mississippi River • Trail of Tears (The Trail Where they Cried) • Five “civilized” tribes: Choctaw, Chickasaw, Creek, Cherokee, Seminole • Seminole resisted more than the others and was more successful as they hid in the everglades of southern Florida
  • 70. TEXAS • Jackson refused Texas’s request for annexation as it would split the democratic party over the issue of slavery • The issue came to light in the 1844 presidential election • James K. Polk used the annexation of the Oregon Territory as a compromise and excuse to annex the Texas territory
  • 71. OREGON (POLK) • Keep the northern, anti-slave voters happy by allowing them to occupy the territory, free from slavery
  • 72. MEXICAN WAR, MEXICAN CESSION • Successes in battle during the Mexican-American War allowed for the suggestion an annexation of “All Mexico”, the entire country, to avoid future conflict • This would mean giving citizenship and rights to a group of people who did not necessarily want to become American • The Mexican Cession ended the “All Mexico” talks by annexing southern California and New Mexico