The Crisis of the 1780s
Economic Crisis
Origins in the Revolution:
- shortage of goods resulting from the British Blockade
- demand for supplies by the army and the militias
- flood of paper currency resulting in inflation
U.S. dollar compared to the Spanish dollar
Most of the money ended up in the hands of merchants
U.S. continued to be a supplier of raw materials and an importer of manufactured products especially from Great Britain
British merchants began a major trade with Americans
- Resulting in
- exportable goods reduced by fighting
- trade deficit rose
Left the country with little sliver coin (currency) in circulation
- Banks insisted on repayment of old loans
1784- country in deep economic depression
Country was already in debt before depression
- Creditors owed more than 50 million
- Congress was not allowed to raise taxes
- State taxed residents
State Remedies
radicals called for regulation of the economy
farmers and debtors pressed for legal tender laws
- would impose a paper currency at face value
- seven states enacted such laws
- the programs worked pretty well without problems originally feared by creditors
Rhode Island
"To relieve the distressed"
1786 enacted redical currency law
the law declared the paper currency legal tender to all debts
If creditors refused to accept a debt then the currency that would be used to pay the debt can be given to a judg who can then declare the debt paid
State elected high tariff barriers to curb imports and protect domestic industries
Movement toward a New National Governement
Annapolis Convention
1786 Virginian legislature invited all states to appoint delegates to a convention
- Twelve delegates from five states attended
Passed a resolution requesting Confederation Congress call on all states to send delegates to a national convention that they might "render the constitution of the federal government adequate to the exigencies of the union"
Congress endorsed a Philadelphia convention to be held in May 1787 to revise the Articles of Confederation
Conservatives wanted to strengthen national government
THE NEW CONSTITUTION
May 1787
55 men from 12 states (Rhode Island didn't attend) met at Pennsylvania state house in Philadelphia
Several prominent men were missing (Thomas Jefferson and John Adams)
There were land speculators and merchants also present
No minorities or women were present
The Constitution was basically framed by white men who represented America's social and economic elite (Patriots and Republicans)
The Constitutional Convention
Washington chaired the meeting
Meeting were kept secret to ensure debate
James Madison took notes which served as the transcript of the meeting
- Virginia Plan proposal called for national legislature in which the states would be represented according to population
- Was presented at the convention and set the agenda
- proposed scrapping of the Confederation in favor of a "Consolidated government" with the power of tax and enforcing of laws
- Would reduce states to nothing more than counties
- Representation in the bicameral national legislature would be based on population
- House of Representatives would be elected by popular vote and senators would be chosen by state legislators
- The Senate would lead, control foreign affairs and appoint officials
- With that, an executive (president) and national judiciary would form a Council Revision with the power to veto state and federally
- Main opposition to the Virginia Plan came from delegates of small states
lead to New Jersey Plan
proposed increase in the powers of the central government, but retained a single-house Congress in which the states were equally represented
The New Jersey Plan caused a split in delegate votes which lead to the Great Compromise which proposed representation proportional to population in the House and equal representation in the Senate
Allowed the creation of a strong government
Part of this agreement was a second fundamental compromise that brought together the North and South
North (commerce clause) if the South agreed with the clause they agreed to count five slaves as the equivalent of three freemen (three-fifths rule)
Early September the rough draft of the constitution was turned over to a committee of style
September 17, 1787 the document was approved
Ratifying the New Constitution
Supporters of the new constitution were known as Federalists (nationalists)
Anti-Federalists argued against their opponets that the Articles of Confederation already provided for a federal government of balanced power between the states and the Union and that the Constitution would replace it with a national government
Believed that the constitution granted too much power to the central government which weakened the autonomy of communities and states
Many argued a republican government could only work for small countries
Rhode Island argued that the basic rights of property would not be protected
Pennsylvania
First state to convene a ratification convention on November 1787
Convention in favor of the Constitution
- supported by artisans and commercial farmers
- linked the constitution to growth of a commerical society
Massachusetts 1788 (most important of the conventions)
Delaware, Pennsylvania, New Jersey, George and Connecticut voted to ratify the constitution
Oppenents of the ratification included supporters of Shays' Rebellion (small majority)
Anti-Federalists (John Hancock and Samuel Adams)
On February 16 the convention voted in favor of the ratification
Rhode Island rejected the constitution in March but several other states joined the Union with the promise of a Bill of Rights included in the ratification
The Bill of Rights
Considered by the Constitutional Convention then rejected originally
Anti-Federalists proposed over 200 potential amendments with the sole purpose of protectingg the rights of the people against the power of the central government
1789 James Madison transformed these proposed amendments into a series of proposals
Congress passed twelve of the amendments and sent them to the states
Only ten of them became the Bill of Rights in 1791
THE FIRST ADMINISTRATION
First federal elections for Congress and presidency
George Washington became the first president of the U.S on April 30,1789 He was then re-elected without opposition in 1792 and served until 1797
His nature was reserved and solemn yet he chose to ride around in a lavish carriage
He wanted to adhere to the constitution
Appointed Thomas Jefferson (secretary of state) Alexander Hamilton(Treasury), Henery Knox (War Department) and Edmund Randolph(Attorney General)
He consulted with his cabinet regularly
An Active federal Judiciary
Most important piece of legislation- Judiciary Act of 1789 which established the Supreme Court and other federal courts
Congress established a high court of six justices and established three circuit and thirteen district courts
Localists successfully fought to retain the varies bodies of law in the states
The act gave federal courts limited jurisdiction
Judicial Review actually gave federal courts the right to review and determine whether or not acts passed by Congress or state legislature was contitutional
Hamilton's Controversial Fiscal Program
Fiscal and economic affairs pressed upon the new government
The government took power in a virtually bankrupted period
Tarriff of 1789 was suppose to increase revenue and not protect American manufacturers from foreign competition
Hamilton planned to address Revoluntionary war debt
Proposed to charter a national bank (Bank of the United States)
bank would be a public corporation funded by the Treasury
Congress approve and the bank was established in 1791
Proposed increased tarriff protection
His plan would restore the financial health of the U.S
The Beginnings of Foreign Policy
Federalist political coalition strained by indifference over fiscal policy (Southern agrarians and Northern capitalists)
French Revolution of 1789
Reign of Terror 1793 (hundreds of aristocrats were executed)
The execution of King Louis XVI and war between Britain and France divided American opinion
The issue of whether or not America would have to aid France in war with Britain due to the Franco-American alliance of 1778
Caused Washington and cabinet members to agree upon neutrality (neutrality =windfall profit)
Highly unlikely France would need aid from America during the war
Nationalists believed in a necessity of accommodation with Great Britain
Democrats wanted more international independence
The United States and the Indian People
Americans tried to treat West Indian tribes as conquered people after the Revolutionary war
The Constitution did not include an Indian policy
1790 Congress passed the Intercourse Act
through this act trade and intercourse could be regulated with the Indians
declared public treaties between Indians and the U.S the only legal means at which their land could be obtained
The government wanted Indian land in the West
They were unsuccessful in controlling settlers around the Ohio river
Americans usually ended up fighting Indians for their land (Shawnees and Delawares)
Little turtle (Indian War chief of the Miamis)
badly mauled federal forces killing and wounding several
Spanish Florida and British Canada
The position of the United States in the West was complicated even more by the hostility of Spain and Britain who controlled adjoining territories
Spain introduced liberal reforms to revitalize the rule-bound economy of its American empire (causing the economy of New Spain to grow)
Spain acquired the French claim to Louisiana by the end of the Seven Years' War (territory also included California, the Gulf Coast and Florida)
Spain held an anti-American policy making it impossible for trade to take place through the port of New Orleans
Domestic and International Crisis
The situations with Spain, the Indians and the British involvment in the fur trade caused protest
Spain gave bribes to settlers who quit the Union and moved to Canada or Florida
The British confiscated American cargo from ships (causing ruin for merchants)
Rebellion in the summer of 1794
Farmers protested taxes put on whiskey (Whiskey Rebellion)
Washington established a federal army of 13000 men and ordered the occupation of Pennsylvania
The Treaty of Greenville was a result of the American defeat of the Indian Confederacy
Twelve Indian nations ceded a large portion of territory to the United States
Jay's and Pinckney's Treaties
American occupation of the West encouraged Britain to compromise with the United States so that they could concentrate on defeating the French
Chief Justice John Jay met in London to arrange a settlement
Jay signed an agreement that forced the British to withdraw from American territory
the treaty also limited American trade with the British
The treaty eventually made it to the public which stirred heated debate
The treaty was a symbol of American neutrality during war
The Jeffersonians were enraged over the treaty
Hamilton eventually ratified the agreement
Washington's Farwell Address
Last months of Washington's term
Washington gave a farewell address to the nation
FEDERALISTS AND JEFFERSONIAN REPUBLICANS
The Rise of Political Parties
The election of 1796 established two primary political factions
Federalists (Federalism belief is a shared government)
Republicans (belief in limited government)
The two political factions had an important role in the presidental elections of 1796
Partisan organization was strongest in the Middle states while political forces were weak in New England and the South
There was no party discipline (the new administration was divided)
The Adams Presidency
Adams attempted to follow the examples of Washington
Retained most of Washington's appointees
benefited from the tensions between France and the United States
French suspended relations with the U.S. after the Jay treaty
Adams sent an American delegation to France
The french demanded bribery before any negotiations could take place
The XYZ Affair confirmed the incident and outraged Americans
Adam's and the Federalists prepared the country for War
Fear of a French invasion soon declined after the British naval victory in 1798
Quasi-War(undeclared naval war) between United States and France continued
The Alien and Sedition Acts
Congress passed acts that severely limited freedom of speech and press and threatened foreign liberty in the U.S.
Naturalization Act extended period of residence required for U.S. citizenship
Alien Act and Alien Enemies Act authorized the imprisonment or deportation of suspected aliens during wartime
Sedition Act provided heavy fines and imprisonment for anyone speaking or writing against the government
Federalists used these acts to defeat the Republicans
Republicans opposed acts
The Revolution of 1800
Alien and Sedition Acts overthrown by Jeffersonian Republicans
Adam's presidental term coming to end
Federalists were divided
French wanted to settle dispute with United States
Adam's accepted the settlement but angered Federalists
With the Federalists divided the Jeff Republicans took over the state governments of Pennsylvania and New York
The presidental campaign of 1800 was the first with two parties
Jeff Republicans favored state rights and liberty
Federalists were divided between a strong central government and public order
Jefferson and Burr candidacy was an attempt at sectional balance
Democratic Political Culture
Custom of celebrating Independence Day first took place in Philadelphia
1800 Fourth of July was the nation's most important holiday
Increase in suffrage
Women, minorities and a portion of free men were excluded from voting
Increased competition between the Federalists and Republicans
promoted a universal white manhood suffrage
caused an increase in turn out at polls in all states
THE RISE AND GLORY OF AMERICA
American Artists
First American artist Benjamin West achieved prominence in Europe with his paintings of his native Pennsylvania
John Singleton Copley (Loyalist) famous for his portrait of Samuel Adams
Charles Willson Peale famous for his wartime propaganda and a portrait of Washington
Liberty of the Press
1775 beginning of revolution there were 37 weekly or semi-weekly newpapers in 13 colonies
1789 the numbers grew to 92 including 8 dalies
There were more newspapers in the U.S. then anywhere else in the World
90 percent of the population in New England could read
Federalist Gazette of the U.S.
National Gazette
Essay on Liberty of Press (freedom of press)
The Birth of American Literature
During the era majority of the best sellers were of political nature and content
Book stores grew throughout the country after the Revolution
Life of Washington introduced anedotes (Washington and the Cherry tree)
Women on the Intellectual Scene
Growing demand of books that appealed to women
Women literacy rates were lower than men
Girls began school
First feminist in American History- Judith Sargent Murray (go her!)
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AP Questions
1.B The rebellion was originally started as a result of class conflict. It had a huge effect on conservative nationalists who were unhappy with the distribution of power between the states and national government.
2.E The Confederation Congress began taxing state residents in an attempt to increase revenue and get the nation out of debt, ordinary Americans feared being crushed by the burden of private debt and public taxes. (pg.240)
3.A The Constitution was framed by white men who represented America's social and economic elite (pg.242)
4.C The delegates included a provision that restricted the federal government from interferring with the importation of slaves for 20years. (pg.243)
5.D You kinda have to read the chapter alittle its in there
6.A Hamilton recommended the government assume obligations accumulated by the states and redeem national debt (pg.248)
7.E The government had originally established an ordinance that said land could not be taken from the Indians without their consent, but this did not include land north of the Ohio river (contradicting dont you think!) (pg.250)
8.C Spain grew anti-american so they closed the river to american shipping making it impossible for western American farmers to market crops through the port of New Orleans. (pg.252)
9. B Section on Washington's presidency
10.C The Rise of political partiers (either look at the outline or book pg.255)
11.E Diplomatic incident between the United States and France (definition, book pg.256 or outline)
12.A The growth of popular interest in politics was a transformation as important as the peaceful transition from Federalists to Jeff Republican in national gov (pg.259)
13.B Second paragraph (pg.260) Jeff Rebuplicans played an important role in establishing the principle of free press with their opposition to the Alien and Sedition Acts
14.C Conclusion (Read the chapter lol)
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