Period 3.

3 Notes - Washington and Adams Presidencies

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Tense Moments for George Washington
The Conway Cabal, headed by Thomas Conway, was a group of Continental Army officers who wanted to have
George Washington replaced as commander-in-chief of Army during the American Revolutionary War with
Horatio Gates.
● Conway’s letters criticizing Washington were forwarded to the Second Continental Congress.
○ Thomas Conway wrote to Horatio Gates stating, "Heaven has been determined to save your
country, or a weak general and bad counselors would have ruined it.“
○ Conway resigned his military post and apologized to Washington—who never accepted it.
After the Revolution, Newburgh Conspiracy took place after the Revolution.
● Continental Army officers threatened the newly formed U.S. government due to uncertainty over them
receiving their pay
● John Armstrong, Jr wanted to replace Washington with Horatio Gates.
● George Washington dramatically put on his glasses and said, "Gentlemen, you will permit me to put on
my spectacles, for, I have grown not only gray, but almost blind in the service of my country."
○ Washington shamed the officers into oblivion—his gesture was to remind them of just how long
he had served, without pay, during the war.

The Presidency of George Washington and the Virginia Dynasty (Washington, Thomas Jefferson, and James
Madison)
In 1789, George Washington became the only unanimously elected president in U.S. history. Congress created
the Department of State, the Department of the Treasury, the Department of War, and the Office of the
Attorney General.
● The first four cabinet positions were Secretary of State (foreign affairs), Secretary of the Treasury
(finance), Secretary of War, and the Attorney General
President George Washington chose Thomas Jefferson as secretary of state. Alexander Hamilton became head
of the Treasury Department. General Henry Knox served as secretary of war, and Edmund Randolph became
the first attorney general. This group of department heads who advised the president became known as the
cabinet.
● As head of the Department of Justice, the Attorney General is the top law enforcement enforcement
officer and lawyer for the government. Edmund Randolph's Virginia Plan was used as the basis for the
1787 U.S. Constitution.
The judicial branch as well as the first federal judges were established. John Jay became the first chief justice of
the United States.
● One of Congress’ first laws was the Judiciary Act of 1789, which established a Supreme Court with one
chief justice and five associate justices. It also provided for a system of 13 district courts and three
circuit courts of appeal.

Post War Woes

By the end of 1789, the government needed additional money to continue to operate. James Madison and
Alexander Hamilton came up with two very different plans to help the government with its finances
● The new nation was in debt to Spain and France, inflation was growing, and the economy was slow.
James Madison felt the government should raise money by taxing imports from other countries. The Tariff of
1789 set tax rates on all imported goods—or 5% of the value of their cargo when ships landed in the United
States. Shippers were also required to pay a tax depending on how much their ships carried. This angered
many Southern planters. They began feeling the government did not have their best interests in mind.
 ● Hamilton supported high tariffs because he thought it would protect American industries and
discourage people from buying overseas and create a profit at home.
Hamilton agreed with the idea of higher tariffs and thought it would encourage domestic growth. He also
proposed the organization of what would become the U.S. Coast guard to make sure that imports were not
smuggled into the country without being taxed.

Hamilton’s Debt Assumption Plan

Alexander Hamilton supported the tariff, but he felt the government also needed the ability to borrow money.
● To finance the Revolutionary War, the Confederation Congress had issued bonds, or paper notes
promising to repay money within a certain amount of time with interest. Hamilton argued that if the
U.S. accepted these debts at full value, then creditors would be willing to lend money in the future
○ One of the most important parts of Hamilton’s funding bill was assumption. Under his plan, the
federal government would assume the state's debts—which totaled about $25 million—giving
the new nation a strong line of credit overseas.
The opposition, led by Madison, felt that Hamilton’s plan was unfair to farmers and war veterans who had sold
their bonds to speculators—people willing to take a risk with the hope of future financial gain.
● For example, the South did not see as much fighting in the American Revolution as the North.
Therefore, some southern states (such as South Carolina) had a lesser debt than the northern states.
Furthermore, some southern states did not have a debt to pay!
Southerners were upset because Northerners owned the bonds while most of the tax money used to pay off
the debt would come from South. By 1790, Southerners were convinced to vote for Hamilton’s plan in return
for the relocation of the U.S. capital. Southerners were willing to consider Hamilton’s plan if he found a way to
appease them.
● Federal Hall in New york city was home to Congress for a total of about four years. It's where
Washington had his inauguration as the first President of the United States.
○ In fact, when the First United States Congress met there in 1789, the first thing they did was
tally the votes that would declare Washington Commander in Chief.
○ In turn, Washington declared that a permanent housing solution for the frequently-traveling
lawmakers was in order. The Bible he was sworn in on is still there.
Jefferson arranged a dinner party, which Hamilton, Madison, and maybe two other people. In the discussions,
Hamilton agreed to support Virginia’s bid for the capital in return for James Madison whipping votes for
Hamilton’s assumption plan.
● Jefferson said, “It was observed, I forget by which of them, that as the [debt assumption] pill would be
a bitter one to the Southern states, something should be done to soothe them; and the removal of the
seat of government to the [Potomac] was a just measure, and would probably be a popular one with
them, and would be a proper one to follow the assumption.”
Hamilton also argued that the U.S. needed a national bank to manage its debts and interest payments, give
loans to the government and individuals, and to issue paper money. The paper money would in turn
encourage trade and investments and stimulate economic growth.
● Objections to the bank came from Southerners, who felt only the Northerners could afford the bank’s
stock. Madison and Jefferson felt Congress could not establish a bank because it was not within the
federal government’s enumerated powers, or powers specifically mentioned in the Constitution.
The Bank of the United States was passed after Hamilton argued that the “necessary and proper” clause in
Article I, Section 8, of the Constitution created implied powers, or powers not specifically listed in the
Constitution but necessary for the government to do its job.
The Bank would be owned PARTLY by the government, but 80% of the stock would be sold to PRIVATE
INVESTORS! As a major shareholder, the government could print paper money and use federal deposits to
stimulate business.
 ● The Bank issue made Thomas Jefferson decide to do something about it—he starts thinking of creating
his own political party to go against Washington and Hamilton.
In 1791, Hamilton’s proposed excise tax on the creation of whiskey passed in Congress. Western farmers were
outraged by the tax since they used whiskey for currency and distilled it from their excess corn. In 1794,
farmers in Pennsylvania refused to pay the tax & organized a militia. In a show of the new government’s
power, Washington took over the state militia and sent in 13000 troops to stop the rebellion.

Let’s Have a Political Party! (Or not)

Federalists Democratic-Republicans
Favored: Favored:
Led by: Alexander Hamilton led by: Thomas Jefferson
a strong central government states’ rights
“loose interpretation” of the Constitution “strict interpretation” of the Constitution
commerce and manufacturing agriculture and rural life
order and stability civil liberties and trust in the people
rule by wealthy elite rule by commoners
Northeastern support support from south and west
close ties with Britain(trade) sympathy for France

Foreign Affairs and Tests of Neutrality

Americans moved in large numbers to the area between the Appalachian Mountains and the Mississippi River
because of abundant land, fertile soil, wide rivers, and a variety of fish and game. An increase of white settlers
led to tension with Native Americans.
1. Little Turtle’s Rebellion – British had actively encouraged the Natives to attack white settlers and often
provided them weapons. Little Turtle’s Rebellion was sparked by white settlers – Little Turtle of the Miami
(Ohio) led a Confederation against the US Government
o Little Turtle, a chief of the Miami people of the Miami, formed a confederacy of several Native
American groups against the white settlers. The Northwest Confederacy won several battles between
1791 and 92. However, Washington wanted to protect the settlers. Native American resistance was put
down by American troops under General Anthony Wayne at the Battle of Fallen Timbers.
o Gen. Anthony “Mad” Wayne’s men killed between 20-40 of Little Turtle’s men and forced them
to sign terms of surrender.
o In 1795, 12 Native American nations signed the Treaty of Greenville. The Native Americans gave up
parts of what later became Ohio and Indiana in exchange for a yearly payment of $20,000 from the
federal government. As a result of the treaty, even more settlers moved into the region.
o Unfortunately, many of the provisions of this treaty were ignored throughout the years.
2. The French Revolution began shortly after Washington’s inauguration in 1789. Federalists opposed it due to
its violence, but Republicans supported it because of the fight for liberty. The French Revolution was a
controversial topic due to King Louis XVI and Marie Antoinette’s executions, the “Reign of Terror,” and
France’s ongoing wars against other European powers by 1792.
o Issue at hand? The Franco-American Alliance – we were supposed to help France in times of crisis
o 1793 – France declares war on Britain
o Washington’s response to it all? The US is too fragile of a nation = Proclamation of Neutrality; Jefferson
(remember— former ambassador to France) resigns.
3. Citizen Genet Affair – Edmund Genet (French minister) traveled US whipping up support the French
Revolution; is actually successful in getting privateers to attack British ships.
o Washington’s response? He asked France to remove Genet
o Genet’s end? He stayed in america, became married, and became a US citizen
o **SIGNIFICANCE OF NEUTRALITY? It shapes American foreign policy all the way up to about the year
1898—A LOOONG TIME**
4. 1798 Haitian Revolution – By 1791, 40,000 whites lived on the French island of Saint Domingue compared
to nearly 500,000 slaves. The Haitian Revolution began in that same year with the goal to abolish slavery,
and a rebel named Toussaint L’Ouverture; successfully seized the island from the French by 1798. In 1803,
the island was renamed Haiti.
● The Haitian Revolution drew inspiration from the American Revolution, but it touched off a
refugee crisis, stricter slave codes, and a debate over American involvement.
5. Britain – 1) The British continued to maintain forts; on U.S. soil. 2) Openly sold weapons; to Natives and
paid them to scalp settlers and 2) impressing; (or kidnapped) US sailors and forced them to fight for the
British Navy
● In 1794, Jay’s Treaty solved a few problems with the British. The British agreed to evacuate their forts
on U.S. soil and to pay for damages of American ships that had been impressed. The British agreed to
give the “most-favored trade” status to the U.S. However, the British did not agree to stop
impressments, to stop selling weapons to the Natives, or to compensate U.S. slaveowners that had had
their slaves seized during the American Revolution.
● The Jay Treaty revealed partisan divisions in Washington’s administration. It was very unpopular with
the Democratic-Republicans, southerners, and supporters of the French. However, it upheld
Washington’s policy of neutrality.
o John Jay was burned in effigy in response to his treaty with the British. To
Democratic-Republicans, Jay became one of the most hated men in the United States. He was
quoted as saying that he could find his way across the country by the light of his effigies
burning. Jay’s Treaty would eventually be approved by the Senate.
6. The Jay Treaty upset the Spanish, as they saw the U.S. becoming greater allies with their rival the
British. As a result, the Spanish were much more willing to negotiate Pinckney’s Treaty, which gave the
U.S. free use of the Mississippi River, duty free use of New Orleans, and set the 31st parallel as the
boundary between Spanish Florida and the U.S.
● Previously, Spain had cut off the U.S. right to use the Mississippi River and deposit crops in New
Orleans.

Washington’s Farewell Address – Washington leaves office after two terms…. And sets a precedent for 2
terms all the way until FDR!
o Washington’s decision to leave after two terms set a precedent for future presidents that would
voluntarily leave after two terms. That tradition remained until 1940 when Franklin Roosevelt won a
third term in office. The 22nd Amendment, ratified in 1951, made the two-term limit a part of the
constitution.
o Washington’s Farewell Address urged Americans to avoid sectionalism, or the dividing of the country
into North against South. He also warned against political parties and becoming involved in foreign
affairs.

1796 Election of John Adams – In 1796, the country’s first openly contested election was held. The Federalists
promoted John Adams, while the Republicans supported Thomas Jefferson in the country’s first contested
election. John Adams won the election 71 to 68.
● The Constitution didn’t account for political parties, and whoever came in second place in an election
would become the vice president. Therefore, Thomas Jefferson became the V.P. even though he ran for a
different party. This problem is later fixed with the 12th Amendment, which says that each elector must pick
a President AND a Vice President on his or her ballot.
The French were angry over Jay’s Treaty and the Proclamation of Neutrality—they felt that both violated the
Franco-American Alliance. The French began to stop American ships, seized goods, and impress sailors going to
Britain. Federalists called for war against France. Instead, Adams sent negotiators to France to negotiate peace.
Tension increased as French ministers known only as X, Y, and Z demanded bribes from the Americans before
they would negotiate, in what became known as the XYZ Affair.
● X,Y, and Z wanted $250,000 in bribes to begin negotiations. Many Americans wanted war and demanded,
“Millions for defense, but not one cent for tribute!”
o In 1798, Congress stopped trade with France and ordered the navy to capture French ships. The
undeclared war at sea was called the Quasi-War.
o The Quasi-War remained a problem for about two and a half years. The U.S. negotiated with France
to end the Quasi-War. The Convention of 1800 gave up all U.S. claims against France for damages to
American shipping. In return, France released the U.S. from the Treaty of 1778. The Quasi-War
ended.
▪ Despite many members of his own party (the Federalists) calling for war, Adams was
successfully able to keep us out of a war that we were not ready to fight.
The Federalists pushed four laws through Congress known as the Alien and Sedition Acts. The first three laws
were aimed at aliens—people living in the country who are not citizens. The Naturalization Act stated that
immigrants could not become citizens for 14 years. “Aliens” considered “dangerous” could be deported and
aliens could also be detained in time of war.
o Most immigrants at the time tended to vote for the Democratic-Republicans.
o The fourth law prevented sedition, or incitement to rebellion. It made it unlawful to say or print
anything false or scandalous against the government or its officers.
o Journalists and editors could be fined or imprisoned for printing anything critical of the
president or Congress.
In response to the Alien and Sedition Acts, Republicans passed the Kentucky & Virginia Resolutions criticizing
the Alien and Sedition Acts. Written secretly by Thomas Jefferson and James Madison, the resolutions stated
that because states created the Constitution, they could not judge whether a federal law was unconstitutional.
o Thomas Jefferson is implying the right of secession—to leave the government. These are the roots of
the American Civil War! By the way, Virginia and Kentucky did not secede from the union.
o The Virginia Resolutions (Madison) introduced interposition, or the action of a state whereby its
sovereignty is placed between its citizens and the federal government. James Madison argued that a
state could interpose between the federal government and its citizens if the government passed
something unconstitutional.
o The Kentucky Resolutions promoted nullification. It states that if the government passed an
unconstitutional law, the states had the right to nullify the law or declare it invalid.
▪ The Federalists lost their majority in Congress after the election of 1800, and the Alien
and Sedition acts were allowed to expire or were all repealed.