Chapter 08: Securing a Republic (1791-1815) Flashcards
What was Hamilton’s Financial Plan’s objective? (1790-1791)
Objective:
- establish the nation’s financial stability
- bring government support to the financial interest
- encourage economic development
Long-term plan: make US global commercial and military power
How many parts did Hamilton’s financial plan consist of? Explain each:
5 Parts
- Set up a system where the nation was credit-worthy
- old debts replace new interest-bearing bonds
- Create: Banks of the United States
- Tax on the production of whiskey
- Tariffs and subsidies
Part One of Hamilton’s Plan: How did he plan to make the nation creditworthy?
Part 01:
Set up a system where the nation was credit-worthy
- loan money
- the confidence can be repaid
“Government responsible for debt from the War of Independence & debts of states”
Part Two of Hamilton’s Plan: Create a Bank of the United States?
Part 03:
Create: Banks of the United States
- modeled Bank of England
Private cooperation
- hold public funds
- issue banknotes
- serve as currency
- loans to government
Part Three of Hamilton’s Plan: Interest-bearing bonds?
Part 03
old debts replace new interest-bearing bonds
- give men of economic substance stake in new government
- government stronger → more likely pay debts
Part Four of Hamilton’s Plan: Whiskey?
Part 04:
Tax on the production of whiskey
- generate revenue
Part Five of Hamilton’s Plan: Whiskey?
Part 05:
- Tariffs
- Government subsidies
- encourage manufacturing
- no longer buy things from overseas
Who supported Hamilton’s financial plans?
- Financiers
- Manufacturers
- Merchants
Who opposed Hamilton’s financial plans?
- Those who believed the country’s way forwards was chartering (Madison & Jefferson)
- Farmers
- Strict constructionist
Why did Madison and Jefferson oppose Hamilton’s financial plan?
Those believed nation’s way forwards: chartering
- Hamilton’s plan: hinged close ties with Britain (trading partner)
Madison & Jefferson: future westwards expansion
goal: nation independent farmers
Greatest threat: emerging class commercial capitalists (like Hamilton)
- threat freedom
- National band & assumption state debts → same path Britian
- Enrich wealthy rather than common folk
Why were farmers against Hamilton’s financial plan?
transport in-country at the time was poor
cheaper distill wheat into whiskey → carry markets
- Whiskey tax singles out unfairly
Why were Strict Constructionists against Hamilton’s financial plan?
[3] Strict Constructionists:
most opposition: South
“Believed federal government only exercise specific powers listed in Constitution”
- Jefferson: new bank unconstitutional > not in constitution
What happened at the “Famous Dinner in 1790”?
Hamilton-Jefferson Bargain
Where: famous dinner in 1790
Behind the scene negotiations about Hamilton’s financial plan
Jefferson: the agreement which southerners accepted
What:
- agreed Hamilton’s fiscal program
- remove subsidies to manufacturers
- Establish permanent national capital: Potomac River
outline for construction: European model (parks…)
construction: slaves
How were the events in 1789 and 1793 of the French Revolution perceived by the American public?
1789: Began
- Americans supported
- saw it as a reflection of own revolution
1793: Radical turn → executed Sun King
- and other aristocrats
- War between France and Britian
How did Federalists and Anti-Federalists (Jeffersonians) view the French Revolution?
Jefferson: the historic victory of the idea of self-government
Enthusiasm for liberty:
- poles and caps
Hamilton and Washington: anarchy
What part did the Americans play in the war between the British and the French 1790s?
Shaped American policies:
- “permanent” alliance with France
- The US does not want to be involved
April 1793: Proclamation of Neutrality (or Neutrality Act)
How did the impressment of American ships by the British in the 1790s affect Washington’s stance of neutrality?
What was the American response?
British:
- seized hundreds of American ships
- Practice of IMPRESSMENT
John Jay (chief justice) → negotiate an agreement → (1794) Jay’s Treaty
What was Jay’s Treaty (1794)? Why was it controversial?
Who: John Jay
Biggest controversy Washington’s presidency
What:
- Britain agreed to abandon outposts western frontier
- NOT have to concession rights on impressment
Conflict:
- saw as alignment with Britain (not France)
- sharpened political divisions
Led directly to the formation of Organized opposition parties
What led to the creation of Organized opposition parties in the 1790s?
Jay’s Treaty (1794)
Which parties were there in the mid-1790s?
- Federalsits
- Republicans
Federalists (1790s):
- Who were they?
- What did they want?
- What was their outlook?
Support Washington’s administration
Wanted:
- Hamilton’s policies
- close ties Britain
Who:
- merchants
- farmers
- politicians (outside South)
Outlook:
Elitist
- refected 18th-century society of fixed hierarchy
- office: men of economic substance
How did the 1790s Federalists view “freedom?”
Freedom:
- “not mean to stand up to the government”
- Only major party decree: democracy dangerous hand ordinary citizens
Republicans (the 1790s):
- Who were they?
- What did they want?
- What was their outlook?
Leaders:
- James Madison
- Thomas Jefferson
Who:
- Wealthy southern planters
- ordinary farmers (rest country)
- Enthusiasm French Revolution → drew urban artisans
Outlook:
Basis: SELF-GOVERNMENT
- critical of social & economic inequality
- accepting of broad democratic participation
What was the Whiskey Rebellion (1794) and how did it affect federalist ideas of freedom?
reinforce “freedom” idea of the federalists
- Backcountry Penn
- farmers resisted tax on Whiskey
- Washington dispatched 13,000 men
Only time president commanded armies in a field
no resistance