5. THE YOUNG REPUBLIC
GETTING STARTED
CONTENTS
George Washington takes the helm
Alexander Hamilton as Treasury Secretary
Thomas Jefferson as Secretary of State
Foreign policy problems
John Adams takes command (1797)
The "midnight" judicial appointments
Life settles in nicely at home in the new Republic
The textual material on this webpage is drawn directly from my work
America – The Covenant Nation © 2021, Volume One, pages 174-191.
|
A Timeline of Major Events during this period
1780s |
The beginning of a period of major change ... in both America and France
1789 Washington inaugurated in New York as the first U.S. president (Apr)
The French Revolution breaks out (Jul)
spurred by the ideals of the Enlightenment ... and the example of the new American Republic
|
1790s |
The Republic struggles to establish new (and hopefully viable) political norms
early 1790s Mounting political feud rises in Washington's Presidential cabinet between Treasury
Secretary
Hamilton (Federalist) and Secretary of State Jefferson
("Republican"/strong states-righter), with
Washington generally supporting Hamilton (to Jefferson's great ire)
1790 Hamilton announces a new national bank’s "assumption" of all public debt (national and state);
Jefferson and his
political ally Madison are strongly opposed to this centralizing of
economic power
1791 Congress approves Hamilton's plan for a US Bank and the plan for central financing of the public debt
The states ratify 10 Constitutional
Amendments (Bill of Rights), guarantying key political protections against the
unlimited growth of central (or ‘national’) governmental power
1793 The French Republic has alienated all other European monarchies; all of Europe is again at war
The political hostility between
Hamilton (pro-British) and Jefferson (pro-French) deepens Washington’s Proclamation of Neutrality is a rather pro-British position
"Citizen Genet" is welcomed by Jefferson as French
Ambassador but proves to be an unwelcome meddler in American politics The Supreme Court under Chief Justice John Jay in the Chisolm v. Georgia case affirms that a citizen has the right to sue a state government in a federal court
1794 As an immediate reaction to the Chisolm case, the 11th Amendment is added to the Bill of Rights, affirming the immunity of
the states from such lawsuits (unless a state agrees to a hearing) The French Republic dissolves into a state of unbounded political slaughter (the "Reign of Terror")
Massachusetts farmers rebel against
Hamilton's excise tax on their whisky production; Washington personally leads a
13,000-man army to swiftly crush the "Whiskey Rebellion"
The Jay Treaty seems to surrender
American maritime rights to the increasingly aggressive English
The cotton gin is invented, vastly
deepening the importance of slavery to the Southern economy
1796 Washington steps aside, serving only 2 terms (and glad to be going home to his farm), ... establishing a tradition
of a peaceful transfer of limited presidential power (to John Adams)
1798 French aggressions on the high seas lead arch-Federalists to want to go to war with France (and to political war with
the pro-French Jeffersonian Republicans ... with the Alien and Sedition
Act)
Adams agrees to a
treaty with the French, thus avoiding war, but getting him no gratitude
from the Republicans and costing him
the support of a number of arch Federalists (and re-election in 1800)
|
1800s |
The Federalist / Republican rivalry deepens
1800 The American capital is moved to Washington, D.C., a town mostly yet an ideal rather than a reality
Jefferson is narrowly elected President
(over Burr); Adams is humiliated by his loss
1801 As his last act in office, Adams signs the midnight judicial appointments, including John Marshall as Supreme Court Chief Justice; Marshall will greatly expand the powers of the Federal judiciary branch (1801-1835)
|
GEORGE WASHINGTON TAKES THE HELM |
Although the young American republic had a new Constitution, it was a
very slender affair outlining very little of what we have come to understand
today as government. That was just as well. Its brevity sufficed to bring
renewed unity to the competitive-minded states, and its vagueness in detail
left exactly just those details to be developed by the individuals who would
take their place as officers of the new republic.
George Washington
It was understood and expected by all (except
perhaps by Washington himself who, after the war, was looking forward to
ending his public duties and heading back to his farm at Mount Vernon to
enjoy a less frustrating set of labors!) that the person to lead the republic as
its new president was to be George Washington. After some soul-searching
he once again yielded to the call of duty when it was apparent that no one
else but he was expected to be the country's new leader. Thus on April
30th, 1789, he stood on the balcony of Federal Hall in New York City to take
the oath of office as the republic's first president.
How would he handle the office? There were a multitude of problems
facing the new Republic, none of them particularly military (at least for the
moment) and so his sole experience as a military officer would not give
much indication as to how he would handle the challenges of civil office.
The Constitution mentions only that a president is chosen for a four-year
term, but elected officials in the colonies could be, and frequently
were, repeatedly returned to office with a new election. Would he leave
after serving only four years? Would he want to stay on repeatedly, like a
monarch, ruling until he drew his last breath? Some bitter Anti-Federalists
even claimed that Washington would try to make himself king – although
those who knew him well were quite aware that this would have been the
last thing Washington would have wanted for himself.
In any case, how would he get things started as
president? What kind of legacy would he leave for others to live up to
and develop?
The answer came quickly as he gathered together a
small group of advisors to whom he could assign particular functions, a
group or council similar to the British royal cabinet. Although the
Constitution mentions no such institution, Washington, and all
presidents after him, chose to make very important use of a cabinet of
officials, some serving as personal advisors and some serving as heads
or secretaries of government institutions that American presidents have
long used to administer the office of president.
|

National Portrait Gallery
- Smithsonian Institution, Washington, D.C.

Washington receiving a naval salute upon his arrival at New York City

Washington takes the Oath of Office (April 30, 1789)

George Washington – by Joseph
Wright (both portrait and profile)

Washington's Cabinet
ALEXANDER HAMILTON AS TREASURY SECRETARY |

Alexander Hamilton – by John
Trumbull (1806)
National Portrait Gallery
- Smithsonian Institution, Washington, D.C.
Alexander Hamilton
Once
again, Washington called on the one person he trusted most for hard
work and natural brilliance of mind (and bravery), the one person he
had relied on, time and time again, in the years of the War: Alexander
Hamilton. With the financial status of the new republic being the new
Union's biggest challenge, Washington was quick to assign Hamilton as
the United States' first secretary of the treasury.
Hamilton was actually born (year uncertain) not in
one of the American colonies but in the Caribbean, under peculiar
family circumstances (that would be the object of much commentary by
his later political enemies) and was forced to look after his own
survival at a very early age.1 But he was a very avid reader,
bi-lingual (English-French), and a self-educated apprentice clerking
for a local merchant (possibly his actual father), and at seventeen
wrote an essay published in the local newspaper. The essay was
sufficiently impressive that it led local community leaders to gather a
fund to send Hamilton off to New Jersey in 1772 for formal education
(prep school). In 1773 he began his studies at King's College (Columbia
University) in New York, where he quickly distinguished himself as an
excellent orator supporting the colonies' growing spirit of rebellion
against British royal authority. Hamilton also wrote at the same time a
number of outstanding articles and essays in support of the same cause.
Yet he was also of a cautious or fair mind
(perhaps because of his own sufferings as a youth) and in May of 1775
came to the defense of the college president, allowing the man to
escape an angry mob, while Hamilton challenged the mob not to attack
Loyalists or their cause in this manner.
However, Hamilton was himself quick to take up
arms and join with friends in the New York militia, undertaking at the
same time (again, on his own initiative) the study of military history
and military tactics – and soon put that knowledge to use in leading a
raid on a supply of British cannons in the Battery! He then went on to
organize his own artillery company, elevating himself thereby to the
rank of captain. His company soon joined with Washington's troops in
the various battles that raged across New York City, and then across to
New Jersey, where his artillery kept the Hessians under fire at the
Battle of Trenton.
His talents were quickly recognized, and he was
asked by various generals to join their staff. Yet he understood that
glory was to be found on the field of battle, not on the general staff
of a commanding general ... that was until Washington made the same
request. That was an offer that Hamilton was willing to accept. And
this changed his life, and America's, forever.
As chief of staff he was assigned the task of
maintaining written communications with the Continental Congress, the
governors of the new states, and with other generals. Over the course
of four years, as Washington's confidence in Hamilton became virtually
total, Hamilton himself issued detailed military instructions to
officers under Washington's command, and supervised both diplomatic and
intelligence operations coming from Washington's command. Thus it was
that he met French General, the Marquis de Lafayette, and became close
friends with him in the process.
Finally at Yorktown, Hamilton's long desire to
actually serve directly under fire, came into play – with Washington's
very hesitant permission! It was Hamilton himself who led the American
attack on one of the two vital redoubts still holding the British line
in the latter's desperate defense at Yorktown. It was a brave, but
probably very foolish, move on Hamilton's part. But he obviously
survived, adding even more to his enormous stature in the eyes of
Washington.
After the war he formed a law partnership with a
friend and found himself, among other things, defending Tories who were
suffering from the post-war anti-British backlash, typical of his sense
of fairness. But he was nonetheless very interested in seeing his new
Republic move forward into its own distinct future, and thus in 1784
founded the Bank of New York, the beginning of his entry into the world
of large-scale financing.
He was as interested in the political future of
the country as its financial future and two years later attended the
Annapolis Convention, drafting the resolution which called for the
Constitutional Convention that eventually produced the U.S.
Constitution. The next year he became an assemblyman in the New York
State Legislature, which sent him as one of its three representatives
to the Convention in Philadelphia. And of course it was he who wrote
most of the articles that formed the famous Federalist Papers, advocating the adoption of the new Constitution.
Washington had not forgotten Hamilton and the
military service he had performed for him. He knew Hamilton to be
intensely loyal personally, intensely brave, intensely intelligent,
intensely competent, and intensely dedicated to serving his newly
independent country. And so it was that Washington turned to Hamilton
to see what Hamilton could do to help him put the new country on a
strong financial footing. Thus he asked Hamilton to become his
secretary of the treasury.
Hamilton's debt assumption program
As it
had always been during the war, one of the biggest problems facing
Washington and the struggling young Republic he was expected to lead
was money. Always money! By war's end, the Continental Congress had run
up a $54 million debt, and the states an additional $25 million. Also,
the promissory notes or bonds issued during the war by the Continental
Congress, by the various states, and by the army had been bought up by
speculators after the war at fifteen cents on the dollar. Most people
believed that they were not worth even that much. In other words, the
creditworthiness of the Republic was almost nil.
Hamilton however had some well-developed ideas as
to how he wanted to meet that challenge. He proposed to Congress
(January of 1790) a method of clearing the debt by what he called
assumption: the federal government would assume all of the debts and
begin the process of repaying them – at full value! America would pay
its debts. The world could take confidence in that. It was indeed
financial confidence that Hamilton was trying to restore. To meet this
obligation, the Republic would itself borrow (issuing its own
promissory notes or bonds) to cover the debt through bonds issued by a
newly created national bank: the Bank of the United States (BUS).
Besides financing the repayment of the national debt, principally
through heavy taxes on imports, the BUS would also fund public economic
infrastructure projects and private industrial investment for national
development.
1His
mother was married but separated from another man when she met and
married (thus illegally) James Hamilton, Alexander's presumed father.
When her legal status was brought to light, James left her and young
Alexander. Then when Alexander was only thirteen his mother died,
leaving Alexander an orphan.
Library of
Congress
Hamilton's
program was designed to found the nation not on the democratic whims of
the masses but the hard-nosed realism of the moneyed class that
commanded the American economy. Understanding the mind-set of America's
moneyed class, Hamilton planned to involve this class in the new
government by inviting wealthy financiers to exchange the old
Continental Congress's bonds with the Republic's new bonds. This would
give these individuals a very strong financial interest in seeing the
new government succeed. And, most importantly, it would place the new
government's finances on very strong foundations.
Money is power. And the new nation needed power in
order to survive in a very competitive world. Strong financial
foundations were absolutely essential for a Republic trying to
establish itself as a serious, viable institution in a very challenging
world.
But the reaction to his proposals was swift. The
heart of the reaction was this matter of great principle found in the
personal debts hanging over the Patriot foot soldiers during their
wartime service (loans or mortgages for their homes and land they owed
various banks), when they were in no position to meet or pay down on
those debts. After the war they had returned to civilian life only to
find that those debts had gr own even larger while they had been away in
the army. Worse, they had been paid for their wartime services with the
almost worthless notes issued by the Continental Congress. They
retrieved what value they could by selling these notes to speculators
for whatever they could get, never enough however to meet the heavy
financial obligations hanging over them. And now, here was Hamilton
paying those speculators full value for these notes bought on the cheap
from penniless citizens. This all seemed very unfair, sort of a double
slap in the face of America's small heroes.
And there was also the irritation of the states
such as Virginia, which had paid off its own debts in full. Why should
they be part of a program assuming the debt of the states that had not
done what they had done?
There was a lot of anger that arose over Hamilton's
program. Jefferson's friend Madison was most vocal in his indignation
at Hamilton's idea of debt assumption because it seemed to be
developing at the heart of the federal system a power center on the
order of the royal tyranny America had just freed itself from.
Madison's strong stand eventually pushed Jefferson into an
ever-stronger States-Rights (or Anti-Federalist) position. And it cost
Hamilton his friendship with Madison, who as a former Federalist, now
turned into an equally dedicated organizer of an Anti-Federalist group
headed up by his fellow Virginian, Jefferson.
As it turned out, Washington threw his support
behind his treasury secretary and Congress moved ahead to approve
Hamilton's program. And indeed, it did put the new Republic on fairly
firm financial footing. But it had opened a wide political wound
between the Federalists and Anti-Federalists that would not be healed.
As Madison himself had forecast (and in the Federalist Papers had
justified as necessary to the proper functioning of a representative
government) America took its first steps toward a two-party political
system: Hamilton's Federalists in competition with Jefferson's
Anti-Federalists, who under Madison's tutelage would organize
themselves as the Republicans (not related to the modern Republican
Party)
|

Historical Society of
Pennsylvania

Miles H. Hodges
| | |