The Federalists, who believed in centralised government, were the most influential men in Congress. Washington appointed Thomas Jefferson Secretary of State, Knox Secretary of War, Hamilton Secretary of the Treasury, Osgood Postmaster General, and Jay Chief Justice of the Supreme Court.
The first tariff act was passed with a view of providing revenue and protection, in 1789. The national debt amounted to $52,000,000.00--a quarter of which was due abroad. The states had incurred an expense of $25,000,000.00 more, in supporting the Revolution. The country suffered from inflated currency. The genius of Hamilton saved the situation. He persuaded Congress to assume the whole obligation of the national government and of the states. Washington selected the site of the capitol on the banks of the Potomac. But the government convened at Philadelphia for ten years. Vermont and Kentucky were admitted as states by the first Congress.
In Washington's administration, a number of American ships were captured by British war vessels. England was at war with France and claimed the right of stopping American vessels to look for possible deserters. War was avoided by the Jay Treaty, November 19, 1794.
Washington retired, in 1796, at the end of two terms. John Adams, who had been Ambassador to France, Holland and England, became second President. The Democratic-Republican party, originated at this time, stood for a strict construction of the constitution and favoured France rather than England. Its leader was Thomas Jefferson. Adams proved but a poor party leader, and the power of the Federalists failed after eight years. He had gained some popularity in the early part of his first term when France began to retaliate for the Jay Treaty by seizing American ships, and would not receive the American minister. He appointed Charles Coatesworth Pinckney, with John Marshall and Elbridge Gerry, as a commission to treat with the French. The French commissioners who met them demanded $24,000,000.00 as a bribe to draw up a treaty. The names of the French commissioners were referred to in American newspapers as X, Y and Z. Taking advantage of the popular favour gained in the conduct of this affair, the Federalists succeeded in passing the Alien and Sedition Laws.
Napoleon seized the power in France and made peace with the United States. In the face of impending war between France and England, Napoleon gave up his plans of an empire in America and sold Louisiana to the United States for $15,000,000.00. The territory included 1,500,000 square miles. The Lewis and Clarke Expedition, sent out by Jefferson, started from St. Louis May 14, 1804, crossed the Rocky Mountains and discovered the Oregon country.
Aaron Burr was defeated for Governor of New York, and in his Presidential ambitions, and in revenge killed Hamilton in a duel. He fled the Ohio River country and made active preparations to carry out some kind of a scheme. He probably intended to proceed against the Spanish possessions in the Southwest and Mexico, and set himself up as a ruler. He was betrayed by his confidante, Wilkinson, and was tried for treason and acquitted in Richmond, Va., in 1807.
The momentous question of slavery in the territories came up in Jefferson's administration. The institution was permitted in Mississippi, but the ordinance of 1787 was maintained in Indiana. The importation of slaves was prohibited after January 1, 1808.
James Madison, a Republican, became President, in 1809. The Indians, under Tecumseh, attacked the Western settlers, but were defeated at Tippecanoe by William Henry Harrison in 1811. In the same year, Congress determined to break with England. Clay and Calhoun led the agitation. Madison acceded, and war was declared June 18, 1812. The Treaty of Ghent was signed on December 24, 1814. British commerce had been devastated. A voyage even from England to Ireland was made unsafe.
The leading events of the War of 1812 were the unsuccessful invasion of Canada and surrender at Detroit, August 12, 1812; sea fight in which the "Constitution" took the "Guerriere," August 19th; sea fight in which the "United States" took the "Macedonian," October 25, 1813; defeat at Frenchtown, January 22nd; victory on Lake Erie, September 10th; loss of the "Chesapeake" to the "Shannon," June 1st; victory at Chippewa, July 5, 1814; victory at Lundy's Lane, July 15th; Lake Champlain, September 11th; British burned public buildings in Washington, August 25th; American defeated British at Baltimore, September 13th; American under Jackson defeated the British at New Orleans, December 23rd and 28th.
Kentucky, Tennessee and Ohio, were admitted as states, in 1792, 1796, and 1803, respectively. In 1806, the federal government began a wagon road, from the Potomac River to the West through the Cumberland Gap. New York State finished the Erie Canal, in 1825. The population increased so rapidly, that six new states, west and south of the Allegheny Mountains, were admitted between 1812 and 1821. A serious conflict arose in 1820 over the admission of Missouri. The Missouri Compromise resulted in the prohibition of slavery in the Louisiana Purchase, north of 36° and 30' north latitude. Missouri was admitted in 1831, and Maine, as a free state, in 1820.