In 1786 and 1787, a few years after the Revolution ended, thousands of farmers in western Massachusetts were struggling under a heavy burden of debt. Their problems were made worse by weak local and national economies. Many political leaders saw both the debt and the struggling economy as a consequence of the Articles of Confederation, which provided the federal government with no way to raise revenue and did little to create a cohesive nation out of the various states. The farmers wanted the Massachusetts government to protect them from their creditors, but the state supported the lenders instead. As creditors threatened to foreclose on their property, many of these farmers, including Revolutionary War veterans, took up arms.

Led by a fellow veteran named Daniel Shays, these armed men, the “Shaysites,” resorted to tactics like the patriots had used before the Revolution, forming blockades around courthouses to keep judges from issuing foreclosure orders. These protesters saw their cause and their methods as an extension of the “Spirit of 1776”; they were protecting their rights and demanding redress for the people’s grievances.

Governor James Bowdoin, however, saw the Shaysites as rebels who wanted to rule the government through mob violence. He called up thousands of militiamen to disperse them. A former Revolutionary general, Benjamin Lincoln, led the state force, insisting that Massachusetts must prevent “a state of anarchy, confusion and slavery.”3 In January 1787, Lincoln’s militia arrested more than one thousand Shaysites and reopened the courts.

Daniel Shays and other leaders were indicted for treason, and several were sentenced to death, but eventually Shays and most of his followers received pardons. Their protest, which became known as Shays’ Rebellion, generated intense national debate. While some Americans, like Thomas Jefferson, thought “a little rebellion now and then” helped keep the country free, others feared the nation was sliding toward anarchy and complained that the states could not maintain control. For nationalists like James Madison of Virginia, Shays’ Rebellion was a prime example of why the country needed a strong central government. “Liberty,” Madison warned, “may be endangered by the abuses of liberty as well as the abuses of power.”4

The Virginia Plan was daring. Classical learning said that a republican form of government required a small and homogenous state: the Roman republic, or a small country like Denmark, for example. Citizens who were too far apart or too different could not govern themselves successfully. Conventional wisdom said the United States needed to have a very weak central government, which should simply represent the states on certain matters they had in common. Otherwise, power should stay at the state or local level. But Madison’s research had led him in a different direction. He believed it was possible to create “an extended republic” encompassing a diversity of people, climates, and customs.

The Virginia Plan, therefore, proposed that the United States should have a strong federal government. It was to have three branches—legislative, executive, and judicial—with power to act on any issues of national concern. The legislature, or Congress, would have two houses, in which every state would be represented according to its population size or tax base. The national legislature would have veto power over state laws.7

Other delegates to the convention generally agreed with Madison that the Articles of Confederation had failed. But they did not agree on what kind of government should replace them. In particular, they disagreed about the best method of representation in the new Congress. Representation was an important issue that influenced a host of other decisions, including deciding how the national executive branch should work, what specific powers the federal government should have, and even what to do about the divisive issue of slavery.

For more than a decade, each state had enjoyed a single vote in the Continental Congress. William Patterson’s New Jersey Plan proposed to keep things that way. The Connecticut delegate Roger Sherman, furthermore, argued that members of Congress should be appointed by the state legislatures. Ordinary voters, Sherman said, lacked information, were “constantly liable to be misled” and “should have as little to do as may be” about most national decisions.8 Large states, however, preferred the Virginia Plan, which would give their citizens far more power over the legislative branch. James Wilson of Pennsylvania argued that since the Virginia Plan would vastly increase the powers of the national government, representation should be drawn as directly as possible from the public. No government, he warned, “could long subsist without the confidence of the people.”9)

Ultimately, Roger Sherman suggested a compromise. Congress would have a lower house, the House of Representatives, in which members were assigned according to each state’s population, and an upper house, which became the Senate, in which each state would have one vote. This proposal, after months of debate, was adopted in a slightly altered form as the Great Compromise: each state would have two senators, who could vote independently. In addition to establishing both types of representation, this compromise also counted three-fifths of a state’s enslaved population for representation and tax purposes.

The delegates took even longer to decide on the form of the national executive branch. Should executive power be in the hands of a committee or a single person? How should its officeholders be chosen? On June 1, James Wilson moved that the national executive power reside in a single person. Coming only four years after the American Revolution, that proposal was extremely contentious; it conjured up images of an elected monarchy.10 The delegates also worried about how to protect the executive branch from corruption or undue control. They endlessly debated these questions, and not until early September did they decide the president would be elected by a special electoral college.

In the end, the Constitutional Convention proposed a government unlike any other, combining elements copied from ancient republics and English political tradition but making some limited democratic innovations—all while trying to maintain a delicate balance between national and state sovereignty. It was a complicated and highly controversial scheme.

Delegates to the Constitutional Convention assembled, argued, and finally agreed in this room, styled in the same manner as during the Convention. Photograph of the Assembly Room, Independence Hall, Philadelphia, Pennsylvania. Wikimedia. Creative Commons Attribution-Share Alike 3.0 Unported.

The convention voted to send its proposed Constitution to Congress, which was then sitting in New York, with a cover letter from George Washington. The plan for adopting the new Constitution, however, required approval from special state ratification conventions, not just Congress. During the ratification process, critics of the Constitution organized to persuade voters in the different states to oppose it.

Importantly, the Constitutional Convention had voted down a proposal from Virginia’s George Mason, the author of Virginia’s state Declaration of Rights, for a national bill of rights. This omission became a rallying point for opponents of the document. Many of these Anti-Federalists argued that without such a guarantee of specific rights, American citizens risked losing their personal liberty to the powerful federal government. The pro-ratification Federalists, on the other hand, argued that including a bill of rights was not only redundant but dangerous; it could limit future citizens from adding new rights.11

Citizens debated the merits of the Constitution in newspaper articles, letters, sermons, and coffeehouse quarrels across America. Some of the most famous, and most important, arguments came from Alexander Hamilton, John Jay, and James Madison in the Federalist Papers, which were published in various New York newspapers in 1787 and 1788.12 The first crucial vote came at the beginning of 1788 in Massachusetts. At first, the Anti-Federalists at the Massachusetts ratifying convention probably had the upper hand, but after weeks of debate, enough delegates changed their votes to narrowly approve the Constitution. But they also approved a number of proposed amendments, which were to be submitted to the first Congress. This pattern—ratifying the Constitution but attaching proposed amendments—was followed by other state conventions.

The most high-profile convention was held in Richmond, Virginia, in June 1788, when Federalists like James Madison, Edmund Randolph, and John Marshall squared off against equally influential Anti-Federalists like Patrick Henry and George Mason. Virginia was America’s most populous state, it had produced some of the country’s highest-profile leaders, and the success of the new government rested upon its cooperation. After nearly a month of debate, Virginia voted 89 to 79 in favor of ratification.13

On July 2, 1788, Congress announced that a majority of states had ratified the Constitution and that the document was now in effect. Yet this did not mean the debates were over. North Carolina, New York, and Rhode Island had not completed their ratification conventions, and Anti-Federalists still argued that the Constitution would lead to tyranny. The New York convention would ratify the Constitution by just three votes, and finally Rhode Island would ratify it by two votes—a full year after George Washington was inaugurated as president.

Although debates continued, Washington’s election as president cemented the Constitution’s authority. By 1793, the term Anti-Federalist would be essentially meaningless. Yet the debates produced a piece of the Constitution that seems irreplaceable today. Ten amendments were added in 1791. Together, they constitute the Bill of Rights. James Madison, against his original wishes, supported these amendments as an act of political compromise and necessity. He had won election to the House of Representatives only by promising his Virginia constituents such a list of rights.

There was much the Bill of Rights did not cover. Women found no special protections or guarantee of a voice in government. Many states continued to restrict voting only to men who owned significant amounts of property. And slavery not only continued to exist; it was condoned and protected by the Constitution.

Of all the compromises that formed the Constitution, perhaps none would be more important than the compromise over the slave trade. Americans generally perceived the transatlantic slave trade as more violent and immoral than slavery itself. Many northerners opposed it on moral grounds. But they also understood that letting southern states import more Africans would increase their political power. The Constitution counted each Black individual as three fifths of a person for purposes of representation, so in districts with many enslaved people, the white voters had extra influence. On the other hand, the states of the Upper South also welcomed a ban on the Atlantic trade because they already had a surplus of enslaved laborers. Banning importation meant enslavers in Virginia and Maryland could get higher prices when they sold their enslaved laborers to states like South Carolina and Georgia that were dependent on a continued slave trade.

New England and the Deep South agreed to what was called a “dirty compromise” at the Constitutional Convention in 1787. New Englanders agreed to include a constitutional provision that protected the foreign slave trade for twenty years; in exchange, South Carolina and Georgia delegates had agreed to support a constitutional clause that made it easier for Congress to pass commercial legislation. As a result, the Atlantic slave trade resumed until 1808 when it was outlawed for three reasons. First, Britain was also in the process of outlawing the slave trade in 1807, and the United States did not want to concede any moral high ground to its rival. Second, the Haitian Revolution (1791–1804), a successful slave revolt against French colonial rule in the West Indies, had changed the stakes in the debate. The image of thousands of armed Black revolutionaries terrified white Americans. Third, the Haitian Revolution had ended France’s plans to expand its presence in the Americas, so in 1803, the United States had purchased the Louisiana Territory from the French at a fire-sale price. This massive new territory, which had doubled the size of the United States, had put the question of slavery’s expansion at the top of the national agenda. Many white Americans, including President Thomas Jefferson, thought that ending the external slave trade and dispersing the domestic slave population would keep the United States a white man’s republic and perhaps even lead to the disappearance of slavery.

The ban on the slave trade, however, lacked effective enforcement measures and funding. Moreover, instead of freeing illegally imported Africans, the act left their fate to the individual states, and many of those states simply sold intercepted enslaved people at auction. Thus, the ban preserved the logic of property ownership in human beings. The new federal government protected slavery as much as it expanded democratic rights and privileges for white men.14

Alexander Hamilton believed that self-interest was the “most powerful incentive of human actions.” Self-interest drove humans to accumulate property, and that effort created commerce and industry. According to Hamilton, government had important roles to play in this process. First, the state should protect private property from theft. Second, according to Hamilton, the state should use human “passions” and “make them subservient to the public good.”16 In other words, a wise government would harness its citizens’ desire for property so that both private individuals and the state would benefit.

Hamilton, like many of his contemporary statesmen, did not believe the state should ensure an equal distribution of property. Inequality was understood as “the great & fundamental distinction in Society,” and Hamilton saw no reason why this should change. Instead, Hamilton wanted to tie the economic interests of wealthy Americans, or “monied men,” to the federal government’s financial health. If the rich needed the government, then they would direct their energies to making sure it remained solvent.17

Hamilton, therefore, believed that the federal government must be “a Repository of the Rights of the wealthy.”18 As the nation’s first secretary of the treasury, he proposed an ambitious financial plan to achieve just that.

The first part of Hamilton’s plan involved federal “assumption” of state debts, which were mostly left over from the Revolutionary War. The federal government would assume responsibility for the states’ unpaid debts, which totaled about $25 million. Second, Hamilton wanted Congress to create a bank—a Bank of the United States.

The goal of these proposals was to link federal power and the country’s economic vitality. Under the assumption proposal, the states’ creditors (people who owned state bonds or promissory notes) would turn their old notes in to the treasury and receive new federal notes of the same face value. Hamilton foresaw that these bonds would circulate like money, acting as “an engine of business, and instrument of industry and commerce.”19 This part of his plan, however, was controversial for two reasons.

First, many taxpayers objected to paying the full face value on old notes, which had fallen in market value. Often the current holders had purchased them from the original creditors for pennies on the dollar. To pay them at full face value, therefore, would mean rewarding speculators at taxpayer expense. Hamilton countered that government debts must be honored in full, or else citizens would lose all trust in the government. Second, many southerners objected that they had already paid their outstanding state debts, so federal assumption would mean forcing them to pay again for the debts of New Englanders. Nevertheless, President Washington and Congress both accepted Hamilton’s argument. By the end of 1794, 98 percent of the country’s domestic debt had been converted into new federal bonds.20

Hamilton’s plan for a Bank of the United States, similarly, won congressional approval despite strong opposition. Thomas Jefferson and other Republicans argued that the plan was unconstitutional; the Constitution did not authorize Congress to create a bank. Hamilton, however, argued that the bank was not only constitutional but also important for the country’s prosperity. The Bank of the United States would fulfill several needs. It would act as a convenient depository for federal funds. It would print paper banknotes backed by specie (gold or silver). Its agents would also help control inflation by periodically taking state bank notes to their banks of origin and demanding specie in exchange, limiting the amount of notes the state banks printed. Furthermore, it would give wealthy people a vested interest in the federal government’s finances. The government would control just 20 percent of the bank’s stock; the other eighty percent would be owned by private investors. Thus, an “intimate connexion” between the government and wealthy men would benefit both, and this connection would promote American commerce.

Click Here For Important and Further Details About The First National Bank and the debate it engendered:

In 1791, therefore, Congress approved a twenty-year charter for the Bank of the United States. The bank’s stocks, together with federal bonds, created over $70 million in new financial instruments. These spurred the formation of securities markets, which allowed the federal government to borrow more money and underwrote the rapid spread of state-charted banks and other private business corporations in the 1790s. For Federalists, this was one of the major purposes of the federal government. For opponents who wanted a more limited role for industry, however, or who lived on the frontier and lacked access to capital, Hamilton’s system seemed to reinforce class boundaries and give the rich inordinate power over the federal government.

Hamilton’s plan, furthermore, had another highly controversial element. In order to pay what it owed on the new bonds, the federal government needed reliable sources of tax revenue. In 1791, Hamilton proposed a federal excise tax on the production, sale, and consumption of a number of goods, including whiskey.

Grain was the most valuable cash crop for many American farmers. In the West, selling grain to a local distillery for alcohol production was typically more profitable than shipping it over the Appalachians to eastern markets. Hamilton’s whiskey tax thus placed a special burden on western farmers. It seemed to divide the young republic in half—geographically between the East and West, economically between merchants and farmers, and culturally between cities and the countryside.

In the fall of 1791, sixteen men in western Pennsylvania, disguised in women’s clothes, assaulted a tax collector named Robert Johnson. They tarred and feathered him, and the local deputy marshals seeking justice met similar fates. They were robbed and beaten, whipped and flogged, tarred and feathered, and tied up and left for dead. The rebel farmers also adopted other protest methods from the Revolution and Shays’ Rebellion, writing local petitions and erecting liberty poles. For the next two years, tax collections in the region dwindled.

Then, in July 1794, groups of armed farmers attacked federal marshals and tax collectors, burning down at least two tax collectors’ homes. At the end of the month, an armed force of about seven thousand, led by the radical attorney David Bradford, robbed the U.S. mail and gathered about eight miles east of Pittsburgh. President Washington responded quickly.

First, Washington dispatched a committee of three distinguished Pennsylvanians to meet with the rebels and try to bring about a peaceful resolution. Meanwhile, he gathered an army of thirteen thousand militiamen in Carlisle, Pennsylvania. On September 19, Washington became the only sitting president to lead troops in the field, though he quickly turned over the army to the command of Henry Lee, a Revolutionary hero and the current governor of Virginia.

As the federal army moved westward, the farmers scattered. Hoping to make a dramatic display of federal authority, Alexander Hamilton oversaw the arrest and trial of a number of rebels. Many were released because of a lack of evidence, and most of those who remained, including two men sentenced to death for treason, were soon pardoned by the president. The Whiskey Rebellion had shown that the federal government was capable of quelling internal unrest. But it also demonstrated that some citizens, especially poor westerners, viewed it as their enemy.21

Around the same time, another national issue also aroused fierce protest. Along with his vision of a strong financial system, Hamilton also had a vision of a nation busily engaged in foreign trade. In his mind, that meant pursuing a friendly relationship with one nation in particular: Great Britain.

America’s relationship with Britain since the end of the Revolution had been tense, partly because of warfare between the British and French. Their naval war threatened American shipping, and the impressment of men into Britain’s navy terrorized American sailors. American trade could be risky and expensive, and impressment threatened seafaring families. Nevertheless, President Washington was conscious of American weakness and was determined not to take sides. In April 1793, he officially declared that the United States would remain neutral.22 With his blessing, Hamilton’s political ally John Jay, who was currently serving as chief justice of the Supreme Court, sailed to London to negotiate a treaty that would satisfy both Britain and the United States.

Jefferson and Madison strongly opposed these negotiations. They mistrusted Britain and saw the treaty as the American state favoring Britain over France. The French had recently overthrown their own monarchy, and Republicans thought the United States should be glad to have the friendship of a new revolutionary state. They also suspected that a treaty with Britain would favor northern merchants and manufacturers over the agricultural South.

In November 1794, despite their misgivings, John Jay signed a “treaty of amity, commerce, and navigation” with the British. Jay’s Treaty, as it was commonly called, required Britain to abandon its military positions in the Northwest Territory (especially Fort Detroit, Fort Mackinac, and Fort Niagara) by 1796. Britain also agreed to compensate American merchants for their losses. The United States, in return, agreed to treat Britain as its most prized trade partner, which meant tacitly supporting Britain in its current conflict with France. Unfortunately, Jay had failed to secure an end to impressment.23

For Federalists, this treaty was a significant accomplishment. Jay’s Treaty gave the United States, a relatively weak power, the ability to stay officially neutral in European wars, and it preserved American prosperity by protecting trade. For Jefferson’s Republicans, however, the treaty was proof of Federalist treachery. The Federalists had sided with a monarchy against a republic, and they had submitted to British influence in American affairs without even ending impressment. In Congress, debate over the treaty transformed the Federalists and Republicans from temporary factions into two distinct (though still loosely organized) political parties.

One reason the debates over the French Revolution became so heated was that Americans were unsure about their own religious future. The Illuminati scare of 1798 was just one manifestation of this fear. Across the United States, a slow but profound shift in attitudes toward religion and government began.

In 1776, none of the American state governments observed the separation of church and state. On the contrary, all thirteen states either had established, official, and tax-supported state churches, or at least required their officeholders to profess a certain faith. Most officials believed this was necessary to protect morality and social order. Over the next six decades, however, that changed. In 1833, the final state, Massachusetts, stopped supporting an official religious denomination. Historians call that gradual process disestablishment.

In many states, the process of disestablishment had started before the creation of the Constitution. South Carolina, for example, had been nominally Anglican before the Revolution, but it had dropped denominational restrictions in its 1778 constitution. Instead, it now allowed any church consisting of at least fifteen adult males to become “incorporated,” or recognized for tax purposes as a state-supported church. Churches needed only to agree to a set of basic Christian theological tenets, which were vague enough that most denominations could support them.34

South Carolina tried to balance religious freedom with the religious practice that was supposed to be necessary for social order. Officeholders were still expected to be Christians; their oaths were witnessed by God, they were compelled by their religious beliefs to tell the truth, and they were called to live according to the Bible. This list of minimal requirements came to define acceptable Christianity in many states. As new Christian denominations proliferated between 1780 and 1840, however, more and more Christians fell outside this definition.

South Carolina continued its general establishment law until 1790, when a constitutional revision removed the establishment clause and religious restrictions on officeholders. Many other states, though, continued to support an established church well into the nineteenth century. The federal Constitution did not prevent this. The religious freedom clause in the Bill of Rights, during these decades, limited the federal government but not state governments. It was not until 1833 that a state supreme court decision ended Massachusetts’s support for the Congregational Church.

Many political leaders, including Thomas Jefferson and James Madison, favored disestablishment because they saw the relationship between church and state as a tool of oppression. Jefferson proposed a Statute for Religious Freedom in the Virginia state assembly in 1779, but his bill failed in the overwhelmingly Anglican legislature. Madison proposed it again in 1785, and it defeated a rival bill that would have given equal revenue to all Protestant churches. Instead Virginia would not use public money to support religion. “The Religion then of every man,” Jefferson wrote, “must be left to the conviction and conscience of every man; and it is the right of every man to exercise it as these may dictate.”35

At the federal level, the delegates to the Constitutional Convention of 1787 easily agreed that the national government should not have an official religion. This principle was upheld in 1791 when the First Amendment was ratified, with its guarantee of religious liberty. The limits of federal disestablishment, however, required discussion. The federal government, for example, supported Native American missionaries and congressional chaplains. Well into the nineteenth century, debate raged over whether the postal service should operate on Sundays, and whether non-Christians could act as witnesses in federal courts. Americans continued to struggle to understand what it meant for Congress not to “establish” a religion.

Meanwhile, the Sedition and Alien Acts expired in 1800 and 1801. They had been relatively ineffective at suppressing dissent. On the contrary, they were much more important for the loud reactions they had inspired. They had helped many Americans decide what they didn’t want from their national government.

By 1800, therefore, President Adams had lost the confidence of many Americans. They had let him know it. In 1798, for instance, he had issued a national thanksgiving proclamation. Instead of enjoying a day of celebration and thankfulness, Adams and his family had been forced by rioters to flee the capital city of Philadelphia until the day was over. Conversely, his prickly independence had also put him at odds with Alexander Hamilton, the leader of his own party, who offered him little support. After four years in office, Adams found himself widely reviled.

In the election of 1800, therefore, the Republicans defeated Adams in a bitter and complicated presidential race. During the election, one Federalist newspaper article predicted that a Republican victory would fill America with “murder, robbery, rape, adultery, and incest.”36 A Republican newspaper, on the other hand, flung sexual slurs against President Adams, saying he had “neither the force and firmness of a man, nor the gentleness and sensibility of a woman.” Both sides predicted disaster and possibly war if the other should win.37

In the end, the contest came down to a tie between two Republicans, Thomas Jefferson of Virginia and Aaron Burr of New York, who each had seventy-three electoral votes. (Adams had sixty-five.) Burr was supposed to be a candidate for vice president, not president, but under the Constitution’s original rules, a tie-breaking vote had to take place in the House of Representatives. It was controlled by Federalists bitter at Jefferson. House members voted dozens of times without breaking the tie. On the thirty-sixth ballot, Thomas Jefferson emerged victorious.

Republicans believed they had saved the United States from grave danger. An assembly of Republicans in New York City called the election a “bloodless revolution.” They thought of their victory as a revolution in part because the Constitution (and eighteenth-century political theory) made no provision for political parties. The Republicans thought they were fighting to rescue the country from an aristocratic takeover, not just taking part in a normal constitutional process.

This image attacks Jefferson’s support of the French Revolution and religious freedom. The letter, “To Mazzei,” refers to a 1796 correspondence that criticized the Federalists and, by association, President Washington. Providential Detection, 1797. Courtesy American Antiquarian Society. Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0.

In his first inaugural address, however, Thomas Jefferson offered an olive branch to the Federalists. He pledged to follow the will of the American majority, whom he believed were Republicans, but to respect the rights of the Federalist minority. His election set an important precedent. Adams accepted his electoral defeat and left the White House peacefully. “The revolution of 1800,” Jefferson wrote years later, did for American principles what the Revolution of 1776 had done for its structure. But this time, the revolution was accomplished not “by the sword” but “by the rational and peaceable instrument of reform, the suffrage of the people.”38 Four years later, when the Twelfth Amendment changed the rules for presidential elections to prevent future deadlocks, it was designed to accommodate the way political parties worked.

Despite Adams’s and Jefferson’s attempts to tame party politics, though, the tension between federal power and the liberties of states and individuals would exist long into the nineteenth century. And while Jefferson’s administration attempted to decrease federal influence, Chief Justice John Marshall, an Adams appointee, worked to increase the authority of the Supreme Court. These competing agendas clashed most famously in the 1803 case of Marbury v. Madison, which Marshall used to establish a major precedent.

The Marbury case seemed insignificant at first. The night before leaving office in early 1801, Adams had appointed several men to serve as justices of the peace in Washington, D.C. By making these “midnight appointments,” Adams had sought to put Federalists into vacant positions at the last minute. On taking office, however, Jefferson and his secretary of state, James Madison, had refused to deliver the federal commissions to the men Adams had appointed. Several of the appointees, including William Marbury, sued the government, and the case was argued before the Supreme Court.

Marshall used Marbury’s case to make a clever ruling. On the issue of the commissions, the Supreme Court ruled in favor of the Jefferson administration. But Chief Justice Marshall went further in his decision, ruling that the Supreme Court reserved the right to decide whether an act of Congress violated the Constitution. In other words, the court assumed the power of judicial review. This was a major (and lasting) blow to the Republican agenda, especially after 1810, when the Supreme Court extended judicial review to state laws. Jefferson was particularly frustrated by the decision, arguing that the power of judicial review “would make the Judiciary a despotic branch.”39