Domestic Policies During the Adams Presidency
President Adams, the second President of the United States, followed Washington's lead in using the presidency to exemplify Federalist republican values and civic virtue. He continued to strengthen the central government and expanded the U.S. navy and army. In July of 1798, Adams signed into law the Act for the Relief of Sick and Disabled Seamen, which authorized the establishment of a government-operated marine hospital service.
Upon assuming office, Adams made the decision to retain all of the members of Washington's cabinet. Many historians feel that Adams failed to see fully the political danger of retaining a cabinet loyal to Alexander Hamilton. The "Hamiltonians who surround him," Democratic-Republican Vice President Thomas Jefferson soon remarked, "are only a little less hostile to him than to me." Although aware of the Hamilton factor, Adams was convinced that their retention would ensure a smoother succession. Adams' economic programs maintained those proposed by Hamilton, who had regularly consulted with key cabinet members.
Naturalization Act Controversy
Adams' presidency saw several conflicts that fueled domestic tensions. During the Quasi-War, Adams and Congress passed the Naturalization Act on June 18, 1798, as part of the broader Alien and Sedition Acts. The Naturalization Act increased the residency requirement for immigrants to become naturalized citizens in the United States from five to fourteen years. Although Federalists argued that such a measure was necessary for national security (as it would target any seditious immigrants, such as the Irish, who were sympathetic toward the French Revolution), most historians conclude it was really intended to decrease the number of voters who disagreed with the Federalist political party.
Rather than diminish the power of the opposing party, Federalists found that the Naturalization Act alienated their immigrant supporters, who began to turn toward the Democratic-Republicans. At the time, most immigrants (namely Irish and French) supported Thomas Jefferson and the Democratic-Republicans in the domestic outcry over the Alien and Sedition Acts. These acts became a focal point for the Democratic-Republicans' election campaign in 1800.
Fries's Rebellion
When the Quasi-War with France threatened to escalate in 1798, Congress assembled a large army and authorized the expansion of the navy. To pay for it, Congress imposed $2 million in new taxes on real estate and slaves, apportioned among the states according to the requirements of the Constitution in July, 1798.
The largely German American population of southeastern Pennsylvania resisted this new Direct House tax, which called upon Pennsylvania to contribute $237,000. There were very few slaves in Pennsylvania, so the tax was accordingly assessed upon dwelling houses and land, determining the value of the houses by the number and size of the windows. The inquisitorial nature of the proceedings, with tax assessors going to each home and counting windows, aroused strong opposition from the population. Many refused to pay, making the constitutional argument that this tax was not being levied in proportion to population. John Fries (1750–1818), an itinerant auctioneer and native of Pennsylvania, who had served in the Continental Army during the American Revolutionary War, led the resistance.
McCoole’s Red Lion Inn
McCoole’s Red Lion Inn opened in 1750. In 1798, the tavern was used as a meeting place for German farmers protesting a house tax which they felt was to sponsor a British monarchy in the U.S., and also because of their opposition to the war with France. The leaders were to be hanged in front of the tavern, but were pardoned by President Adams. A Pennsylvania historical marker can be seen on the left commemorating the event.
Fries organized meetings beginning in February of 1799 to discuss a collective response to the tax. Many advocated tax resistance. In Milford township, assessors were unsuccessful in completing their tax assessments due to intimidation. In an attempt to diffuse tensions, government representatives called a meeting to explain the tax, but protesters—some armed and in Continental Army uniforms—waved liberty flags and shouted them down, turning the meeting into a protest rally. The assessors were determined to continue their work in Milford, so Fries led a small armed band that harassed the assessors enough that they decided to abandon Milford temporarily. In early March, a local militia company and a growing force of armed irregulars met and marched on Quakertown in pursuit of the assessors, whom they intended to place under arrest. They captured a number of assessors there, releasing them with a warning not to return and urging them to tell the government what had happened.
Opposition to the tax spread to other parts of Pennsylvania. Federal warrants were issued, and the U.S. Marshal began arresting people for tax resistance in Northampton, including Fries and the other leaders of the rebellion. Thirty men went on trial in Federal court: Fries and two others were tried for treason and sentenced to be hanged. President John Adams, however, pardoned Fries and the others, prompted by the narrower constitutional definition of treason. Adams later added that the rebels were, "as ignorant of our language as they were of our laws," and were being used by "great men" in the opposition party. He issued a general amnesty for everyone involved on May 21, 1800.
The Fries's Rebellion had lasting effects, however. It greatly alienated the German-American population from the Federalist party, and—because of the "unfair" taxes levied to expand a standing army—reinforced the Democratic-Republican argument that Federalists were tyrannical.