John Adams Part 3: Policy & Achievement

Economic Stewardship

John Adams inherited a relatively stable economy from Washington but faced mounting financial pressures from the naval conflict with France. His economic management, overseen by Treasury Secretary Oliver Wolcott Jr.Treasury Secretary 1795-1800, succeeded Hamilton but lacked his financial genius, was competent but uninspired, maintaining Hamilton's system without innovation.

The greatest economic challenge was financing defense without destroying the young nation's credit. Adams supported the Direct Tax of 1798First federal property tax, levied on houses, land, and slaves to fund military buildup, the first federal property tax, which raised $2 million. This tax, though necessary, was deeply unpopular, especially among German farmers in Pennsylvania.

Adams maintained Hamilton's financial architecture: the Bank of the United States, funded debt, and customs duties as primary revenue. He resisted both Jeffersonian calls to dismantle the system and Hamiltonian pressure for more aggressive financial measures. This middle course preserved stability but offered no vision for economic growth.

The Fries Rebellion1799 tax revolt in Pennsylvania, suppressed without bloodshed demonstrated the limits of federal taxation. When Pennsylvania Germans resisted tax assessors, Adams sent federal troops but then pardoned the rebels, showing both firmness and mercy. The episode highlighted the fragility of federal authority in economic matters.

Commercial policy remained focused on neutral trade. Despite French depredations, American commerce grew as merchants found new markets. The building of frigates protected trade routes, and insurance rates fell as naval protection increased. By 1800, American ships traded globally, laying foundations for future prosperity.

Foreign Policy & National Security

Adams's foreign policy achievement—avoiding war with France while maintaining national honor—stands as his greatest presidential accomplishment. He inherited a crisis that could have destroyed the young republic and transformed it into foundation for future growth.

The Quasi-War with France

The XYZ AffairFrench agents demanded $250,000 bribe before negotiations could begin created war hysteria. "Millions for defense, but not one cent for tribute" became the rallying cry. Adams used public outrage to build national defense while avoiding full war. Congress authorized a 10,000-man army and construction of frigates.

The limited naval war (1798-1800) demonstrated American resolve without risking full conflict. Captain Thomas TruxtunNaval hero who defeated French frigates L'Insurgente and La Vengeance's victories showed European powers that America could defend itself. Naval success strengthened Adams's diplomatic position.

The Peace Initiative

When TalleyrandFrench Foreign Minister who signaled willingness to receive American envoys signaled readiness to negotiate in 1799, Adams faced his defining moment. His entire cabinet, led by Pickering and loyal to Hamilton, opposed peace. Hamilton wanted war to build state power and crush Republicans.

Adams's decision to send peace commissioners split his party but saved the nation. The Convention of 1800Treaty ending Quasi-War, signed September 30, 1800 ended hostilities and restored commercial relations. Though ratified after Adams left office, it vindicated his policy.

Relations with Britain

Adams maintained Washington's policy of neutrality despite British impressment of American sailors and trade restrictions. The Jay Treaty1795 treaty with Britain, highly controversial but maintained by Adams, though unpopular, kept peace with Britain while America built strength. Adams understood that conflict with both France and Britain would be catastrophic.

Legislative Achievement & Congressional Relations

Adams's legislative record was modest, hampered by partisan division and his own political limitations. The Fifth and Sixth Congresses (1797-1801) were narrowly Federalist, but party unity was fragile. Adams's distant relationship with Congress—he delivered only four annual messages in person—weakened his influence.

Major Legislation

Positive legislative achievements included establishing the Navy DepartmentCreated April 30, 1798, with Benjamin Stoddert as first Secretary and the Marine CorpsRe-established July 11, 1798, after being disbanded in 1783. The Judiciary Act of 1801Created federal circuit courts and expanded federal jurisdiction, passed in his final days, reorganized federal courts and enabled his "midnight appointments."

Relations with Congress

Adams's congressional relations were strained by several factors:

• Hamilton's shadow leadership of Federalists in Congress
• Adams's long absences in Quincy (he spent 385 days there out of 1,461 as president)
• His refusal to use patronage to build support
• Growing partisan bitterness between Federalists and Republicans

The president's unwillingness to cultivate legislators personally—he found lobbying distasteful—limited his effectiveness. Unlike Jefferson, who dined regularly with congressmen, Adams maintained formal distance. This aloofness, combined with his thin skin about criticism, alienated potential allies.

Yet Adams showed courage in defying congressional war hawks. When Congress voted military preparations in 1798, he used the authority for defense, not offense. When peace became possible, he pursued it despite congressional opposition, splitting his party but serving the nation.