Goal 1: A New Nation (1789 – 1819)• The Federalist Period• George Washington

– Main Goal

• The Judiciary Act, 1789• Cabinet

– Dept. of State– Dept. of War– Dept. of Treasury

• Interpreting the Constitution– Loose Interpretation– Strict Interpretation

• 2 Party System– Federalists– Democrat-Republicans

• Hamilton’s Financial Program– Main Goal– 3 Parts

• The National Bank– How it Works– Controversy– Hamilton’s Justification

• Washington, DC• Taxes & Tariffs• Whiskey Rebellion• Results of the Whiskey Rebellion

The Federalist Period

• 1789 – 1800

• The Federalist Party was in charge of the Federal Government.

• Federalists supported the Constitution

George Washington1789 - 1797

• 1st President of the USA

• Main goal was to ease the tensions in the country

• Does not belong to a political party

• Faced many domestic & foreign issues during his administration.

Judiciary Act, 1789

• Created the lower

Federal Court

System

– Supreme Court

Justices

– District Courts

– Appeals Courts

Cabinet• Presidential advisors

• 3 departments (at 1st)– Dept. of State

• T. Jefferson• Foreign Affairs

– Dept. of War• H. Knox• Military affairs

– Dept. of Treasury• A. Hamilton• Finances

Interpreting the Constitution

• Loose Interpretation– Constitution is flexible

– Alexander Hamilton

• Strict Interpretation– Must follow the

Constitution exactly

– Thomas Jefferson

2 Party System• 2 political parties formed

around one issue:– Power & size of National

Gov’t.

• Federalists– Strong Federal Gov’t.– Alexander Hamilton

• Loose interpretation of Constitution

• Democrat-Republicans– Strong state gov’ts. (states’

rights)– Thomas Jefferson

• Strict interpretation of Constitution Jefferson

Hamilton

Hamilton’s Financial Plan

Main Goals:

Get America out of Revolutionary War debtProtect American industry

3 Parts:

1. Pay off state & national debts2. Create a national bank3. Excise taxes & tariffs

The National Bank• How it Works:

– Sell bonds to citizens & use money to pay off debts

• Bonds purchased by wealthy – they could afford it

• Controversy:– Created alliance between

wealthy & economy/gov’t.– Many northerners bought

bonds– The South already paid off

war debts!– Was the National Bank

constitutional??

• Hamilton Justifies the Bank:– Stated the “elastic

clause” gave him authority to create the bank

• The gov’t. may make any law it deems “necessary & proper” to govern the country effectively

Washington, DC

• To win Southern support, Hamilton suggested the capital to be moved to Maryland/Virginia border– To appease Southern anger over the National Bank

• South outraged because most bonds were owned in North, but paid for by the South

• Completed in 1800

• Jefferson & Madison (Southerners) felt this would make the nat’l gov’t. more responsive to Southern needs

• Moving the capital to DC marked the importance of Southern politics

Tariffs & Taxes• Purpose:

– To raise money for the gov’t. • Which will help pay off debt

– To protect American industry

• Protective Tariff:– Tax placed on foreign goods

• Makes foreign products more expensive to protect American industry

– We don’t buy more expensive products & buy US made goods

Tariffs & Taxes (Cont’d)

• Excise Tax:– Tax on domestic products

• Whiskey Tax:– Excise tax on whiskey

• Many frontier farmers angry– Whiskey was form of money– Easiest way to sell grain to

Eastern markets• Mississippi River closed to

US navigation

Whiskey Rebellion, 1794

• Farmers in western Pennsylvania protest the whiskey tax & refuse to pay taxes & beat up officials

• Washington put down rebels with the army– Encouraged by Hamilton

• Most dangerous crisis during Washington’s administration

Results of Whiskey Rebellion

1. Showed the Fed. Gov’t. was strong enough to control frontier affairs

2. Avoided repeat of Shays’ Rebellion

The French Revolution –1789

• At 1st, Americans supported revolution b/c it was like their own– Began to question the

bloody revolution

• France expected America to back them up because of the Franco-America Alliance of 1789– We promised to

support France in the event of war with England

• D-R support France– Honor alliance & still

bitter with England of abuses of colonists

• Federalists supported England– England was an key trade

partner – important for the success of American industry

• Washington declared neutrality (support neither side)– Continue to trade with

both countries

Jay’s Treaty –1794• British seized American ships destined for

France, despite America’s declaration of neutrality– The AOC signed a treaty w/France that was

getting the new US in trouble!– Almost brought us to war with Britain

• John Jay sent to Britain to find a solution– England doesn’t want to fight both France &

US, but knew US relied on England for trade!

• Allowed British to stay on American soil (trade)– Angered citizens

• Failed Treaty– Never settled dispute over shipping rights in

the Bahamas– British taking over American vessels

Battle of Fallen Timbers – 1794

• Native Americans never accepted Treaty of Paris & attacked settlers as they moved West– Supported by British in Great Lakes area

• US interests of moving West will cause constant problems with Native Americans

• Clashed with the Miami Confederacy & Little Turtle

• Miami Confederacy defeated in 1794 by Gen. “Mad Anthony” Wayne

• Ended Native American resistance in Ohio

Treaty of Greenville -1795

• Native Americans sold tribal land for $10,000– Underpaid for land –

this trend will continue throughout American expansion

• Opened Ohio territory to American settlers

Pinckney’s Treaty –1795

• Treaty with Spain - Spain gave up all land east of the Mississippi River - Not Florida

• Mississippi River open to American navigation

• America has the “right of deposit” at the Port of New Orleans

• 31st Parallel Southern border of USA

Washington’s Farewell Address

• Leaves office with 2 warnings:– Avoid political parties, they

will split the nation– “…steer clear of permanent

alliances…”

• Washington serves 2 terms– Does not run for a 3rd

John Adams (1797 – 1801)

• Federalist– What type of gov’t. does he

want?

• Wins the 1796 Election

• 1st election with 2 opposing parties

• Proves that peaceful elections are possible in a democracy

XYZ Affair

• What?– France seizing American

ships & sailors!!• Totally illegal –

they’re just made because we remained neutral during their revolution

– US sends representatives to France to discuss issue

– 3 French ambassadors (X,Y,Z) want a bribe ($250,000) to even talk about the issue

• Result:– The Navy is created– 2 year undeclared

naval war with France• Quasi War with

France

Alien & Sedition Acts, 1798

• Alien Act: – Must live in US 14 yrs. to become citizen– May be jailed if a danger to society

• Sedition Act:– Can be jailed for expressing opinions

opposing the gov’t.• Many Republicans jailed

– Violation of Freedom of Speech– Used to prevent growth of D-R Party

• Results:– The country begins to divide

Virginia & Kentucky Resolutions, 1798

• Why Passed?– In response to the Alien & Sedition Acts– Written by Madison & Jefferson

• What it did:– Voided the Alien & Sedition Acts

• Nullification:– States can void any Federal Law they feel are unconstitutional

• Proved:– Balance of power between Federal & State gov’t. is still a big

problem

Sectionalism• Putting the interests on 1 region/state over interest of the country

•States’ Rights