CH 7 NOTESESTABLISHING A NEW

GOVERNMENT

A NEW GOVERNMENT

• In 1789 each of the states that passed the Constitution sent electors to choose the first president

• ELECTORAL COLLEGE: a group of electors that represent the people’s vote for president

• Washington was elected unanimously, and John Adams became his Vice President

• Washington was hoping to retire, but was convinced by his friends that he was the best fit for president

George Washinton

• Members of the new government had to create new policies that would determine the future of the country

• Washington wrote: “The first of everything in our situation will serve to establish a precedent.”

• PRECEDENT: an action or decision that later serves as an example

• Congress created departments in the Executive branch

• Each department was led by a cabinet member

• CABINET MEMBERS: department heads who advise the president

CABINET MEMBERS

• ALEXANDER HAMILTON:

• Secretary of the Treasury

• Dealt with financial matters

• THOMAS JEFFERSON:

• Secretary of State

• Handled foreign relations

• HENRY KNOX:

• Secretary of War

• Provided for a national defense

JUDICIARY ACT OF 1789

• Congress passed the Judiciary Act of 1789 to set up the federal court system

• It established a Supreme Court with 6 judges

• 13 district courts and 3 courts of appeal

• It defined their powers and their relationship to the state courts

• It allowed certain cases to be appealed from state courts to federal courts

• President nominated judges, then they had to be approved by the senate

• As Secretary of Treasury, Hamilton had to deal with a huge debt

• NATIONAL DEBT: The amount of money owed by the U.S.

• He proposed that the government take on the entire debt of the federal government and the states

• His plan was to pay off old debt by borrowing new money at a lower interest rate.

HAMILTON’S ECONOMIC PLAN

• ECONOMIC PROBLEMS:

• The debt fell into 3 categories

• Foreign Countries: Owed $11.7 million (mostly to France)

• U. S. Citizens: Owed $40.4 million (Bonds)

• States: Owed $25 million (food, weapons, etc.)

• 1. DEAL WITH THE DEBT: Pay foreign debt first. Gradually pay off bonds. Pay state debt.

• 2. GAIN REVENUE: Raising protective tariffs would increase prices of foreign products, causing Americans to buy more U.S. goods.

• 3. STABILIZE THE BANKING SYSTEM: Create a national bank and a national mint.

HAMILTON’S 3-POINT PLAN

CITIZEN’S DEBT

• Congress could not agree on the debt to American citizens

• Bonds were issued during the war

• BONDS: Certificates of debt that carry a promise to buy them back at a higher price

• Speculators bought the bonds at a cheaper price

• Hamilton wanted to pay off the bonds at the original price, making speculators rich

HAMILTON’S VIEWS

• Believed in a strong central government.

• Wanted a balance of power between the “mass of people” and wealthier citizens.

• Wanted to promote manufacturing and business.

• Wanted higher tariffs on foreign goods to protect American manufacturers.

JEFFERSON’S VIEWS

• Wanted to protect the states power.

• Believed in the right of “the people” to rule the country.

• Supported agriculture and farmers.

• Wanted lower tariffs to keep costs low for goods farmers bought.

• Hamilton wanted to create a national bank, tariffs on imports, and national taxes

• Washington signed the bill to create the bank for a term of 20 years

• Tariffs on imports were created to encourage people to buy American goods

OPPOSITION TO HAMILTON’S PLAN

• Jefferson and Madison believed Hamilton’s plan gave too much power to the federal government

• They thought the bank was unconstitutional

• Hamilton brought up the elastic clause – congress can make all laws which shall be necessary and proper to govern the nation

• Hamilton believed in Loose Construction

• Loose Construction: the government can take reasonable actions that the Constitution does not specifically forbid

• Jefferson believed in Strict Construction

• Strict Construction: the government should do only what the Constitution specifically says it can do

• The south opposed the tariff because they had little industry

• Congress approved a variety of taxes, including one on whiskey

• Jefferson feared the strong economic powers would protect the wealthy

• Jefferson and Madison urged others to oppose Hamilton’s plan

• Hamilton would agree to a compromise

• For acceptance of the plan, the new capitol of the United States would be permanently moved from New York to a site on the Potomac River

• If left in New York or Philadelphia, political and economic power might be in the North

WHISKEY REBELLION

• People in areas like western Pennsylvania were angry at the tax on American-made whiskey passed by Congress in 1791.

• Whiskey was a cash crop to western Pennsylvania farmers.

• Farmers were angry that cases about the law were tried in district courts, often far away from the people affected.

• Fighting broke out in 1794.

• Washington led an army against the rebels, but the Whiskey Rebellion ended without a battle.

DEALING WITH OTHER NATIONS

• FRENCH REVOLUTION: (1789-1799)

• Inspired by the American Revolution

• The people overthrew the government and beheaded the king and queen

• between 18,000 and 40,000 people were executed during the Reign of Terror

• A few years later France and Great Britain went to war

• The French tried to involve the U.S.

• NEUTRALITY PROCLAMATION: Stated that the U.S. would not take sides with any European countries at war

NEUTRALITY PROCLAMATION

• French representative Edmond Genet asked American sailors to help France fight England with privateers.

• Privateers: private ships hired by a country to attack its enemies

• Washington told Genet this violated the Neutrality Proclamation

• Jefferson supported France

• Hamilton supported Great Britain

JAY’S TREATY

• The British seized American ships carrying food to the West Indies

• British were still helping Native Americans fight settlers

• Washington sent John Jay to London to negotiate

• Jay got the British to remove their troops from the Northwest Territory

• However, on every other point, he agreed to British terms

PINCKNEY’S TREATY

• The Spanish disputed the U.S. and Florida border.

• Spain closed the New Orleans port to U.S. trade in 1784.

• This hurt the American economy.

• Pinckney’s Treaty was signed in 1795.

• The southern U.S. border was set at 31° N latitude.

• The port of New Orleans reopened.

• Jay’s Treaty did not cover:

• Impressment of sailors

• Repayment of slaves taken during the revolution

• America did not have the power to ask for anything more. Washington felt it was the best they could do.

CONFLICT IN NORTHWEST TERRITORY

• Americans continued to settle in the Northwest

• Native Americans protested

• British provided guns to Natives

• Natives were defeated

• A treaty gave U.S. claim to most Native lands in the Northwest Territory

WASHINGTON SAYS FAREWELL

• IN THE FAREWELL ADDRESS:• Lists the benefits of uniting the states under one government

• Emphasizes his warning against the dangers of political parties

• Points out the need for education

• Gives advice to the new nation about foreign policy

• Warned against dangers of foreign ties.

• Warned the nation to work out its political differences.

• Warned against too much public debt.

POLITICAL PARTIES DEVELOP

• Election of 1796

• FEDERALIST PARTY:

• founded by Hamilton

• Wanted a strong federal government

• Chose John Adams and Thomas Pinckney as candidates

• DEMOCRATIC-REPUBLICAN PARTY:

• Founded by Thomas Jefferson and James Madison

• Wanted to limit the federal government’s power

• Chose Thomas Jefferson and Aaron Burr as candidates

• Party differences were based on where and how people lived

• Businesspeople in the cities supported the Federalists

• Farmers in isolated areas supported the Democratic-Republicans

ELECTION OF 1796

• Adams defeated Jefferson.

• Whoever had the second most votes became vice president, so Jefferson joined Adams in office.

XYZ AFFAIR

• An early goal of Adams was to improve relations with France

• U.S. diplomats were sent to France.

• The French foreign minister, Talleyrand, would not meet them.

• Three French agents secretly demanded a bribe before they would discuss a treaty with the Americans.

• The so-called XYZ Affair outraged Americans and led to a call for war with France.

• The agents said a treaty would be discussed only in exchange for $250,000

• The French government also wanted a loan of $12 Million

• The diplomats refused

• When Adams told congress of the talks, he replaced the agents names with the letters X, Y, Z

• Federalists wanted war

• Treaty was eventually signed

PREPARING FOR WAR AND PEACE• Adams asked Congress to expand the navy to more than

30 ships.

• He also asked Congress to approve a peacetime army.

• However, Adams did not want war with France.

• Federalists did not like Adams’s decision not to go to war.

• American and French ships began fighting in the Caribbean.

• The United States and France eventually signed a treaty.

ALIEN AND SEDITION ACTS

• Included four laws

• Aimed at stopping the growth of Democratic-Republican party

• Supposedly to protect the country from foreigners

• NATURALIZATION ACT:

• Increased time required to become a U.S. Citizen from 5 to 14 years

• Most new immigrants were joining the Democratic-Republican party

• Federalists wanted to make it harder for newcomers

• ALIEN ACT:

• Gave President power to deport any foreigner considered “dangerous to the peace and safety of the United States”

• Federalists hoped to silence French refugees who opposed them

• ALIEN ENEMIES ACT:

• Allowed government to deport aliens if their home country were at war with the U.S.

• Remains in effect today.

• SEDITION ACT:

• Made it a crime to speak or write critically about the government.

• Its purpose was to silence criticism.

KENTUCKY AND VIRGINIA RESOLUTIONS

• Jefferson and Madison passed these resolutions which said that the Alien and Sedition Acts were unconstitutional

• They stated that these acts interfered with state governments

• They wanted congress to repeal the acts, which did not happen

• The acts expired within a few years