1. A Nation Divided Standard Indicator 8-3.4

2. New National Leaders Federal government was established in 1789 Federal government was established in 1789 President George Washington Secretary of the Treasury Alexander Hamilton

3. Called for an economic policy that would strengthen the national government proposed (1) the federal gov’t pay the debt incurred as a result of the American Revolutionary War (2) (2) the national gov’t assume the debts of the states from the war (3) (3) called for a national bank to issue bank notes /collect taxes Also asked Congress to pass a high protective tariff on imported goods to encourage Americans to make goods at home

4. Political Parties (Federalists) Two political parties developed as a result of disagreements over these proposals of proposals Federalists (Hamilton) in favor of proposals Believed in a strong central government that would promote trade and industry Most from New England Most from New England

5. Political Parties (Democratic-Republicans) Led by Thomas Jefferson and James Madison Opposed Hamilton’s proposals Opposed Hamilton’s proposals Favored a republic of small farmers & shopkeepers rather than manufacturing Favored a republic of small farmers & shopkeepers rather than manufacturing SC elite supported the Federalists SC Backcountry supported the Democratic- Republicans Most of SC supported the assumption of state debt, even though the Republicans did not Most of SC supported the assumption of state debt, even though the Republicans did not

6. Political Compromise Democratic-Republicans agreed to assume the state debts as long as the Federalists agreed to move the capital of the nation to the banks of the Potomac River in the South (Present Day Washington, D.C.)

7. National Bank The Democratic-Republicans argued that the Constitution should be strictly interpreted (literally) Federalists argued that Congress had been granted the authority to make all laws that were “necessary and proper” to the execution of its powers argued that a bank was necessary for the power to tax and control commerce which was granted to the national government in the Constitution advocated a loose interpretation of the Constitution

8. Foreign Policy 1789 French Revolution 1789 French Revolution Democratic-Republicans supported the French in overthrowing their king Federalists were appalled at the bloodshed – –sided with the mother country hoping to secure more trade George Washington issues a Proclamation of Neutrality—US to remain neutral in the Napoleonic Wars

9. X,Y,Z Affair Take Notes……(2:41) Take Notes……(2:41) The XYZ Affair The XYZ Affair The XYZ Affair The XYZ Affair

10. X,Y,Z Affair Aftermath Federalists prepared for war Federalists prepared for war Democratic-Republicans vilified President John Adams in their party newspapers Insulted by this, Federalists passed the Alien & Sedition Acts designed to limit the growth of the Democratic –Republican Party & to silence its newspapers Several newspaper publishers were jailed. – –[Including Thomas Cooper after whom the libraries at USC and Clemson are named] Republican response—suppression of their freedom of press was unconstitutional

11. Neutrality, Trade, & More Controversy over the Alien and Sedition Acts contributed to the election of Thomas Jefferson as president in 1800 during the Americans traded with both the British and the French during the Napoleonic Wars British practice of impressment – –pressing into service American sailors they claimed were British citizens – –became a major grievance B/c of this grievance, in 1807, Congress passed the Embargo Act to stop American trade with both Britain and France –This devastated the trading industry in New England –(Federalists imposed this and the war of 1812)

12. Neutrality, Trade, & More Democratic-Republicans living in the West accused the British of urging Native Americans to attack American settlers w protest meetings were held all over South Carolina when British ships fired on an American ship In 1810, War Hawk John C. Calhoun was elected to Congress from South Carolina – –urged Congress to declare war on Great Britain

13. War of 1812 US declares war on Great Britain & invades Canada & were defeated In 1814, a British army attacked Washington, D. C. and set fire to the capital and the president’s house [later the White House] treaty that ended the war brought no exchange of lands but did cause a surge of nationalism

14. War of 1812 Federalist Party died as a result of their opposition to the war The War of 1812 - Washington DC is burned to the Ground (8:49) Democratic-Republicans, including John C. Calhoun, began to support Federalist policies including a protective tariff and the national bank The War of 1812 - Washington DC is burned to the Ground (8:49) The War of 1812 - Washington DC is burned to the Ground The War of 1812 - Washington DC is burned to the Ground