Hamilton’s Controversial Fiscal Program 1. Tariffs of 1789: Focus - raise revenue for the gov’t, not protect Amer. Merchants 2. Hamilton’s Plan a. Assumption – i. feds repay states debt w/bonds ii. Est. credit for fed. Gov’t abroad b. Bank of the United States Managed by Treasury Dept. c. TJ argues unconstitutional expansion of power 3. Complete Success foreign investments and domestic capital increases
Foreign Policy (1793) aka “self interest” 1. French Rev. and war Between France and GB 2. What should the US do? 3. Feds: support GB; trade 4. Anti-feds: support Fr; less dependent on GB 5. GW says Neutrality! = Sell, sell, sell! &
Domestic Crisis (1794) 1. Whiskey Rebellion a. Excise tax? b. tax collectors harassed c. Three Rebels killed d. GW sends troops out to Pa; puts rebels down 2. Moral of story? a. don’t mess w/Fed govt => Tested powers of new fed gov’t and Feds win
Jay’s and Pinckney’s Treaties 1. Jay’s Treaty (1794) a. GB to leave by 1796 b. Pay damages for seizures of American ships c. Pay debt to GB pre- Rev mostly by southerners
Jay’s and Pinckney’s Treaties Pinckney’s Treaty a. Southern boundary @31 parallel b. Ms. River open for US trade Collectively, LTC of treaties? Sovereignty West of Appalachian Mts. And ports from Atlantic to Miss. Valley open.
The Rise of Political Parties Election of 1796 Federalists President Republicans V.P.
Adam’s X, Y, Z Affair 1. Relations between US and France worsen thanks to US support of Jay’s Treaty; French confiscate US vessels and cargo. 2. US Delegates turned away; French wanted bribes and loans 3. Adams releases messages with names of French officials as X, Y, and Z. 4. Adams stands his ground; builds a navy for defense 5. “Quasi-war” between the two 6. Adams approval rating soars; by Anti-feds as well!
Alien & Sedition Acts (1798) 1. Limits free speech and liberties of foreigners 2. Naturalization Act increases residence requirements from 5 to 14 years 3. Sedition Act: fines/imprisonment for anyone convicted of speaking against gov’t 4. To be used against Republicans 5. Disagreement = treason
Alien & Sedition Acts (1798) 6. Virginia and Kentucky Resolutions a. states have fundamental rights that the federal gov’t cannot abridge (diminish) b. States can nullify federal laws that they judge to be unconstitutional c. Federalists believed since the people, not the states, wrote the constitution; therefore, the Supreme Court should be the only branch to deem laws unconstitutional