1. Chapter 4 section 1 Objective 1.01 – What were the domestic issues & conflicts during the Federalist period

2. 1. The Bill of Rights 2. The Constitution 3. The Declaration of Independence 4. The Magna Carta

3.  Structure of our government  Bill of Rights – from the Virginia Declaration of Rights by George Mason  Cabinet – group of department heads that help the President execute laws  Capital is in New York

4.  1789  George Washington elected unanimously  Serves as president from 1789 – 1797  John Adams serves as his vice-president

5.  Secretary of State – Thomas Jefferson  Secretary of War – Henry Knox  Secretary of Treasury – Alexander Hamilton  Attorney General – Edmund Randolph

6.  Organized the federal court system  1 st Chief Justice – John Jay  Enumerated Powers – powers given to the federal government in the constitution  Expressed Powers – powers specifically stated in the Constitution  Implied powers – powers not specifically mentioned in the Constitution  Strict Construction – favors expressed powers only  Loose Construction – favors loose interpretation of the Constitution

7. 1. Tax on virtually everything 2. Limit on goods imported 3. Tax on goods imported 4. Tax on goods exported

8.  Financial Problems  War debts ($ 57 million) & no income  Tariff of 1789 – James Madison’s plan to get out of financial problems  Tonnage – tax based on how much ships carry  Hamilton & Madison begin to disagree

9. 1 ST PART  **Tariff of 1789  Tax on imported goods not only would earn the government money but would also protect newly emerging American industry in the north OPPOSITION  Some Southerners  The tax would mostly affect them since they were the ones mostly buying imported goods and selling their goods overseas  Some Southerners  The tax would mostly affect them since they were the ones mostly buying imported goods and selling their goods overseas

10.  Assumption Act  Government should borrow money to finance itself  How?  Buy Rev. War bonds at ORIGINAL face value rather than disregard them  Selling of more bonds Opposition  War Veterans & Southern Farmers  They lost money originally  Northerners making money off their losses  The Tariff of 1789 would pay for the bonds which was a tax on Southerners  James Madison Opposition  War Veterans & Southern Farmers  They lost money originally  Northerners making money off their losses  The Tariff of 1789 would pay for the bonds which was a tax on Southerners  James Madison  Compromise – Move the capital from New York to a southern location – District of Columbia

11. Washington DC NY & Philadelphia had other functions Foggy Bottom had no other use but as seat of the government

12. 1. The National Treasury 2. The Federal Reserve 3. The 1 st Bank of the US 4. Bank of America

13. **The National Bank  Purpose  Issue paper money  Manage nation’s debt  Issue loans to government & individual  Result  Promote trade  Encourage investment  Stimulate economic growth Opposition  Southerners  Northerners would control the wealth  Jefferson;James Madison  NO EXPRESSED or enumerated power to create a bank in the Constitution. Opposition  Southerners  Northerners would control the wealth  Jefferson;James Madison  NO EXPRESSED or enumerated power to create a bank in the Constitution. Washington signed the law creating the bank in 1791 for only 20 years

14. Excise Taxes: Tax on specific targeted products. 11791 – Whiskey Tax was created Opposition : *The Whiskey Rebellion  Pennsylvania distillers Opposition : *The Whiskey Rebellion PPennsylvania distillers  R Result – Washington sent 13,000 troops to restore order IImportance – showed the dominance of the federal government over the states; peaceful protest only allowed

15. FEDERALISTS  Northerners (New England)  Strong national government  Wealthy & educated should rule  Trade and manufacturing are key to wealth  Government should promote manufacturing  Protective tariffs to protect industry  Loose Constructionists DEMOCRATIC - REPUBLICANS  Southerners & western farmers  Strong state governments  Strict constructionists  Wealthy corrupt the government  Strength of nation in farmers  Government should promote agriculture  Protective tariffs burdened farmers  Southerners & western farmers  Strong state governments  Strict constructionists  Wealthy corrupt the government  Strength of nation in farmers  Government should promote agriculture  Protective tariffs burdened farmers

16. 1. National Bank 2. Tariff of 1789 3. Income Tax 4. Debt Assumption

17. George Washington & Foreign Policy 1789- French Revolution begins (Americans are split) 1793- French radicals seize control & execute thousands-including the French KING & QUEEN American Federalists were horrified at the French Revolution American Democrat-Republicans- applauded the French fight for liberty France Declared war on Britain- problem (the US traded with both nations) Treaty of 1778- US treaty with France required the US to help defend French colonies in Caribbean= could mean war with Britain! 1793- George Washington declared the US neutral ** British begin to intercept US ships carrying goods to French ports, British inciting Indians in NA to attack US settlers. US citizens demand war with Britain

18. G. Washington sent John Jay to Britain to seek a solution. Parts of the Treaty Jay forced to agree British had right to seize cargo US did not get compensation for US MERCHANTS British agree to international arbitration British agree to give up forts in US (NEVER LEAVE) US gets most favored nation trade status Outcome/Reaction in US ** Republicans attacked the treaty ** Public protests **Temporarily kept the US out of war with Britain

19. Also known as Treaty to San Lorenzo  1795- Spain gave the US the right to navigate the Mississippi River & use port of New Orleans  Pleased western farmers

20.  Americans settlers flocked to the area between the Appalachian mountains & Mississippi River.  1792- Kentucky became a state  1796- Tenn. Became a state  Northwest Territory: Chief Little Turtle united the Miami, Shawnee, Delaware to defend land.  President Washington sends Gen. Anthony Wayne to defend white settlers.  1794- The Battle of Fallen Timbers- US defeated Little Turtle and the Miami Confederacy= ended Indian resistance in Northwest Territory.

21. 12 Native American Nations signed a treaty with the U.S. Results of Treaty Indians gave up part of S. Ohio & Indiana Indians get $10,000 per year from U.S. By 1803- Ohio became a state (rapid white settlement

23.  After two Terms, Washington stepped down as President (establishes 2 term tradition)  1796 Presidential Election (John Adams v. Thomas Jefferson)  Dirty politics as “Jeffersonian’s” were called “fire-eating Salamanders, poison sucking toads”  Adams won 71 Electoral votes to 68; Jefferson became Vice President!

24.  Avoid Political PARTIES  Avoid Sectionalism  Avoid “foreign entanglements” stay neutral but trade with other nations.