1. The Early Republic (1789-1800) “’tis the event which I have long dreaded” -George Washington on his Presidential election

2. Washington as President Understood the importance of precedent Called “Mr. President” instead of “His Excellency” Created First Cabinet Signed Judiciary Act of 1789—creating federal court system Washington at time of his Presidency

3. Alexander Hamilton H e had industrial vision for America A ppointed first Secretary of the Treasury by GW A sked to solve nation’s financial problems Alexander Hamilton 3 Parts to his financial plan: 1)Report on Public Credit- Federal government assumes all state debts 2)Report on Banking- Asked Congress to create a Bank of the U.S. to issue currency, manage debt, etc. 3)Report on Manufactures- pass a protective tariff to stimulate domestic manufacturing

4. Bank of the United States Most controversial part of Hamilton’s plan Led to formation of America’s modern political parties Federalists (pro-Bank), Democratic-Republicans (anti- Bank) James Madison and Thomas Jefferson oppose the Bank—is it constitutional? 1791- Washington sides with Hamilton, Bank is created First Bank of the US- Philadelphia

5. The Whiskey Rebellion 1791- at Hamilton’s urging, Congress imposes direct tax on whiskey Summer 1794- rebellion in western Penn. GW leads 15,000 troops to put down rebels Significance- firmly established authority of new government Washington clearly demonstrates “commander- in-chief”

6. Early Political Parties Federalists Strong central government Rule by wealthy, educated Industry over farming Loose interpretation of Const. Support protective tariffs Supported by artisans, merchants, manufacturers, bankers Support from North and big cities Basis for modern Republican party Republicans Strong state government Rule by the common man Agriculture over industry strict interpretation Anti- tariffs Supported by farmers Support from South and western frontier Basis for modern Democratic Party

7. Foreign Policy Under Washington Revolution in France divides America 1793- Washington’s Neutrality Proclamation (England vs France) British Impressments of American ships Jay’s Treaty (1794)—ends conflict with Britain on troops in U.S. and Canada-US Border Pinckney’s Treaty (1795)— establish relationship with US and Spain. Gave US right to use Mississippi River Chaos in France

8. Washington Leaves Office Washington asked to run for 3 rd term, refuses (sets precedent) Writes Farewell Address before leaving Warns against sectionalism, political parties, entangling foreign alliances Washington retires to Mount Vernon after serving as President

9. John Adams 2 nd President Without George Washington Political Parties Exploded Adams won the 2 nd Presidency in 1796 but his VP was his philosophical enemy Thomas Jefferson (12 th amendment in 1804 will change this) Vote was close 71-68. Issues Adams Deals With: 1. He is NO GW 2. XYZ Affair 3. Alien & Sedition Acts

10. The XYZ Affair Europe’s state early 1800’s Napoleonic Wars War between Napoleon (France) and Europe French Revolution was in full swing The US sent diplomats to France to continue trade between Napoleon France and USA

11. The XYZ Affair The French Insult of US Diplomats In order to see the foreign minister the US must pay a Bribe to 3 agents (X,Y,Z) Americans were insulted by this demand Americans Wanted War with France US Congress cuts off ALL trade with France US Navy may capture French vessels at Will Napoleon Backs down – Signs trade deals

12. Alien & Sedition Acts War was expected between France & US due to X,Y, Z affair Congress + Adams Pass Alien Act 1. Citizenship wait time changed from 5 to 14 years 2. All Foreigners must register with the Government 3. The President can jail/ expel anyone who threatens the safety of the US Congress and Adams also pass the U.S. Sedition Act: 1.Made it illegal to write/speak against the actions of the Govt. This leads to the Virginia and Kentucky Resolutions which stated: The resolutions argued that the states had the right and the duty to declare unconstitutionall any acts of Congress that were not authorized by the Constitution. In doing so, they argued for states rights and strict constructionism of the Constitution. The Kentucky and Virginia Resolutions of 1798 were written secretly by Adams’ Vice President Thomas Jefferson and the father of constitution James Madisonl