1. Two Party System
Hamilton’s economic plans, Two party system, Era of Federalists, Election of 1800 & Marbury v. Madison

2. A New Nation under the US Constitution
George Washington was unanimously elected to be the 1st President. John Adams became the Vice President.

3. A New Nation under the US Constitution
Since the gov’t was NEW, Washington didn’t have many set rules on how to be President.
He began to set many precedents, or acts that become traditions.
One of these was the creation of a Cabinet
Later he sets the precedent of only serving 2 terms(Term Limits)

4. A New Nation under the US Constitution
The courts were set up due to the Judiciary Act of 1789
Supreme Court would have 6 judges: 1 chief justice & 5 associate justices
Washington appointed John Jay to be the chief justice
Congress created 13 district courts & 3 circuit courts

5. A New Nation under the US Constitution
The nation had a lot of problems starting out…
Debt from the War
Other countries didn’t take us seriously
The Spanish closed the Mississippi River to US trade
British still had forts in the Great Lakes area

6. Alexander Hamilton’s Plans
Secretary of Treasury, Alexander Hamilton, came up with settling the debt.
*REMEMBER* Hamilton is a Federalist
Plan 1: Deal with debt from the Revolution
Hamilton wanted to pay the $12 mil we owed to other countries & pay back Americans ($40 mil) for bonds and IOUs from the war
He also wanted to take over or assume state debts from the war ($25 mil)
Northern states LOVE this
Southern states had already paid off most of their debt

7. Alexander Hamilton’s Plans
Plan 2: Pass high tariffs (tax on imports) also called a Protective Tariff as well as an Tax on manufactured goods
This would bring in money
It would also protect American businesses from foreign competitors
This idea was REJECTED by Congress

8. Alexander Hamilton’s Plans
Plan 3: Create a National Bank
Hamilton proposed that a National bank would…
Be a safe depository for federal money
Make it easy for gov’t & people to borrow money
Create a stable, uniform currency

9. Anti-Federalists react to Hamilton’s Plans
Anti-Feds were worried that Hamilton’s plan gave the National government too much power
Hamilton backed up his plans by saying his plan helped “the general welfare.” He believed in a loose interpretation or loose construction of the Constitution.

10. Anti-Federalists react to Hamilton’s Plans
Ex: He said the National Bank was “Necessary & Proper”
“The Congress shall have Power ... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.” – Necessary & Proper or Elastic Clause
Anti-Federalists believed in a strict construction of the Constitution.

11. Anti-Federalists react to Hamilton’s Plans
In Western Pennsylvania, farmers were upset with the Excise Tax.
In 1794, farmers resisted the tax and began attacking tax collectors. This was called the Whiskey Rebellion
National gov’t was now strong enough to deal with the rebellion!

12. Hamilton appeals to the Southerners
In order to get Southerners on his side, Hamilton promised that in 10 years the national capital farther south (from NYC to Washington DC) in 1792

13. Political Parties Emerge

14. Gov. Involvement in Economy Federal Assumption of State War Debts
FEDERALISTS
The First Party System
REPUBLICANS
HAMILTON
John Adams
Leaders
JEFFERSON
James Madison
Strong CENTRAL Gov.
Federalism
States’ Rights
LOOSE Construction
Constitution
STRICT Construction
YES
Gov. Involvement in Economy NO
VERY YES
National Bank
Protective Tariff
Federal Assumption of State War Debts
Urban (Commerce)
Supporters
Rural (Agrarian)

15. Washington’s Foreign Policy
Washington decided early on that he would stay out of foreign issues. He issued a Proclamation of Neutrality.

16. Washington’s Foreign Policy
The Citizen Genet Incident
French sent Edmond Genet to get US support in their fights with the British. When he arrived in America he…
Tried to rally Americans to fight & sent ships out of American ports to attack British ships
Washington shut this down but Genet never went back to France & ended up becoming a US citizen.

17. Washington’s Foreign Policy
British Forts in the Northwest Territory
British were supposed to leave this area after the Revolution.
They claimed they stayed in the area because Americans never paid debts owed to the British
We solve this issue with The Jay Treaty

18. Washington’s Foreign Policy
The Jay Treaty
To avoid a war John Jay goes to England to negotiate. The treaty says:
British must leave the territory
We must pay back our debts
England must pay us back for any ships & goods they had taken

19. Washington’s Foreign Policy
To settle issues with the Spanish over the use of the Mississippi River, Louisiana, & Florida, Washington sent Thomas Pinckney.
The Pinckney Treaty stated:
US can use the lower Mississippi River & the Port of New Orleans without being taxed
Established the 31st Parallel as the boundary between US & Spanish land

20. Washington’s Farewell Address
Warned the nation against…
Political parties
Getting involved in European affairs
John Adams becomes President

21. Adam’s Foreign Policy
After we signed the Jay Treaty with England, our relations with France became worse.
To avoid a war President Adams sent a group to France to negotiate but 3 French officials known as X, Y, & Z demanded lots of money before they would start peace talks. This became known as The XYZ Affair
Adams stopped negotiations and built up the navy

22. Adam’s Foreign Policy
While dealing with the French, Congress (mostly Federalists at this time) passed a series of laws known as The Alien & Sedition Acts.
Gave Adams the power to imprison or deport any alien that he considered dangerous to our peace
Made it a crime for anyone to publically criticize the gov’t

23. Adam’s Foreign Policy Kentucky & Virginia Resolutions
Said that the Alien & Sedition Acts were unconstitutional
Each state has the right to judge whether Congress has abused its power
IF a state considers a law unconstitutional, they do not have to obey it.

24. End of a Federalist Era The Election of 1800 Thomas Jefferson Wins
*REMEMBER* he is a democratic-republican (republican)
Both houses of Congress were mostly democratic-republican at this time too!

25. End of a Federalist Era
Before Adams leaves office, he realizes that the gov’t will no longer be dominated by Federalists.
Adams finds a way to input some Federalist power into the gov’t before he leaves.

26. Judiciary Act of 1801 “Midnight Judges Act”
Federal judges serve until they die or retire
The act Creates 16 federal judges
Adams appoints his secretary of state, John Marshall, as chief justice

27. Marbury vs. Madison
Marshall didn’t have the chance to deliver all the paperwork for the 16 new judges.
When Madison enters office he refuses to deliver them
Marbury (another appointed judge) decides to sue to make Madison deliver the commissions.

28. Marbury vs. Madison
The court case determines that the Judiciary Act of 1879 is UNCONSTITUTIONAL
This establishes Judicial Review