Unit 3 Launching the New Nation

Articles of Confederation *First attempt at a national government*  Problems / Weaknesses  No power to tax states (DEBT BUILDS UP)  No power to regulate trade / commerce  No national currency  No federal laws  No executive branch * What event proved that the government under the Articles of Confederation was ineffective and needed to be changed?______________

Washington  2 Problems as President  Creating a new government  Finding UNITY and TRUST with the American people  “We are in a wilderness without a single footstep to guide us.” - James Madison (Father of the Constitution and 4 th Pres. of the U.S.)

*** Judiciary Act of 1789 ***  Creation of the Judicial System & the Supreme Court  S.C. = 1 Chief Justice and 5 Assistant Justices  State court decisions were appealed to the Federal Court system when “Constitutional” issues were raised.  Supreme Court is “Law of the Land” – Article VI

Washington’s creation of the “Executive Branch”  PURPOSE: to carry or execute laws  Cabinet Positions – help the president and the vice president  Department of State – foreign affairs (Thomas Jefferson)  Department of Treasury – manage finances (Alexander Hamilton)  Department of War – military affairs (Henry Knox)  How will we remember these? STD!!!!!!

Hamilton and Jefferson Debate  ALEXANDER HAMILTON (Sec. of Treasury) - supported a strong national government led by the rich - Commerce and industry = strong nation - favored by the NORTH (BANKERS / LANDOWNERS/ $) * LOOSE interpretation of the Constitution - FEDERALISTS  THOMAS JEFFERSON (Sec. of State) - supported a strong state government - farmer citizens = strong nation - favored by the SOUTH (FARMERS/ Poor) -* STRICT interpretation of the Constitution - Jeffersonian / DEMOCRATIC-REPUBLICANS

HAMILTON’S ECONOMIC PLAN  Secretary of Treasury – this was his job!  Planned to manage the country’s (NATIONAL AND STATE) debt and set a up a national banking system  US was in debt to foreign countries and private citizens b/c of the Revolutionary War

HAMILTON’S ECONOMIC PLAN 1. funding at par - full funding 2. assumption of state debts 3. establishment of a National Bank 4. establishment of a protective tariff to benefit domestic manufacturing 5. excise taxes to assert the power of the national government

Full Funding of the Nation’s Debt Options available - default, partial funding, full funding Chooses full funding - why 1.establish credit (credibility) of the U.S. with foreign governments 2.establishing support of the elite for the national government 3.Foster development of industry in the region HAMILTON’S ECONOMIC PLAN

Assumption of state debts by the national government  Needed Southern support so Hamilton agreed to move the nation’s capital to Washington DC  tie the states more closely to the national government  State bond holders would now be loyal to the federal gov’t  money (capital) to accumulate in the Northeast - Northern states had more debt = more money = more industry HAMILTON’S ECONOMIC PLAN

First Bank of the United States  depository for federal funds  capitalized at $10m - one fifth owned by the federal government and four-fifths by private investors - elite  deposits would be loaned to finance industry and commerce  major debate over the constitutionality of the bank - centers around strict and loose constructionism HAMILTON’S ECONOMIC PLAN

Interpreting the Constitution Strict InterpretationLoose Interpretation Federal government has limited power Must be by the “book” AKA Constitution Greater powers for federal Government Necessary and Proper Clause or Elastic Clause -

Tariffs  first tariff in 1789 (8%) was a revenue tariff  Hamilton favored a protective tariff to benefit infant industries  industry and commerce would support the national government  who would benefit most from a protective tariff? HAMILTON’S ECONOMIC PLAN

Excise tax  excise tax on whiskey  flow of tax money would be from the south to the north  flow of money from agrarian to industrial areas  How would this lead to sectionalism? HAMILTON’S ECONOMIC PLAN

Whiskey Rebellion  1794 – Farmers refused to pay the tax on corn  Threatened to secede **The VERY FIRST time the executive branch stepped up to enforce laws!!!!!**

MAIN RESULT OF HAMILTON AND JEFFERSON DEBATE / DIFFERENCES  “Split of the cabinet” – fought over the power and size of the federal government  Created the * TWO PARTY SYSTEM * WASHINGTON HATES THE TWO PARTY SYSTEM

2 Party System FederalistsDemocratic - Republicans Hamilton Strong central gov’t Jefferson Strong state gov’t

French Revolution

Foreign Affairs Trouble the Nation  French Revolution (French vs. French government)  Would the U.S. support?  Democratic Republican support French while Federalists did not!  Edmond Genet – French diplomat sent to America to win support  Washington’s reaction :  Declaration of Neutrality - statement that the U.S. would support NEITHER side in the conflict (stay out of war)  French reaction = MAD!!!!

Native Americans Vs. White Settlers  1783 Treaty of Paris – Britain gave up land rights West of Appalachian Mtns.  Who wasn’t considered in the Treaty?  Native Americans  British had forts in NW Territory  Ohio, Illinois, Indiana, Michigan, and Wisconsin

Jay’s Treaty 1794  PURPOSE  negotiate a treaty with Britain (to stay away from war)  OUTCOME  British agreed to evacuate posts in NW Territory (Good)  British were allowed to continue trade on the American side of the Canadian/American border (Bad)  Dem-Republicans (western settlers) HATED John Jay

John Jay Burning in effigy

Pinckney’s Treaty (1795)  U.S. treaty with Spain  Spain controlled Miss. River / Louisiana Territory and Florida (at the time)  Purpose: 1. Gain shipping rights along the Mississippi River (Result: American development of Miss. Area) 2. Make land claims EAST of the Appalachian Mountains (except Florida) 3. Access to the Port of New Orleans  Why was the US able to get everything they wanted?  Spain signed a Treaty with France and was scared that the US would be backed by Britain

Native Americans Vs. White Settlers  Little Turtle – Modern Day Ohio  Miami Confederacy chief attacks white settlers and wins!!!!  Battle of Fallen Timbers  Little Turtle is defeated by white settlers  Miami Confederacy / Little Turtle gave up!  Treaty of Greenville (1795)  Peace agreement between Miami Confederacy and White Settlers  (Ohio region) = $$$$

WASHINGTON’S FAREWELL ADDRESS  America is fighting!!!  Washington DOES NOT run for a third term  FAREWELL ADDRESS (1796)  Topics:  NEUTRALITY - “Steer clear of permanent alliances”  AGAINST TWO PARTY SYSTEM  What causes the 2 Party system?