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

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

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)

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

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

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

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

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

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.

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.

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!

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

Political Parties Emerge https://www.youtube.com/watch?v=_KnPB37YB7I

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)

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

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.

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

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

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

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

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

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

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.

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!

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.

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

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.

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