2. Crisis of the 1790s Federalist sweep in 1788 as G. Washington chosen as president, J. Adams vice president Power to appoint official with consent of the Senate (Cabinet) Judiciary Act 1789 = federal court system Bill of Rights added as a safeguard

3. Hamilton’s Policies Finances split the Federalists. A. Hamilton, Secretary of Treasury, enhance authority of govt, favor financiers and seaport merchants. Report on the Public Credit = redeem millions of dollars selling securities, windfall profits to speculators, permanent national debt owned by the wealthy 2 nd proposal assume the states debt Charter a Bank of the United States Move the capitol to banks of Potomac River Jefferson/Madison oppose the Bank Domestic excise taxes imposed (revenue v. protective) Increased trade and customs revenue paid for his plan

4. Jefferson’s Vision 1793, most northern Federalists followed Hamilton’s plan Southerners listened to Madison and Jefferson, the Democratic-Republicans. “West of farm families, feeding Europe in exchange for mfg. goods.” 1790s warfare in Europe saw his vision become reality Raw cotton export boom, boosted lower South

5. French Revolution Proclamation of Neutrality issued during England/France war benefitting American merchants and workers Americans argued over the European struggles Whiskey Rebellion – protest against new excise taxes on spirits 1793, Royal Navy preying on American ships bound for France J. Jay sent to Britain to hammer out deal, treaty was slammed by Dem- Rep. Federalists in power keep a pro- British policy in place

6. Rise of Political Parties Political parties considered dangerous and unnecessary Merchants, creditors, and urban artisans favored Federalist policies Republican coalition was farmers and planters 1796, Adams elected president will continue Hamilton’s financial policies XYZ Affair, Congress cuts trade with France

7. Revolution of 1800 Federalists passed the Naturalization Act, the Alien Act, and the Sedition Act to silence critics Republicans felt it violated the 1 st amendment KY and VA declared these acts void, a states’ right interpretation of Constitution Republicans throw support behind Jefferson in 1800 election Adams rejects declaring war on France Jefferson wins narrow 73 to 65 over Adams but ties Burr with 73 (his running mate) Federalists keep blocking Jefferson until Adams and Hamilton intervene to persuade key votes for Jefferson Bloodless transfer of power termed the “Revolution of 1800”

8. Native American Resistance U.S. asserts ownership of land across the Appalachian’s, natives reject the claim 1784, pro-British Iroquois sign Treaty of Fort Stanwix, relinquish control of land. Ohio natives induced to give up land Western Confederacy formed of natives, forcing compromise peace in Treaty of Greenville 1795 with Washington Admin. Brought transfer of millions of acres of Indian land to U.S., wave of migration moves west. Natives resisted attempts to assimilate them into white society

9. Migration and Farming American farm economy transformed Cumberland Gap migration, yeoman and white tenant farmers heading west VA govt. allowed purchase in KY and TN up to 1,400 acres at reduced prices Second wave came of slave owning farmers came to Gulf region Cotton becomes main new crop of wealth Third wave comes from New England (overcrowded) into NY, IN and OH areas Eastern farmers changed style of farming to compete with western farmers prices