1. The Source Reader: “The Proclamation of Neutrality” pp. 53 “Washington’s Farewell Address” pp. 54 – 56 “Kentucky Resolution” pp. 57 – 58

2. Nation Building In 1789, the new U.S. Constitution was launched, and the population was doubling every 25 years. (First census 1790 -5 million people) America’s population was still 90% rural, with 5% living west of the Appalachians. Vermont became the 14th state in 1791, and Kentucky, Tennessee, and Ohio (states where trans-Appalachian overflow was concentrated) became states soon after. Visitors looked down upon the crude, rough pioneers lifestyle of America Western pioneers were restive and dubiously loyal at best. In the twelve years after American independence, laws had been broken and a government had been completely scrapped and replaced with a new one. America was also heavily in debt, with paper money being basically worthless Restless monarchs watched to see if the U.S. could succeed in setting up a republic while facing such overwhelming odds.

5. Washington: The First President George Washington was an imposing figure, which helped him to be unanimously elected as president by the Electoral College in 1789. Reluctantly taking the job, his long journey from Mt. Vernon to New York (capital at the time) was a triumphant procession filled with cheering crowds and roaring festivities. He took his oath of office on April 30, 1789, on a balcony overlooking Wall Street. The Federalists won majorities in both houses.

8. The First Cabinet Washington established a diverse cabinet; the best minds of the day (which was not necessarily Constitutional). Secretary of State: Thomas Jefferson Secretary of the Treasury: Alexander Hamilton Secretary of War: Henry Knox Attorney General: Edmund Randolph (Added to the Cabinet after the creation of the Judiciary Act of 1789. Becomes Justice Department in 1870) John Adams made the tie-breaking vote preventing a proposal that would require the President to receive the approval of the Senate before dismissing Cabinet officers.

10. Judiciary Act of 1789 This law, passed by Congress, organized the federal legal system. It established the Supreme Court, with a Chief Justice and five associate justices, the federal district and circuit courts, and the office of the Attorney General. John Jay was selected to be the first Chief Justice.

11. Bill of Rights The popular term for the first ten amendments of the Constitution. The amendments secure key rights for individuals and reserve to the states all powers not explicitly delegated or prohibited by the Constitution. Not wanting to see the Constitution dramatically changed, James Madison drafted the amendments himself and guided them through Congress. They were formally adopted in 1791.

12. First Ten Amendments Amendment I: Freedom of religion, speech, press, peaceable assembly, and petition Amendment II: Right to bear arms Amendment III: Soldiers cannot be housed in civilian homes during peacetime. Amendment IV: No unreasonable searches; all searches require warrants. Amendment V: No self-incrimination; No Double Jeopardy. Amendment VI: Right to a speedy and public trial; Rights of the Accused. Amendment VII: Right to trial by jury when the sum exceeds $20. Amendment VIII: No excessive bails and/or fines; No cruel or unusual punishments Amendment IX: Other rights not enumerated also shall be preserved. (“People’s Rights” Amendment) Amendment X: Unstated powers in the Constitution belong to the state. (“States’ Rights” Amendment)

13. Hamilton and the Treasury Born in the British West Indies, Alexander Hamilton’s loyalty to the U.S. was often questioned. Critics claimed he loved his adopted country more than his countrymen. He saw himself as a “Prime Minister” of Washington’s Cabinet and intrusively dabbled in other departments affairs. His financial genius, though favoring the wealthy, was to shape the fiscal policies of the new republic.

14. Funding at Par The payment of debts, such as government bonds, at face value. Hamilton proposed that the federal government pay its Revolutionary War debt in full, with interest, in order to bolster the nation’s credit.

15. Assumption This is the transfer of debt from one party to another. In order to strengthen the Union, the federal government assumed the states’ Revolutionary War debts in 1790, there by tying the interests of the wealthy lenders with those of the national government. With assumption and funding at par, the government’s debt rose to $75 million.

16. Issue with Assumption Massachusetts had a huge debt, but Virginia did not, so there needed to be some haggling. This was because Virginia felt it was unfair that all debts were to be assumed by the entire nation. Essentially, its rival states would be at the same level as Virginia, even though Virginia had successfully paid off their debts without assumption. A bargain was made, where Virginia would have the District of Columbia built on its land (therefore gaining prestige) in return for letting the government assume all the states’ debts.

17. Tariffs and Excise Taxes To pay off some of the debt, Hamilton first proposed custom duties, the first one being a low tariff of about 8% of the value of dutiable imports. It was passed in 1789. Hamilton also wanted to protect America’s infant industries, though the U.S. was still dominated by agricultural programs. In 1791, Hamilton secured an excise tax on a few domestic items, notably whiskey at 7 cents per gallon.

18. National Bank For the capstone of his financial plan, Hamilton proposed a national treasury, to be a private institution, modeled after the Bank of England. It was to have the federal government as a major stockholder, the ability to circulate cash to stimulate businesses, could store excess money, and was permitted to print currency. This was opposed by Jefferson as being unconstitutional as well as a tool for the rich to better themselves.

19. “Loose” Constructionism A belief into how to interpret the Constitution that was promoted by Hamilton. Hamilton believed that if the Constitution did not forbid a practice, the national government had the right to perform the task. Hamilton argued that Congress has the right to these tasks under the “necessary and proper” clause of the Constitution, which stipulates that Congress is reserved the right to pass any law that is necessary and proper to carry out the powers vested in the various government agencies.

20. “Strict” Constructionism A belief into how to interpret the Constitution that was promoted by Jefferson. Jefferson believed that if the Constitution did not directly state a task, then that power was forbidden to the national government. Jefferson argued that the 10 th Amendment granted these unwritten powers to the states and them only, hence only the states had the power to charter banks not the national government.

21. Bank of the United States (BUS) Chartered by Congress in 1791, and reluctantly signed into effect by Washington, this served as the national treasury with a charter life of 20 years. The bank printed paper money, had a capital of $10 million, and acted as the national treasury fund. The national government owned one-fifth of the bank, allowing private investors to also be involved in the bank’s affairs.

22. Hamilton’s Economic Plan Federal Government Assumption of States’ Debts and the Promise of Funding at Par Washington DC in Virginia Excise Tax and Tariff Bank of the United States (BUS) “Strict v. Loose Construction”

23. Consequences of Hamilton’s Plan Hamilton’s and Jefferson’s opposing viewpoints over the Constitution stiffened overtime, leading to conflicts in Congress, the press, and eventually the people. Jeffersonians and Hamiltonians eventually evolved into two distinct political parties (Federalists and Republicans) Whiskey Rebellion

24. This was a popular uprising, in 1794, by whiskey distillers in Southwestern Pennsylvania. In a show of strength and resolve by the new federal government, Washington put down the rebellion with militia drawn from several states.

26. Spain Strengthens Its Grip Spain enjoyed a brief colonial revival in 1762, having gained Louisiana. By 1800, many of the plains Indians agreed to a truce with Spain In the late 1700s, Russia became the dominate threat to Spanish claims in the West, having a colony in Alaska. Spain increased presidios (forts) and missions along Alta California as defensive measures Spain also tried to ally themselves with native tribes in Arizona, but they met resistance

27. Problems on the Frontier In 1789, Spain opened New Orleans to American use, but exports were subject to 15% duty. Bribery continued to take place by both Spain and Britain in the western territories, forcing quick admittances of new states Treaty of New York and the Yazoo Tract Defeat of General Josiah Harmar and General Arthur St. Clair by a coalition of natives led by Little Turtle Many Americans looked to France as a counterbalance to Native American, British, and Spanish hostilities

28. Turmoil in France In 1789, the French Revolution began, which led into a 26 year period of war for Europe. By 1792, France declared itself a republic and Americans, mainly Jeffersonians, hailed the continuance of their revolution From 1793 to 1794, the revolution in France became deadly. Known as the Reign of Terror, opposition to the revolution, French aristocrats, and the king himself were killed. They eventually declared war on all monarchies. Jeffersonians regretted the bloodshed, but understood that liberty has its price. The more conservative Hamiltonians expressed concern about this “mobocracy” rule.

30. Impact of the French Revolution Americans were divided over their attitude toward the French Revolution and how they should respond to it. Southern slave owners sympathized with the French, believing that Spain and Britain induced a slave rebellion on the French island Saint Domingue Federalist northerners blamed the turmoil in France on on their lack in faith in God, as well as, inciting class warfare Shippers feared that the Franco-American Alliance would spark retaliation from Britain Southern elites pushed for more self-determination in trade, seeking to exchange reliance on Britain for France. This call in creased in the west, when France declared war on both Britain and Spain.

31. Neutrality Proclamation This was issued by Washington, in 1793, that proclaimed America’s formal neutrality in the escalating conflict between France and Great Britain. This statement enraged many pro-French Jeffersonians, especially because Washington had not consulted Congress.

32. Tension Mounts Over Neutrality Debate over neutrality soon intensified. France sent over an ambitious 30 year old representative, know as “Citizen” Edmond Genet, who undertook to recruit privateers and American support. Washington demanded Genet’s removal, and he was replaced by a less impulsive emissary.

33. British Impressment Wanting to show force to deter Americans from joining France, British commanders of the Royal Navy seized about 250 American merchant ships and impressed (kidnapped) scores of seamen into their navy. Many Jeffersonians cried out for war with Britain, or at least an embargo, but the Federalists resisted demands, knowing that such drastic action would destroy the Hamilton financial system.

34. Challenging America’s Frontier Authority In February 1794, Little Turtle’s Confederacy reignited attacks on American settlements. British agents openly sold firearms and alcohol to local native tribes in hopes of retaining their fur trade and possibly creating a Native American buffer zone. They even built an eighth fort on American soil called Fort Miami. Spain continued their encroachment northward, creating Fort San Fernando in Tennessee in 1794. Washington quickly dispatched three initiatives to prevent war: General Anthony Wayne to seek out a treaty with the native confederacy Chief Supreme Court Justice John Jay to Britain John Pinckney to Spain

36. Battle of Fallen Timbers This was a decisive battle, in 1794, between the Little Turtle’s Confederacy and the US Army. The British refused to shelter the defeated natives, forcing them to attain a peace settlement with the United States. In the Treaty of Greenville, signed in August 1795, the Confederacy agreed to cede territory in the Old Northwest to the United States in exchange for cash payment, hunting rights, and formal recognition of their sovereign status.

37. Jay’s Treaty The victory over the Confederacy aided in Jay objective. The resulting treaty reiterated the British agreeing to leave the Old Northwest forts by June 1796 and promising to repay damages to American ship seizures. It also opened the British West Indies to small American ships, but cut off American imports of sugar, molasses, an coffee from the French islands during the war. The treaty did nothing to stop future seizures or impressment. The treaty emblazoned Jeffersonians, who burned effigies of “Sir John Jay.”

38. Pinckney’s Treaty Despite the anger that Jay’s Treaty created, it had one unforeseen consequence. The Spanish, fearing a Anglo- American alliance, after seeing an agreement between the two nations, moved hastily to strike a deal with the United States. Signed in 1795, Pinckney’s Treaty granted Americans free navigation of the Mississippi River, the right of deposit (warehouse rights) in New Orleans, and the large disputed territory of Western Florida. Spain also promised to discourage Native American attacks on western settlements.

40. The Lines Were Drawn Federalists Most Federalists were the old Federalists from before the Constitution. They wanted a strong government ruled by the educated aristocrats, the “best people.” Most were the merchants, manufacturers, and shippers along the Atlantic seaboard. They were mostly pro-British and recognized that foreign trade was key in the U.S. Republicans (Democratic-Republicans) Republicans were led by Thomas Jefferson. They desired rule by informed classes and a weaker central government that would preserve the sovereignty of the states. They were mostly pro-French. They emphasized that national debt had to be paid off. They were mostly agrarians (farmers), and insisted on no privileges for the upper class. They saw farming was ennobling: it kept people away from wickedness of the cities, in the sun, and close to God.

41. Washington’s Farewell Address After an exhaustive second term, Washington decided to retire. In doing so, he set the two-term tradition for his successors that will not be broken until 1940. In his farewell address, which was printed not spoken, Washington warned the nation to stay away from “entangling alliances” and only engage in short agreements for “extraordinary emergencies.”

42. The Election of 1796 Without Washington in the mix, the new election lacked restraint and both parties lashed out against one another. The Republicans chose their founder, Thomas Jefferson The Federalists’ most famous member was Alexander Hamilton, but his financial policies made him unpopular. The Federalists decided to go with John Adams. Adams, with most of his support from New England, squeezed out a narrow victory by a narrow margin of 71 to 68 in the Electoral College. Despite catering to Irish and French immigrants, particularly in New York and Pennsylvania, New York voted for Adams. Jefferson became Adams’s Vice President and the Federalists held a narrow majority in both houses of Congress.

44. John Adams: Inheriting the Presidency Adams was expected to fill shoes that were far too big (Replacing Washington) Adams was the physical opposite of Washington. An able statesman, he lacked in personal finesse. Adams was hated by Hamilton, who resigned from the Treasury in 1795. Hamilton headed a faction of the Federalists, called the “High Federalists,” and secretly worked with certain members of the Cabinet to conspire against Adams. Adams also inherited a violent quarrel between the United States and France

45. Increased Tension with France Infuriated by Jay’s Treaty, the French condemned it as an initial attempt toward an alliance with Great Britain, which was a flagrant violation of the Franco-American Treaty of 1778. French warships, in retaliation, began seizing American merchant vessels headed to British ports. France also refused to admit America’s newly appointed envoy and threatened him with arrest. Adams kept his head, and following Washington’s lead of neutrality, tried to reach an agreement with France.

46. XYZ Affair The diplomatic commission sent by Adams to France was headed by John Marshall. Upon arriving in France, the delegation was met by three French envoys, who were later referred to as X, Y, and Z. The envoys demanded a loan of $12 million and a bribe of $250,000 to merely talk to the French Foreign Minister, Charles Maurice de Tallyrand. The delegation broke off the talks and spread the word of the insult to the American people. John Marshall was hailed as a hero and Jeffersonians hung their heads in embarrassment. As a result, the Republicans lost more seats in Congress during the 1798 congressional elections, even in the South.

48. America’s Quasi-War War hysteria hit America after the news of XYZ Affair was spread. Adams joined this wave of patriotism. The Navy Department was created and America’s navy was expanded. All of the fighting was kept at sea and principally in the West Indies. For two and a half years the undeclared hostilities raged leading to the capturing and losing of vessels. Both America and Britain increased trade with a newly independent Saint Domingue, and by 1799, the French were no longer a serious naval threat.

49. Alien Laws These were acts passed by the Federalist Congress in 1798 on the insistence that a war threat by the French needed stricter laws to protect national security: Alien Enemies Act – authorized the jailing or deporting those who were deemed spies Alien Friends Act – authorized the president to expel ay foreign residents whose activities are considered dangerous Naturalization Act – increased the residency requirement of US citizenship from five to fourteen years, the last fie being continuously in one state.

50. Sedition Act Enacted by the Federalist Congress, in 1798, to clamp down on Jeffersonian opposition. The law made anyone convicted of defaming government officials or interfering with government policies liable to imprisonment and heavy fines. The act drew heavy criticism from Republicans. The act was also set to expire in 1801, as a precaution to a possible takeover of the presidency and Congress by the Democratic- Republicans

51. Virginia and Kentucky Resolutions Statements that were secretly drafted by Thomas Jefferson and James Madison for the legislatures of Kentucky and Virginia. They argued that the states were the final arbiters of whether the federal government overstepped its boundaries and could therefore nullify, or refuse to accept, national legislation they deem unconstitutional.

52. Convention of 1800 Realizing the war with America was not in France’s best interest, Talleyrand offered a truce by accepting a new American delegation. Going against some extreme High Federalists, Adams agreed to peace. This meeting was an agreement to formally dissolve the United States’ treaty with France. The difficulties posed by America’s peacetime alliance with France contributed to Americans’ longstanding opposition to entangling alliances with foreign powers.

53. Election of 1800 For the second time, Thomas Jefferson faced off against John Adams. This time, Jefferson won. Even though the unpopular Adams won more polled electoral votes prior to this election, he lost the election because of the addition of western states, the loss of New York and a higer voter turnout. Some of Jefferson’s states also adopted universal white manhood suffrage, which greatly aided the outcome.

55. Presidential Technicality Even though Jefferson won, Aaron Burr won an equal amount of votes. The Constitution did not differentiate between presidential and vice presidential electoral votes. Because of this, the House had to decide who was president. For the Federalist House, Jefferson was the lesser of two evils.

56. Forging a Market Economy Before the Revolution, most families were self-dependent for products, bartering occasionally with surpluses After the Revolution, households in more densely populated areas began to focus on particular products to meet the demand of a growing population (meat, produce and dairy products) implementing new innovations to increase production Children of poorer families ventured out to become day laborers or provided clothe for traveling merchants Artisans began to forge shops into factories increasing production. Businessmen also began to invest in time saving machines and promoted immigration of English artisans who were knowledgeable of these technologies.

57. Women in the Republic Suffrage in New Jersey Women’s choice in marriage Child birth dropped from nine children per couple to six Mutuality and rise in the divorce rate “Daphne” and the sexual double-standard Judith Sargent Murray and educational opportunities “Republican Motherhood”

58. Native Americans and the Early Republic During the period of 1775 and 1800, Native Americans lost more land than was inhabited by whites in 1775. No respect were given to the tribes or their possessions, by squatters, liquor dealers, or criminals. Indian Trade and Intercourse Acts (1790 – 1796) Handsome Lake and Red Jacket

59. African Americans and the Early Republic By 1790, 8% of all African Americans had been freed from slavery. That rose to 11% by 1800. Laws were implemented to make the lives of the slaves more secure and by 1794, most states outlawed the Atlantic slave trade. Between the 1780s and 1790s, restrictions on free blacks were eased in most states, including voting privileges, however, by the end of the 1790s, new obstacles arose. Naturalization Act, state legislation, and military service Fugitive Slave Act of 1793 Free African Society of Philadelphia and the African Methodist Episcopal Church The Haitian and Gabriel’s Rebellions Questioning the economics of slavery and the cotton gin