1. President Washington
Although Washington thought he was going to retire after the war, he was elected the first president of the United States under the federal Constitution (there had been several presidents under the Articles of Confederation). 
On April 30, 1789, he took the oath of office. 
John Adams became vice president.
(pages 258–259)
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Section 1-5

2. President Washington (cont.)
Washington was aware of the difficulties and decisions he had to face. 
He would establish precedents that would shape the future of the United States. 
He would make many decisions especially about the structure of government.
(pages 258–259)
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Section 1-6

3. President Washington (cont.)
Congress set up a cabinet with three departments: 
the State Department to handle relations with other nations, headed by Thomas Jefferson 
the Treasury Department to deal with financial matters, headed by Alexander Hamilton 
the War Department to provide for the national defense, headed by Henry Knox
(pages 258–259)
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Section 1-7

4. President Washington (cont.)
Congress created the office of attorney general to handle the government’s legal affairs. 
Edmund Randolph was the first attorney general. 
Congress also established the office of postmaster general to direct the postal service. 
Washington met regularly with the three department heads, or secretaries, and the attorney general, which together became known as the cabinet.
(pages 258–259)
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Section 1-8

5. President Washington (cont.)
Congress was divided as to how much power the president should hold over the executive departments. 
The president appointed the department heads with the Senate’s approval. 
Congress gave the president authority over hiring and firing cabinet officers so that he did not need the Senate’s approval to dismiss someone. 
This strengthened the president’s position and created a major separation between the legislature and the executive branches.
(pages 258–259)
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Section 1-9

6. President Washington (cont.)
The Judiciary Act of 1789 was actually a compromise act. 
One group in Congress favored a national legal system, and a second favored state courts. 
The act established a federal court system with 13 district courts and 3 circuit courts. 
State laws would remain, but federal courts would have the power to reverse state decisions.
(pages 258–259)
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Section 1-10

7. President Washington (cont.)
The Supreme Court was to be the highest court with final authority. John Jay was appointed chief justice.
(pages 258–259)
Section 1-11

8. President Washington (cont.)
Many people felt the Constitution needed a guarantee of personal liberties. 
In fact, some states supported the Constitution because a bill of rights was to be added to it. 
James Madison presented a list of amendments to Congress. 
Congress passed 12 amendments. 
The states ratified 10 of them. 
These 10 amendments became known as the Bill of Rights and were added to the Constitution in December 1791.
(pages 258–259)
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Section 1-12

9. Financial Problems
Hamilton, as secretary of the treasury, tried to find a way to strengthen the country’s financial problems. 
He proposed the Hamilton Plan.
(pages 260–261)
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Section 1-14

10. Financial Problems (cont.)
It said that the new government should pay off the millions of dollars in debts owed by the Confederate government to other countries and to individual citizens. 
The nation should pay for the cost of their help. 
Further, by the federal government assuming the states’ debts, this would give the states a strong interest in the success of the new government.
(pages 260–261)
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Section 1-15

11. Financial Problems (cont.)
There was opposition to Hamilton’s plan. 
Congress agreed to pay money to other nations, but they could not agree to pay off the debt to American citizens.
(pages 260–261)
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Section 1-16

12. Financial Problems (cont.)
When the government borrowed money during the war, it issued bonds, or paper notes, promising to repay the money in a given period of time. 
Speculators bought many of the original bonds for less than their value. 
Hamilton’s plan proposed paying off these bonds at their original value, and opponents said this would make the speculators rich.
(pages 260–261)
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Section 1-17

13. Financial Problems (cont.)
The original bond owners were also opposed because they had lost money on their bonds and the new bond owners had made money, only to make more if Hamilton’s plan was enacted. 
The Southern states also presented opposition because their state debt was less than the Northern states, and they would have to pay more than their share under Hamilton’s plan.
(pages 260–261)
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Section 1-18

14. Financial Problems (cont.)
Hamilton proposed a compromise plan. 
He agreed to a proposal by Southern leaders to move the nation’s capital from New York City to a special district in the South between Virginia and Maryland. 
This became Washington, D.C. 
The Southerners then agreed to support his plan to pay off the state debts.
(pages 260–261)
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Section 1-19

15. Building the Economy
Hamilton also proposed the creation of a national bank, the Bank of the United States; a tariff, or tax, on imports; and national taxes to help the nation’s economy.
(page 262)
Section 1-21

16. Building the Economy (cont.)
Before the bill to create a national bank was proposed, only state banks existed. 
Madison and Jefferson opposed the idea of a national bank, saying that it would benefit the wealthy and was unconstitutional. 
Hamilton said that Congress had the power to create a bank even though the Constitution had no provision. 
The president signed the bill, creating the Bank of the United States.
(page 262)
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Section 1-22

17. Building the Economy (cont.)
Hamilton proposed a protective tariff on imports. 
He hoped this would protect American industry from foreign competition and encourage people to buy American goods. 
The South opposed this tax because they had little industry to protect. 
Hamilton did win support in Congress for some low tariffs to raise money.
(page 262)
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Section 1-23

18. Building the Economy (cont.)
Hamilton’s economic program also called for creating national taxes. 
The government could have additional funds to operate and use to make interest payments on the national debt. 
Congress approved a variety of taxes, including one on American whiskey.
(page 262)
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Section 1-24

19. Building the Economy (cont.)
Hamilton’s economic program gave the country new financial powers, but it split Congress and the nation. 
His opponents, including Madison and Jefferson, feared a national government with strong economic powers to protect the wealthy.
(page 262)
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Section 1-25

20. The Whiskey Rebellion
Farmers resisted paying a tax on the whiskey they made. 
They usually exchanged whiskey and other items for goods they needed rather than buy goods with cash. 
They did not have money to pay a tax.
(pages 263–264)
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Section 2-5

21. The Whiskey Rebellion (cont.)
In July 1794, federal officers came into western Pennsylvania to collect a tax. 
The resistance turned into an armed protest that was called the Whiskey Rebellion. 
A large mob of people attacked tax collectors and burned buildings.
(pages 263–264)
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Section 2-6

22. The Whiskey Rebellion (cont.)
President Washington sent an army to quiet the rebellion. 
His actions showed people that the government would use force to maintain social order.
(pages 263–264)
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Section 2-7

23. Struggle over the West
The Native Americans who lived between the Appalachian Mountains and the Mississippi River had troubles with the new government over this land. 
They felt the land belonged to them and the new settlers were taking away their land. 
They looked to Britain and Spain for help to prevent American settlers from moving onto these lands.
(page 264)
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Section 2-9

24. Struggle over the West (cont.)
Washington hoped that treaties signed with the Native American tribes would keep the British and Spanish out.
(page 264)
Section 2-10

25. Struggle over the West (cont.)
American settlers ignored the treaties and moved onto the lands that were promised to the Native Americans. 
When fighting broke out, Washington sent an army led by General Arthur St. Clair to restore order. 
His troops were beaten badly in November 
The Miami, Shawnee, and Delaware tribes allied and continued to resist American settlers moving onto their land.
(page 264)
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Section 2-11

26. Struggle over the West (cont.)
The Native Americans demanded that all settlers north of the Ohio River leave. 
Washington sent in another army led by Anthony Wayne. 
At the Battle of Fallen Timbers in August 1794, Wayne’s army defeated over 1,000 Native Americans.
(page 264)
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Section 2-12

27. Struggle over the West (cont.)
The Treaty of Greenville was signed in 1795 to settle the issue. 
Native Americans agreed to surrender most of the land in present-day Ohio.
(page 264)
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Section 2-13

28. Problems with Europe
The French Revolution began in 1789, just after Washington took office, and in 1793, Britain and France went to war. 
Washington hoped that America could remain neutral, but as time went on, this became difficult.
(pages 264–266)
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Section 2-15

29. Problems with Europe (cont.)
The French tried to involve the United States. 
In April 1793, the French diplomat Edmond Genêt came to the United States to recruit American volunteers to attack British shipping. 
His plan failed, but he did sign up a few hundred Americans to serve on French ships that took British vessels and stole their cargoes.
(pages 264–266)
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Section 2-16

30. Problems with Europe (cont.)
Washington announced a Proclamation of Neutrality on April 22 that prohibited Americans from fighting in the war and prohibited British warships from American ports.
(pages 264–266)
Section 2-17

31. Problems with Europe (cont.)
The British began capturing American ships that traded with the French. 
They also stopped American merchant ships, took their crews, and forced them into the British navy, or impressed them.
(pages 264–266)
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Section 2-18

32. Problems with Europe (cont.)
Washington, so as to avoid war with Britain, sent John Jay to negotiate a peaceful solution. 
The British listened to Jay’s proposal. 
They knew that a war with the United States would make things more difficult, as they were already at war with France. 
Besides, the United States bought their products.
(pages 264–266)
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Section 2-19

33. Problems with Europe (cont.)
Jay’s Treaty said that Britain shall: 
withdraw from American soil 
pay damages for ships it had seized 
allow some American ships to trade with British colonies in the Caribbean 
Jay’s Treaty also provided for settlements of debts from before 1776.
(pages 264–266)
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Section 2-20

34. Problems with Europe (cont.)
Jay’s Treaty was controversial. 
Many Americans disapproved of it because it did not deal with British impressment or the British interference with American trade. 
Washington sent it to the Senate even though he, too, did not favor it. 
He saw it as an end to a crisis. 
It was narrowly approved.
(pages 264–266)
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Section 2-21

35. Problems with Europe (cont.)
To settle their differences with the United States, Spain also signed a treaty. 
Thomas Pinckney went to Spain in 
The Pinckney Treaty gave Americans the right to freely navigate the Mississippi River and also the right to trade at the port of New Orleans.
(pages 264–266)
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Section 2-22

36. Washington’s Farewell
Washington had served two terms as president and chose not to seek a third term. 
This set a precedent for later presidents to follow. 
He looked forward to retiring at Mount Vernon. 
He was greatly troubled by the divisions in American politics and political parties.
(page 266)
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Section 2-24

37. Washington’s Farewell (cont.)
In his farewell address, he spoke about the evils of political parties and the problems of foreign affairs. 
His parting words influenced the nation’s foreign policy for more than 100 years. 
Washington’s speech is read aloud in the Senate each year on his birthday.
(page 266)
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Section 2-25

38. Opposing Views
Most Americans in the late 1700s considered political parties harmful and to be avoided. 
Political parties were not mentioned in the Constitution. 
Washington also denounced them.
(pages 267–270)
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Section 3-5

39. Opposing Views (cont.)
By 1796 Americans were beginning to divide into opposing groups and form political parties. 
It was natural for people to disagree about issues and also for people who held similar views to group together. 
In Washington’s cabinet, Hamilton and Jefferson often took opposing sides. 
Washington was partisan also, favoring one side of an issue.
(pages 267–270)
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Section 3-6

40. Opposing Views (cont.)
Two distinct political parties emerged–the Federalists and the Republicans, also called the Democratic-Republicans. 
The Federalists generally supported policies of Alexander Hamilton. Its policies favored: 
a strong federal government 
banking and shipping interests 
rule by the wealthy 
a national bank
(pages 267–270)
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Section 3-7

41. Opposing Views (cont.)
representative government in which elected officials ruled in the people’s name 
a loose interpretation of the Constitution or implied powers 
a British alliance 
protective tariffs
(pages 267–270)
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Section 3-8

42. Opposing Views (cont.)
The Republicans, or Democratic-Republicans, led by Thomas Jefferson and James Madison, favored: 
strong state governments and limited federal government powers 
emphasis on agricultural products 
rule by the people 
state banks 
government in which people participate 
a strict interpretation of the Constitution 
a French alliance 
free trade
(pages 267–270)
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Section 3-9

43. Opposing Views (cont.)
By 1793 Jefferson resigned as secretary of state, and in 1795 Hamilton resigned as secretary of the treasury because of their differences.
(pages 267–270)
Section 3-10

44. Opposing Views (cont.)
In the 1796 presidential election, candidates were members of a political party. 
At caucuses, or political-party meetings, members of Congress and other leaders chose their party’s candidates. 
The Federalists nominated John Adams for president and Charles Pinckney for vice president. 
The Republicans nominated Thomas Jefferson for president and Aaron Burr for vice president. 
Adams won the election with 71 electoral votes.
(pages 267–270)
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Section 3-11

45. Opposing Views (cont.) Jefferson received 68 votes. 
Jefferson became the vice president, because at the time, the person with the second-highest number of electoral votes became vice president. 
Jefferson and Adams were of different political parties.
(pages 267–270)
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Section 3-12

46. President John Adams
John Adams served as vice president under Washington for two terms before becoming the second president of the United States. 
He spent most of his life in public service.
(pages 270–272)
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Section 3-14

47. President John Adams (cont.)
A dispute with France over the terms of Jay’s Treaty ended in an incident known as the XYZ affair. 
The French saw the treaty as the United States helping the British in the war with France, so they seized American ships carrying cargo to Britain. 
To avoid war with France, Adams sent a delegation to Paris to resolve the issue. 
Charles de Talleyrand, the French foreign minister, refused to meet with the Americans and sent three agents who demanded a bribe and a United States loan for France.
(pages 270–272)
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Section 3-15

48. President John Adams (cont.)
The Americans refused the terms, and when Adams heard about the incident, he referred to the three agents as X, Y, and Z. 
Adams urged Congress to prepare for war. 
Congress strengthened the armed forces, established the Navy Department in April 1798, and allotted money to build warships. 
George Washington was appointed commanding general.
(pages 270–272)
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Section 3-16

49. President John Adams (cont.)
This undeclared sea war between American and French naval forces between 1798 and 1800 saw more than 90 French armed ships seized. 
France now became the enemy for many Americans.
(pages 270–272)
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Section 3-17

50. President John Adams (cont.)
In 1798 Congress passed a group of measures called the Alien and Sedition Acts. 
These laws were passed to protect the nation’s security. 
Americans became more suspicious of aliens, or people living in the United States who were not citizens, especially Europeans who came in the 1790s and who supported the ideals of the French Revolution. 
People were concerned that if the United States and France went to war, these aliens might not remain loyal to the United States.
(pages 270–272)
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Section 3-18

51. President John Adams (cont.)
Sedition refers to activities aimed at weakening established government. 
- Americans were suspicious of the aliens and concerned that they might engage in unlawful activities such as speaking out against the United States government. 
The Kentucky and Virginia Resolutions of 1798 and 1799 were resolutions written by Madison and Jefferson on states’ rights.
(pages 270–272)
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Section 3-19

52. President John Adams (cont.)
The resolution said that the Alien and Sedition Acts could not become effective because they violated the Constitution. 
They also said that the people of each state had the right to nullify, or cancel, a federal law within that state. 
They showed that many Americans feared a strong central government that could interfere with their rights. 
The issue of states’ rights would continue, and in time lead to civil war.
(pages 270–272)
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Section 3-20

53. President John Adams (cont.)
The undeclared war with France needed resolution. 
Federalists urged Adams to step up the war with France. 
They hoped to benefit politically from a war. 
Adams refused to rush a war and appointed a commission to seek peace with France. 
In 1800 the French agreed to a treaty and stopped attacks on American ships.
(pages 270–272)
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Section 3-21

54. President John Adams (cont.)
This agreement hurt Adams’s chance for reelection. 
Hamilton and his supporters now opposed their own president. 
Because of this rift in the Federalist Party, the Republicans now had a good chance to win the 1800 presidential election.
(pages 270–272)
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Section 3-22