1. Pump-Up
When and why do you think political parties developed in America?
Do you think political parties were the same in history as they are now?
If so, explain how you think they were different in the past?

2. Government and Party Politics

3. Today’s Vocabulary Hamilton’s Economic Plan Whiskey Rebellion
The idea of how to raise money to pay the national debt and standardize the banking system.
Whiskey Rebellion
Proof that the federal gov’t would not tolerate farmers who protested the new excise tax.
Federalist Party
Led by Alexander Hamilton, supported the national gov’t and a loose interpretation of the Constitution.
Democratic-Republican Party
Led by Thomas Jefferson, supported states rights and a strict interpretation of the Constitution.

4. Building the Federal Gov’t
President: George Washington
Vice Pres: John Adams
Cabinet Members
Secretary of War: Henry Knox
Secretary of Treasury: Alexander Hamilton
Secretary of State: Thomas Jefferson
Attorney General: Edmund Randolph

5. Congress & Supreme Court
Congress passed the Bill of Rights.
Judiciary Act of 1789
Established the Federal Court System
1st Chief Justice: John Jay

6. Hamilton’s Economic Plan
$75 million in debt!!!!
Raising money:
Tariff of 1789
Raised tax on imported goods.
Excise tax
Tax “unnecessary goods”
Paying the debt:
Pay back war bonds and state debt.
Standardize the banking system:
Issue currency, collect taxes and make loans.

7. Interpreting the Constitution
Loose Construction
Believe that the gov’t can do what is “necessary and proper” to run the country.
Read in between the lines.
Strict Construction
Believe that the gov’t should only do what the Constitution specifically states it can do.
Follow laws word for word.

8. New School Rule: All students have the right to necessary and useful school supplies.
That’s great! But how can you tell which school supplies are “necessary” and “useful?”
Look at the pictures on the back of your notes. Circle everything that you think is a “necessary and useful” school supply.

9. Economic Compromise
Moved federal capital to Washington, D.C. (closer to the South)
Passed Hamilton’s Economic Plan in 1791.

10. The Whiskey Rebellion
Farmers in Pennsylvania had a hard time selling their whiskey b/c of Hamilton’s new excise tax.
Farmers started attacking tax collectors.
Washington wanted to make it clear that armed rebellion against the national gov’t wouldn’t be tolerated.
Showed that the federal gov’t would take action within a state.

11. Development of Political Parties
Federalists
Democratic-Republicans
Led by Alexander Hamilton
Led by Thomas Jefferson
Favored a strong central gov’t
Believed states should have more power
Economy based on industry and trade
Economy based on farming
Supported a loose interpretation of the Constitution
Supported a strict interpretation of the Constitution

12. Classwork
Read the following excerpts from either Thomas Jefferson or Alexander Hamilton’s letter to President Washington.
Based on your knowledge of each man’s position on the national bank, determine which man wrote the text.
In the space under the excerpt, summarize the point the author was trying to make.