1. Launching the New Nation
Chapter 2 Section 4
Launching the New Nation

2. Washington Heads the New Government
Judiciary Act of 1789
Created Supreme Court, federal circuit, and district courts
Allowed state court decisions to be appealed to federal court
Federal laws-supreme laws of the land
Washington Shapes the Executive Branch
3 Executive departments
Department of State (foreign affairs)
Department of War (military matters)
Department of Treasury (finances)
Cabinet
Secretary of State: Thomas Jefferson
Secretary of Treasury: Alexander Hamilton
Secretary of War: Henry Knox

3. Washington Heads the New Government
Hamilton and Jefferson: 2 Conflicting Visions
SEE CHART

4. Washington Heads the New Government
Hamilton’s Economic Plan
Hamilton wanted a national bank funded by federal government and wealthy private investors
National bank would issue paper money and handle taxes and other government funds
Opponents: James Madison
Not in constitution so should not be created
Started a debate:
Loose interpretation of constitution (Hamilton) v. strict interpretation (Madison). STILL HAPPENING TODAY!

5. Washington Heads the New Government
The First Political Parties
2 party system
Federalists: Strong central government (mostly Northerners)
Democratic-Republican: Strong state governments (mostly Southerners)
The Whiskey Rebellion
Protective tariff: import tax on goods produced abroad to encourage American production
Hamilton created an excise tax: tax on a product’s manufacture, sale, or distribution, on whiskey.
1794 angry whiskey producers refused to pay tax and attacked tax collectors
Federal government sent 13,000 militiamen to end conflict
1st time armed force used to assert federal authority

6. Challenges at Home and Abroad
Addressing Foreign Affairs
1793 France was at war with Great Britain
Democratic-Republicans wanted to support French
Federalists wanted to support Great Britain
George Washington issued declaration of neutrality
US would not support either side
Thomas Pinckney negotiated treaty with Spain in 1795
Treaty allowed US to access Mississippi River which allowed the US to expand west of the Appalachians

7. Challenges at Home and Abroad
Challenges in the Northwest
British still maintained forts and Native Americans were still resisting white settlers
1794 Battle of Fallen Timbers establish settlers’ supremacy in the region
Jay’s Treaty
John Jay chief justice of the Supreme Court
Treaty between John Jay and Britain:
Allowed British to continue fur trade on American side of US-Canadian border
Did not resolve dispute over neutral American trade in the Caribbean
Did make Britain give up posts in the Northwest
Division between the 2 political parties convinced Washington not to seek a third term

8. Adams Provokes Criticism
Adams (federalist) becomes president and Thomas Jefferson (Democratic-Republican) becomes Vice President
1st Crisis:
France angry over Jay’s Treaty-they felt it violated the American-French alliance
France began to seize American ships bound for Britain
Adams sent 3-men to Paris to negotiate solution
XYZ Affair:
France sent 3 low level officials in lieu of foreign minister and tried to bribe America. Pay $250,000 then you can meet with him.
America was angry
1798 Congress created a Navy and for next 2 years naval war raged between France and US

9. Adams Provokes Criticism
The Alien and Sedition Acts
Democratic-Republican party filled with immigrants
Federalists pushed through Alien and Sedition Acts
3 were the Alien Acts, raised residence requirement for American citizenship from 5 years to 14 years and allowed the president to deport or jail any alien considered undesirable
4th measure, Sedition Act, set fines and jail terms for anyone trying the hinder the operation of the government or expressing, “false, scandalous, and malicious statements” against the government.
Democratic-Republicans called the laws a violation of freedom of speech guaranteed by the first Amendment.

10. Adams Provokes Criticism
Virginia and Kentucky Resolutions
Thomas Jefferson and James Madison encouraged states to create resolutions for the Alien and Sedition Acts.
Virginia and Kentucky both approved resolutions
Nullification: the states had the right to nullify, or consider void, any act of congress that they deemed unconstitutional