1. Chapter Seven – pt. 1 The Federalists Implement the Constitution
Devising the new Government:
Washington’s Cabinet:
State – Jefferson,
Treasury – Hamilton,
War – Knox
Judiciary Act of 1789 – created the Supreme Court with 6 justices, and lower courts – in effect created the nation’s court system.
Allowed the Supreme Court to rule on all federal laws

2. Financing America Hamilton’s Financial Program Part 1 Public Credit:
Hamilton advocated buying back all loans plus interest
Some speculators bought up bonds at cheap prices
Hamilton proposed assuming all state debts also
Only after the nation’s capital was going to be located in the D.C. (the South)did his plan pass through Congress

3. Financing America Hamilton’s Financial Program Part 2
Creating a National Bank:
Bank of the US (BUS) –would provide loans to businesses and help to grow the national economy.
It would also serve as a place where the Government would be able to deposit any revenues that were collected.
Strict v. Loose interpretation – What it this?

4. Financing America Hamilton’s Financial Program Part 3
Raising Revenue to finance the government:
Tariffs on imported goods
Excise tax – tax on domestic goods
Led to the Whiskey Rebellion

5. The Political Crisis of the 1790s
The French Revolution Divides Americans:
Proclamation Neutrality:
Washington issued to remain neutral in conflict between Britain and France
Ideological Politics:
French Revolution – Jeffersonians saw it as an extension of the American Revolution
Jay’s Treaty:
Britain seized American ships, Jay hoped to protect ships
Treaty did little to fix problems
The Haitian Revolution:
Toussaint L’Ouverture helped Haiti gain independence
Many US slaveholders feared the impact of the revolution on their slaves

7. The Political Crisis of the 1790s
Events that ended the century
XYZ Affair – French diplomats demanded a bribe from 3 US ambassadors. War hysteria ensued. Calls for Pres. Adams to lead the U.S. to go to war with France.
Instead, the Naturalization, Alien, and Sedition Acts were passed:
Meant to silence opposition to Federalists or President Adams
Naturalization – increased residency requirement from 5 – 14 years
Alien Act – president could deport foreigners
Sedition Act – illegal to criticize the government
VA and KY Resolutions – urged states to nullify the Alien and Sedition Acts
The “Revolution of 1800”
Jefferson becomes President, peaceful transition of power between political parties