1. 1789-1800

2.  Cabinet: key advisors to the President  Treasury: Alexander Hamilton  State: Thomas Jefferson  War: Henry Knox  Attorney General: Edmund Randolph  Federal Court System  Judiciary Act of 1789- Established Federal Court system including the Supreme Court

3.  Hamilton’s Financial Plan  Pay off national debt and assume the state’s debt. ($52 million)  Protect infant industries and raise revenue by placing tariffs on imported goods.  Create a national bank  Opposition mounted, led by Thomas Jefferson and the Anti-Federalists.

4.  Hamilton’s Plan Implemented  Debt: Wanted to pay off debt by selling govt. bonds.  Tariffs: Passed but lower than Hamilton wanted. Excise or Sin tax passed on whiskey to generate revenue.  National Bank: Bank of the United States passed when Washington supports Hamilton, would regulate state banks. First National Bank

5.  Issue in western Pennsylvania where rural farmers made whiskey rather than transporting grain through the mountains.  Farmers resisted the whiskey tax by intimidating and attacking tax collectors.  With orders from Washington, Hamilton marched with 12,000 militiamen to put down the rebellion.  Most rebels ran away  Hamilton said it showed the power and need of a strong central government.  Jefferson mocked them saying there was no rebellion to put down. Washington watching Army depart for the rebellion

6.  Foreign Affairs  The French Revolution  The Proclamation of Neutrality (1793)  The Jay Treaty (1794)  British are to remove English forts  U.S. to repay pre-war debts  XYZ Affair  Domestic Concerns  Native Americans  Whiskey Rebellion (1794)  New States: Vermont (1791), Kentucky (1792), Tennessee (1793)

7. Federalists  Lead by Hamilton & Adams  Supported strong central govt.  Loose construction of Constitution  Pro British  Wanted economy based on industry and trade Democratic-Republicans  Lead Jefferson & Madison  Supported strong state govt. (known as states’ rights)  Strict construction of Constitution  Pro French  Wanted economy based on farming