1. Chapter 7

2. Essential Question

3. I. Washington Leads a New Nation Honest leader and hero of the Revolution Electoral College: a body of electors who represent the people’s vote in choosing the president

4. Organizing the Government Everything Washington was doing was a precedent: Created the Cabinet (department heads) Judiciary Act of 1789:

5. Expectations Most Americans lived in countryside and worked on farms – wanted fair taxes, settle western lands, and no interference from government in daily lives Merchants wanted simpler Manufacturers wanted protection from foreign competition New York City =

6. II. Hamilton and National Finances Alexander Hamilton: brilliant Secretary of the Treasury Needed to control the national debt: and bonds: certificates of debt that carry a promise to buy back the bond at a higher price

7. Settling the Debt Hamilton wanted to pay off foreign debt immediately and gradually pay off the total debt of the bonds Pay off state debts for Revolutionary War expenses to increase business and trade, and put money back into economy – Move the capital to the South in what is now

8. Jefferson Opposes Hamilton Hamilton – Strong central government – Did not trust “the masses” – Wanted to promote manufacturing, business, high tariffs, Bank of the U.S. Jefferson – Protect powers of the states – More trust in the people – Wanted to promote farming because they didn’t depend on others to make a living

9. III. Challenges for the New Nation 1789 – French Revolution – rebellion of French people against their king France and Great Britain went to war Neutrality Proclamation: Jefferson was pro-French – Hamilton was pro- British – Jefferson resigns in 1793

10. Jay’s Treaty and Pinckney’s Treaty Jay’s Treaty (1794) – Washington wanted to avoid war with Britain – send Chief Justice John Jay to negotiate treaty – In the treaty, the British would pay damages on seized American ships and Americans would pay debts owed by Britain Pinckney’s Treaty (1795) – Spain shut off New Orleans to American trading, hurting American businesses and had border dispute in Florida – In the treaty, Spain and U.S. agreed to southern border and reopened New Orleans

11. Northwest Territory Conflicts with Native Americans over settling Northwest Territory (Ohio) Washington sent General Anthony Wayne to settle disputes – defeats Native Americans at Battle of Fallen Timbers (1794) Treaty of Greenville:

12. Whiskey Rebellion Whiskey tax – created by Hamilton – Western Pennsylvania farmers were angry at the tax because whiskey was used as a form of money – President Washington feared the rebels threatened federal government authority – personally led an army to put down rebellion Rebellion ended

13. Washington Says Farewell Washington chose not to run for President in 1796 – In farewell address, he warned about political conflicts, forming permanent ties with foreign nations, and

14. IV. John Adams’s Presidency Despite Washington’s warning, political parties developed in 1796 election Federalists: wanted a strong federal government and supported industry and trade – John Adams and Thomas Pinckney Democratic-Republicans: wanted to limit the federal government’s power – Thomas Jefferson and Aaron Burr

15. Election of 1796 City and business people supported Federalists – Farmers and rural areas supported Democratic-Republicans Adams elected President,

16. XYZ Affair Adams’s first goal was to better relations with France – sent diplomats to negotiate a treaty to protect American shipping Talleyrand, the French foreign minister, wanted a $250,000 bribe and $12 million loan to discuss treaty – diplomats were outraged

17. Adams’s Reaction Adams asked Congress to increase size of the navy and begin keeping a peacetime army, but Federalists not happy with Adams for not going to war – French signed treaty with Americans and further

18. Congress’s Reaction In 1798, the Federalist-controlled Congress passed the Alien and Sedition Acts: The Sedition Act forbade anyone from publishing or voicing criticism of federal government, canceling freedom of speech or press

19. Democratic-Republican Reaction Thomas Jefferson and James Madison viewed these acts as a misuse of government power They wrote resolutions in 1798 and 1799 known as Kentucky and Virginia Resolutions: - first time states challenged federal government