1. Goal 1: A New Nation (1789 – 1819) Hamilton’s Financial Program
Main Goal
3 Parts
The National Bank
How it Works
Controversy
Hamilton’s Justification
Washington, DC
Taxes & Tariffs
Whiskey Rebellion
Results of the Whiskey Rebellion
The Federalist Period
George Washington
Main Goal
The Judiciary Act, 1789
Cabinet
Dept. of State
Dept. of War
Dept. of Treasury
Interpreting the Constitution
Loose Interpretation
Strict Interpretation
2 Party System
Federalists
Democrat-Republicans

2. The Federalist Period 1789 – 1800
The Federalist Party was in charge of the Federal Government.
Federalists supported the Constitution

3. George Washington 1789 - 1797 1st President of the USA
Main goal was to ease the tensions in the country
Does not belong to a political party
Faced many domestic & foreign issues during his administration.

4. Judiciary Act, 1789 Created the lower Federal Court System
Supreme Court Justices
District Courts
Appeals Courts

5. Cabinet Presidential advisors 3 departments (at 1st) Dept. of State
T. Jefferson
Foreign Affairs
Dept. of War
H. Knox
Military affairs
Dept. of Treasury
A. Hamilton
Finances

6. Interpreting the Constitution
Loose Interpretation
Constitution is flexible
Alexander Hamilton
Strict Interpretation
Must follow the Constitution exactly
Thomas Jefferson

7. 2 Party System 2 political parties formed around one issue: Hamilton
Power & size of National Gov’t.
Federalists
Strong Federal Gov’t.
Alexander Hamilton
Loose interpretation of Constitution
Democrat-Republicans
Strong state gov’ts. (states’ rights)
Thomas Jefferson
Strict interpretation of Constitution
Hamilton
Jefferson

8. Hamilton’s Financial Plan
Main Goals:
Get America out of Revolutionary War debt
Protect American industry
3 Parts:
Pay off state & national debts
Create a national bank
Excise taxes & tariffs

9. The National Bank How it Works: Controversy:
Sell bonds to citizens & use money to pay off debts
Bonds purchased by wealthy – they could afford it
Controversy:
Created alliance between wealthy & economy/gov’t.
Many northerners bought bonds
The South already paid off war debts!
Was the National Bank constitutional??
Hamilton Justifies the Bank:
Stated the “elastic clause” gave him authority to create the bank
The gov’t. may make any law it deems “necessary & proper” to govern the country effectively

10. Washington, DC
To win Southern support, Hamilton suggested the capital to be moved to Maryland/Virginia border
To appease Southern anger over the National Bank
South outraged because most bonds were owned in North, but paid for by the South
Completed in 1800
Jefferson & Madison (Southerners) felt this would make the nat’l gov’t. more responsive to Southern needs
Moving the capital to DC marked the importance of Southern politics

11. Tariffs & Taxes Purpose: Protective Tariff:
To raise money for the gov’t.
Which will help pay off debt
To protect American industry
Protective Tariff:
Tax placed on foreign goods
Makes foreign products more expensive to protect American industry
We don’t buy more expensive products & buy US made goods

12. Tariffs & Taxes (Cont’d)
Excise Tax:
Tax on domestic products
Whiskey Tax:
Excise tax on whiskey
Many frontier farmers angry
Whiskey was form of money
Easiest way to sell grain to Eastern markets
Mississippi River closed to US navigation
XXX

13. Whiskey Rebellion, 1794
Farmers in western Pennsylvania protest the whiskey tax & refuse to pay taxes & beat up officials
Washington put down rebels with the army
Encouraged by Hamilton
Most dangerous crisis during Washington’s administration
XXX

14. Results of Whiskey Rebellion
Showed the Fed. Gov’t. was strong enough to control frontier affairs
Avoided repeat of Shays’ Rebellion

15. The French Revolution –1789
At 1st, Americans supported revolution b/c it was like their own
Began to question the bloody revolution
France expected America to back them up because of the Franco-America Alliance of 1789
We promised to support France in the event of war with England
D-R support France
Honor alliance & still bitter with England of abuses of colonists
Federalists supported England
England was an key trade partner – important for the success of American industry
Washington declared neutrality (support neither side)
Continue to trade with both countries

16. Jay’s Treaty –1794
British seized American ships destined for France, despite America’s declaration of neutrality
The AOC signed a treaty w/France that was getting the new US in trouble!
Almost brought us to war with Britain
John Jay sent to Britain to find a solution
England doesn’t want to fight both France & US, but knew US relied on England for trade!
Allowed British to stay on American soil (trade)
Angered citizens
Failed Treaty
Never settled dispute over shipping rights in the Bahamas
British taking over American vessels

17. Battle of Fallen Timbers – 1794
Native Americans never accepted Treaty of Paris & attacked settlers as they moved West
Supported by British in Great Lakes area
US interests of moving West will cause constant problems with Native Americans
Clashed with the Miami Confederacy & Little Turtle
Miami Confederacy defeated in 1794 by Gen. “Mad Anthony” Wayne
Ended Native American resistance in Ohio

18. Treaty of Greenville -1795
Native Americans sold tribal land for $10,000
Underpaid for land – this trend will continue throughout American expansion
Opened Ohio territory to American settlers

19. Pinckney’s Treaty –1795
Treaty with Spain - Spain gave up all land east of the Mississippi River - Not Florida
Mississippi River open to American navigation
America has the “right of deposit” at the Port of New Orleans
31st Parallel Southern border of USA

20. Washington’s Farewell Address
Leaves office with 2 warnings:
Avoid political parties, they will split the nation
“…steer clear of permanent alliances…”
Washington serves 2 terms
Does not run for a 3rd

21. John Adams (1797 – 1801) Federalist Wins the 1796 Election
What type of gov’t. does he want?
Wins the 1796 Election
1st election with 2 opposing parties
Proves that peaceful elections are possible in a democracy

22. XYZ Affair Result: What? The Navy is created
2 year undeclared naval war with France
Quasi War with France
What?
France seizing American ships & sailors!!
Totally illegal – they’re just made because we remained neutral during their revolution
US sends representatives to France to discuss issue
3 French ambassadors (X,Y,Z) want a bribe ($250,000) to even talk about the issue

23. Alien & Sedition Acts, 1798 Alien Act:
Must live in US 14 yrs. to become citizen
May be jailed if a danger to society
Sedition Act:
Can be jailed for expressing opinions opposing the gov’t.
Many Republicans jailed
Violation of Freedom of Speech
Used to prevent growth of D-R Party
Results:
The country begins to divide

24. Virginia & Kentucky Resolutions, 1798
Why Passed?
In response to the Alien & Sedition Acts
Written by Madison & Jefferson
What it did:
Voided the Alien & Sedition Acts
Nullification:
States can void any Federal Law they feel are unconstitutional
Proved:
Balance of power between Federal & State gov’t. is still a big problem

25. Sectionalism
Putting the interests on 1 region/state over interest of the country
States’ Rights