1. U.S. History – Goal I “The Early Republic” Federal Power vs. States Rights

2. Hamilton’s Financial Plan National BankExcise Tax on Whiskey Federal Government would assume (pay off) state debts Tariff – tax on Imported goods

3. Whiskey Rebellion Western farmers rebelled against the Whiskey Tax, but George Washington sent a large army to Pennsylvania to put it down. Washington’s strong force against the Whiskey Rebellion showed that the Federal Government was supreme and could enforce it laws unlike the government under the Articles of Confederation

4. National Bank and the debate over strict interpretation and loose interpretation of the Constitution and the development of political parties Strict interpretation would limit the power of the Federal Government and reserve more power to the states and the people Loose or broad interpretation would Grant more power to the Federal Government. Democratic Republicans Thomas Jefferson Federalist Party Alexander Hamilton

5. Judiciary Act 1789 Congress created the lower federal courts such as the Federal District Courts to hold trials and hear appeals from the state courts

6. Neutrality Proclamation President Washington proclaimed that the United States would not become involved in the French Revolution. America needed time to develop and solve its own domestic problems.

7. Pinckney’s Treaty Spain granted the U.S. the right to trade on the Mississippi River and store their goods at New Orleans (right of deposit)

8. Washington’s Farewell Address In his farewell address, George Washington Warned the nation to: 1)“avoid entangling foreign alliances” and 2) “avoid political parties” Alliances would pull the U.S. into wars and political parties would divide the government and nation.

9. XYZ Affair and the Quasi War with France French leaders demanded a bribe before they would negotiate a treaty with the U.S. This angered the America people and an undeclared war broke out between the two nations. (Quasi War)

10. Alien and Sedition Acts and the Virginia and Kentucky Resolutions President Adams passed the Alien and Sedition Acts as war measures during the Quasi War. These laws violated the 1 st Amendment so Virginia and Kentucky declared them un- Constitutional in their respective states. This type of state power is known as Nullification.