1. Ch10 PPT : Launching the New Ship of State 1789-1800

2. Expanding Nation Pop. growth: doubling every 25 years
1804: 4 million people.
Cities booming, but America’s pop. still 90% rural.
Regional growth: only 5% lived west of Appalachian Mts.
States added to the Union

3. Tmwk Ch 10
1. Pg 192 How many cabinet positions were there under Pres Washington? Write down two of them.
2. Pg 192 What cabinet position was added next?

4. 1st Leaders 1789 -1797: George Washington: 1st pre
Selected1st Pres. Cabinet
Thomas Jefferson: Sec of State
Henry Knox: Sec of War
Alexander Hamilton: Sec of the Treasury = Father of national debt
1789 Judiciary Act: created federal court system=Supreme Crt

5. Hamilton’s Financial Plan
Shaped fiscal policies to favor wealthier groups
Congress to fund entire national debt of $54 million “at par” – govt to pay off debts at face value, plus interest.
Established federal govt’s credit.
Congress: take on debts of the states - $21.5 million. Hamilton believed that assuming debts of the states would bind the states to the federal govt. (loyalty)
Unfair for states with lower debt, such as Virginia – “The Bargain” was made. What is the bargain?
VA had a small debt. Mass. Had a larger debt. – “The Bargain”: Move the capital to the Potomac River, (Washington D.C.) then debt assumption would be accepted.

6. Tmwk Ch 10 3. Pg 194 What 3 types of debts were owed?
4. Pg 194 Under Hamilton’s financial plan, what revenue would pay for the debt?

7. Customs Duties and Excise Taxes
***How would the federal govt pay for the debt and have money to run the govt?
Tariff of 8% on dutiable imports passed in 1789.
1791: Excise tax on domestic items such as whiskey (7 cents/gallon) –
Outcry against Whiskey tax results in

8. Whiskey Rebellion: 1794
SW PA - Outcry against tax on whiskey that would help pay national debt.
Tarred & feathered/Harassed revenue officials so they couldn’t collect the tax.
No negotiation: Washington personally commanded army to put down revolt.
1st time U.S. govt, under the Constitution, used force against its citizens
1803: Tax repealed

9. Federal Bank of the U.S.: 1791 Hamilton VS. Jefferson
Bank of U.S.: chartered for 20 years
1/5 owned by the federal govt. Stock open for public sale. Had a capital of $10 million
Bank to print paper money – a national currency.
Hamilton VS.
Loose Construction:
what the Constitution didn’t forbid, it permitted
Desired a strong central govt
Jefferson
Strict Construction: there was no authorization in the Constitution for the bank: therefore only States, not Congress, had the right to charter a bank
Desired states to have more power.

10. Bill of Rights Name some of these Rights:
Bill of Rights added to the Constitution – specified protections for individual liberties:
1st 10 Amendments drafted by James Madison

11. Tmwk Ch 10
5. Pg 197 What political party does Hamilton belong to in 1792? Jefferson?
6. Pg 197 In what year was there only one major political party? And what was that political party?

12. Two Party System
Opposition by Jefferson and Madison to Hamilton’s financial plans resulted in formation of permanent political parties in the 1790’s.
Democratic-Republicans
Jefferson and Madison
Desired weak central govt
Strong state’s rights
Strict interpretation of Constitution
Federalist Party
Alexander Hamilton
Strong central govt.
Loose interpretation of Constitution and commerce

13. Tmwk Ch 10
7. Name 3 things Secretary of Treasury Hamilton did for the financial plans of the U.S.
8. Pg 200 Name two trading posts held by the British on U.S. soil.

14. Foreign Affairs with France
Response to France declaring War on Britain and Spain: Neutrality Proclamation of 1793
Federalists sided with the British
Democratic-Republicans sided with the French
America was more useful to France as a neutral provider because Britain would have blockaded their supply ships if they had entered the war.

15. British Entanglements
Britain still had Northern fur trading posts in US
British Royal Navy seized 300 American merchant ships.
British sold weapons to Indians of the Miami Confederacy who attacked American lands.
Miami Confederacy defeated at Battle of Fallen Timbers
1795 Treaty of Greenville signed: Indians gave up large areas of land in Old Northwest; Indians received $20,000 and $9,000 annual annuity; Indians can hunt on the land.

16. Treaties with Britain and Spain
Chief Justice John Jay sent to Britain - negotiated 1794 Jay’s Treaty
British promised to evacuate NW trade posts on U.S. soil.
Britain agreed to pay damages for taking American ships
U.S. has to pay the debts still owed to British merchants before Rev. War.
1795 Pinckney’s Treaty: with Spain (aka Treaty of Lorenzo)
Gave free navigation of Miss. River to U.S.
U.S. gained area north of Florida.
Gave U.S. farmers right to use Port of New Orleans

17. Tmwk
9. Pg 203 What was the XYZ affair and the results?

18. Effect of Jay’s Treaty with Britain
Greater division between Federalists and Democratic Republicans (pro-French)
XYZ AFFAIR
France had been seizing American merchant ships
John Adams sends American envoy to negotiate with France.
3 Frenchmen ask Americans for bribe of $250,000 plus a loan to be allowed to speak with French Foreign Minister Talleyrand.
Americans refused to pay: result = US stopped trade with France

19. Results of XYZ Affair
War hysteria: “Millions for defense, not one cent for tribute.”
US now makes War Preparations:
Navy Department created & expanded
U.S. Marine Corps re-established
New army of 10,000 men was authorized
: Leads to 2 ½ years of undeclared naval warfare with France.

20. Negotiation with Napoleon
France finally agrees to negotiate: treaty signed.
Convention of 1800: treaty with France to settle hostilities from XYZ Affair. (mostly against each other’s ships)
France agrees to annul the Treaty of Alliance of 1778 (from Revolutionary War)
U.S. agrees to pay damages of American shippers

21. 1798 Anti Jeffersonian (France) Laws passed by Federalists
Alien Acts: discouraged “undesirable” immigrants from Europe: Raised resident requirements for aliens who wanted to become citizens from 5 to 14 years.
Other Alien Laws empowered the govt. to deport “dangerous” foreigners and/or imprison during times of hostility.

22. Anti-Jeffersonian Laws Cont.
Sedition Acts: against anyone who impeded the policies of the govt. or falsely accused officials, including the Pres.
Against freedom of speech and freedom of the press (1st Amendment rights)
Offenders were liable to fines and imprisonment.
*The Alien and Sedition Acts were written by Federalists - set to expire in 1801.

23. Tmwk
10. Pg. 208 Name 4 reasons why Federalists were so different from the Democratic-Republicans (Jeffersonians)
11. What did the Democratic-Republicans do in response to the Alien and Sedition Acts?

24. Virginia and Kentucky Resolutions
Written in response to Alien and Sedition Acts.
Kentucky Resol. - Secretly penned by Jefferson
Virginia Resol. – penned by Madison
Stressed the “compact” theory: Constitution exists as a compact between the federal and state govts.
Both Resolutions declared if federal govt. exceeds its constitutional powers, then the law should be nullified by the States.
Nullify = invalidate a law

26. Washington’s Farewell Address
Praised the benefits of the federal government
Warned against the party system
Stressed importance of religion and morality
Warned against permanent foreign alliances.

27. Main Ideas
Population of U.S. continues to grow; US continues to find its identity
Emergence of “lasting alliances” through political parties - Federalists and Democratic-Republicans
Federalists attempt to maintain ties with British for trading; Democratic-Republicans inspired by events of French Rev.
Alien and Sedition Acts: response Virginia/Kentucky Resolutions - tests the ‘elasticity’ of the Constitution