1. George Washington 1 st President – built first Cabinet – These are his advisors. Thomas Jefferson – Secretary of State Alexander Hamilton – Secretary of the Treasury Henry Knox – Secretary of War Edmund Randolph – Attorney General

2. Hamilton In charge of the nation’s finances – Wanted to fix the economy Federal government would take over the states debt This made creditors support the new government – Southerners were upset because their states paid off most of their debt

3. Hamilton’s National Bank Was the bank Constitutional? Starts debate of the “strict interpretation” and the “loose interpretation” – He uses the necessary and proper clause (Congress can do whatever is proper to carry out its assigned powers.) Hamilton was able to get the bank bill passed in Congress – That is why he’s on the 10 dollar bill

4. Jefferson Disagrees with Hamilton Fears absolute power in the national government Believed the National Bank was unconstitutional

5. Jefferson versus Hamilton They symbolized the political division in the U.S. Hamilton favors a strong national government and wanted to promote commerce and industry Jefferson believed in state’s rights (weak national govt.) and promoted an agricultural society

6. Washington D.C. Compromise to help the southern states go along with Hamilton’s plans Moved the nation’s capital to the south

7. Washington’s Farewell Washington decides to leave office after two terms-sets precedent for all future presidents until FDR. In his Farewell Address, Washington warns against: – Getting caught in “entangling alliances.” – Getting involved in wars-stay neutral. France and Great Britain loom as potential foreign policy problems for the new government.

8. Whiskey Rebellion Hamilton passed taxes on whiskey Hurts small farmers – They begin to rebel and attack federal officials Washington marches the army to western Pennsylvania and puts the rebellion down This reinforced the strength of the national government

9. Two-Party System Federalists and the Democratic-Republicans. George Washington’s Farewell Address – He warned that the two party system would split the nation.

10. Democratic-Republicans Led by Jefferson and Madison. – Artisans, shopkeepers, frontier settlers, and farmers. – Strongest support came from the South, Southwest, and along the frontier. Believed in a weak national government and strong state governments with an agricultural economy. Supported strong ties to France. Believed in strict interpretation of the Constitution.

11. Federalists Led by Hamilton and Adams. – Bankers, merchants, manufacturers, professionals, and wealthy farmers. – Support came from New England and along the Atlantic coast. Believed in a strong national government and an industrial economy. Supported strong ties to Great Britain. Believed in loose interpretation of the Constitution.

12. Problems in the West – Native American Resistance/British Forts Conflict over expansion Native Americans attack settlers General “Mad Anthony” Wayne is appointed to lead the army – Successfully defeats many Native fighters. Problems with the British – Jay’s Treaty – forces British to leave forts but they can continue to trade in the west. – Upsets many American’s who want the British banned from the west.

13. John Adams – 2 nd President Blunt and impatient Jefferson came in 2 nd, he was the new Vice President There is growing sectionalism – Interests of a region over the nation (North or South or West vs. United States) Possible war with France? – The government working with Britain (Jay Treaty)upsets the French.

14. XYZ Affair American delegation was to meet with the French foreign minister The French send three low-level officials instead – Adams calls them X, Y, and Z Caused anti-French opinions in America

15. Alien and Sedition Acts To make sure French agents were not in America plotting to overthrow the government Alien Acts – Residency raised to 14 years, president could deport or jail any undesirable alien. Sedition Act – Fines and jail terms for anyone trying to hinder the operation of the government or expressing false, scandalous, and malicious statements.

16. Response to the Alien and Sedition Acts Government jails some Democratic- Republican (D-R) editors, publishers, and politicians – What about Free Speech, Right to Petition? VA and Kentucky Resolutions – Written secretly by Jefferson and Madison – Nullification - states have the right to void any act of Congress they deem unconstitutional.

17. Virginia and Kentucky Resolutions You may work with your neighbor. You will be reading selections from the Sedition Act, the Virginia Resolution, and the Kentucky Resolution. After you read each selection you need to answer the questions and be prepared to discuss your findings with the class.