1. The First Congress Takes Action
Among its first actions, Congress proposed a Bill of Rights and sent it to the states for ratification. Anti-Federalists had demanded the addition of such amendments as a condition of supporting the Constitution’s ratification. James Madison drafted the document and drew inspiration from George Mason’s Virginia Declaration of Rights. The first ten amendments were ratified on December 15, Congress also passed the Judiciary Act of 1789 that set up the federal courts system, including the Supreme Court.

2. The Bill of Rights (Amendments I-V)
Freedom of Religion, Speech, Press, Assembly, and Petition
The essential freedoms necessary for all citizens to express their views II
Right to Bear Arms
Citizens have the right to defend themselves
III
No Quartering of Troops in Private Homes in Peacetime
Standing military forces are a threat to freedom (memory of British troops?) IV
“Right to Privacy” –’ no unwarranted searches
Needed to protect property rights (memory of the writs?) V
Rights of the Accused Guaranteed by Due Process
Limits government’s power to take away freedom/property

3. The Bill of Rights (Amendments VI-X)
Right to a Speedy & Public Trial by Jury
Aims to guarantee justice for all citizens
VII
Right to a Trial by Jury in Civil Cases
Applies fair trial standards to property cases
VIII
No Cruel or Unusual Punishment
Fines and punishments should not violate basic human decency IX
“Rights” Not Limited by Those Spelled Out
Avoids limiting rights X
Powers Reserved to the States and People
Designed to limit national government power and preserve state’s rights

4. Washington’s First Cabinet
Washington created the first Cabinet of executive officers:
Secretary of State: Thomas Jefferson (Virginia) – handled foreign affairs and official government documents
Secretary of the Treasury: Alexander Hamilton (New York) – managed the government’s finances
Attorney General: Edmund Randolph (Virginia) – chief lawyer for the national government
Secretary of War: Henry Knox (Massachusetts) – ran the military and managed Indian affairs

5. Hamilton vs. Jefferson
Even though Washington sought to maintain unity, a division emerged within his Cabinet between Hamilton and Jefferson
These disagreements led to the creation of the nation’s first two political parties – Federalists and Republicans
Hamilton and the Federalists
Jefferson and the
Republicans

6. Views on People Leader/Party Hamilton (Federalists)
Jefferson (Republicans)
View of People
*people are focused on their own self-interest
and can’t be trusted
*only the wealthy and well-educated should be trusted with power
*people are generally good and can be trusted
*power in the hands of a few will lead to corruption in government
View of Leadership
*wealthy urban elites have the best interests of the country at heart and are better educated to make good decisions
*citizen-farmers are the “heart” of the nation and can make the best decisions if provided with good information

7. Views on Government Leader/Party Hamilton (Federalists)
Jefferson (Republicans)
View of Government
*strong centralized government can best defend natural rights
*state sovereignty leads to disunity/weakness
*strong centralized governments are dangerous
*states are best suited to protect the people’s rights
View of the Constitution
*liked the wide-ranging powers of government
*loose interpretation
(liked the elastic clause)
*concerned it granted too much power
*strict interpretation
(liked the 10th Amendment)

8. Views on Domestic Policy
Leader/Party
Hamilton (Federalists)
Jefferson (Republicans)
Debt & Taxes
*favored centralized management of national and state debts
*favored excise taxes and tariffs to raise revenue and protect American industry
*favored state management of debts and taxation
*distrusted the national government acquiring too much power over the economy and too much money
Central Bank
*wanted a powerful bank to support government and business
*distrusted giving too much power to potentially corrupt wealthy elites

9. Views on Foreign Policy
Leader/Party
Hamilton (Federalists)
Jefferson (Republicans)
French Revolution
Britain vs. France
*distrusted the radical French Revolution
*pro-British – wanted to model our system on the British system of strong government and banks
*supported the French Revolution
*pro-French – wanted to honor our alliance with France even if it meant war with Britain
Jay’s Treaty (1794)
*believed it was the best agreement possible and necessary to keep peace with Britain
*believed it was a “sell-out” to the British because we didn’t get all that we wanted

10. Hamilton’s Financial Plan

11. Revolutionary War Debts
The United States had acquired about $54 million in debts from the Revolutionary War
$42 million to American citizens
$12 million to foreigners
The states had $25 million more in war debts.

12. 1st Secretary of the Treasury
President Washington’s Secretary of the Treasury Alexander Hamilton proposed in his Report on Public Credit his plan to fix the economic crisis facing the young nation
ALEXANDER HAMILTON

13. Report on Public Credit
Hamilton’s plan in this report (1790) featured four major areas:
Assumption of states’ war debts by the federal govt.
Redemption of bonds sold by the govt. under the Articles of Confederation
Selling of new national securities to create a permanent national debt
Excise tax on whiskey

14. 1 – Assumption of State Debts
Many southern states had repaid all of their debts
Most indebted states were in the North
Southerners claimed Hamilton was protecting Northern business interests at the expense of the South
Hamilton was able to sway Southerners to support this by promising the permanent capital would be located in the South
SITE OF THE FUTURE CAPITOL
(Between Maryland and Virginia
along the Potomac River)

15. 2 – Redemption of Bonds
During the war the government issued bonds to people who had lent it money or served in the army
When the govt. failed to repay the bonds, speculators offered to buy them at much lower than their face value.
Hamilton proposed that all bonds be repaid at face value.
This would be a way to win confidence in the new government
Sound bonds would be a a sign of nations financial and health and encourage Americans to invest in nation’s future

16. 2 – Redemption of Bonds
Opponents, like James Madison, wanted the original bond holders to be paid.
He stated that only Hamilton’s speculator friends (rich northeasterners) would profit
war veterans would be cheated out of their money as they sold their bonds for next to nothing to speculators
This proved unworkable as govt. was unable to identify the original bond holders, and Hamilton’s plan passed
JAMES MADISON

17. 3 – Selling Securities for Permanent National Debt
Hamilton planned to raise the $54 million to pay off the national debt (to foreign nations and Confederate bond holders) by “funding” it
New securities would be sold which would be a combination of federal stock and western lands
The new securities would pay 4% interest as the old bonds paid 6% (thus govt. saved money) and would be safer investments than the old bonds

18. 3 – Selling Securities for Permanent National Debt
Hamilton recommended that the debt from the new securities should not be paid off
The 4% annual interest could easily be paid off by collecting tariff money and excise taxes
Investors would enjoy the profits and safety of investing money in these new securities

19. 4 – Excise Tax on Whiskey
This tax on whiskey was relatively small but angered western farmers who relied on the sale of whiskey produced from their grain
Led to the 1794 Whiskey Rebellion
Hamilton was sent by Pres. Washington with 13,000 troops to put this rebellion down
TAX COLLECTOR RUN OFF
Money from this tax helped pay state debts and interest on new securities sold

20. Further Economic Measures
Hamilton later added two other reports (in 1791) that featured the following:
A National Bank
Tariffs to support
industry
ALEXANDER HAMILTON

21. 5 – Bank of the United States
Private investors would own and operate the bank.
The federal government would have a safe place to deposit tax revenues.
The bank could give inexpensive loans to the govt. in times of need
The bank would also have the power to issue paper currency backed by the federal govt.
1ST BANK OF THE U.S.

22. 5 – Bank of the United States
Arguments over the creation of the B.U.S.:
Opponents argued it would give rich northerners who invested in the bank too much influence over government
Opponents argued that no mention of Congress setting up national banks is contained in the Constitution (strict construction or strict interpretation)
However, Hamilton argued that Congress can pass any laws necessary to carry out its expressed duties (loose construction)
A 20 year charter for the B.U.S. was passed in 1791

23. 6 – Protective Tariffs Hamilton sought tariffs to:
protect infant American industry for a short term until it could compete
raise revenue to pay the expenses of government
raise revenue to directly support manufacturing through bounties (subsidies)
Both parties supported the idea of a tariff though southerners and westerners in time would support lower ones than those sought by northerners
Subsidies to industry didn’t pass, but became part of the upcoming American System plan

24. Two Visions for the Country
Hamilton envisioned a future based on urban elites and the growth of commerce and industry Federalists found support in major port cities and the North in general
Jefferson saw a future based on responsible citizen-farmers and an expanding agrarian republic
Republicans found support in rural areas and especially in the South

25. Conflict #1: National Debt & National Capital
In 1790, Congress refused to pass Hamilton’s debt assumption plan because of opposition from James Madison and other Southerners who thought it gave too much power to the national government
Once an ally of Hamilton in the ratification debate, Madison distrusted Hamilton’s views on executive power
Madison and other Southerners wanted the nation’s permanent capital located in the South
Jefferson helped work out the “Compromise of 1790”
Madison supported Hamilton’s debt plan in exchange for Hamilton’s pledge to support the choice of the Potomac as the site of the nation’s new capital

26. Conflict #2: The Whiskey Rebellion
Western Pennsylvania farmers rebelled against high excise taxes on whiskey in 1794
Federalists argued that national power must be asserted to demonstrate the new country’s stability and to make the point that challenges to government policy must be peaceful
Republicans supported the farmers, arguing that the excise taxes were an unfair burden
Washington led 15,000 militia into western Pennsylvania and put an end to the rebellion, asserting the power of the national government

27. Why do you think tax collectors were tarred and feathered?

28. Why do you think Washington chose to lead the troops himself?

29. Results of Hamilton’s Plan
Two political parties formed:
Federalists – those who supported Hamilton’s plan
Democratic-Republicans – led by Thomas Jefferson who feared the plan would give too much power to the national govt. and support the rich in the north
THOMAS JEFFERSON

30. Results of Hamilton’s Plan
Revolutionary War debts were paid off
High state taxes (like those that led to Shay’s Rebellion in Mass.) were lightened when states war debts were assumed by the federal govt.
U.S. Economy grew:
Exports tripled in the next 5 years
Wealthy become tied to the success of the new government
U.S. had money available when it needed it (for example the Louisiana Purchase)

31. Washington’s Farewell Address
Before he retired, Washington gave a farewell address (speech). In it he
Warned against political parties - he thought they caused divisions (factions) that could destroy the nation.
Urged the nation to remain neutral and not become involved in permanent or long-term foreign alliances.
Warned against a powerful military.
Urged Americans to maintain and value a sense of national unity.
Washington ends second term with popularity and prestige DIMINISHED—no longer seen as a man above politics for backing Hamilton.

32. John Adams Becomes 2nd President
After Washington retired, his Vice-President, John Adams became the second president.
Thomas Jefferson came in second. He became Vice-President.

33. XYZ Affair
The French had been seizing American ships so they couldn’t trade with England. (Anger after the war!)
American ministers told talks would occur only if the Americans agreed to loan France $10 million and to pay the minister a bribe of $250,000. The Americans refused. The incident became known as the XYZ Affair.

34. Alien and Sedition Acts
President Adams was criticized for the XYZ affair by Democratic-Republican newspapers.
He blamed the papers and new immigrants for his problems.
To silence his critics, the Alien and Sedition Acts were passed by the Federalist controlled Congress.

35. The 1798 Alien And Sedition Acts attempted to muzzle Republican critics.
Residency for citizenship (Naturalization) raised from 5 to 14 years
Can deport “dangerous” aliens
Illegal to defame public officials (written to expire in 1801 just in case the fed’s lose the next election)
For the first two years it is very popular--seen as necessary to control immigrants and ensure domestic safety

36. Election of 1800

37. With John Adams threatening American civil liberties with the Alien and Sedition Acts
It’s time for another election…
Who is the public going to pick this time?

38. Election of 1800 Federalists Democratic –Republican John Adams
1st sitting president who had to seriously campaign to keep his job
Charles Pinckney
Picked because of success from XYZ Affair
Democratic –Republican
Thomas Jefferson
VP who really wants to be POTUS
Aaron Burr
Popular politician within Democratic –Republican party

39. The Big Issue: Alien and Sedition Acts
Jefferson and Madison authored the Virginia and Kentucky resolutions in protest.
Adams violated 1st Amendment.
They maintain that since the US A is JUST a federation of independent states, the states could nullify Federal (National) laws (precursor to the Nullification Crisis and the Civil War).
Although John Adams kept the US out of war with France the Alien and Sedition Acts will keep him from being reelected.

41. Election of 1800 Breakdown Thomas Jefferson - 73 electoral votes
Aaron Burr electoral votes
John Adams electoral votes
Problem:
If there is a tie for 1st, who wins?
Who becomes VPOTUS?
It goes to the House of Representatives to pick from the top 2 candidates!

42. In the case of a tie…House of Representatives picks the new POTUS
In the H of Reps
The majority political party is the Federalists:
They refuse to vote for T. Jefferson
They pick Burr just because they hate Thomas Jefferson
The Democratic-Republican’s make up the rest
They vote for Jefferson
What happens?
It’s a tie vote 30 straight times…
Then, it gets weird….

43. Enter Alexander Hamilton
Because he hated Aaron Burr so much…
He works with Bayard to get the Federalists to not vote at all.
Jefferson may have agreed to protect Hamilton’s plan.
Hated Jefferson less.
That way Jefferson could win!
Becomes 3rd POTUS
Aaron Burr is furious
He becomes VPOTUS
Because of this….
Aaron Burr and Hamilton will be lifelong enemies…
Until one shoots the other.

44. The U.S. Constitution gets a new amendment
12th amendment
Added in 1803
Created 2 ballots for presidential elections:
1 for POTUS
1 for VPOTUS
That way there can never be a tie again….we hope.

45. So what happens after the election of 1800…
John Adams is very disappointed he took 3rd.
Goes home to Massachusetts to retire.
Showed that the government was strong enough to endure a nasty political fight.
Aaron Burr and Alex Hamilton?
It takes 4 years, but
It’s time to duel it out…