1. CH 7 NOTES ESTABLISHING A NEW GOVERNMENT

2. A NEW GOVERNMENT In 1789 each of the states that passed the Constitution sent electors to choose the first president ELECTORAL COLLEGE: a group of electors that represent the people’s vote for president Washington was elected unanimously, and John Adams became his Vice President

3. Washington was hoping to retire, but was convinced by his friends that he was the best fit for president George Washinton

4. Members of the new government had to create new policies that would determine the future of the country Washington wrote: “The first of everything in our situation will serve to establish a precedent.” PRECEDENT: an action or decision that later serves as an example Congress created departments in the Executive branch Each department was led by a cabinet member CABINET MEMBERS: department heads who advise the president

5. CABINET MEMBERS ALEXANDER HAMILTON: Secretary of the Treasury Dealt with financial matters

6. THOMAS JEFFERSON: Secretary of State Handled foreign relations

7. HENRY KNOX: Secretary of War Provided for a national defense

8. JUDICIARY ACT OF 1789 Congress passed the Judiciary Act of 1789 to set up the federal court system It established a Supreme Court with 6 judges 13 district courts and 3 courts of appeal It defined their powers and their relationship to the state courts It allowed certain cases to be appealed from state courts to federal courts President nominated judges, then they had to be approved by the senate

9. As Secretary of Treasury, Hamilton had to deal with a huge debt NATIONAL DEBT: The amount of money owed by the U.S. He proposed that the government take on the entire debt of the federal government and the states His plan was to pay off old debt by borrowing new money at a lower interest rate. HAMILTON’S ECONOMIC PLAN

10. ECONOMIC PROBLEMS: The debt fell into 3 categories Foreign Countries: Owed $11.7 million (mostly to France) U. S. Citizens: Owed $40.4 million (Bonds) States: Owed $25 million (food, weapons, etc.)

11. 1. DEAL WITH THE DEBT: Pay foreign debt first. Gradually pay off bonds. Pay state debt. 2. GAIN REVENUE: Raising protective tariffs would increase prices of foreign products, causing Americans to buy more U.S. goods. 3. STABILIZE THE BANKING SYSTEM: Create a national bank and a national mint. HAMILTON’S 3-POINT PLAN

12. CITIZEN’S DEBT Congress could not agree on the debt to American citizens Bonds were issued during the war BONDS: Certificates of debt that carry a promise to buy them back at a higher price Speculators bought the bonds at a cheaper price Hamilton wanted to pay off the bonds at the original price, making speculators rich

13. HAMILTON’S VIEWS Believed in a strong central government. Wanted a balance of power between the “mass of people” and wealthier citizens. Wanted to promote manufacturing and business. Wanted higher tariffs on foreign goods to protect American manufacturers.

14. JEFFERSON’S VIEWS Wanted to protect the states power. Believed in the right of “the people” to rule the country. Supported agriculture and farmers. Wanted lower tariffs to keep costs low for goods farmers bought.

15. Hamilton wanted to create a national bank, tariffs on imports, and national taxes Washington signed the bill to create the bank for a term of 20 years Tariffs on imports were created to encourage people to buy American goods OPPOSITION TO HAMILTON’S PLAN

16. Jefferson and Madison believed Hamilton’s plan gave too much power to the federal government They thought the bank was unconstitutional Hamilton brought up the elastic clause – congress can make all laws which shall be necessary and proper to govern the nation

17. Hamilton believed in Loose Construction Loose Construction: the government can take reasonable actions that the Constitution does not specifically forbid Jefferson believed in Strict Construction Strict Construction: the government should do only what the Constitution specifically says it can do

18. The south opposed the tariff because they had little industry Congress approved a variety of taxes, including one on whiskey Jefferson feared the strong economic powers would protect the wealthy

19. Jefferson and Madison urged others to oppose Hamilton’s plan Hamilton would agree to a compromise For acceptance of the plan, the new capitol of the United States would be permanently moved from New York to a site on the Potomac River If left in New York or Philadelphia, political and economic power might be in the North

20. WHISKEY REBELLION People in areas like western Pennsylvania were angry at the tax on American-made whiskey passed by Congress in 1791. Whiskey was a cash crop to western Pennsylvania farmers. Farmers were angry that cases about the law were tried in district courts, often far away from the people affected. Fighting broke out in 1794. Washington led an army against the rebels, but the Whiskey Rebellion ended without a battle.

21. DEALING WITH OTHER NATIONS FRENCH REVOLUTION: (1789-1799) Inspired by the American Revolution The people overthrew the government and beheaded the king and queen

23. between 18,000 and 40,000 people were executed during the Reign of Terror

24. A few years later France and Great Britain went to war The French tried to involve the U.S. NEUTRALITY PROCLAMATION: Stated that the U.S. would not take sides with any European countries at war NEUTRALITY PROCLAMATION

25. French representative Edmond Genet asked American sailors to help France fight England with privateers. Privateers: private ships hired by a country to attack its enemies Washington told Genet this violated the Neutrality Proclamation Jefferson supported France Hamilton supported Great Britain

26. JAY’S TREATY The British seized American ships carrying food to the West Indies British were still helping Native Americans fight settlers Washington sent John Jay to London to negotiate Jay got the British to remove their troops from the Northwest Territory However, on every other point, he agreed to British terms

27. PINCKNEY’S TREATY The Spanish disputed the U.S. and Florida border. Spain closed the New Orleans port to U.S. trade in 1784. This hurt the American economy. Pinckney’s Treaty was signed in 1795. The southern U.S. border was set at 31° N latitude. The port of New Orleans reopened.

28. Jay’s Treaty did not cover: Impressment of sailors Repayment of slaves taken during the revolution America did not have the power to ask for anything more. Washington felt it was the best they could do.

29. CONFLICT IN NORTHWEST TERRITORY Americans continued to settle in the Northwest Native Americans protested British provided guns to Natives Natives were defeated A treaty gave U.S. claim to most Native lands in the Northwest Territory

30. WASHINGTON SAYS FAREWELL IN THE FAREWELL ADDRESS: Lists the benefits of uniting the states under one government Emphasizes his warning against the dangers of political parties Points out the need for education Gives advice to the new nation about foreign policy Warned against dangers of foreign ties. Warned the nation to work out its political differences. Warned against too much public debt.

31. POLITICAL PARTIES DEVELOP Election of 1796 FEDERALIST PARTY: founded by Hamilton Wanted a strong federal government Chose John Adams and Thomas Pinckney as candidates

32. DEMOCRATIC-REPUBLICAN PARTY: Founded by Thomas Jefferson and James Madison Wanted to limit the federal government’s power Chose Thomas Jefferson and Aaron Burr as candidates

33. Party differences were based on where and how people lived Businesspeople in the cities supported the Federalists Farmers in isolated areas supported the Democratic-Republicans

34. ELECTION OF 1796 Adams defeated Jefferson. Whoever had the second most votes became vice president, so Jefferson joined Adams in office.

35. XYZ AFFAIR An early goal of Adams was to improve relations with France U.S. diplomats were sent to France. The French foreign minister, Talleyrand, would not meet them. Three French agents secretly demanded a bribe before they would discuss a treaty with the Americans. The so-called XYZ Affair outraged Americans and led to a call for war with France.

36. The agents said a treaty would be discussed only in exchange for $250,000 The French government also wanted a loan of $12 Million The diplomats refused When Adams told congress of the talks, he replaced the agents names with the letters X, Y, Z Federalists wanted war Treaty was eventually signed

37. PREPARING FOR WAR AND PEACE Adams asked Congress to expand the navy to more than 30 ships. He also asked Congress to approve a peacetime army. However, Adams did not want war with France. Federalists did not like Adams’s decision not to go to war. American and French ships began fighting in the Caribbean. The United States and France eventually signed a treaty.

38. ALIEN AND SEDITION ACTS Included four laws Aimed at stopping the growth of Democratic- Republican party Supposedly to protect the country from foreigners

39. NATURALIZATION ACT: Increased time required to become a U.S. Citizen from 5 to 14 years Most new immigrants were joining the Democratic-Republican party Federalists wanted to make it harder for newcomers

40. ALIEN ACT: Gave President power to deport any foreigner considered “dangerous to the peace and safety of the United States” Federalists hoped to silence French refugees who opposed them

41. ALIEN ENEMIES ACT: Allowed government to deport aliens if their home country were at war with the U.S. Remains in effect today.

42. SEDITION ACT: Made it a crime to speak or write critically about the government. Its purpose was to silence criticism.

43. KENTUCKY AND VIRGINIA RESOLUTIONS Jefferson and Madison passed these resolutions which said that the Alien and Sedition Acts were unconstitutional They stated that these acts interfered with state governments They wanted congress to repeal the acts, which did not happen The acts expired within a few years