Establishing the Government

1. Chapter 4 section 1 Objective 1.01 – What were the domestic issues & conflicts during the Federalist period Establishing the Government

2. What defines the structure of our government? • The Bill of Rights • The Constitution • The Declaration of Independence • The Magna Carta 28 of 28

3. The Constitution • Structure of our government • Bill of Rights – from the Virginia Declaration of Rights by George Mason • Cabinet – group of department heads that help the President execute laws • Capital is in New York

4. 1st Elections!!!! • 1789 • George Washington elected unanimously • Serves as president from 1789 – 1797 • John Adams serves as his vice-president

5. Under George Washington:4 Cabinet positions were created initially • Secretary of State – Thomas Jefferson • Secretary of War – Henry Knox • Secretary of Treasury – Alexander Hamilton • Attorney General – Edmund Randolph

6. Judiciary Act of 1787 • Organized the federal court system • 1st Chief Justice – John Jay • Enumerated Powers – powers given to the federal government in the constitution • Expressed Powers – powers specifically stated in the Constitution • Implied powers – powers not specifically mentioned in the Constitution • Strict Construction – favors expressed powers only • Loose Construction – favors loose interpretation of the Constitution

7. What is a tariff? • Tax on virtually everything • Limit on goods imported • Tax on goods imported • Tax on goods exported 28 of 28

8. Financing the Government • Financial Problems • War debts ($ 57 million) & no income • Tariff of 1789 – James Madison’s plan to get out of financial problems • Tonnage – tax based on how much ships carry • Hamilton & Madison begin to disagree

9. Hamilton’s Plan – 4 Parts 1st Part Opposition Some Southerners The tax would mostly affect them since they were the ones mostly buying imported goods and selling their goods overseas • **Tariff of 1789 • Tax on imported goods not only would earn the government money but would also protect newly emerging American industry in the north

10. Hamilton’s Plan – 2nd part • Assumption Act • Government should borrow money to finance itself • How? • Buy Rev. War bonds at ORIGINALface value rather than disregard them • Selling of more bonds Opposition • War Veterans & Southern Farmers • They lost money originally • Northerners making money off their losses • The Tariff of 1789 would pay for the bonds which was a tax on Southerners • James Madison • Compromise – Move the capital from New York to a southern location – District of Columbia

11. Washington DC NY & Philadelphia had other functions Foggy Bottom had no other use but as seat of the government

12. What entity acts as our government’s bank today? • The National Treasury • The Federal Reserve • The 1st Bank of the US • Bank of America

13. Hamilton’s Plan – 3rd Part **The National Bank • Purpose • Issue paper money • Manage nation’s debt • Issue loans to government & individual • Result • Promote trade • Encourage investment • Stimulate economic growth Opposition • Southerners • Northerners would control the wealth • Jefferson;James Madison • NO EXPRESSED or enumerated power to create a bank in the Constitution. Washington signed the law creating the bank in 1791 for only 20 years

14. Hamilton’s Plan – 4th part Excise Taxes: Tax on specific targeted products. • 1791 – Whiskey Tax was created Opposition : *The Whiskey Rebellion • Pennsylvania distillers • Result – Washington sent 13,000 troops to restore order • Importance – showed the dominance of the federal government over the states; peaceful protest only allowed

15. Result of Hamilton’s PlanThe Rise of Political Parties Federalists Democratic - Republicans Southerners & western farmers Strong state governments Strict constructionists Wealthy corrupt the government Strength of nation in farmers Government should promote agriculture Protective tariffs burdened farmers • Northerners (New England) • Strong national government • Wealthy & educated should rule • Trade and manufacturing are key to wealth • Government should promote manufacturing • Protective tariffs to protect industry • Loose Constructionists

16. All of the following are parts of Hamilton’s plan except: • National Bank • Tariff of 1789 • Income Tax • Debt Assumption

17. George Washington & Foreign Policy George Washington & Foreign Policy George Washington & Foreign Policy • 1789- French Revolution begins (Americans are split) • 1793- French radicals seize control & execute thousands-including the French KING & QUEEN • American Federalists were horrified at the French Revolution • American Democrat-Republicans- applauded the French fight for liberty • France Declared war on Britain- problem (the US traded with both nations) • Treaty of 1778- US treaty with France required the US to help defend French colonies in Caribbean= could mean war with Britain! • 1793- George Washington declared the US neutral • ** British begin to intercept US ships carrying goods to French ports, British inciting Indians in NA to attack US settlers. • US citizens demand war with Britain

18. Jay’s Treaty • G. Washington sent John Jay to Britain to seek a solution. • Parts of the Treaty • Jay forced to agree British had right to seize cargo • US did not get compensation for US MERCHANTS • British agree to international arbitration • British agree to give up forts in US (NEVER LEAVE) • US gets most favored nation trade status • Outcome/Reaction in US • ** Republicans attacked the treaty • ** Public protests • **Temporarily kept the US out of war with Britain

19. Pinckney’s Treaty Also known as Treaty to San Lorenzo • 1795- Spain gave the US the right to navigate the Mississippi River & use port of New Orleans • Pleased western farmers

20. US Western Expansion • Americans settlers flocked to the area between the Appalachian mountains & Mississippi River. • 1792- Kentucky became a state • 1796- Tenn. Became a state • Northwest Territory: Chief Little Turtle united the Miami, Shawnee, Delaware to defend land. • President Washington sends Gen. Anthony Wayne to defend white settlers. • 1794- The Battle of Fallen Timbers- US defeated Little Turtle and the Miami Confederacy= ended Indian resistance in Northwest Territory.

21. Treaty of Greenville (1795) • 12 Native American Nations signed a treaty with the U.S. • Results of Treaty • Indians gave up part of S. Ohio & Indiana • Indians get $10,000 per year from U.S. • By 1803- Ohio became a state (rapid white settlement

22. Northwest Territory

23. Election of 1796 • After two Terms, Washington stepped down as President (establishes 2 term tradition) • 1796 Presidential Election (John Adams v. Thomas Jefferson) • Dirty politics as “Jeffersonian’s” were called “fire-eating Salamanders, poison sucking toads” • Adams won 71 Electoral votes to 68; Jefferson became Vice President!

24. Washington’s Farewell • Avoid Political PARTIES • Avoid Sectionalism • Avoid “foreign entanglements” stay neutral but trade with other nations.