New Nation, New Constitution

1. New Nation, New Constitution Use Chapters 8 & 9 in your textbook as a reference

2. Vocabulary

3. Washington as President • Inauguration was held on April 30, 1789 • First job was to put a working government in place • Made appointments to new departments of Executive Branch • Alexander Hamilton, Secretary of Treasury • Thomas Jefferson, Secretary of State • Job was to manage relations with foreign countries • Henry Knox, Secretary of War • Edmund Randolph, Attorney General • Advise president on legal matters • Group would become known as “The Cabinet”

4. Judiciary Act of 1789 • Organized Court System • Provided for Supreme Court of 6 justices • 3 Circuit Courts and 13 district courts were formed under the Supreme Court • Main job of federal courts was to hear appeals from state courts • John Jay, first Chief Justice of Supreme Court

5. Economic Crisis • Revolution left nation in debt • Government owed $52 million • Most of the debt was in bonds • Certificate issued by a government for an amount of money that the government promises to pay back with interest • Americans invested in bonds to support the war effort • Bonds were being sold for less than what they were worth • Original bond holders are losing money • Should the government pay back state debts • Government operating on a shoestring • Could not pay for Washington’s move to NY, he had to borrow $3,000

6. Hamilton’s Plan • Program had 3 parts • 1. U.S. government would agree to pay all federal and state debts • 2. U.S. government would charter a national bank for depositing government funds • 3. government would impose a high tax on goods imported into the country • By paying debts, Hamilton was hopeful that people here and abroad would be willing to invest again in the future of the young country • Opposition to the plan in the South because they had already paid off their war debts • Compromise was that the South would support Hamilton’s plan if the capital city would be located in the South

7. National Bank • A privately owned bank of the United States • Provide a safe place to deposit government funds • Bank would issue paper money that would serve as national currency • Those who were against the formation of a national bank stated that the law establishing the bank was unconstitutional (Thomas Jefferson) • Constitution did not contain a provision allowing Congress to set up a national bank • Hamilton argued that the bank can be formed under the “necessary and proper” clause • Congress passed the law in 1791 establishing the bank

8. High Tariffs • Hamilton’s plan called for high tariff • Tax on imported goods • Protect U.S. manufacturers from foreign competition • Congress did not pass this part of Hamilton’s plan • Southerners opposed the high tariff • It would not benefit them • It would help the North because that area of the country was where most industries were located

9. Whiskey Rebellion • 1791 Congress imposed tax on all whiskey made and sold in U.S. • Hoped it would raise funds for the Treasury • Instead led to a revolt • Farmers made extra money by turning corn into whiskey • New tax would lessen their profit • Compared it to the taxes the British imposed on them • Farmers organized and refused to pay the tax • 1794, Pennsylvania officials attempted to collect the tax • Farmers rebelled, burned down the home of the tax collector • Broke out in violent protests • Washington sent the militia to Pennsylvania, 13,000 troops • Rebels pulled back on their protesting • Importance of Rebellion: tested the will of the new government, showed American people that an armed rebellion was not acceptable in a republic

10. The Birth of Political Parties • Framers of Constitution did not expect political parties to form • Hoped that government leaders would rise above personal or local interests to work together for the sake of the country • Feared that a division based on groups would bring mob rule and chaos to the young country • In early 1790s, political parties are forming • Republicans: Thomas Jefferson & James Madison • Federalists: Alexander Hamilton

11. Trouble in The Northwest Territory • Remember the Treaty of Paris that ended the Revolutionary War….. • U.S. won territories north and west of Ohio River to the Miss. River • British would withdrawal within “reasonable” time • 10 years later, they are still there, supplying Native Americans with guns and ammunition • Hoping to limit American settlement in NW Territory • Native Americans wanted to keep their lands • Joining together to oppose settlements • Many believe the future of the country is in the west • Federal government forcing Native Americans to sell their lands • Series of battles took place between 1790-1795 • Eventually, defeated Native Americans gave up most of their lands from Ohio River to Lake Erie….today that is most of the state of Ohio

12. The French Revolution • Began in 1789 • At first, most Americans were supporting French revolutionaries • Fighting the monarchy, just as American revolutionaries • Lost support when it became extremely violent • Period called “Reign of Terror” in mid 1793 • Revolutionaries executed 17,000 people, including the king and queen • Federalists were against the violence • Jefferson and his supporters stated that in a fight by oppressed people to win freedom, some injustices were to be expected

13. French & British At War • Early 1793 France & Britain at war with each other • U.S. would remain neutral • Wanted to trade with both sides • Both countries began stopping American ships and seizing cargoes • British used impressment of sailors on American ships • Impressment: seizing the sailors and forcing them to serve in the British navy • Hamilton urged President to stay friendly with Britain • British purchased 75% of American exports, supplied 90% of American imports

14. Washington Sends John Jay to London • Sent to try to solve the most serious problems • Returned with treaty in 1795 • U.S. agreed to pay debts long owed to British merchants • Britain agreed to pay for the ships it had seized • Britain agreed to withdraw its troops in NW Territory and stop aiding Native Americans • British refused to recognize U.S. right to trade with France and refused to cease impressment of U.S. sailors

15. Jay Treaty A Success? • Angered Republicans • U.S. had given too much and received too little • Federalists liked the treaty because it kept peace with Britain • Federalists had control of Senate • Jay Treaty won approval by a narrow margin

16. Washington Retires • 1796 • Farewell Address had two major points • 1. Warned against political divisions at home • 2. Emphasized his belief that U.S. must not get entangled in the affairs of Europe • His accomplishments: • U.S. had a functioning federal government • Economy was improving • He had avoided war • British had been forced to leave NW Territory, this area would now be safe for settlement

17. Republicans vs. Federalists Republicans • Thomas Jefferson • Believed people should have political power • Favored strong state government • Emphasized agriculture • Strict interpretation of Constitution • Pro-French • Opposed national bank • Opposed protective tariff Federalists • Alexander Hamilton • Believed wealthy and educated should lead • Favored strong central government • Emphasized manufacturing, shipping and trade • Favored loose interpretation of Constitution • Pro-British • Favored national bank • Favored protective tariff

18. Election of 1796 • Washington not seeking a third term • Republican candidate Thomas Jefferson • Federalist candidate John Adams (had been VP for Washington) (At this time, President and VP were not elected together, top vote getter was President and second place became VP) • Adams finished first (President) • Jefferson finished second (VP) • Country had a Federalist president and a Republican VP…..would lead to tensions during the next 4 years

19. Troubles with France • Angered by U.S. neutrality in the war between France and Britain • French assistance had been the key to success during American Revolution • French view the U.S. as being on the side of the British because of the Jay Treaty • French react by continuing to attack American merchant ships

20. XYZ Affair • Adams sent a 3 person mission to France • Agents of French government demand U.S. pay bribe of $250,000, and demanding U.S. lend France several million dollars • U.S. refused to pay • The story of the bribe spread once the public found out • Incident known as XYZ affair because agents names kept secret and were called X, Y and Z • Outcome of XYZ Affair: Caused outbreak of war fever in U.S.

21. Adams Reaction to XYZ • Adams asked Congress to increase size of the army and rebuilt Navy • Congress did both, which increased power of central government • Adams along with a lot of Americans opposed full out war with France • Between 1798-1800 U.S. fought an undeclared naval war with France • In hopes of avoiding war, Adams sent new mission to France • Napoleon Bonaparte, France’s dictator, agreed to stop seizing American ships (he was busy with war in Europe) • President Adams had avoided war, but angered leaders of Federalist Party

22. War Fever Brings on More Problems • Split between the 2 parties is getting worse • Federalist fearing immigrants, especially those from France • Thought they would bring dangerous ideas into our country and back the Republicans • Federalist led the way for legislation aimed at immigrations • Alien Act: increased length of time from 5 to 14 years that a person had to live in U.S. to become a citizen • Alien: outsider or someone from another country • President gained support to deport or imprison any alien he believed to be dangerous • Sedition Act: made it a crime for anyone to write or say anything insulting or anything false about the government • Sedition: activity designed to overthrow a government • Harshest law to limit free speech in our country’s history • Federalist were targeting Republicans with this act

23. Republicans Attack Alien & Sedition Acts • At this time, Supreme Court did not have the power to declare something as being unconstitutional • Led by Thomas Jefferson and James Madison • Took the approach through the state legislature • Kentucky and Virginia resolutions stated that acts were unconstitutional • Declared states had the right to declare laws passed by Congress to be unconstitutional • No other states supported the resolutions • Both acts were not in force for long • Alien Act expired in 2 years • Sedition Act expired in 1801

24. Impact of Virginia & Kentucky Resolutions • Resolutions claimed that states could nullify (deprive of legal force) a law passed by Congress • Resolutions boosted idea of states’ rights • In decades to come, states would refuse to obey certain federal laws • States rights would become the major issue to trigger the Civil War