Launching a New Nation

1. Launching a New Nation Chapter 8

2. Washington Takes Office Section 1

3. The First President: Travels • As Washington traveled from his home in Virginia to New York he was greeted with large crowds that lined the streets. • Americans greatly admired the tall, stately war hero.

4. The First President: Inauguration • Washington’s inauguration (a ceremony in which the President takes the oath of office) was held on April 30, 1789. • He was nervous because his actions as the first President would set a precedent (an example to be followed by others in the future).

5. The First President: First Things First • Washington’s first job, along with Congress, was to put a working government in place. • First, Congress passed laws to set up three departments for the Executive Branch: • Treasury • State • War • Each department was to be headed by a secretary nominated by the President. • The President would also appoint an attorney general to advise him on legal matters.

6. The First President: First Things First • Washington appointed 4 well known men: • Secretary of Treasury – Alexander Hamilton • Secretary of State – Thomas Jefferson • Secretary of War – Henry Knox • Attorney General – Edmund Randolph • Overtime, this group became known as the Cabinet.

7. Establishing the Judiciary • The Judiciary Act of 1789 provided (all federal courts): • Supreme Court with 6 justices • 3 Circuit Courts • 13 District Courts • The main job of the federal courts was to hear appeals from the state courts. • Washington appointed John Jay as the first Chief Justice of the Supreme Court.

8. The Nation’s First Economic Crisis • The American Revolution had left the US deep in debt. • The debt was mainly in the form of bonds (a certificate issued by the government for an amount of money that the government promises to pay back with interest). • Both Americans and foreigners had invested in bonds to help the war effort, the US owed $52 million.

9. How would the US pay back this debt? • It was complicated. • The original buyers of the bonds had sold them for less than there worth to speculators. • Speculators – people who invest in a risky venture in the hope of making a large profit. • It seemed unfair that the original bond holders lost money and the speculators would make a profit. • Also in dispute was if the federal government should pay back state debts.

10. Hamilton’s Financial Plan • Three Parts • The US gov’t would agree to pay all federal and state debts. • The US gov’t would charter a national bank for depositing gov’t funds. • The US gov’t would impose a high tax on goods imported into the country.

11. Part 1:Paying the Debt • Hamilton knew that paying the debt would be a huge burden to the gov’t. • However, he wanted to prove to people here and abroad that the US would honor its debts in full. • By doing this, Hamilton believed that people would then be willing to invest again in the future.

12. Part 1: State Debts… • Southerners opposed the plan to repay state debts. • Most southern states had paid off their wartime debts on their own. Southerners thought other states should do the same. • Congress debated this plan for 6 months in 1790. • Finally, an agreement was reached: • The federal gov’t would repay state debts • The new capital city would be in the South, along the banks of the Potomac River in between Virginia and Maryland.

13. Part 2: A National Bank • Second part of Hamilton’s Plan called for a bank that was privately owned by the US. • Provide a safe place to deposit gov’t funds. • Able to issue paper $ that would serve as a national currency. • In 1791 Congress passed a law establishing the first National Bank.

14. Part 3: Import Tax • To raise money for the federal gov’t, Hamilton’s plan called for a high tariff (a tax on imported goods). • This part of the plan did not pass in Congress, southerners felt that it would only benefit the north where most industries were located.

15. The Whiskey Rebellion • In 1791 Congress imposed a tax on all whiskey made and sold in the US. • Hamilton hope this would raise $ for the federal gov’t. • Farmers resented the tax, even comparing it to the taxes imposed on them by the British. • The farmers protested and refused to pay the tax.

16. The Whiskey Rebellion • In 1794, a tax collector’s home was burned down after he tried to collect the tax. • An angry mob developed. • They marched through Pittsburgh in a violent protest. • Washington responded by sending the militia to Pennsylvania. • The rebels scattered quickly. • This was the first test on the federal gov’t , it showed the everyone that armed rebellion was not acceptable in this country.

17. The Birth of Political Parties Section 2

18. Political Parties Emerge • Factions • An organized political group • Not complimentary, considered selfish groups. • In the Federalist Papers, James Madison argued that those in factions were not concerned with the well-being of the whole nation. • Washington hated the factions, but despite his efforts, by the early 1790’s two political parties were beginning to form.

19. Republicans vs. Federalists Republicans Federalists • Led by Thomas Jefferson • Believed people should have political power • Favored strong state gov’t • Emphasized agriculture • Favored strict interpretation of Constitution • Were pro-French • Opposed national bank • Opposed protective tariff • Led by Alexander Hamilton • Believed wealthy/educated should lead • Favored strong central gov’t • Emphasized manufacturing, shipping and trade • Favored loose interpretation of Constitution • Were pro-British • Favored national bank • Favored protective tariff

20. The Election of 1796 • Republican – Thomas Jefferson • Federalist – John Adams (Washington’s VP) • John Adams won and became President, Thomas Jefferson became VP. • Since each were from different political parties, this lead to serious tensions during the next four years.

21. Troubles at Home and Abroad Section 3

22. Conflicts in the Northwest Territory • As a result of the Treaty of Paris, the US won the large territory north and west of the Ohio and Mississippi Rivers. • The British had forts in this area and were supposed to withdraw in a “reasonable” amount of time. • 10 years later, they were still there. • The British were supplying Native Americans with guns, hoping to limit American settlement in the area.

23. A Struggle Over Lands • Native Americans in the NW territory wanted to keep their lands. • During the 1780’s they attacked many American settlements. • The federal gov’t tried to force Native Americans to sell their lands. • By 1790, the US had succeeded in buying Native American lands in most of Kentucky and part of Tennessee. • North of the Ohio River, the Native Americans refused to sell.

24. A Series of Battles (1) • In 1790, Washington sent a small force to end the Native American attacks on the settlers in the Northwest Territory. • Warriors led by Little Turtle (Miami Nation) and Blue Jacket (Shawnee) defeated the soldiers. Blue Jacket

25. A Series of Battles (2) • In 1791, Washington sent a larger force. • Little Turtle won an even bigger victory. • More than 900 US soldiers were killed or wounded. • The worst defeat the army would ever suffer in a battle with Native Americans.

26. A Series of Battles (3) • After 2 defeats, Washington turned to General Anthony Wayne to lead the American forces. • 1794, The Battle of Fallen Timbers • Wayne was successful. • The battle broke the Native American hold on the Northwest Territory.

27. Treaty of Greenville • Leaders of defeated Native American nations gave up most of their lands from the Ohio River in the south to Lake Erie in the north. • Today, this land is most of the state of Ohio.

28. The French Revolution • Began in 1789 • At first, most Americans were for the revolutionaries (they were fighting a monarchy). • However, it soon became very violent. • This violence was called the Reign of Terror. • The Reign of Terror peaked in 1793.

29. The French Revolution • During the Reign of Terror, French revolutionaries executed about 17,000 people, including the King and Queen.

30. The French Revolution • By 1793, France and Great Britain were at war • The US, at the request of President Washington, would remain neutral (not favoring either side in a dispute. • The US wanted to trade with both sides, however each side began stopping US ships and seizing the cargoes. • The British made matters worse by the impressment of sailors on US ships (seizing the sailors and forcing them to serve in the British navy).

31. The French Revolution • To solve this issue, President Washington sent John Jay, the Chief Justice of the Supreme Court, to London. • Jay returned in 1795 with a treaty (The Jay Treaty): • The US would repay debts long owed to Britain. • The British would pay for the ships it had seized. • Also, the British would remove its troops from the Northwest territory and stop helping the Native Americans there. • The British refused to recognize a US right to trade with France and to release the impressment of US sailors. • The treaty won approval from Congress by a narrow margin.

32. Washington Retires • Washington’s Farewell Address had two main points: • Warned of political divisions at home. • The US must not get involved in the affairs of Europe.

33. Washington’s Accomplishments • The US now had a functioning federal gov’t. • The economy was improving. • He avoided war. • The British had been forced to leave their forts in the Northwest Territory, an area that was now safe for settlement.

34. The Presidency of John Adams Section 4

35. Troubles with France • The XYZ Affair • In 1797, Adams sent a 3 person mission to France. • French gov’t agents wanted the US to pay a bribe of $250,000 and for the US to lend France several million dollars. • The Americans stated: • “Not a sixpence (a coin worth six pennies).” • The bribe attempt was a sensation when it became public. • Because the names of the French agents were kept secret, they were called X, Y and Z.

36. War Fever • The XYZ Affair caused an outbreak of war fever in the US. • Many wanted the US to declare war on France, Adams did not want a full scale war. • Adams did asked Congress to increase the size of the army and rebuild the navy, they agreed. • Also, Adams did get France’s leader, Napolean Bonaparte to stop seizing American ships and by doing this, he kept the peace.

37. Alien and Sedition Acts The Alien Act The Sedition Act • Aimed at immigrants. • Alien – an outsider or someone from another country. • Increased the length of time from 5 to 14 years that a person had to live in the US to before they could become a citizen. • The President gained the power to deport or imprison any alien he considered dangerous. • Targeted Republicans • Made it a crime for anyone to write or say anything insulting about the President, Congress or the gov’t. • During 1798 and 1799, 10 people were convicted under the act, most were Republicans. • This was the harshest law limiting free speech ever passed in the US.

38. State’s Rights • The 2 resolutions passed in Virginia and Kentucky actually boosted the idea of state’s rights. • State’s rights – the idea that the union binding “these US” is an agreement between the states and that they therefore can overrule federal law. • As time went on, a number of states would refuse to obey certain federal laws. • In fact, this idea (state’s rights) would become the rallying cry for southern states in their defense of slavery.