2.4 Launching the New Nation

1. 2.4 Launching the New Nation How was the US prepared to go forward as a developing country?

2. New Government • Washington was the first president of the new country • He and Congress set up a new government; the Judiciary Act of 1789 set up a national court system • Congress also set up three executive departments, including a cabinet, or group of chief advisors

3. Continued • Alexander Hamilton was Secretary of the Treasury, Thomas Jefferson was Secretary of State, and Henry Knox was Secretary of War • Together, these positions made up the cabinet, or advisors to the President • Hamilton wanted a strong central government with a national bank; Jefferson opposed this with James Madison • Their differences helped create a two-party system, where two political parties compete for power

4. Continued • Federalists agreed with Hamilton; democratic-republicans agreed with Jefferson that state governments should be stronger • Congress passed two important taxes: • A protective tariff, which placed a tax on goods imported from Europe • A second tax was placed on whiskey, which angered small frontier farmers who made it so much that they attacked tax collectors • The Whiskey Rebellion was put down by federal troops to show that the federal government could enforce laws on the frontier

5. Changes Abroad • France overthrew their monarchy in 1789, and then went to war against Britain • Washington decided to remain neutral even though the US had a treaty with France • In 1795 Spain and the US signed the Pinckney Treaty, where they gave up claims to land east of the Mississippi and paved the way for westward expansion of the US • Settlers in the NW Territory angered Native Americans; in 1794 federal troops defeated their confederacy that battled for the land • John Jay also negotiated a treaty with Britain for them to give up their forts in the NW Territory

6. Adams as President • Washington retired, and John Adams became president with Jefferson becoming VP • France began to interfere with American shipping, and Adams sent reps. to France, where the French demanded bribes from the Americans • This became known as the XYZ Affair • Some Americans demanded war with the French, but Adams settled the matter through diplomacy

7. Continued • Adams thought Dem.-Repub. were dangerous, and he and the Federalists supported the Alien and Sedition Acts • Passed in 1798, they made it harder to become a citizen and created harsh punishments for people who criticized the government • Dem.-Rebub. opposed these laws • Kentucky and Virginia claimed that states could cancel laws they found unconstitutional; this is called nullification