Building a Nation

1. 1781 - 1800 Building a Nation

2. Washington as President • Inaugurated in 1789 (elected unanimously) • John Adams – Vice President • Tried to remain within powers of his branch, never interfere with Congress • Created first presidential cabinet of advisers • Alexander Hamilton – Sec. of Treasury • Thomas Jefferson – Sec. of State • Henry Knox - Sec. of War

3. Hamilton and the economy • Ideas: • Establish public credit • gain investment for growth • Feds assume state debt, pay off all debt “at par” (with interest) • Sell bonds to raise investment funds

4. Congress argue against at first • Policies allow establishment of good credit, foreign capital investment, stabilize the economy

5. Taxes • Excise Tax • used to raise money to pay government debts • tax on liquor , sugar, snuff and carriages • affected Southern and Western farmers whose grain was turned into liquor

6. Southern and Western congressmen object • Compromise: agree to assumption of debts and levy tax if southern city Washington D.C. made U.S. capital

7. Hamilton’s Compromise The South agreed to… The North agreed to… …allow the federal government to take over the debts of the northern states. …move the capital of the U.S. to the South. (Washington, D.C.)

8. National Bank • Hamilton believed country needed a privately funded National Bank of the United States • Would store government funds • Argued allowable due to “elastic clause” in Constitution • Allowed to make all laws that are necessary and proper • Hamilton – “loose constructionist” Constitution permits everything not expressly forbidden

9. Hamilton vision • Encourage protective tariffs • Encourage industrial growth • Provide subsidies • Provide awards to encourage formation of new businesses • Wanted to move from agrarian nation to self-sufficient industrialized nation

10. Whiskey Rebellion • Farmers in Pennsylvania protested against gov’t for taxes • George Washington sent in 13,000 troops to squash protest • **** showed the power of the federal gov’t

11. Neutrality • French revolution in 1789 led to war with Britain • Wanted America to honor Franco-American Alliance of 1778 • Neutrality Proclamation of 1793 • Pledged mutual friendship and desire to trade with France and Britain • Citizen Genêt Affair • French ambassador Genêt ignore proclamation and continue to try to get support • Angered Americans – disrespectful to Washington

12. Jay’s Treaty 1794 • Chief Justice of Supreme Court John Jay sent to negotiate with Britain • Regarding British troops still on American soil in Ohio River Valley • Agree that Britain withdraw troops and pay damages for US merchant ships damaged after war if US pays pre-war debts to British creditors

13. Pinkney’s Treaty 1795 • Settled border disputes with Spain • Americans gain access to Mississippi in exchange for non-aggression in west

15. Birth of Political Parties Alexander Hamilton Thomas Jefferson Federalists Democratic - Republicans

16. Hamilton and Jefferson: Differing Views Alexander Hamilton Thomas Jefferson • Favored farmers and rural communities • Favored trade, manufacturing and cities • Believed that the federal government should have more power than the states • Believed that states should have more power than the federal government (state’s rights) • Believed in a loose interpretation of the Constitution • Believed in a strict interpretation of the Constitution • was pro-British • was pro-French

17. First Political Parties Federalists Democratic Republicans • led by Alexander Hamilton • led by Thomas Jefferson • strong central government led by industry and the wealthy • strong state governments led by the “common man” • emphasis on agriculture • “Cultivators of the earth are the most valuable citizens.” – Thomas Jefferson • emphasis on manufacturing, shipping, and trade • loose interpretation of the Constitution • strict interpretation of the Constitution • favored the national bank • opposed the national bank • favored protective tariffs • opposed protective tariffs • pro-British • pro-French

18. Am I aFederalistor aRepublican? • Francois Goulet • Farmer from Georgia • 5th grade education • 2. Brandon Smith • Lawyer from Boston, MA • College graduate • 3. John Marshall • Virginia planter • College graduate • Future Chief Justice of the Supreme Court • Believed that the judicial branch was too weak • 4. Hans Gruber • German immigrant • Pennsylvania farmer • 5. Sally Moore • Mother of five • Employee of a Massachusetts textile mill • 6. James Prescott • Banker from Delaware • Member of the Delaware state legislature • 7. Mary Worthington • Merchant from South Carolina • Sells mainly European products

19. Am I aFederalistor aRepublican? • Francois Goulet • Farmer from Georgia • 5th grade education Republican • 2. Brandon Smith • Lawyer from Boston, MA • College graduate Federalist

20. Am I aFederalistor aRepublican? • 3. John Marshall • Virginia planter • College graduate • Future Chief Justice of the Supreme Court • Believed that the judicial branch was too weak Federalist • 4. Hans Gruber • German immigrant • Pennsylvania farmer Republican

21. Am I aFederalistor aRepublican? • 5. Sally Moore • Mother of five • Employee of a Massachusetts textile mill Federalist • 6. James Prescott • Banker from Delaware • Member of the Delaware state legislature Republican

22. Am I aFederalistor aRepublican? • 7. Mary Worthington • Merchant from South Carolina • Sells mainly European products Republican