Chapter 9

1. Chapter 9 Launching the New Government

2. Chapter 9, Section 1 Washington Takes Office

3. Washington Takes Office • George Washington was inaugurated in New York City on April 30, 1789. • An inauguration is a ceremony in which the President officially takes the oath of office. • Being the first president Washington had nobody to look to for guidance nor did he really know how govern from day to day. • Precedent – an act or decision that sets an example for others to follow.

4. President George Washington • First President of the United States. • He served in office for two terms. • Chose not serve for a third. • Only one President served in office for more than two terms and that was in 1940.

5. The First Cabinet • In 1789, Congress created five executive departments: • 1 departments of State • 2. Department of Treasury • 3. Department of War • 4. Attorney General • 5. Postmaster General. The heads of these departments made up the Presidents cabinet.

6. First Cabinet continued • President Washington chose well known leaders to serve in his cabinet. • Two of the most famous people Washington chose were Thomas Jefferson and Alexander Hamilton. • Thomas Jefferson – Secretary of State • Alexander Hamilton – Secretary of Treasury.

7. Federal Court System • Congress passed the Judiciary Act, which called for the Supreme Court to consist of one Chief Justice and five Associate Justices. • John Jay was the first chief Justice. • The Judiciary Act also established district courts and circuit courts across the nation. • The Supreme court was the highest court in the land.

8. Reducing the Nation’s Debt • Alexander Hamilton faced many problems in solving the national debt. • National debt – the total amount of money that a government owes to others. • During the war many states borrowed money from foreign countries and ordinary citizens.

9. Bonds • Governments borrowed money by issuing bonds. • Bonds- a certificate that promises to repay the money loaned, plus interest, on a certain date. • War bonds were very popular during World War II. Here is a picture of Uncle Sam.

10. Hamilton’s Plan • Hamilton wanted the government to buy up all the bonds issued by both the national and state governments. • His plan was to issue new bonds to pay off the nations debt. • As the economy improved, the government would then be able to pay of the debt.

11. Debating Hamilton’s Debt • James Madison disagreed with Hamilton’s plan. • Believed it would benefit speculators. • Speculators- someone who invests in a risky venture in the hope of making a large profit.

12. Debating Hamilton’s Plan • Speculators would buy bonds off of soldiers or citizens who needed money. • Their bonds would be worth a dollar but speculators would only buy them for 10 to 15 cents. • If the government paid off the debt in full the speculators stood to make large profits.

13. Debating Hamilton’s Plan continued. • Hamilton felt strongly about paying off the debt because if the United States failed to do so, it would hurt keeping long term investors in the future. • After a long debate, congress agreed to fully repay the nation’s debt. • By 1789, southern states were upset with Hamilton’s plan because most southern states had already paid off their debt. • They believed other states should do the same and bitterly opposed Hamilton’s plan.

14. Hamilton’s Compromise • Many Southerners wanted the capital to be located in the south. • Hamilton offered to support this idea if the southern states would agree to his plan to repay the debts. • In 1790, Congress voted to repay state debts and to build a new capital city. • New capital would not be apart of any state. Congress called this new area the District of Columbia. The new capital would be ready by 1800. • Until then the Capital was moved to Philadelphia.

15. Plans to Build the Economy • Hamilton had a plan to boost the economy by improving both the agricultural and industrial industries. • In 1791, Hamilton asked Congress to set up a national bank, the Bank of the United States. • The government deposited money form taxes in the bank. • The bank than issued paper money to pay the government's bills and to make loans to farmers and businesses.

16. Plans to Build the Economy • Hamilton also asked Congress to pass a tariff, or tax, on foreign goods brought into the country. • A high tariff on foreign goods would make them too expensive and would force citizens to buy American goods instead. • In the North, where there were more and more factories, people supported Hamilton’s Plan. • Southerners however, bought a lot of foreign good and opposed Hamilton’s plan.

17. The Whiskey Rebellion • To raise money, Congress passed a tax on all liquor made and sold in the United States. • This new tax enraged Americans and tested the strength of the new government.

18. A Hated Tax • Many farmers in the south grew corn however, it was difficult to transport. • Farmers converted corn into whiskey. Barrels of whiskey could be transported more easily. • Farmers hated the new tax and refused to pay it, they compared it to the taxes Britain had forced on the colonies. • In 1974, thousands of people marched through the streets of Pittsburgh protesting. They sang Revolutionary songs and tarred and feathers tax collectors.

19. A Show of Strength • President Washington sent the militia to Pittsburgh to break up the protest. • Hamilton wanted the leaders to be executed but Washington refused. Instead he offered them pardons. • Washington believed that the government had shown their strength to all and now it was time to show mercy.

20. A Show of Strength continued. • The Whiskey Rebellion tested the will of the new government. • Washington’s quick response proved to Americans that their government could act quickly in a time of crisis. • Washington also showed those who disagreed with the government that violence would not be tolerated.

21. Chapter 9 , Section 2 “ Creating a Foreign Policy”

22. The French Revolution • In 1789, French ships arrived in American ports with startling news. • On July 14, 1789, an angry mob stormed the Bastille, an ancient fort that was used as a prison. • The storming of the Bastille marked the beginning of the French Revolution. • This revolution would topple the monarchy and would lead to the execution of thousands of citizens.

23. Response to the French Revolution • King Louis XVI, King of France. • Reasons for rebellion against King Louis. • Peasants paid high taxes • Nobles paid none. • Reformers wanted a constitution to limit the kings powers.

24. American Support • Americans supported the French Revolution for three important reasons. • Americans had just fought for their own independence. • The French were the Americans first ally • Americans admired Marquis de Lafayette, who was a French reformer, and who fought in the American Revolution. • However, by 1793, The French Revolution became more violent. • They beheaded both the King and Queen. • During the Reign of Terror thousands of people were executed.

25. Violence Stirs Division • Thomas Jefferson continued to support the French. • He condemned the execution of the King and Queen. • Yet, he still felt the French had the Right to use violence to win freedom.

26. Violence Stirs Division continued • John Adams along with Alexander Hamilton strongly disagreed with Thomas Jefferson. • They believed no one could create democracy through widespread violence.

27. A Difficult Decision • Faced with war in Europe, President Washington had to come up with a foreign policy. • Foreign Policy - refers to actions that a nation takes in relation to other nations. • The French wanted to use U.S. ports to supply its ships and launch attacks on British ships. • Washington knew he could not honor its treaty with France so the U.S. became neutral, didn’t take sides.

28. Division in the Cabinet • Hamilton pointed out that the U.S. signed a treaty with King Louis XVI. With the King and Queen now dead he believed the ties were now severed with France. • Washington ordered a Neutrality Proclamation, the United States would not support either side in the war. • Neutrality was a defeat to Jefferson and this event along with several other defeats would force Jefferson to leave the cabinet.

29. Struggling to Remain Neutral • By 1793, the British captured more than 250 American ships trading in the French West Indies. • As a result of the British capturing American ships, some citizens wanted to go to war against Britain. • Washington knew that the U.S was to weak to fight, instead he sent Chief Justice John Jay to negotiate.

30. John Jay • Negotiated an agreement that called for Britain to pay damages for the seized American ships. • Britain also agreed to give up the forts it held in the West.

31. John Jay continued • America in return had to pay long over do debts owed to British Merchants. • This agreement between Britain and America was known as Jay’s Treaty. • People protested the treaty because it did nothing to protects the rights of neutral American ships.

32. Washington Retires • George Washington retired from the presidency in 1796, but before retiring he published his Farewell Address. • In his farewell address, Washington advised Americans against becoming involved in European Affairs. • He rejected alliances that could drag the United States into war.

33. Chapter 9, Section 3 Political Parties Emerge

34. A Distrust of Political Parties • When Washington became president there were no political parties. • Political disagreements divided Americans. • By 1797, two rival political parties had emerged to compete for power.

35. A Distrust of Political Parties • Factions, or opposing groups within parties, worked in Britain. • Members of factions often plotted to win government favors and bribes. • Political parties were also viewed as a threat to national unity. • Despite Washington’s warning, factions grew around two members of his cabinet, Hamilton and Jefferson.

36. Alexander Hamilton • Born in the West Indies. • Worked his way up from poverty. • Dressed in fine clothing, was outgoing and energetic. • Enjoyed political debates.

37. Thomas Jefferson • Wealthy Lawyer from Virginia. • Tall and Lanky. • Wore clothing that barely fit him. • Writer of the Declaration of Independence.

38. Manufacturing or Farming • Hamilton wanted the United States to model itself on Britain. • Hamilton believed that the U.S should focus on manufacturing and trade. • Jefferson thought differently, he believed farmers would be the backbone of the new country. • * He feared that manufacturing would corrupt the U.S by concentrating power in the hands of a small group of wealthy Americans.

39. Federal or State Power • Hamilton wanted the federal government to have greater power than the states. • He argued that a strong federal government, was needed to increase commerce. • A strong federal government would also be able to stop a mob like the Whiskey rebellion.

40. Federal or State Power continued • Jefferson believed that smaller federal government would be able to protect individuals freedom. • A strong federal government could possibly take over powers that the Constitution gave to the states.

41. Strict or Loose Interpretation of the Constitution. • Jefferson feared that a national bank would give too much power to wealthy investors and the government. • He argued the law setting up the bank, it was unconstitutional, not permitted by the Constitution. • Nowhere in the Constitution did it say Congress could create a national bank. • Any power not given specifically to the federal government, belonged to the states.

42. Strict or Loose Interpretation of the Constitution continued. • Hamilton did not agree with Jefferson on his strict interpretation of the Constitution. • The Constitution gave Congress the power to make all laws “necessary and proper.” • He argued that the national bank was necessary for the government to collect taxes and pay its bills.

43. Britain or France • Hamilton believed that it was important to maintain close ties with Britain. • Britain was a major trading partner. • Jefferson disagreed with Hamilton and favored the French. • They were the first ally of the United States.

44. Development of Political Parties • Congress began to pass many of Hamilton’s programs and as a result Jefferson and Madison decided to organize supporters of their views. • Jefferson went to New York and met with Governor George Clinton and Aaron Burr who were both fierce critics of Hamilton. • Jefferson asked if they help him to defeat Hamilton’s program by convincing New Yorkers to vote for him.

45. Republicans and Democrats. • Jefferson’s supporters were known as Democratic Republicans (or republicans). • This group consisted of small farmer, artisans, and some wealthy planters. • Hamilton’s supporters were known as Federalists, because they favored a strong national government. • This group consisted of merchants and manufacturers in cities such as Boston and New York.

46. Newspapers Take Sides • As party rivalry grew, newspapers took sides. • John Fenno, publisher of “The Gazette of the United States”, backed Hamilton and the Federalists. • Philip Freneau, started a rival paper, the National Gazette, backed Jefferson and the republicans. • Newspapers greatly influenced public opinion. Articles mixed rumors and opinions with facts.

47. Election of 1796 • Political parties played a huge role in the election of George Washington’s successor. • Republicans backed Thomas Jefferson as President and Aaron Burr as Vice President. • Under the Constitution the person with the most electoral votes became President. The person with the next highest became Vice President.

48. Election of 1796 • John Adams, a Federalist, won office as President. Thomas Jefferson came in second and became Vice President. • Having a President and Vice President form apposing parties further increased political tensions. • In March 1797, John Adams became the second President of the United States.

49. Chapter 9, Section 4 The Second President

50. Conflict with France • Adams faced a crisis with France over Jay’s Treaty. • The French believed the treaty favored Britain. • As a result, the French began seizing American ships in the West Indies like the British had done. • To avoid war, Adams sent diplomats to France to discuss the rights of neutral nations.