Ch 10.

Growing pains There is growing public debt in the new republic. Population is doubling every 25 years. 4 new states added after 1789. ( VT, KY, TN. OH)

Washington Unanimously elected by the Electoral College in 1789. Served as president in NYC Created the “Cabinet”

Federal Appointments Secretary of State: Thomas Jefferson Secretary of War: Henry Knox Secretary of the Treasury: Alexander Hamilton Attorney General: Edmund Randolph

Bill of Rights Created to help some states approve the Constitution. First 10 amendments to the Constitution. 1791 is when all the states approved them. Written by James Madison

Alexander Hamilton First Secretary of Treasury. Revises the issues of the economy. Funded the National Debt at Par - Pay back everything at full value, plus interest.

Treasury under Hamilton The American people lacked confidence in their government to pay back war bonds. 85% reduction in value. Assuming State debt to a national level;

Hamilton’s view on debt. It was a National Unifier. Had a plan to collect the money owed. Raise revenue from Taxes. (Tariffs, Excise Taxes)

Tariffs Tax on anything that is imported. First tariff passed in 1789. Depends on aggressive foreign trading.

Excise Tax More revenue-raising taxes passed in 1791 Taxes on domestic products. Biggest thing taxed was Whisky

Bank of the United States (B.U.S.) Hamilton created the BUS. Privately owned bank where Federal money can be deposited. Provides a place to stabilize currency

Jefferson VS Hamilton Thomas Jefferson- doesn’t think the government has the right to create the BUS Thomas Jefferson believes that the federal government only has powers mentioned in the Constitution.

Hamilton wins Hamilton argues that Congress has the right to pass laws that are necessary and proper to carry out powers. Loose/Strict Construction. 1791- BUS is created

Whisky Rebellion 1794- Farmers in Western PA are upset over the high amount of taxes on whisky Rebellion began in the State. Washington stopped the rebellion and pardoned the culprits

Political Parties Parties before this time period were not long lasting. Opposition to the government wasn’t considered loyal The anti-federalists become the new Democratic-Republicans.

International Alliances France is still our closest alliance Washington wanted to avoid any European conflicts Neutrality Proclamation- 1793

Battle of the Fallen Timbers 1794- Miami Confederation routed by the US Army Treaty of Greenville- 1795, Miami Tribes gave up much of their land The Indians recieved some rights.

Jay’s Treaty 1794- Jay sent to London to negotiate with Britain. Jay secured repayment for British seizure and Britain agreed to abandon posts in N. America. We had to repay debt we still owed. No Promise to stop seizures.

Pinckney’s Treaty 1795- Treaty with Spain Free Navigation of the Mississippi River, right of deposit in New Orleans.

Western Movement After the conflict at Fallen Timbers and Pinckney's Treaty, the US has access to new territories along its borders. Congress will divide up new lands( MS, AL) and sell the land for government revune.

Washington’s Farewell 1796- Washington leaves office. Advised against long-term alliances with other nations, no excessive debt and political parties.

John Adams Elected president in 1796. 71-68 in the Electoral College Vice- President: Thomas Jefferson Adams- Federalists Jefferson- Democratic Republican

XYZ Affair- 1797 USA sent men to negotiate peace with France. French bribe the USA diplomats to speak with the French Prime Minister, Charles Talleyrand. Led to an Unofficial War with France. Primarily a sea war. 1798-1800

Convention of 1800 Ended the French- U.S.A. Alliance America agreed to repay damages to France. Last peacetime military alliance for a century and a half

Alien and Sedition Laws Alien Laws- President could deport or imprison aliens without cause Sedition Laws- Illegal to print or say anything that was false about the government.

Virginia Kentucky Resolutions Written by Thomas Jefferson and James Madison. Adopted by Kentucky and Virginia in 1798-1799 States have entered into a compact with the federal government. Individual states can nullify federal laws

Federalist Views Rule By best people Powerful central government Tariffs Central Bank

Democratic-Republican Rule by masses State government has power Free Trade Banks left to the states