Period 3 & 7 We will examine how the debate over a national bank led to the formation of two distinct political parties. Go over homework Presidential Chart Chapter 10 notes National Bank Debate John Adams Clip

Presidential chart President Political Party Years Served How they became president Major Events Foreign and Domestic George Washington

Washington for president George Washington was unanimously elected as President by the Electoral College in 1789.  He took the oath of office on April 30, 1789.  He established the cabinet. Secretary of State Thomas Jefferson Secretary of the Treasury Alexander Hamilton Secretary of War Henry Knox

Hamilton and Public Debt In this plan, Hamilton persuaded Congress to fund the entire national debt at face value.  This would strengthen the national credit by creating public confidence in the Treasury department.  He then convinced Congress to take on the states' debts, which would create confidence in the government by the states.

Virginia made a deal with the government:  the government would assume state debts if the District of Columbia was placed on the Potomac River.

One of Hamilton's objectives was to keep a national debt, believing that the more creditors to whom the government owed money, the more people there would be with a personal stake in the success of the government. In 1791, Congress passes an excise tax on a few domestic items, notably whiskey

Who was right on the issue of the National Bank?

Hamilton prevailed and the 1st Bank of the United States was created in 1791.  Its charter lasted for 20 years and was located in Philadelphia.

The Whiskey Rebellion The Whiskey Rebellion in Pennsylvania in 1794 was lead by distillers who strongly opposed the 1791 excise tax on whiskey.  The rebellion was ended when President Washington sent in federal troops. 

Emergence of political parties Hamilton’s policies (national bank, suppression of Whiskey Rebellion, excise tax) seemed to encroach on states’ rights. As resentment grew, what was once a personal rivalry between Hamilton and Jefferson gradually evolved into two political parties.

Washington declares neutrality With war came the call by the Democratic-Republicans to enter on the side of France. Hamilton leaned toward siding with the Britain. Washington knew that war could mean disaster, since the nation in 1793 was militarily and economically weak

Period 3 & 7 We will examine the presidency of John Adams and the issues that led to a deeper divide between Federalists and Democratic Republicans. Go over homework Chapter 10 Notes Adams Clip Review of 1st Marking Term

In 1793, he issued the Neutrality Proclamation, proclaiming the U. S In 1793, he issued the Neutrality Proclamation, proclaiming the U.S.’s official neutrality and warning Americans to stay out of the war U.S. didn’t have to honor its alliance from the Treaty of 1778 because France didn’t call on it to do so

Problems with britain Britain still had many outposts on the American Frontier. After the Battle of Fallen Timbers the Native Americans cede land to US in Treaty of Greenville. British impress American sailors. DRs call for war with Britain. Washington refuses

Washington sends John Jay to England to negotiate The results of the Jay Treaty with England weren’t pretty: Britain would repay the lost money from recent merchant ship seizures called “impressment”, but it said nothing about future seizures or supplying Indians with arms. America would have to pay off its pre- Revolutionary War debts to Britain

After two terms Washington retires His Farewell Address warned (1) against political parties and (2) against building permanent alliances with foreign nations.

ADAMS BECOMES PRESIDENT Hamilton was logical choice to become next president, but his financial plan made him unpopular. John Adams, the ablest statesmen of his day, won, 71 to 68, against Thomas Jefferson, who became vice president

XYZ AFFAIR France was furious about the Jay’s Treaty, and began seizing defenseless American merchant ships. In the XYZ Affair, John Adams sent three envoys (including John Marshall) to France, where they were approached by three agents, “X,” “Y,” and “Z,” who demanded a load of 32 million florins and a $250,000 bribe just for talking to Talleyrand. Irate Americans called for war with France, but Adams remained neutral

ALIEN AND SEDITION ACTS With the Alien Laws, the residence requirements for aliens who wanted to become citizens from five to fourteen years The Sedition Act provided that anyone who impeded the policies of the government or falsely defamed its officials, would be liable to a heavy fine and imprisonment

VIRGINIA (MADISON) AND KENTUCKY (JEFFERSON) RESOLUTIONS They stressed the “COMPACT THEORY” which meant that the 13 states, in creating the federal government, had entered into a contract regarding its jurisdiction. The states made the government, the government made the law, so the states could choose to ignore or nullify the law.