Liberty vs. Order – The 1790's

Essential Questions What was Alexander Hamilton's program for dealing with national and state debt? How did foreign policy issues divide Americans? What issues led to the emergence of political parties? Ch. 6-1 P. 200

Key Terms tariff interest strict construction loose construction neutral Jay's Treaty Whiskey Rebellion political party

Hamilton's Plan for the Debt The states and the federal government owed, all together, $52 million in debts. Hamilton's plan was for the federal government to take over responsibility for all of this debt. This way, the people who were owed money by the states would, instead, look to the federal government for repayment.

Debt Plan - Problems First, some states (VA, GA, other southern states) had already paid their debts off, and didn't want to help pay off other states' debts. Second, Hamilton proposed paying the debts back at full value – their value had dropped significantly since the war. Third, some people thought, by raising taxes to make these payments, Hamilton was robbing the poor to make the rich richer.

Foreign Policy Issues The French Revolution split America. Anti-Federalists believed that the violent overthrow of the French monarchy was a necessary, good thing. Federalists were horrified at the level of violence in France, and felt that things were out of control.

Foreign Policy Issues Citizen Genet A French ambassador, Edmond Genet, was trying to enlist American citizens to join them in a war against England. Washington was insulted – Genet had gone over his head in not talking to him first.

Foreign Policy Issues Neutrality Americans were divided over taking the side of the French or the English in the war. In April of 1793, Washington proclaimed neutrality in the war. American businesses tried to do business with both sides.

Foreign Policy Issues Neutrality The British began to capture American ships sailing for French ports. The British also supported and armed Indians in the Northwest.

Foreign Policy Issues Jay's Treaty In 1794, Washington sent Chief Justice John Jay to England to negotiate a treaty. The British agreed to leave the northwest, but would continue to stop American ships and search them for British subjects.

Political Parties

Whiskey Rebellion In the west, farmers were producing whiskey and shipping it east for sale. The federal government passed a tax on whiskey. The farmers hated the tax and began an armed rebellion to fight against the tax. This time, however, the federal government sent an army of more than 12,000 to Pittsburg to put down the rebellion.