Launching the New Ship of State 1789-1800 Chapter 10 Launching the New Ship of State 1789-1800

Growing Pains – Late 1700s American population doubling every 25 years Washington for President Unanimously elected as President by the Electoral College in 1789 Took oath of office on April 30, 1789 Established the cabinet Washington's cabinet consisted of:  Secretary of State Thomas Jefferson Secretary of the Treasury Alexander Hamilton, Secretary of War Henry Knox

Bill of Rights James Madison wrote Passed by Congress in 1791 Judiciary Act of 1789 created the federal court system, including the Supreme Court. Created the office of attorney general John Jay became the first Chief Justice.

America and Credit Alexander Hamilton set out to fix the financial system of America. Strengthen national credit - fed gov’t pay off its debts at face value plus interest Pushed for fed gov’t would pay states' debts States with large debts, like MA, accepted Hamilton's proposal States with small debts, like VA, did not like it Plan was passed by Congress in 1790 Deal placed District of Columbia on the Potomac River (next to Virginia)

Customs, Duties, and Excise Taxes Believed  national debt was good for the country: More creditors the gov’t owed money  more people there would be with a personal stake in the success of the government Hamilton supported the first tariff law - 1789 Imposed taxes on certain imports Brought revenue for gov’t and protected small American industries 1791- 1st excise tax on a few domestic items Whiskey

Bank of the United States Hamilton proposed a Bank of the United States  Print paper money & provide stable national currency Place where Treasury could deposit monies Jefferson strongly opposed Bank – unconstitutional States had right to manage their own money Most opposition came from the south 1st Bank of the United States created in 1791 Charter lasted for 20 years & located in PA

Whiskey Rebellion Pennsylvania, 1794 Led by distillers who strongly opposed the excise tax on whiskey Rebellion ended when President Washington sent in federal troops.  Showed gov’t will/can enforce law

Political Parties Political parties had not existed in America when George Washington took office Personal feud between Jefferson and Hamilton  political rivalry – mostly in Congress Organized opposition grew  led to  two-party system  Washington's first administration ended in 1793 Two political groups emerged: Jeffersonian Democratic- Republicans and Hamilton Federalists Democratic-Republicans: supported states' rights and a smaller government Federalists: supported a powerful federal gov’t

Washington's Neutrality Proclamation Post – French Rev. – Britain and France began war Democratic-Republicans wanted to support French in their war against the British Federalists opposed Washington - Neutrality Proclamation of 1793  US will remain neutral from Britain-France war Backed by Hamilton

Embroilments with Britain British retained frontier posts on U.S. soil  defiance of peace treaty of 1783 London gov’t did not want to abandon fur trade in the Great Lakes region British openly sold firearms to the Miami Confederacy Alliance of 8 Indian nations D-Rs felt US should fight Britain Federalists opposed

Early Treatys Jay's Treaty and Washington's Farewell President Washington sent John Jay to London to negotiate.  Opposed by Democratic-Republicans British promised to evacuate posts on U.S. soil and pay for damages for the seizures of American ships, but did not agree to anything about future seizures or about supplying arms to Indians Called for U.S. to continue to pay the debts owed to British Pinckney’s Treaty - 1795 Granted US free navigation of Mississippi River and the large disputed territory north of Florida

Washington Farewell Address Left office in 1797 Warnings: Urged against permanent alliances Staying out of foreign affairs Avoid political parties Avoid regionalism

John Adams Becomes President Adams beat Jefferson in 1797 Hamilton became leader of Federalist Party

Unofficial Fighting with France France upset with Jay's Treaty  started capturing American merchant ships President Adams sent John Marshall to France to negotiate in  XYZ – Affair US envoy secretly approached by 3 go-betweens Demanded bribe of $250,000 Angered by terms, envoy returned to the US America began preparations for war:  Navy Department created US Marine Corps re-established

Adams Puts Patriotism Above Party France offered another meeting Did not want enemy of US Napoleon dictator of France Signed Convention of 1800 with American rep John Jay Annulled alliance between France and America that had existed since the Revolutionary War France to return captured US ships U.S. to pay damage claims of American shippers - caused by France

Alien & Sedition Act Congress passed series of oppressive laws aimed at "aliens", or foreigners who came to America Politically driven – Feds vs. D-Rs Alien Laws  To become citizens years raised from 5 to 14 years Stated President could deport or jail foreigners in times of peace or hostilities Sedition Act  Anyone who impeded policies of the gov’t or falsely defamed its officials would be liable to a heavy fine and imprisonment

The Virginia (Madison) and Kentucky (Jefferson) Resolutions Kentucky and Virginia passed resolutions Stated that states had right to refuse laws created by the gov’t  THEORY OF NULLIFICATION No other state followed the two states' resolutions