Chapter Seven – pt. 1 The Federalists Implement the Constitution Devising the new Government: Washington’s Cabinet: State – Jefferson, Treasury – Hamilton, War – Knox Judiciary Act of 1789 – created the Supreme Court with 6 justices, and lower courts – in effect created the nation’s court system. Allowed the Supreme Court to rule on all federal laws

Financing America Hamilton’s Financial Program Part 1 Public Credit: Hamilton advocated buying back all loans plus interest Some speculators bought up bonds at cheap prices Hamilton proposed assuming all state debts also Only after the nation’s capital was going to be located in the D.C. (the South)did his plan pass through Congress

Financing America Hamilton’s Financial Program Part 2 Creating a National Bank: Bank of the US (BUS) –would provide loans to businesses and help to grow the national economy. It would also serve as a place where the Government would be able to deposit any revenues that were collected. Strict v. Loose interpretation – What it this?

Financing America Hamilton’s Financial Program Part 3 Raising Revenue to finance the government: Tariffs on imported goods Excise tax – tax on domestic goods Led to the Whiskey Rebellion

The Political Crisis of the 1790s The French Revolution Divides Americans: Proclamation Neutrality: Washington issued to remain neutral in conflict between Britain and France Ideological Politics: French Revolution – Jeffersonians saw it as an extension of the American Revolution Jay’s Treaty: Britain seized American ships, Jay hoped to protect ships Treaty did little to fix problems The Haitian Revolution: Toussaint L’Ouverture helped Haiti gain independence Many US slaveholders feared the impact of the revolution on their slaves

The Political Crisis of the 1790s Events that ended the century XYZ Affair – French diplomats demanded a bribe from 3 US ambassadors. War hysteria ensued. Calls for Pres. Adams to lead the U.S. to go to war with France. Instead, the Naturalization, Alien, and Sedition Acts were passed: Meant to silence opposition to Federalists or President Adams Naturalization – increased residency requirement from 5 – 14 years Alien Act – president could deport foreigners Sedition Act – illegal to criticize the government VA and KY Resolutions – urged states to nullify the Alien and Sedition Acts The “Revolution of 1800” Jefferson becomes President, peaceful transition of power between political parties