Washington and Adams Launching a New Nation

What was the country like in 1790? Most people lived east of the Appalachian mountains Most people were farmers! About 3 million people in the country

George Washington 3 thinks he feels needs to be done immediately: ▫Foster national unity ▫Get a smoothly functioning government up and running ▫National and International Respect ▫Look at what you watched – what did he get done?

Hamilton’s Financial Plan Wants to get the country out of debt. Remember that we are $80 million in debt in key points to his plan: ▫Manage the debt ▫Set up a National Bank

The Plan Payment of foreign debts ▫Reaction is positive ▫YES Federal Government will ASSUME all state debts ▫Virginia and Maryland do not have any debt – feel like they are being shortchanged. Agreement made where the US Capital is moved between their states ▫YES Funding ▫Sell government bonds. ▫Reaction is so-so. ▫YES Taxes ▫Excise = tax on luxuries (today this would be cars, alcohol and cigarettes) ▫Back then it was Whiskey. Leads to the Whiskey Rebellion in PennsylvaniaWhiskey.Whiskey Rebellion in Pennsylvania ▫Protective Tariff  8% in 1790

Bank of the US (BUS) The Bank will hold all the incoming money Like any company, investors are needed – so this means 4/5 of the investors of a Government institution will be supported by private RICH citizens. Some people (Jefferson) have a big problem with the BUS – especially the fact that it is not mentioned in the Constitution Hamilton counters with the Elastic Clause

Political Parties FederalistsDemocratic-Republicans Hamilton, Adams LOVE the BUS Wealthy Northerners For strong central government Educated and rich should control the country Support the British Want a high tariff and a strong military Should interpret the Constitution “loosely” Jefferson, Madison Hate the BUS Common man States should have more power Common Man Admire the French Low tariff and small army Should interpret the Constitution “strictly”

Issues George has to Deal with Proclamation of Neutrality (1793): US needs to say out of foreign wars if at all possible. Why? Citizen Genet Affair (1794): ▫Does not present himself to GW ▫Tries to get islands in the Caribbean ▫Tries to get the US to attack Canada

Issues George has to deal with British ▫Seizing US ships ▫Impressing sailors ▫Refusing to leave forts in the NW and encouraging Native Americans to attack Americans Jay’s Treaty ▫Told the British to back off or the US would not trade with them. We are just bluffing and that bastard Hamilton tells the British we are bluffing  British agree to leave forts but continue to have contact with the Native Americans  Will pay for damages but will continue to seize ships Pinckney’s Treaty ▫With Spain ▫US allowed to have access to the Mississippi and use New Orleans as a port to store goods

GW leaves after 2 terms Sets the precedent to only serve 2 terms as President (last until 1940!) Gives a Farewell Address ▫Tells the US to not get involved in any alliances or treaties that could hurt US independence.

Election of 1796 Federalists: ▫John Adams ▫Thomas Pinckney Democratic Republicans: ▫Thomas Jefferson ▫Aaron Burr

Issues under Adams Alien and Sedition Acts Virginia and Kentucky Resolutions Intention was to stop the number of immigrants joining the D-R Party and to Silence the opposing newspapers ▫Aliens must live in the US 14 years before applying for citizenship ▫Alien may be deported for any reasons ▫Newspaper may not print anything against the government of President Written in response to the Alien and Sedition Acts Written by Madison and Jefferson State the “compact theory”- states agreed to come together so should be able to leave Idea of NULLIFICATION – state should be able to declare a federal law null and void if it is harmful to their state

Election of 1800 Federalists: ▫John Adams ▫Charles Pinckney Democratic Republicans: ▫Thomas Jefferson ▫Aaron Burr