First U.S. Government After the Constitution First President – George Washington: –Elected Unanimously; Very popular –Served as an example – provided precedents for future presidential actions (2 terms, Mr. President, strong cabinet, executive privilege, limited role of VP, toleration of dissent) His cabinet included: –Thomas Jefferson, Secretary of State (writer of Declaration of Independence) –Alexander Hamilton, Secretary of the Treasury

More Problems with Debt Both the national government and the states were heavily in debt, in the form of bonds Hamilton – Let’s issue new federal bonds to pay both state & federal debts James Madison and others were opposed; he thought that speculators would benefit Reached a compromise – federal government would pay state and federal debt, and capital moved from New York to Washington, D.C.

Plans to Help the Economy Hamilton thought that in order to grow, the economy needs: –Investment –Protection for industry and merchants Investment – Create a Bank of the United States to provide “liquidity” for loans Protection– Imposed tariffs – taxes on foreign goods imported into the U.S. Helped manufacturers– north –Hurt those that bought products - south

Crisis: Another Rebellion; difficult result Whisky Rebellion –Congress imposed a tax on liquor distilled and sold in the U.S. Many corn farmers were opposed – didn’t want to pay In 1794, when tax officials in PA. tried to collect the tax, farmers rebelled

Whisky Rebellion (continued) This time, the federal government responded quickly and with force, (1000s of soldiers) Rebels returned to their farms Showed that after the Constitution the new government had the resources to respond to crises.

French Revolution Motivated, in part, by the U.S. “Liberty, Equality, Fraternity” Rebelled against their king, because: –Great divisions between rich/poor, nobles/others –Peasants and Middle Class paid most of the taxes, the nobles didn’t have to pay –Wanted protection for their rights Revolution became very violent

War between France and Great Britain Revolution created divisions in the U.S. Jefferson supported the French Hamilton, Adams opposed them & violence After revolution, war between France and G.B. Washington – Declaration of Neutrality Jay’s Treaty – between G.B. and U.S. –Didn’t resolve all the problems –Wasn’t popular

Growth of Political Parties Federalists –Wanted a strong federal government –Supported factories/northern industry/Hamilton –Peace with Great Britain, didn’t support France Jefferson Republicans/Democratic Republicans –More power for the states, less for federal govt. –No tariffs/import taxes, no federal bank

Washington’s Farewell Address Washington retires in 1796 Adams/Federalists are elected over Jefferson/Republicans Washington’s Farewell Address –Avoid permanent alliances with other countries –Avoid conflicts between political parties

John Adams Second president (Federalist) – elected in 1796 Not as popular as Washington Conflicts with France over interference with shipping Passed Alien and Sedition Acts Virginia and Kentucky Resolutions – States think Alien and Sedition Acts are unconstitutional Beginning of States Rights’ Movement Increasing Tension between Federalists and Democratic Republicans

Election of 1800 Jefferson/Burr vs. Adams/Pinckney (Democratic- (Federalists) Republicans) Jefferson/Burr won, but a mistake by one of the electors causes a tie between Jefferson and Burr. After 35 ballots, House of Representatives elects Jefferson (due to help from Hamilton) Hamilton and Burr continue feud – Burr will kill Hamilton in a duel 4 years later

Election of 1800 (continued) Was a fierce campaign, with both sides slandering the other Was the first change in power between political parties; the peaceful transition would be an example for future peaceful transitions