Launching the New Ship of State Chapter Ten

George Washington & his Cabinet George Washington John Adams—Vice President Thomas Jefferson—Sec. of State Alexander Hamilton—Sec. of the Treasury Henry Knox—Sec. of War Edmund Randolph—Attorney General

First Job of the New Government: To add a Bill of Rights to the Constitution  2/3 vote by Congress & ratified by ¾ of states  Used George Mason’s bill of rights in VA as a guide  Key: provided safeguards for some of America’s core principles Judiciary Act of 1789  Organized the Supreme Court with a Chief Justice (John Jay) and originally 5 associates  KEY COURT CASE: Marbury v. Madison, 1803

Hamilton’s Financial Plan: BE FAT (yes, an acronym) B—the creation of the Bank of the United States (BUS) E—Excise Tax on whiskey F—Funding at Par (key: increase national credit) A—Assumption of State Debts; Hamilton wanted the states to be more obligated to the federal government T—Tariffs (custom duties) passed to help new industries growing in the U.S.

Strict vs. Loose Constructionists Issue of the BUS:  Strict constitution: strict interpretation of the Constitution (Jefferson)  Loose constitution: broad interpretation of the Constitution (Hamilton)  Jefferson opposed BUS b/c felt it was not stipulated in the Constitution  Hamilton argued the Constitution allowed for a BUS b/c of “elastic clause” of Constitution Bank necessary to store tax revenue and regulate trade

Whiskey Rebellion (1794) Who: sw PA backcountry folks hit hard by excise tax What: challenged the new national gov; Washington sent a militia to stop rebellion Significance: Federal government showed it could ensure domestic tranquility Hamilton’s financial plan became a cornerstone of America’s financial system

Birth of Political Parties Constitution never mentioned party system 2 well-defined groups emerged:  Hamilton Federalists  Jeffersonian Republicans 2 political party system started over a clash b/t Hamilton and Jefferson

Hamilton’s Federalists Believed in gov by upper class Distrusted the common people Supported a strong central gov Gov to encourage business & not interfere with it Pro-British in foreign policy

Jeffersonian Republicans Advocated the rule of the people; gov FOR the people Biggest appeal was to the middle class & poor Democratic-Republicans believed the best gov was one that governed least National debt was a curse to future generations Jeffersonians were primarily agrarians Believed in freedom of speech to expose tyranny Pro-French in foreign policy