Detail of George Washington arriving by boat in New York on April 23, 1789, for presidential inauguration. NEXT The leaders of the new nation face the challenges of establishing a strong economy and a stable, democratic government. Launching a New Republic, 1789–1800

NEXT SECTION 2 SECTION 1 Washington’s Presidency SECTION 3 The Federalists in Charge Challenges to the New Government Launching a New Republic, 1789–1800

NEXT Section 1 Washington’s Presidency The president and the Congress begin to set up the new government.

Washington Takes Office NEXT George Washington inaugurated, sworn in, as 1st U.S. President (1789) 1 SECTION John Adams, first vice-president Washington’s Presidency Washington knows every action as president will set a precedent Congress agrees to call Washington “Mr. President” Image

Setting Up the Courts NEXT 1 SECTION Congress passes the Federal Judiciary Act (1789) Act also provides for lower federal courts The number of judges later grows to nine Gives Supreme Court six members: -1 chief justice or judge -5 associate judges John Jay is named chief justice

Washington’s Cabinet NEXT 1 SECTION Congress creates 3 departments to help the president: -war department -state department -treasury department Heads of departments are president’s cabinet Continued...

NEXT 1 SECTION Attorney general, Edmund Randolph, gives legal advice Secretary of war, Henry Knox, oversees the nation’s defense Secretary of the treasury, Alexander Hamilton, manages U.S. finances Continued Washington’s Cabinet Secretary of state, Thomas Jefferson, oversees diplomatic relations Image

Economic Problems NEXT 1 SECTION By 1789, U.S. has huge national debt—$52 million Alexander Hamilton’s financial plan shows his belief in: -a strong central government -government encouraging business, industry -pay debt to nation’s wealthy, gain their support for government U.S. must pay debt to gain respect of other countries

Hamilton’s Financial Plan NEXT 1 SECTION Alexander Hamilton proposes 3-step financial plan to Congress (1790) -pay off all war debts -raise government revenues -create a national bank To gain southern support, U.S. agrees to place capital in South Many southern states have paid war debts, northern states have not Image Continued...

NEXT 1 SECTION Hamilton supports tariffs (tax on imported goods) because: -raises money for U.S. government -encourages growth of U.S. industry -encourages people to buy American goods Hamilton calls for National bank, safe for government investments Bank would make loans to businesses, issue bank notes Continued Hamilton’s Financial Plan

Interpreting the Constitution NEXT 1 SECTION Thomas Jefferson, James Madison against a national bank Alexander Hamilton has more flexible interpretation of Constitution Claim that the Constitution does not allow for a national bank Claims Congress has power to set up bank George Washington approves a national bank (1791)

NEXT Washington establishes central authority at home and avoids war with European powers. Section 2 Challenges to the New Government

Securing the Northwest Territory NEXT 2 SECTION Trans-Appalachian West between the Appalachians, Mississippi River Spain threatens to close New Orleans’ port to American trade Spain, Britain, U.S., Native Americans all claim parts of land Challenges to the New Government Stirs up trouble between white settlers, Native Americans Supports Native Americans who clash with American settlers Britain violates Treaty of Paris, holds forts in Northwest Territory Map

Battle of Fallen Timbers NEXT 2 SECTION President Washington sends troops into Northwest Territory Defeat Native Americans at Battle of Fallen Timbers (1794) Washington sends more troops led by Anthony Wayne Native American tribes defeat U.S. troops twice 12 tribes sign Treaty of Greenville with United States (1795) -surrender much of present-day Ohio, Indiana to the U.S. Image

The Whiskey Rebellion NEXT 2 SECTION Farmers resist U.S. tax on whiskey More economical for farmers to sell rye whiskey than bushels of rye Use whiskey as money to get supplies In Pennsylvania, farmers stage Whiskey Rebellion against tax (1794) Troops subdue rebellion, show government has power to enforce laws Image

The French Revolution NEXT 2 SECTION French Revolution—French people rebel against their government Some Americans want U.S. to support revolution and the cause of liberty France declares war on Britain, Holland, Spain U.S. remains neutral, not siding with one country or other (1793) Others do not want war with Britain Image

NEXT 2 SECTION British seize cargoes of American ships from the French West Indies British pay for damages to U.S. vessels, leave Ohio Valley by 1796 U.S. Chief Justice John Jay convinces British to sign Jay’s Treaty (1794) Seizures make it difficult for the U.S. to remain neutral Jay fails to open profitable British West Indies trade to Americans Remaining Neutral Continued...

NEXT 2 SECTION Thomas Pinckney convinces Spain to sign Pinckney’s Treaty (1795): -allows Americans to travel freely on the Mississippi River -store goods at New Orleans without custom duties Spain accepts 31st parallel as boundary between Florida, U.S. Continued Remaining Neutral

NEXT Section 3 The Federalists in Charge The split between Hamilton and Jefferson leads to the growth of political parties.

Washington Retires NEXT During second term, George Washington receives some criticism 3 SECTION Washington warns that political divisions can weaken the nation Relations with governments of other countries—foreign policy Washington urges U.S. not to form permanent alliances with nations The Federalists in Charge

Growth of Political Parties NEXT 3 SECTION Alexander Hamilton’s views: -opposes French Revolution -for strong central government -promotes trade, manufacturing, cities Thomas Jefferson’s and James Madison’s views: -for French Revolution -strong government could lead to tyranny -promote farming Differences lead to the nation’s first political parties Continued...

NEXT 3 SECTION Political party: group that promotes its ideas, influences government Alexander Hamilton and friends start the Federalist Party Thomas Jefferson, James Madison start Democratic-Republican Party Continued Growth of Political Parties Chart

John Adams Takes Office NEXT 3 SECTION John Adams is presidential candidate for Federalists Adams wins election; runner-up, Jefferson, is vice-president (1797) Thomas Jefferson is candidate for Democratic- Republicans

Problems with France NEXT 3 SECTION In 1797, Britain and France still at war Federalists want war with France French seize U.S. ships, prevent trade with British President Adams wants to restore calm Image Continued...

NEXT 3 SECTION President Adams sends diplomats to France, they are ignored Americans are outraged by XYZ Affair 3 French agents (known as X,Y, Z) ask for loan, bribe from diplomats Continued Problems with France Congress cancels treaties, allows U.S. to seize French ships Image

The Alien and Sedition Acts NEXT 3 SECTION Democratic-Republicans, Federalists criticize each other Many immigrants are Democratic-Republicans To stop criticism of Federalists, President Adams targets immigrants Federalist Congress passes the Alien and Sedition Acts (1798): -power to arrest disloyal aliens during wartime -outlaws saying, writing anything false, harmful against government Image Continued...

NEXT 3 SECTION Alien and Sedition Acts clamp down on freedom of speech State can refuse to pass a federal law if it sees law as unconstitutional Democratic-Republicans use states’ rights to fight acts Continued The Alien and Sedition Acts Kentucky, Virginia find Alien and Sedition Acts unconstitutional Repeal acts or let them expire between 1800 and 1802 Democratic-Republicans gain control of Congress

Peace with France NEXT 3 SECTION U.S. and France make peace, sign Convention of 1800: -stops naval attacks between France and U.S. -allows U.S., French ships to sail the ocean in peace

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