1. A Nation Divided

2. New Nation Leaders  The new federal government was established in 1789 President George Washington Secretary of the Treasury Alexander Hamilton

3. Alexander Hamilton  Economic policies to strengthen the national government  Proposed (1) that the Federal Government pay the debt incurred as a result of the Revolutionary War  (2) & the national government assumed the states’ debt from the war  (3) the national bank issue bank notes and collect taxes  Also asked congress to pass a high protective tariff to encourage Americans to make goods at home, rather than buy them from overseas

4. Political Parties (Federalists)  The Federalists (Hamilton) were in favor of strong government to promote trade and industry

5. Political Parties (Democratic Republicans)  Led by Thomas Jefferson & James Madison  Opposed Hamilton’s proposals  In favor of a republic of small farmers & shopkeepers rather than manufacturing  SC elite supported the Federalists  SC backcountry supported the Republicans

6. Political Compromise  The Democratic Republicans agreed to assume state debt as long as the Federalists agreed to move the nation’s capital to the banks of the Potomac River in the south (Present Day Washington, D.C.)

7. National Bank  Democratic Republicans wanted the Constitution strictly interpreted (literally)  Federalists argued that the Congress had been granted the right to make all laws that were “necessary and proper” in order to execute its powers  They argued that a bank was necessary for them to tax and control commerce which was granted to them in the new Constitution  Advocated a loose bill for the creation of the First National Bank

8. Foreign Policy  1789 French Revolution  Democratic Republicans support for overthrowing their king  Federalists applaud the bloodshed  & sided with Britain when the French declare war on them, in hopes of securing more trade  George Washington issued a Proclamation of Neutrality & the US attempted to stay neutral throughout the Napoleonic Wars

9. X,Y,Z Affair  VIDEO VIDEO

10. X,Y,Z Affair Aftermath  Federalists prepared for war  Democratic Republicans vilified President Adams in their party newspapers  Insulted by this action, Federalists past the Alien & Sedition Acts designed to limit the growth of the Democratic Republican party & to silence the newspapers  Republican response-suppression of their freedom of press was unconstitutional

11. Neutrality, Trade, & More  Controversy over the Alien & Sedition Acts led to the election of Thomas Jefferson as President in 1800  America traded with both the French and British through the Napoleonic Wars  British practice of impressment (explain)  B/c of this grievance, in 1807, Congress passed the Embargo Act to stop trade with both the French & English  This devastated the shipping industry in New England

12. Neutrality, Trade, & More  Democratic Republicans living in the west accused the British of urging the Native Americans to attack them  Protest meetings were held across SC when British ships fired on an American ship  1810, John C. Calhoun was elected to Congress and urged America to declare war on Great Britain

13. War of 1812  US declared war on Great Britain & invaded Canada… the Canadians won  1814, British army attacked Washington DC, burning down the capital building and the President’s house (later the White House)  Treaty that ended the war resulted in no exchange of lands, it did cause a surge of nationalism

14. The Big Switch-a-Roo  Federalist Party died out b/c of their opposition to the war  Democratic Republicans began to support Federalist policies including the national bank and protective tariffs Burning of SC (8:49)