1. ESTABLISHING A NEW GOVERNMENT
CH 7 NOTES
ESTABLISHING A NEW GOVERNMENT

2. A NEW GOVERNMENT
In 1789 each of the states that passed the Constitution sent electors to choose the first president
ELECTORAL COLLEGE: a group of electors that represent the people’s vote for president
Washington was elected unanimously, and John Adams became his Vice President

3. George Washinton
Washington was hoping to retire, but was convinced by his friends that he was the best fit for president
Washington was escorted from town to town
Crowds cheered and church bells rang
Congress spent a month debating on what to call the president – “Mr. President”
Washington appeared on national coins

4. Members of the new government had to create new policies that would determine the future of the country
Washington wrote: “The first of everything in our situation will serve to establish a precedent.”
PRECEDENT: an action or decision that later serves as an example
Congress created departments in the Executive branch
Each department was led by a cabinet member
CABINET MEMBERS: department heads who advise the president

5. Secretary of the Treasury Dealt with financial matters
CABINET MEMBERS
ALEXANDER HAMILTON:
Secretary of the Treasury
Dealt with financial matters
A single-minded federalist
Brilliant economic thinker
Extremely arrogant and ambitious
Referred to Washington’s presidency as “my administration”

6. THOMAS JEFFERSON:
Secretary of State
Handled foreign relations

7. HENRY KNOX:
Secretary of War
Provided for a national defense

8. JUDICIARY ACT OF 1789
Congress passed the Judiciary Act of 1789 to set up the federal court system
It established a Supreme Court with 6 judges
13 district courts and 3 courts of appeal
It defined their powers and their relationship to the state courts
It allowed certain cases to be appealed from state courts to federal courts
President nominated judges, then they had to be approved by the senate

9. HAMILTON’S ECONOMIC PLAN
As Secretary of Treasury, Hamilton had to deal with a huge debt
NATIONAL DEBT: The amount of money owed by the U.S.
He proposed that the government take on the entire debt of the federal government and the states
His plan was to pay off old debt by borrowing new money at a lower interest rate.

10. ECONOMIC PROBLEMS:
The debt fell into 3 categories
Foreign Countries: Owed $11.7 million (mostly to France)
U. S. Citizens: Owed $40.4 million (Bonds)
States: Owed $25 million (food, weapons, etc.)

11. HAMILTON’S 3-POINT PLAN
1. DEAL WITH THE DEBT: Pay foreign debt first. Gradually pay off bonds. Pay state debt.
2. GAIN REVENUE: Raising protective tariffs would increase prices of foreign products, causing Americans to buy more U.S. goods.
3. STABILIZE THE BANKING SYSTEM: Create a national bank and a national mint.

12. CITIZEN’S DEBT
Congress could not agree on the debt to American citizens
Bonds were issued during the war
BONDS: Certificates of debt that carry a promise to buy them back at a higher price
Speculators bought the bonds at a cheaper price
Hamilton wanted to pay off the bonds at the original price, making speculators rich
States like Maryland, Pennsylvania, North Carolina, and Virginia, which had already paid off their debts, saw no reason why they should be taxed by the federal government to pay off the debts of other states like Massachusetts and South Carolina.
Hamilton's critics claimed that his scheme would provide enormous profits to speculators who had bought bonds from Revolutionary War veterans for as little as 10 or 15 cents on the dollar.
For six months, a bitter debate raged in Congress, until James Madison and Thomas Jefferson engineered a compromise.
In exchange for southern votes, Hamilton promised to support locating the national capital on the banks of the Potomac River, the border between two southern states, Virginia and Maryland.

13. HAMILTON’S VIEWS
Believed in a strong central government.
Wanted a balance of power between the “mass of people” and wealthier citizens.
Wanted to promote manufacturing and business.
Wanted higher tariffs on foreign goods to protect American manufacturers.

14. JEFFERSON’S VIEWS
Wanted to protect the states power.
Believed in the right of “the people” to rule the country.
Supported agriculture and farmers.
Wanted lower tariffs to keep costs low for goods farmers bought.

15. OPPOSITION TO HAMILTON’S PLAN
Hamilton wanted to create a national bank, tariffs on imports, and national taxes
Washington signed the bill to create the bank for a term of 20 years
Tariffs on imports were created to encourage people to buy American goods

16. Jefferson and Madison believed Hamilton’s plan gave too much power to the federal government
They thought the bank was unconstitutional
Hamilton brought up the elastic clause – congress can make all laws which shall be necessary and proper to govern the nation

17. Hamilton believed in Loose Construction
Loose Construction: the government can take reasonable actions that the Constitution does not specifically forbid
Jefferson believed in Strict Construction
Strict Construction: the government should do only what the Constitution specifically says it can do

18. The south opposed the tariff because they had little industry
Congress approved a variety of taxes, including one on whiskey
Jefferson feared the strong economic powers would protect the wealthy

19. Jefferson and Madison urged others to oppose Hamilton’s plan
Hamilton would agree to a compromise
For acceptance of the plan, the new capitol of the United States would be permanently moved from New York to a site on the Potomac River
If left in New York or Philadelphia, political and economic power might be in the North

20. WHISKEY REBELLION
People in areas like western Pennsylvania were angry at the tax on American-made whiskey passed by Congress in 1791.
Whiskey was a cash crop to western Pennsylvania farmers.
Farmers were angry that cases about the law were tried in district courts, often far away from the people affected.
Fighting broke out in 1794.
Washington led an army against the rebels, but the Whiskey Rebellion ended without a battle.

21. DEALING WITH OTHER NATIONS
FRENCH REVOLUTION: ( )
Inspired by the American Revolution
The people overthrew the government and beheaded the king and queen

23. between 18,000 and 40,000 people were executed during the Reign of Terror

24. NEUTRALITY PROCLAMATION
A few years later France and Great Britain went to war
The French tried to involve the U.S.
NEUTRALITY PROCLAMATION: Stated that the U.S. would not take sides with any European countries at war

25. Privateers: private ships hired by a country to attack its enemies
French representative Edmond Genet asked American sailors to help France fight England with privateers.
Privateers: private ships hired by a country to attack its enemies
Washington told Genet this violated the Neutrality Proclamation
Jefferson supported France
Hamilton supported Great Britain
Jefferson didn’t feel he could do his job with Hamilton interfering, so he resigned

26. JAY’S TREATY
The British seized American ships carrying food to the West Indies
British were still helping Native Americans fight settlers
Washington sent John Jay to London to negotiate
Jay got the British to remove their troops from the Northwest Territory
However, on every other point, he agreed to British terms

27. PINCKNEY’S TREATY The Spanish disputed the U.S. and Florida border.
Spain closed the New Orleans port to U.S. trade in 1784.
This hurt the American economy.
Pinckney’s Treaty was signed in 1795.
The southern U.S. border was set at 31° N latitude.
The port of New Orleans reopened.

28. Jay’s Treaty did not cover:
Impressment of sailors
Repayment of slaves taken during the revolution
America did not have the power to ask for anything more. Washington felt it was the best they could do.

29. CONFLICT IN NORTHWEST TERRITORY
Americans continued to settle in the Northwest
Native Americans protested
British provided guns to Natives
Natives were defeated
A treaty gave U.S. claim to most Native lands in the Northwest Territory

30. WASHINGTON SAYS FAREWELL
IN THE FAREWELL ADDRESS:
Lists the benefits of uniting the states under one government
Emphasizes his warning against the dangers of political parties
Points out the need for education
Gives advice to the new nation about foreign policy
Warned against dangers of foreign ties.
Warned the nation to work out its political differences.
Warned against too much public debt.

31. POLITICAL PARTIES DEVELOP
Election of 1796
FEDERALIST PARTY:
founded by Hamilton
Wanted a strong federal government
Chose John Adams and Thomas Pinckney as candidates

32. DEMOCRATIC-REPUBLICAN PARTY:
Founded by Thomas Jefferson and James Madison
Wanted to limit the federal government’s power
Chose Thomas Jefferson and Aaron Burr as candidates

33. Party differences were based on where and how people lived
Businesspeople in the cities supported the Federalists
Farmers in isolated areas supported the Democratic-Republicans

34. ELECTION OF 1796
Adams defeated Jefferson.
Whoever had the second most votes became vice president, so Jefferson joined Adams in office.

35. XYZ AFFAIR An early goal of Adams was to improve relations with France
U.S. diplomats were sent to France.
The French foreign minister, Talleyrand, would not meet them.
Three French agents secretly demanded a bribe before they would discuss a treaty with the Americans.
The so-called XYZ Affair outraged Americans and led to a call for war with France.

36. The agents said a treaty would be discussed only in exchange for $250,000
The French government also wanted a loan of $12 Million
The diplomats refused
When Adams told congress of the talks, he replaced the agents names with the letters X, Y, Z
Federalists wanted war
Treaty was eventually signed

37. PREPARING FOR WAR AND PEACE
Adams asked Congress to expand the navy to more than 30 ships.
He also asked Congress to approve a peacetime army.
However, Adams did not want war with France.
Federalists did not like Adams’s decision not to go to war.
American and French ships began fighting in the Caribbean.
The United States and France eventually signed a treaty.

38. ALIEN AND SEDITION ACTS
Included four laws
Aimed at stopping the growth of Democratic-Republican party
Supposedly to protect the country from foreigners

39. NATURALIZATION ACT:
Increased time required to become a U.S. Citizen from 5 to 14 years
Most new immigrants were joining the Democratic-Republican party
Federalists wanted to make it harder for newcomers

40. ALIEN ACT:
Gave President power to deport any foreigner considered “dangerous to the peace and safety of the United States”
Federalists hoped to silence French refugees who opposed them

41. ALIEN ENEMIES ACT:
Allowed government to deport aliens if their home country were at war with the U.S.
Remains in effect today.

42. SEDITION ACT:
Made it a crime to speak or write critically about the government.
Its purpose was to silence criticism.

43. KENTUCKY AND VIRGINIA RESOLUTIONS
Jefferson and Madison passed these resolutions which said that the Alien and Sedition Acts were unconstitutional
They stated that these acts interfered with state governments
They wanted congress to repeal the acts, which did not happen
The acts expired within a few years