1. Launching the New Ship of State
Chapter 10

2. A. Growing Pains Troubles w/ new nation
Financial and political
Spanish, British, & Indian antagonism
Population boom
1790- Phil.- 42,000

3. Few cities with more than 5,000 residents
Avg white woman gave birth to 8 children
White pop doubled every 22 years
1790 – almost half of all white Americans under 16

4. B. Washington for President
Only pres. elected unanimously (1789)
Came out of retirement
Inaugurated April 30, 1789 in NYC
Created cabinet (exec. dept. heads)
Sec. of State- T. Jefferson
Sec. of Treasury- A. Hamilton
Sec. of War- H. Knox

5. C. The Bill of Rights 1st Congress upheld Federalist pledge
Individual rights & limits on government’s power (9th & 10th)
Another compromise
Strong central government
Protected citizens’ rights
1st Congress also passed Judiciary Act of 1789-
Organized Supreme Court, other federal courts, & created attorney general

6. D. Hamilton Revives Public Credit
Financial genius- wanted policies to favor wealthy
Fund national debt “at par” (faith)- $54 mil.
“Assume” state debts (unity)- $21.5 mil.
Angered states w/ small debt
District of Columbia & VA (Compromise of 1790)

7. Hamilton’s “Reports on the Public Credit”
$79 million debt from Federal and State gov’ts (from war)
France, Spain, Holland loaned money during war
US in 1794 had higher financial credit rating than all European nations

8. E. Customs Duties & Excise Taxes
Hamilton approved of debt
The more the fed. govt. owed to creditors, the more people would want the govt. to succeed
Tariffs would make revenue & protect American manufacturing
Excise taxes- Whiskey

9. F. Hamilton Battles Jefferson for a Bank
Hamilton wanted a bank to deposit, print money, & extend credit
Jefferson argued against (too much power)- strict interpretation
Hamilton used “necessary & proper clause”- loose interpretation
Bank chartered sectionalism

10. Whiskey Rebellion - 1794 whiskey excise tax
Rebellion a lot like Stamp Act riots
State militias sent men to crush rebellion
Proved power of fed. govt., but opposition said it was abuse

11. H. The Emergence of Political Parties
Hamilton’s plans est. economy, but encroached upon states’ rights
Movement began against Hamilton’s followers- Jefferson at head
Federalists vs. Democratic-Republicans
First organized political parties in US

12. I. The Impact of the French Revolution
Federalists- against, Dem.-Reps.- for
1793- Reign of Terror
Started another British/French War

13. J. Washington’s Proclamation of Neutrality
Franco-American Alliance of 1778
Proclamation began “isolationism”
Country too weak, babies
Citizen Edmund Genet- Charleston

14. K. Embroilments with Britain
British still manned forts in US, agitated Indians
Little Turtle’s Miami Confederacy
Battle of Fallen Timbers- 1794
Treaty of Greenville
On the sea
British seized US merchants
Impressed American sailors
Dem.-Reps. wanted war, Feds- continued neutrality

15. L. Jay’s Treaty & Washington’s Farewell Address
John Jay to London & Dem.-Rep. Reactions
Brit. promised to vacate forts
Repay seized property
No mention of future seizures
Forced US to pay off all old debts
Pinckney’s Treaty (1795)- free navigation of MS River & territory

16. L. Continued Washington decided to retire after 2 terms
Avoid permanent foreign alliances
Warned of dangers of partisanship

17. M. John Adams Becomes President
Hamilton?- unpopular w/ too many
VP John Adams vs. T. Jefferson (1796)
How did Federalists (and Hamilton) cause this?
Divisive election- Adams barely won
71-68

19. N. Unofficial Fighting with France
French anger at Jay’s Treaty
XYZ Affair (1797)- Adams sent diplomats to France
French envoys (XYZ)
Loan & $250,000 bribe just to talk
“millions for defense, but not 1 cent for tribute”

22. N. Continued Navy Department, Marine Corps, new army of 10,000
Unofficial fighting

23. O. Adams Puts Patriotism Above Party
Adams- fight or not?
New envoys to France
Convention of ended Franco-American alliance
Favored trading status
Nation not ready for war

24. P. The Federalist Witch Hunt
The 1798 Alien & Sedition Act- aimed at Dem.-Reps. & newly arrived immigrants

25. Alien- Raised residency requirement from 5 to 14 yrs.
Pres. could jail or deport any “undesirable alien” any time he wished during peace

26. Sedition- (1st Amend.)
Not allowed to speak out openly against govt. policies or officials

27. Q. The VA & KY Resolutions
Opposition to A & S Acts
Jefferson (VA), Madison (KY)
Used compact theory
States were final judges of national policy
Promoted idea of nullification

28. R. Feds. vs. Dem.-Reps.
Feds.- rule by wealthy, protect wealthy, pro-business & trade
Dem.-Reps.- rule by masses, weak govt.,
Jefferson promoted slavery to try and ensure land for all white people