1. Launching the New Nation (1787-1800)
Unit 4: Section 10
How did the United States build a government, expand its territory, and conduct foreign policy in its early years?

2. Formation of the US Government
1781 – Articles of Confederation
First federal constitution
1787 – Constitutional Convention in Philadelphia
Draft proposed amendments to the Articles
1789 – Congress approves Bill of Rights
1791 – Bill of Rights ratified by states

3. Early Problems: 1789 $52 million debt – Revolutionary War
No navy, small army
Lack of respect/interaction
Spanish close trade
British kept forts

4. Building the Federal Government
Electing a President
1789: George Washington/John Adams
Precedents: sets examples for every president after him
Created a cabinet
Est. the President as the head of foreign affairs
Est. the President’s influence over Congress
Serving only two terms

5. Tasks: Create Cabinet
Cabinet: federal leaders who head the major dept. of the executive branch & advise the President
Cabinet
People the president
asks for advice
Dept. of State
Thomas
Jefferson
Dept. of War
General Henry
Knox
Office of Attorney
General
Edmund
Randolph
Dept. of Treasury
Alexander
Hamilton

6. Tasks: Judicial Branch
Judiciary Act of 1789
System of courts
Created
13 district courts
3 courts of appeals
Supreme Court
John Jay – 1st Supreme Court Justice

7. Tasks: Financing the Government
Nation’s Debt
In debt from the Revolution & the inability of the AOC to tax
Hamilton’s Plans Stir Debate
Federal govn’t should pay all debts, including state debts (Federalist)
show federal govn’t authority
Opposition (Antifederalist)
Threat to states rights
Two clear, separate beliefs

8. Hamilton’s Economic Plan Tariffs Excise Bank of the US
State Debt Assumption
Protective
Bank of the US
Funding

9. Hamiltion’s Economic Plan
Hamilton’s Plan
Protective Tariff: tax on imports to protect American goods
Excise taxes: tax on consumer goods to raise revenue for the federal government & protect American manufacturer’s from foreign competition

10. Protective Tariff Tax on imports to protect American goods
Goal: to get you to buy American goods.
Promote manufacturing
Who does this favor? (north or south)

11. Excise Tax….Led to Whiskey Rebellion
Who: Farmers in Western Pennsylvania
When: 1794
What: Revolt in which farmers intimidated tax collectors
Why: Oppose the excise tax on whiskey (the farmer’s main source of income)
Impact: President Washington sent in federal troops to put down the rebellion - verifying the strength of the federal government

12. Hamilton’s Economic Plan
State Debt Assumption
Opposition
Southern states oppose
Already paid off war debts
Shift wealth to merchants (north)
Tax farmers

13. Hamilton’s Economic Plan
National Bank: this was to be the central bank (issue currency, and control the economy)
It would allow the Federal government to print money
Create a place to put tax revenue
Believed it would benefit the nation by encouraging trade between states
Establish credibility – easier to borrow money

14. Hamiltion’s Economic Plan
National Bank cont’d
Problem
Creation of bank not listed in Constitution
Not part of enumerated powers (fed. Gov’t powers)
Congress passed anyways
Hamilton said b/c of the necessary and proper clause Congress had implied powers (powers not listed in constitution)
1791 Bank of USA was established for 20 years!!!

15. Hamilton’s Plan - Approved
1791- Congress Approves Plan
New taxes, creation of national bank
Compromise:
Hamilton promises capital moves south* 10 years later
Washington, District of Columbia

16. Poltical Division Begins
Interpreting the Constitution
Loose Interpretation vs. Strict Interpretation

17. Loose Interpretation Loose - strong national govn’t. Hamilton
“Implied powers”
Increase national government powers
Supported by Federalists
Hamilton

18. Strict Interpretation
Strict - limited national govn’t.
Strict adherence to constitution
States rights
Less power for national government
Thomas Jefferson

19. The Rise of Political Parties
First parties formed from groups divided over the issue of how much power the federal government should have (Whiskey Rebellion highlighted this division)
Two-Party System Emerges
Federalists
Democratic Republicans

20. Hamiltonian Federalists
Federalist Party
Led by Alexander Hamilton & John Adams
Believed the wealthy & educated should rule
Did not trust the masses
Loose Interpretation:
Wanted a strong central government & nation
Implied powers
Supported cities, commerce (business) & finance (banking)
More popular in North

21. Jeffersonian Democrat-Republicans
Democratic-Republican Party
Led by Thomas Jefferson & James Madison
Protected states rights
Believed power belonged to common people
Wanted a nation of small independent farmers
More popular in the South
Strict Interpretation
Supported strong state govn’t & weak central govn’t

22. Federalists >Strong central government the Constitution
>Hamilton & Adams
>Strong central
government
>Loose interpretation of
the Constitution
>Pro British
Nations strength comes
From industry
&
Manufacturing

23. Democratic-Republicans
>Jefferson & Madison
>Weak central
government
>Strict interpretation of
the Constitution
>Pro French
Nations strength comes
from the FARMERS!!!