1. Chapter 8: A New Nation Section 1: Washington Takes Office

2. The United States in 1789: Around 4 million people
Mostly rural farmers
New York City (33,000 pop.) Philadelphia (25,000 pop.)
New York City, the nation’s first capital
U.S. one quarter the size of today

3. I. George Washington at Mt. Vernon
-April 14, 1789 Charles Thompson’s letter
-Travelling to NYC
II. Washington becomes President
-Precedents
1. Title: Mr. President
2. Greeting: Handshake
3. Formality of the government
4. Established the Cabinet
5. Two-term limit
6. Farewell Address

4. Setting up the Government:
A. The Cabinet
1. Department of State—handle all foreign matters
Secretary: Thomas Jefferson
2. Department of the Treasury—handle all financial matters
Secretary: Alexander Hamilton
3. Department of War—handle all military matters
Secretary: Henry Knox
4. Attorney General—handle all legal matter for the President
Edmond Randolph
5. Postmaster General—Federal control of U.S. postal service
Samuel Osgood—Replaced Benjamin Franklin (AoC)
6. Vice President of the United States
John Adams

5. B. The Judicial Branch
Congress passed the Judiciary Act of 1789 creating a three-level court system.
Supreme Court
6 Justices (1 Chief Justice—John Jay)
3 Circuit (Federal) Court
-Court of Appeals
13 District Courts

6. U.S. Debt:
The U.S. owed $77 million to the states, foreign nations, and individual citizens from the Revolutionary War. ($25 million was owed to the states)
The government earned approximately $4.4 million per year, but it cost $4.2 to operate the government, leaving a $200,000 surplus.

7. Hamilton’s Financial Plan:
Pay off the debt
a. Assume all federal and state debt (stimulate the economy, build credit)
b. Buy back government bonds
c. U.S. Capital moved south
2. Create a National Bank
a. “Strict” vs “Loose” Interpretation
3. Export tariff
a. Did not pass Congress
4. Whiskey Tax
a. Whiskey Rebellion

8. 8.2-8.3: Washington’s Domestic and Foreign Policies

9. Political Parties Emerge
Factions: Organized political groups

10. Conflict in the Northwest Territory
Native Americans were angry over the intrusion of the ancestral lands.
British had not evacuated their ORV forts and were arming Native Americans.
1790: Chief Little Turtle (Miami Nation) and Chief Blue Jacket (Shawnee) defeat American army under the command of General Arthur St. Clair—900 soldiers killed—worst defeat.
Washington sends General Anthony Wayne—defeats Native Americans at the Battle of Fallen Timbers.
1795 Treaty of Greenville forces Native Americans to give up most of the ORV.

11. Foreign Policies French Revolution-1789
France declared war on Great Britain (1793) --US and France signed Treaty of 1778
Washington declared neutrality
British begin impressment of American sailors
Hamilton agued support of Britain: 75% of U.S. exports/90% of U.S. imports
Jay’s Treaty (1795)
a. U.S. pay debt owed to British merchants
b. Britain agrees to pay for damaged U.S. ships
c. Withdraw British troops from ORV/stop arming Indians
d. Did not stop impressments
e. Britain refused to recognize U.S. right to trade with
France

12. Washington’s Farewell Address:
Washington- No 3rd term-precedent
Threats to future government
a. Public debt
b. Dangerous foreign alliances
c. Political divisions at home
3. Accomplishments of Washington:
a. Functioning federal government
b. Improving economy
c. Avoided war
d. British out of U.S./ORV safe for settlement

13. 8.4 Adam’s Presidency
1. Troubles with France
French were angered by American neutrality
Jay Treaty made it worse
France continued to attack American merchant ships
2. XYZ Affair
Adams sent a 3-person delegation to France to negotiate a peace
French agents met the delegation and demanded a bribe of $250,000 to talk to PM Talleyrand and a loan of several million dollars for the war
America refused and when it became public, Americans were outraged
Federalists wanted to declare war

14. 3. Adams Reaction
Adams asked Congress to increase the size of the Army and to rebuild the Navy (and create a separate Department of the Navy)
Between an undeclared naval war was fought
Adams sent a new delegation to France and met with Napoleon, who agreed to stop seizing ships
Adam’s party and Hamilton were disappointed in Adams
4. Federalists feared foreign influence and their possible aiding the Republicans
Alien Act: increased from 5 to 14 years the citizenship requirement . The President could deport or imprison any alien he deemed dangerous.
Sedition Act: a crime to write or say anything insulting or false about the government (targeted Republicans)

15. 5. State’s Rights
Republicans said the Acts were unconstitutional
At the time, it was not clearly defined that the Supreme Court could strike a law down as unconstitutional
Madison and Jefferson used the Virginia and Kentucky Legislatures to oppose the Acts
Declared that states had the right to declare Acts unconstitutional
This introduced Nullification- “deprive of legal force” laws of Congress
State’s Rights—could overrule Federal laws