1. Launching the New Ship of State 1789-1800
Chapter 10
Launching the New Ship of State

2. Growing Pains – Late 1700s American population doubling every 25 years
Washington for President
Unanimously elected as President by the Electoral College in 1789
Took oath of office on April 30, 1789
Established the cabinet
Washington's cabinet consisted of: 
Secretary of State Thomas Jefferson
Secretary of the Treasury Alexander Hamilton,
Secretary of War Henry Knox

3. Bill of Rights James Madison wrote Passed by Congress in 1791
Judiciary Act of 1789 created the federal court system, including the Supreme Court.
Created the office of attorney general
John Jay became the first Chief Justice.

4. America and Credit
Alexander Hamilton set out to fix the financial system of America.
Strengthen national credit - fed gov’t pay off its debts at face value plus interest
Pushed for fed gov’t would pay states' debts
States with large debts, like MA, accepted Hamilton's proposal
States with small debts, like VA, did not like it
Plan was passed by Congress in 1790
Deal placed District of Columbia on the Potomac River (next to Virginia)

5. Customs, Duties, and Excise Taxes
Believed  national debt was good for the country:
More creditors the gov’t owed money  more people there would be with a personal stake in the success of the government
Hamilton supported the first tariff law
Imposed taxes on certain imports
Brought revenue for gov’t and protected small American industries
st excise tax on a few domestic items
Whiskey

6. Bank of the United States
Hamilton proposed a Bank of the United States 
Print paper money & provide stable national currency
Place where Treasury could deposit monies
Jefferson strongly opposed Bank – unconstitutional
States had right to manage their own money
Most opposition came from the south
1st Bank of the United States created in 1791
Charter lasted for 20 years & located in PA

7. Whiskey Rebellion Pennsylvania, 1794
Led by distillers who strongly opposed the excise tax on whiskey
Rebellion ended when President Washington sent in federal troops. 
Showed gov’t will/can enforce law

8. Political Parties
Political parties had not existed in America when George Washington took office
Personal feud between Jefferson and Hamilton  political rivalry – mostly in Congress
Organized opposition grew  led to  two-party system 
Washington's first administration ended in 1793
Two political groups emerged: Jeffersonian Democratic- Republicans and Hamilton Federalists
Democratic-Republicans: supported states' rights and a smaller government
Federalists: supported a powerful federal gov’t

9. Washington's Neutrality Proclamation
Post – French Rev. – Britain and France began war
Democratic-Republicans wanted to support French in their war against the British
Federalists opposed
Washington - Neutrality Proclamation of 1793 
US will remain neutral from Britain-France war
Backed by Hamilton

10. Embroilments with Britain
British retained frontier posts on U.S. soil  defiance of peace treaty of 1783
London gov’t did not want to abandon fur trade in the Great Lakes region
British openly sold firearms to the Miami Confederacy
Alliance of 8 Indian nations
D-Rs felt US should fight Britain
Federalists opposed

11. Early Treatys Jay's Treaty and Washington's Farewell
President Washington sent John Jay to London to negotiate. 
Opposed by Democratic-Republicans
British promised to evacuate posts on U.S. soil and pay for damages for the seizures of American ships, but did not agree to anything about future seizures or about supplying arms to Indians
Called for U.S. to continue to pay the debts owed to British
Pinckney’s Treaty
Granted US free navigation of Mississippi River and the large disputed territory north of Florida

12. Washington Farewell Address
Left office in 1797
Warnings:
Urged against permanent alliances
Staying out of foreign affairs
Avoid political parties
Avoid regionalism

13. John Adams Becomes President
Adams beat Jefferson in 1797
Hamilton became leader of Federalist Party

14. Unofficial Fighting with France
France upset with Jay's Treaty  started capturing American merchant ships
President Adams sent John Marshall to France to negotiate in 
XYZ – Affair
US envoy secretly approached by 3 go-betweens
Demanded bribe of $250,000
Angered by terms, envoy returned to the US
America began preparations for war: 
Navy Department created
US Marine Corps re-established

15. Adams Puts Patriotism Above Party
France offered another meeting
Did not want enemy of US
Napoleon dictator of France
Signed Convention of 1800 with American rep John Jay
Annulled alliance between France and America that had existed since the Revolutionary War
France to return captured US ships
U.S. to pay damage claims of American shippers - caused by France

16. Alien & Sedition Act
Congress passed series of oppressive laws aimed at "aliens", or foreigners who came to America
Politically driven – Feds vs. D-Rs
Alien Laws 
To become citizens years raised from 5 to 14 years
Stated President could deport or jail foreigners in times of peace or hostilities
Sedition Act 
Anyone who impeded policies of the gov’t or falsely defamed its officials would be liable to a heavy fine and imprisonment

17. The Virginia (Madison) and Kentucky (Jefferson) Resolutions
Kentucky and Virginia passed resolutions
Stated that states had right to refuse laws created by the gov’t  THEORY OF NULLIFICATION
No other state followed the two states' resolutions