1. Chapter 8 Notes
The Federalist Era

2. The First President President Washington - 1789
1) John Adams – vice-president
2) Set up court system & added Bill of Rights
A. The First Congress
1) Set up 3 Depts. In Executive Branch
* State Dept. – Thomas Jefferson
* Dept. of Treasury – Alexander Hamilton
* Dept. of War – Henry Knox
B. Judiciary Act of 1789:
1) Established the Supreme Court
2) Federal Court system, but allowed each state to create laws as well
* Supreme Court could overrule state laws (final authority)

3. C. The Bill of Rights – 1st 10 Amendments (additions)
1) Limits the powers of government
2) Americans feared strong central govt.
3) Protects rights of individuals (speech, crimes, etc.)
The New Country’s Economy
A. Hamilton’s Plan
1) Needed to find a way to strengthen our nation & improve our financial reputation at the same time
2) Decided govt. should pay back all money owed to states
3) Felt this would give states a strong interest in the success of national govt.
B. Opposition to the Plan
1) Congress agreed to pay other nations but not states
Bill of Rights
Alexander
Hamilton

4. C. Compromise Gives a Capital
1) Hamilton got southern states to support his plan.
2) In return, National Capital was moved to the south
3) Between Virginia & Maryland
D. Fight Over National Bank
1) Would be owned by private investors & national govt.
2) Some believed would only benefit the wealthy
3) Washington approved national bank.
E. Tariffs & Taxes
1) Hamilton also had congress approve a variety of taxes
* whiskey,
* Imports, etc.
2) This created money to pay back national debt
3) Jefferson feared govt. might become too powerful

5. Early Challenges The Whiskey Rebellion & the West
A. The Whiskey Rebellion
1) Farmers protested tax with violence
2) Washington crushed the rebellion
3) Sent the message that govt. would use force to maintain social order
B. Struggle Over the West
1) Disputes with Native Americans for land west of the Appalachian Mtns. led to two wars
2) After the two wars, Native Am. surrendered most of their land in present day Ohio

6. A. Washington Proclaims Neutrality
Problems with Europe
A. Washington Proclaims Neutrality
1) Jay’s Treaty – British agreed to withdraw from American soil
B. Treaty with Spain
1) Pinckney’s Treaty – gave Americans free navigation of the Mississippi River & right to trade at New Orleans
C. Washington’s Farewell
1) Didn’t run for a 3rd term
2) Influenced foreign policy for more than 100 years
Jay’s Treaty –
Strengthened Relations
With Great Britain

7. The First Political Parties
Opposing Views
A. Political Parties Emerge
1) By mid-1790’s, two parties form
2) Federalists – supported strong federal govt.
* Admired the British govt.
* Favored banking & shipping interests
* Most support came from northeast
3) Republicans – wanted limited govt. power
* Supported French govt.
* Favored small farmers & urban workers
* Most support came from south
B. Views of the Constitution
1) Federalists – believed constitution gave the govt. “implied powers”
2) Republicans – believed govt. should have “strict interpretation” of the constitution

8. C. The People’s Role
1) Federalists believed in representative govt. (elected officials rule in name of the people)
2) Believed that only honest, educated men with property should lead our govt.
3) Republicans – Feared strong central govt.
4) Felt it would be more safe if “ordinary” people participated
D. The Election of 1796
1) First election with rival parties
2) Federalist- former V.P. John Adams
3) Republicans – Thomas Jefferson
4) Adams – 71 votes, Jefferson 68 votes
* Person with most votes – Pres.
* Second most votes – V.P.
*** Had a Fed. Pres. & a Rep. V.P

9. President John Adams
A. The XYZ Affair
1) France seized American ships
2) France sent three agents (referred to as X Y & Z) to ask for a bribe. - Refused by America and prepared for war
B. Alien & Sedition Acts
1) As public anger rose toward France, many questioned loyalty of immigrants.
2) Federalist implemented strict laws to protect national security.
* Alien Act – allowed Pres. to imprison “aliens” (immigrants)
* Sedition Act – crime to speak negatively of govt.

10. C. Domestic & Foreign Affairs
1) Virginia & Kentucky Resolutions – basically said Alien& Sedition Acts violated the constitution
a) Argued for States Rights
b) Still controversial
2) In 1800 – America signed peace treaty with France
3) This treaty hurt Adams chance for re-election opening the door for Jefferson & the Republicans
Jefferson – wrote
Virginia Resolution
Madison – wrote
Kentucky Resolution