1. Chapter 7 DEMOCRACY IN DISTRESS The Violence of Party Politics, 1788–1800

2. Principle and Pragmatism: Establishing a New Government 1788 – George Washington unanimously elected president Congress established three executive departments: War, State, and Treasury Judiciary Act of 1789 established Supreme Court and thirteen District Courts

5. President George Washington

7. Mount Vernon

13. Alexander Hamilton --Secretary of the Treasury

14. Thomas Jefferson --Secretary of State

15. Conflicting Visions: Alexander Hamilton Washington’s aide-de-camp in Revolution Secretary of the Treasury Wanted stronger ties to Britain Believed strong central government preserves national independence Envisioned U.S. as an industrial power Feared anarchy more than tyranny Federalist Party

16. Hamilton on France, Order, and Liberty “France is a frightening portent of what could happen in America if the safeguards of order were stripped away by the love of liberty.”

17. Conflicting Visions: Thomas Jefferson Secretary of State Limited government preserves liberty Envisioned U.S. as an agrarian nation Trusted the common people Against large debt Founder of Republican Party

18. Hamilton’s Funding and Assumption Plans Funding: Congress redeems federal certificates of debt at face value to current holders – Criticized by Madison and others because most debt in hands of speculators Assumption: federal government purchases states’ debts – Opposed by states that had already paid their debts – Eventually passed in exchange for locating capital on Potomac (Washington, D.C.)

19. The Bank Controversy Republicans opposed national bank because it might “perpetuate a large monied interest” – Jefferson opposed it as unconstitutional – Argued it brought a corrupt British system to America Hamilton defended constitutionality through doctrine of “implied powers” – Necessary + Proper Clause

20. The Peril of Neutrality Franco-British War broke out, 1793 England violated American neutrality on high seas + still occupied forts along frontier – Jefferson: punish England–cut off trade – Hamilton: appease England because too strong

21. Edmond Genet French diplomat Edmond Genet challenged American neutrality in public Argued American public wanted war with Britain

22. Jay’s Treaty British agreed to vacate forts in America and allow Americans to trade in West Indies But Britain rejected neutrality of America – Continued to search American ships and impress Americans at sea

23. Treaty of San Lorenzo (Pinckney’s Treaty) Spanish opened the Mississippi to U.S. West Settled disputed border between Florida and U.S.

25. Whiskey Rebellion: Charges of Republican Conspiracy Washington blamed Republican clubs for encouraging unrest Jefferson saw it as excuse to raise army to intimidate opposition

26. The Election of 1796

27. President John Adams

28. The Adams Presidency Bitterly divisive election in 1796 Adams forced to accept people not supportive in cabinet – Republican Jefferson is vice-president – Federalist Department heads more loyal to Hamilton (High Federalists) than Adams

29. The XYZ Affair and Domestic Politics Quasi-war: French seized U.S. ships Diplomatic mission failed when three French officials (X, Y, and Z) demanded bribe Provoked anti-French outrage in U.S.

30. Crushing Political Dissent Federalists began building up the army – Stated purpose: repel French invasion – Actual intention: stifle internal opposition

31. The Alien and Sedition Acts Alien and Sedition Acts – Purpose to silence Republicans – First civil liberties crisis Alien Acts gave the president power to expel any foreigner Sedition Act criminalized criticism of the government

33. Kentucky and Virginia Resolutions Virginia and Kentucky Resolutions said states can determine constitutionality of federal law – Jefferson’s Kentucky Resolutions—states may nullify unconstitutional federal law

34. Adams’s Finest Hour 1799—Adams broke with Hamilton Sent new team to negotiate with France Reached agreement with France to avert war – Created climate of trust between France and U.S.

35. The Peaceful Revolution: The Election of 1800 Hamilton’s High Federalists led campaign to replace Adams with Pinckney Republicans Jefferson and Burr tied in Electoral College – Lame duck Federalist House of Representatives had to break the tie

36. The Election of 1800