1. FORMING A NEW REPUBLIC Chapter 9

2. 1 ST PRESIDENTIAL ELECTION  Held in 1789  Washington won, becoming our 1 st president  Was inaugurated, or sworn in as president in NYC  Runner up was John Adams and he became VP

3. FEDERAL JUDICIARY ACT OF 1789  Created the federal court system  Established 6 justices for Supreme Court (now its 9)  John Jay appointed by Washington as 1 st Chief Justice of Supreme Court

4. CABINET- ADVISE THE PRESIDENT  Secretary of War (now called Secretary of Defense): Henry Knox (in charge of military defense)  Secretary of State: Thomas Jefferson (dealt with other countries)  Secretary of Treasury: Alexander Hamilton (manages gov’t $)

5. DEBT PROBLEM  State and national gov’t borrowed money to win the revolution (from other countries and private citizens) and had to pay that money back  The gov’t also promised to pay soldiers with back pay plus interest for fighting in the revolution  1789 debt= $52 million

6. HAMILTON’S SOLUTIONS TO FINANCIAL PROBLEMS  3 step plan: Pay off all war debts, raise gov’t revenue, and create a national bank  Also wanted the national gov’t to pay off the war debts of the states

7. CONTROVERSY OVER DEBT REPAYMENT  Southern states objected to the federal gov’t paying off states war debts bc many southern states were almost paid off  In exchange for their support, the gov’t promised to move the nations capital from NYC to the south (becomes Washington, DC)

8. NYC 1780NYC 2013

9. RAISING $ FOR USA  Hamilton favored tariffs, or taxes on foreign made goods, than taxes on citizens  Tariffs raise $ for the gov’t and also promote growth of American businesses  Hamilton wanted to create a national bank that would loan money, create a currency ($), and be a safe place to keep $

10. FIGHT OVER THE NATIONAL BANK  Jefferson and Madison opposed the national bank  Thought it would create a shady relationship between gov’t and the wealthy  Thought it couldn’t/shouldn’t be done b/c the Constitution didn’t create a national bank

11. NATIONAL BANK CREATED  1791, the National Bank is formed  Gov’t used the “elastic clause” of Article 1 of the Constitution to justify its creation  The elastic clause says that the gov’t can do what it feels is necessary and proper to carry out its powers

12. POLITICAL PARTIES BEGIN  The fight over the national bank started the move towards political parties  One party will support strict and literal interpretation of the Constitution and favor power to the states and the other will support a looser interpretation which gives the national gov’t a lot of power

13. BATTLE OF FALLEN TIMBERS (1794) US army fought Native Americans of the Northwest Territory US won the battle and force the Native Americans to give up much of their territory within the Northwest Territory

15. WHISKEY REBELLION (1794)  Group of western PA farmers revolted against new tax on whiskey  Farmers attacked a local tax collector and threatened to attack Pittsburgh  Washington sent 13,000 soldiers to stop the rebellion and rebels gave up quickly without a fight  Easy victory by the gov’t proved that the federal gov’t could enforce its laws

17. WAR IN EUROPE (1793)  Revolution in France (1789) and France and England go to war  Washington decides that USA will remain neutral  Jefferson thought we should help the French  Hamilton thought we should help the British in the war with France b/c we needed the British as trade partners.

18. JEFFERSON QUITS (1793)  Jefferson was tired of Washington always supporting Hamilton  Jefferson also didn’t like the criticism he faced for saying we should support France

19. JAY’S TREATY (1796)  John Jay negotiated treaty with British  British left Ohio Valley area and paid $ to USA for ships they had seized during the French and British War

20. PINCKNEY’S TREATY (1795)  Treaty with Spain  Gave Americans free travel on Mississippi River and use port of New Orleans and set southern border of US with Florida (at time Spanish controlled)

21. BENJAMIN BANNEKER  Helped plan the layout of the new nation’s capital (Washington DC)  Was a self educated African American

22. PRESIDENT WASHINGTON LEAVES  Washington decided that 8 years was enough as president and wanted to retire  In his farewell address he warned about political divides and parties that would create  He also warned future presidents to keep the country neutral

23. POLITICAL PARTIES FORM  Democratic Republican party-founded by Jefferson and Madison  Federalist Party-founded by Alexander Hamilton  Were both created out of the differences on how the gov’t should work and where powers of gov’t should be (states or national gov’t)

24. 1796 PRESIDENTIAL ELECTION  Democratic Republicans- Thomas Jefferson  Federalists- John Adams  Adams wins and Jefferson becomes VP  Result is that two men of different beliefs in how gov’t works, now have to work together as president and VP (TROUBLE!!!!)

25. XYZ AFFAIR  France had been seizing US ships and cargo  Adams sent representatives to fix problems with the French  French officials tried to get a bribe and a loan from Americans in exchange for stopping to seize American ships (US said no)

26.  As result of attempted bribe, Congress disbanded all treaties with France and started seizing French ships and cargo  Also a result, Congress voted to expand and fund the military more

27. ALIEN AND SEDITION ACTS  Targeted aliens, or people from other countries living in US but not yet citizens  Gave gov’t broad arrest powers

28.  Extended the wait time for becoming a citizen  Banned sedition, or stirring up rebellion (used this part of law to shut down newspapers with opposing views from the Federalist party controlled gov’t)

29. VIRGINIA AND KENTUCKY RESOLUTIONS  Insisted on nullification, or right of a state to cancel any act of Congress it felt was unconstitutional  Were a way for the Democratic Republicans to challenge the Alien and Sedition Acts

30. NEW CAPITAL  1800 was first year the federal gov’t was in Washington DC moving from NYC