1. The Whiskey Rebellion

2. The Federalists in Charge

3. Washington Retires 1796 – Washington decides 2 terms in office is enough, wants to return to his estate: Mount Vernon Final concerns: warned against (1) political disagreements that could weaken the nation and (2) long term foreign treaties that might work against U.S. interests later.

4. Political differences continue: Americans divided over how country should run… disagreed over interpreting the Constitution and economic policy Growth of political parties: differences lead to development of separate political parties - group of people that tries to promote its ideas and influence government… – Democratic-Republican Party vs. Federalist Party

5. John Adams’ Administration 1796 - 1 st election with 2 parties. Adams (Federalist) vs. Jefferson (Democratic-Republican)… – Adams won and Jefferson became Vice-President Problems with France: tensions over French looting American ships. Adams sent diplomats to Paris, where Americans were told that French would only negotiate if money was given. Americans refused. – This came to be known as the XYZ Affair.

6. Alien and Sedition Acts: laws passed in 1798. – One discriminated against immigrants (aliens), making waiting period longer and making it legal to deport suspicious immigrants during war time. – The other law outlawed stirring up a rebellion against the government (sedition). Kentucky and Virginia Resolutions: Madison and Jefferson look for ways to fight these laws. – Theory of states’ rights (states have certain rights the Federal government cannot overrule)… – Principle of nullification (state could cancel act of Congress that was unconstitutional).