1. Government and Party Politics
Chapter 6: Section 1

2. Objectives
A. Describe the steps Washington’s administration took to build the federal government
B. Analyze Hamilton’s plans for the economy and the opposition to them
C. Explain how a two party system emerged in the new nation

3. Focus Question
How did debate over the role of government lead to the formation of political parties?

4. Why it Matters! In 1789, federal leaders of government met in NYC
They had a newly ratified constitution
Still had flaws
Clarity was not necessarily evident throughout the entirety of the Constitution
People still fearful
Failures/mistakes could hinder the success of their new government

5. Building the Federal Government
Big problem
$52 million debt from the Confederation
Farm economy
Only 3 million people
No navy
Army only had about 400 men
No respect from other countries

6. Electing a President In 1789, George Washington elected as President
Reluctance
Wanted to retire
Duty to his country outweighed personal desires
John Adams of MA
Vice President
Very small number of officials in administration
Very few rules
Washington sets precedents

7. Setting up the Judiciary
Congress left to organize federal court system
Madison helped pass Judiciary Act of 1789
Act established a judiciary, or system of courts
13 federal district courts (1 per state)
3 circuit courts hear appeals from state courts
6 member Supreme Court would decide contested cases
Act also established the office of Attorney General

8. Setting up the Cabinet Formation of cabinet
One of Washington’s most important acts
Cabinet group of federal leaders who headed major departments of executive branch and advised the President
Officially recognized in 1907
First 4 Executive Departments
1. State
2. Treasury
3. War
4. Attorney General

9. 4 Executive Departments
State
Led by Thomas Jefferson
Took care of foreign policy
Treasury
Led by Alexander Hamilton
Managed national finances
War
Supervised national defense
Attorney General
Prosecute and defend cases on behalf of federal government

10. QUESTION
Why was setting up the cabinet an important precedent?

11. Handling the National Debt
Action
Result
Lasting Legacy
Pay foreign debt
Restore national credit
Established United States as trustworthy
Federal government assumes state debts
Bring stability to the country; stimulate economy
Unified country
Impose excise taxes and tariffs
Create National Bank and national currency
Pay debts and increase manufacturing
Help government regulate economy and commerce; generate income through loans
Established precedent of nation paying its debts
Created model on which today’s Federal Reserve System in based

12. Hamilton’s Strategy 3 Great Benefits from his system
Establish nation’s financial credibility
It would buy political support
It would enrich investors
Promote accumulation of capital needed for commercial and industrial growth

13. Redistributing Wealth
Part of Hamilton’s plan
2 ways
1. farmers merchants
2. south north
80% of nation’s debt was owed to merchants in seaport cities of Northeast

14. Debt Relief Merchants purchased notes in 1780s
Paid only a fraction of the cost
Hamilton proposed paying them at full value
Merchants profit
In order to pay off debts, government would tax American people (mainly farmers)
Why did Hamilton want to add to the national debt?

15. Opposition to Hamilton
Opposition grew in the south
South did not want to be taxed to pay out north
Mostly agricultural in south

16. Interpreting the Constitution
Hamilton interpreted Constitution loosely
Relied in its “implied powers” at its clause empowering Congress to enact laws for the “general welfare”
Madison and Jefferson
Favored “strict construction”, limited the federal government to powers explicitly granted by the Constitution
Opposed taking on state debts
Feared national bank would benefit north at expense of the south

17. Compromise
Jefferson said that Hamilton’s system, “flowed from principles adverse to liberty and … calculated to undermine and demolish the republic
Jefferson and Madison insisted he was betraying the American Revolution to establish a “kingly government”
Great Britain
Congress voted to fund federal debt
Excise taxes, creation of national bank

18. Compromise Hamilton promised to move capital
Banks of Potomac River, between Maryland and Virginia
Honor Washington
Washington, District of Columbia

19. Whisky Rebellion Western PA interference with mountains
Distilled grain whisky
Excise tax
1794, farmers resisted tax
Whisky Rebellion
Demonstrate power of new nation
12,000 militiamen

20. Whisky Rebellion

21. Question
On what grounds did some people oppose Hamilton’s plan?

22. 2 Party System
Whisky Rebellion highlighted the growing division in American politics
Washington and Hamilton sought to secure its power and authority
Jefferson and Madison opposition

23. Political Parties Compete
Formation of Two distinct parties
Federalists vs. Democratic Republicans

24. Debating Whisky Rebellion
Outcome fueled disagreement
Federalists (Hamilton) blamed rebellion, in part, on a set of political clubs known as Democratic societies
Clubs opposed Federalists
Jefferson and Madison defended clubs
Feared aristocracy would triumph if leaders were immune from constant public scrutiny and criticism
Surprised at large number of troops

25. Federalists vs. Democratic Republicans
Alexander Hamilton
Thomas Jefferson
Thought states should have more power
Favored a strong centralized government
Wanted to base economy on farming
Wanted to economy on industry and trade
Were pro-French
Were pro-British
Supported a strict construction of the Constitution
Supported a loose construction of the Constitution

26. Federalists vs. Democratic Republicans
Northerners favored federalists
Especially merchants
Southerners favored Democratic Republicans
Especially farmers
The first 2 Presidents, most of the governors, state legislators, and congressmen were Federalists
Indicates views of voters
DRa fear that Federalists would concentrate on wealth and power
Many voters also believed that the DRP offered more social mobilty

27. Question
What party do you believe possibly offered more social mobility?