CH 7 NOTES

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CH 7 NOTES

• ESTABLISHING A NEW GOVERNMENT

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A NEW GOVERNMENT

• In 1789 each of the states that passed the
  Constitution sent electors to choose the first
  president
• ELECTORAL COLLEGE a group of electors that
  represent the peoples vote for president
• Washington was elected unanimously, and John
  Adams became his Vice President

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George Washinton

• Washington was hoping to retire, but was
  convinced by his friends that he was the best fit
  for president

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• Members of the new government had to create new
  policies that would determine the future of the
  country
• Washington wrote The first of everything in our
  situation will serve to establish a precedent.
• PRECEDENT an action or decision that later
  serves as an example
• Congress created departments in the Executive
  branch
• Each department was led by a cabinet member
• CABINET MEMBERS department heads who advise the
  president

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CABINET MEMBERS

• ALEXANDER HAMILTON
• Secretary of the Treasury
• Dealt with financial matters

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• THOMAS JEFFERSON
• Secretary of State
• Handled foreign relations

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• HENRY KNOX
• Secretary of War
• Provided for a national defense

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JUDICIARY ACT OF 1789

• Congress passed the Judiciary Act of 1789 to set
  up the federal court system
• It established a Supreme Court with 6 judges
• 13 district courts and 3 courts of appeal
• It defined their powers and their relationship to
  the state courts
• It allowed certain cases to be appealed from
  state courts to federal courts
• President nominated judges, then they had to be
  approved by the senate

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HAMILTONS ECONOMIC PLAN

• As Secretary of Treasury, Hamilton had to deal
  with a huge debt
• NATIONAL DEBT The amount of money owed by the
  U.S.
• He proposed that the government take on the
  entire debt of the federal government and the
  states
• His plan was to pay off old debt by borrowing new
  money at a lower interest rate.

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• ECONOMIC PROBLEMS
• The debt fell into 3 categories
• Foreign Countries Owed 11.7 million (mostly to
  France)
• U. S. Citizens Owed 40.4 million (Bonds)
• States Owed 25 million (food, weapons, etc.)

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HAMILTONS 3-POINT PLAN

• 1. DEAL WITH THE DEBT Pay foreign debt first.
  Gradually pay off bonds. Pay state debt.
• 2. GAIN REVENUE Raising protective tariffs would
  increase prices of foreign products, causing
  Americans to buy more U.S. goods.
• 3. STABILIZE THE BANKING SYSTEM Create a
  national bank and a national mint.

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CITIZENS DEBT

• Congress could not agree on the debt to American
  citizens
• Bonds were issued during the war
• BONDS Certificates of debt that carry a promise
  to buy them back at a higher price
• Speculators bought the bonds at a cheaper price
• Hamilton wanted to pay off the bonds at the
  original price, making speculators rich

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HAMILTONS VIEWS

• Believed in a strong central government.
• Wanted a balance of power between the mass of
  people and wealthier citizens.
• Wanted to promote manufacturing and business.
• Wanted higher tariffs on foreign goods to protect
  American manufacturers.

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JEFFERSONS VIEWS

• Wanted to protect the states power.
• Believed in the right of the people to rule the
  country.
• Supported agriculture and farmers.
• Wanted lower tariffs to keep costs low for goods
  farmers bought.

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OPPOSITION TO HAMILTONS PLAN

• Hamilton wanted to create a national bank,
  tariffs on imports, and national taxes
• Washington signed the bill to create the bank for
  a term of 20 years
• Tariffs on imports were created to encourage
  people to buy American goods

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• Jefferson and Madison believed Hamiltons plan
  gave too much power to the federal government
• They thought the bank was unconstitutional
• Hamilton brought up the elastic clause congress
  can make all laws which shall be necessary and
  proper to govern the nation

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• Hamilton believed in Loose Construction
• Loose Construction the government can take
  reasonable actions that the Constitution does not
  specifically forbid
• Jefferson believed in Strict Construction
• Strict Construction the government should do
  only what the Constitution specifically says it
  can do

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• The south opposed the tariff because they had
  little industry
• Congress approved a variety of taxes, including
  one on whiskey
• Jefferson feared the strong economic powers would
  protect the wealthy

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• Jefferson and Madison urged others to oppose
  Hamiltons plan
• Hamilton would agree to a compromise
• For acceptance of the plan, the new capitol of
  the United States would be permanently moved from
  New York to a site on the Potomac River
• If left in New York or Philadelphia, political
  and economic power might be in the North

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WHISKEY REBELLION

• People in areas like western Pennsylvania were
  angry at the tax on American-made whiskey passed
  by Congress in 1791.
• Whiskey was a cash crop to western Pennsylvania
  farmers.
• Farmers were angry that cases about the law were
  tried in district courts, often far away from the
  people affected.
• Fighting broke out in 1794.
• Washington led an army against the rebels, but
  the Whiskey Rebellion ended without a battle.

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DEALING WITH OTHER NATIONS

• FRENCH REVOLUTION (1789-1799)
• Inspired by the American Revolution
• The people overthrew the government and beheaded
  the king and queen

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• between 18,000 and 40,000 people were executed
  during the Reign of Terror

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NEUTRALITY PROCLAMATION

• A few years later France and Great Britain went
  to war
• The French tried to involve the U.S.
• NEUTRALITY PROCLAMATION Stated that the U.S.
  would not take sides with any European countries
  at war

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• French representative Edmond Genet asked American
  sailors to help France fight England with
  privateers.
• Privateers private ships hired by a country to
  attack its enemies
• Washington told Genet this violated the
  Neutrality Proclamation
• Jefferson supported France
• Hamilton supported Great Britain

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JAYS TREATY

• The British seized American ships carrying food
  to the West Indies
• British were still helping Native Americans fight
  settlers
• Washington sent John Jay to London to negotiate
• Jay got the British to remove their troops from
  the Northwest Territory
• However, on every other point, he agreed to
  British terms

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PINCKNEYS TREATY

• The Spanish disputed the U.S. and Florida border.
• Spain closed the New Orleans port to U.S. trade
  in 1784.
• This hurt the American economy.
• Pinckneys Treaty was signed in 1795.
• The southern U.S. border was set at 31 N
  latitude.
• The port of New Orleans reopened.

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• Jays Treaty did not cover
• Impressment of sailors
• Repayment of slaves taken during the revolution
• America did not have the power to ask for
  anything more. Washington felt it was the best
  they could do.

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CONFLICT IN NORTHWEST TERRITORY

• Americans continued to settle in the Northwest
• Native Americans protested
• British provided guns to Natives
• Natives were defeated
• A treaty gave U.S. claim to most Native lands in
  the Northwest Territory

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WASHINGTON SAYS FAREWELL

• IN THE FAREWELL ADDRESS
• Lists the benefits of uniting the states under
  one government
• Emphasizes his warning against the dangers of
  political parties
• Points out the need for education
• Gives advice to the new nation about foreign
  policy
• Warned against dangers of foreign ties.
• Warned the nation to work out its political
  differences.
• Warned against too much public debt.

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POLITICAL PARTIES DEVELOP

• Election of 1796
• FEDERALIST PARTY
• founded by Hamilton
• Wanted a strong federal government
• Chose John Adams and Thomas Pinckney as candidates

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• DEMOCRATIC-REPUBLICAN PARTY
• Founded by Thomas Jefferson and James Madison
• Wanted to limit the federal governments power
• Chose Thomas Jefferson and Aaron Burr as
  candidates

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• Party differences were based on where and how
  people lived
• Businesspeople in the cities supported the
  Federalists
• Farmers in isolated areas supported the
  Democratic-Republicans

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ELECTION OF 1796

• Adams defeated Jefferson.
• Whoever had the second most votes became vice
  president, so Jefferson joined Adams in office.

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XYZ AFFAIR

• An early goal of Adams was to improve relations
  with France
• U.S. diplomats were sent to France.
• The French foreign minister, Talleyrand, would
  not meet them.
• Three French agents secretly demanded a bribe
  before they would discuss a treaty with the
  Americans.
• The so-called XYZ Affair outraged Americans and
  led to a call for war with France.

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• The agents said a treaty would be discussed only
  in exchange for 250,000
• The French government also wanted a loan of 12
  Million
• The diplomats refused
• When Adams told congress of the talks, he
  replaced the agents names with the letters X, Y,
  Z
• Federalists wanted war
• Treaty was eventually signed

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PREPARING FOR WAR AND PEACE

• Adams asked Congress to expand the navy to more
  than 30 ships.
• He also asked Congress to approve a peacetime
  army.
• However, Adams did not want war with France.
• Federalists did not like Adamss decision not to
  go to war.
• American and French ships began fighting in the
  Caribbean.
• The United States and France eventually signed a
  treaty.

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ALIEN AND SEDITION ACTS

• Included four laws
• Aimed at stopping the growth of
  Democratic-Republican party
• Supposedly to protect the country from foreigners

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• NATURALIZATION ACT
• Increased time required to become a U.S. Citizen
  from 5 to 14 years
• Most new immigrants were joining the
  Democratic-Republican party
• Federalists wanted to make it harder for
  newcomers

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• ALIEN ACT
• Gave President power to deport any foreigner
  considered dangerous to the peace and safety of
  the United States
• Federalists hoped to silence French refugees who
  opposed them

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• ALIEN ENEMIES ACT
• Allowed government to deport aliens if their home
  country were at war with the U.S.
• Remains in effect today.

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• SEDITION ACT
• Made it a crime to speak or write critically
  about the government.
• Its purpose was to silence criticism.

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KENTUCKY AND VIRGINIA RESOLUTIONS

• Jefferson and Madison passed these resolutions
  which said that the Alien and Sedition Acts were
  unconstitutional
• They stated that these acts interfered with state
  governments
• They wanted congress to repeal the acts, which
  did not happen
• The acts expired within a few years