CHAPTER 9

Launching the New Republic

GEORGE WASHINGTON TAKES OFFICE Inaugurated in

NYC Felt enormous

burden Precedent-sets

example for others.

WASHINGTON’S FIRST STEPS

5 Departments (Cabinet)

Cabinet- advises & assists President & directs departments

Picked well-known leaders

THE JUDICIARY ACT Congress organizes

federal court system Supreme Court

1 Chief Justice 5 Associate Justices

John Jay-first Chief Justice

Set up a system of lower courts

THE NATIONAL DEBT

Total amount of money owed to others

Borrowed from foreign countries & citizens during Revolution

Issued bonds

ALEXANDER HAMILTON’S PLAN

Buy up all old bonds & sell new ones

Pay off federal & state debts

Opposed by Madison Felt speculators

would take advantage

HAMILTON’S COMPROMISE

Move capital to the South between Maryland & Virginia Known as District of

Columbia Southerners agreed

Capital moved from NYC to Philadelphia temporarily

REBUILDING THE ECONOMY

Hamilton asked Congress to create the Bank of the US Tax money could be

deposited Issue paper money Make loans to

farmers & businesses

PROTECTIVE TARIFF

Hamilton wanted a tax on imports

Encouraged to “Buy American” Northerners

(factories) supported

Southerners (farms) opposed

WHISKEY REBELLION

Tax on liquor made & sold in the US

Hurt farmers Western

Pennsylvania Washington called in

the militia Farmers backed

down & the government showed its strength

RESPONSE TO THE FRENCH REVOLUTION Radicals executed

thousands loyal to the King

Turned violent & lost American support

Jefferson supported France while Hamilton did not

European rulers feared it would spread to their land

U.S. REMAINS NEUTRAL

Wars in Europe Washington’s Foreign Policy

Neutrality Proclamation No support for French or British

JAY’S TREATY

British gave up forts in US

Americans paid old debts

Did not protect American ships

WASHINGTON RETIRES

Set many precedents

Served 2 terms Farewell Address

Avoid permanent alliances

Avoid involvement in European affairs

Avoid political parties

Retired to Mt. Vernon

HAMILTON V. JEFFERSON

Hamilton (Sec. of Treasury)

Jefferson (Sec. of State) Disagreed on many

issues Both wanted a

democratic govt. where the people rule Newspapers took sides, formed public opinion, & kept people informed on issues!

BIRTH OF POLITICAL PARTIES Hamilton

(Federalist) Wealthy & educated Strong central govt. Manufacturing,

trade & shipping-North

Loose Interpretation Pro-British National Bank Protective Tariff

Jefferson (Dem. Rep.) “Ordinary”

people Strong state

govt. Agriculture-South Strict

Interpretation Pro-French Opposed Bank Opposed Tariff

ELECTION OF 1796

Close Race Adams (Federalist)

becomes 2nd President Most votes

Jefferson (Dem. Rep.) becomes V-Pres. Second highest

votes

XYZ AFFAIR

France objected to Jay’s Treaty & began seizing US ships

Adams sent diplomats Talleyrand’s agents

(XYZ) offered Americans a deal (bribe)

No deal! US remained neutral but

strengthened the Navy

ALIEN & SEDITION ACTS

Alien Act expel any foreigner

thought to be dangerous Immigrants had to wait

14 years to become citizens

Sedition Act citizens fined or jailed if

they criticized the government or stirred up rebellion

Dem. Rep. (Jefferson) said laws violated freedom

KENTUCKY & VIRGINIA RESOLUTIONS

Jefferson urged states to take action

Resolutions passed that said each state “has an equal right to judge for itself” whether a law is constitutional (nullify)

States’ rights?

ELECTION OF 1800

Jefferson, Burr, & Adams

Jefferson & Burr each received 73 votes

House of Representatives decided the election

Jefferson won & became 3rd President