Period 3Section 4

1791-1800

• The First Executive Brancho George Washington – Unanimously chosen by the Electoral College

as the first President• As President, George Washington was able to choose advisors

1. Thomas Jefferson was appointed as Secretary of State, and was in charge of foreign relations

2. Alexander Hamilton was appointed as Secretary of the Treasury, and was in charge of stabilizing the United States’ economy

3. Henry Knox was appointed as Secretary of War, and was in charge of military affairs of the United States

Washington’s First Term

• The most serious issue for the Washington administration to confront was the financial crisis that had plagued the U.S. since the Revolutionary Waro Many of the states were in debt and o The currency system was not regulated and the paper money was

worthlesso The valueless money had forced many Americans into foreclosure on

their property

Hamilton: Dealing with the Economic

Crisis

• Hamilton’s financial plan to revive the U.S. economy:1. Earn revenue through excise taxes and import tariffs2. Created a strong national banking system to help stabilize the

economy (The Bank of the United States)3. The federal government should pay off all bonds at their original

value (funding at par)4. The federal government should pay off all the states’ debts left over

from the war

• As Secretary of the Treasury, it was Alexander Hamilton’s job to fix the struggling economy.o Hamilton submitted two reports to Congress that began to outline his

economic policy: 1. The Report on Public Credit - promoted economic policy that

would favor the wealthy with the hopes that their money would stimulate the U.S. economy

2. The Report on Manufacturers – promoted building the U.S. economy on manufacturing rather than agriculture

1. Excise taxes and import tariffs were implemented to raise government revenueso Hamilton imposed an excise tax on whiskeyo Hamilton also instituted a high tariff on imported goods

• Throughout U.S. History, tariffs are typically supported by Northern manufacturers and hated by Southern farmers

2. The Bank of the United States was established to provide stability to the economy

o The purpose of the Bank of the U.S.1. Serve as a depository for U.S. Government revenue2. Loan money to manufacturers to expand U.S. industry3. Stabilize the economy and guard against inflation.

3. Funding at government debt at par o The government agreed to pay back (at full value) war bonds that had

been sold to American people during the Revolution in order to fund the war.• Paying the bonds back in full would increase the people’s trust in

the U.S. government and make them more likely to loan money again in the future.

4. Paying off state debts at full valueo Many of the states were still in large amounts of debt from the

Revolution and Hamilton argued that paying off state debts would endear the states to the national government

• Hamilton’s financial plan was met with resistance by many in the U.S.o Whiskey distillers in PA, angered at the excise tax on whiskey, launched

a rebellion against tax collectors that had to be stopped with federal military troops

o The Bank of the U.S. was viewed as monopolistic and as favoring the wealthy at the expense of the poor

o Some states, like VA, had already paid off their debt from the war, and claimed that it wasn’t fair that the other states would now be forgiven of their debt.

Foreign Policy

The French Revolution• 1789 - A popular uprising broke out in Paris that

lasted a decade.o The goals of the Revolution

1. Overthrow the monarchy and aristocracy2. Install a republican form of government

o What actually happened?• Paris was occupied by angry mobs of commoners• Mass executions on the guillotine came to symbolize what

became known as “the reign of terror” in Franceo The King and many of the French high society were killed

during the uprising.

• As Secretary of State, it was Thomas Jefferson’s job to lead the country in foreign diplomacyo Jefferson had two problems to confront:

1. How to handle America’s role in a Revolution that had broken out in France

2. To negotiate treaties that would protect the sovereignty of the United States

• When the French Revolution evolved into a war between Britain and France:o Thomas Jefferson wanted to support the French because:

1. France aided the United States in their the Revolution against Britain

2. The French were trying to establish a republic (supposedly)3. After the Revolution, Thomas Jefferson had been the American

diplomat to France4. Britain had been seizing American merchant ships in the Atlantic,

and forcing American seamen to join the British Royal Navy

o Alexander Hamilton (and most Northern Federalists) wanted to support the British because:

1. Britain was the country most important to the future of the United States economy

• Despite the bickering between Thomas Jefferson and Alexander Hamilton, the final decision over who the U.S. would support in the Anglo-French War was made by President Washington.o Washington issued the Proclamation of Neutrality (1793), and

declared that the United States would not get involved on either side of the conflict

• During Washington’s administration, the presence of European powers on the North American continent continued to threaten the United States’ sovereignty: 1. The British still occupied military forts in the Old Northwest, even

though the peace treaty that ended the Revolutionary war forbade them from doing so.

2. Spain was in control of Northern Florida and a large chuck of land west of the Mississippi River, called Louisiana

• Two key diplomatic treaties were achieved during Washington’s administration:1. Jay’s Treaty (With Britain)

• Supreme Court Chief Justice, John Jay was sent to England to discuss British seizures of American merchant shipso Jay’s Treaty did not get the British to stop the ship seizures,

but Britain did agree to evacuate forts that they still occupied in the Old Northwest Territory

2. Pinckney’s Treaty (with Spain)• Gave the United States full Navigation rights of the Mississippi

River, which because essential for trade in the American frontier.

Jay’s Treaty

Pinckney’s Treaty

Hamilton vs. Jefferson

The Birth of Political Parties in the United States

• Alexander Hamilton (Sec. of Treasury) and Thomas Jefferson (Sec. of State), had two opposing views of the role of the Federal Government.

o Thomas Jefferson was a strict constructionist – believed that the Constitution should be followed strictly, and that the states should retain more power.

o Alexander Hamilton was a loose constructionist, - believed that the constitution could be adapted to fit the changing needs of the country.

• An intense rivalry developed between Jefferson and Hamilton.

• The intense rivalry between Jefferson and Hamilton gave birth to the rise of the two-party political system in the United Stateso In the Washington administration, technically everyone was a

Federalist because there was no opposing political party.

o At the end of Washington’s first term, Jefferson resigned from his position as Secretary of State, and formed the Democratic-Republican Party to oppose the Federalists

The First Political Parties in the U.S.

Federalists Democratic-Republicans

Leaders John Adams and Alexander Hamilton

Thomas Jefferson andJames Madison

Views on the Constitution

Interpret loosely; Created a strong central government

Interpret strictly;States needed to retain their rights

Foreign Policy

Pro-British Pro-French

Military Policy

A large standing army was necessary to the safety of the U.S.

A large military is dangerous for the individual freedom of Americans

Economic Policy

Support manufacturing;Strong national banking system;Support high tariffs

Favor agriculture;Opposed the national bank;Oppose high tariffs

Chief Supporters

Northern manufacturers and large land owners

Skilled workers; small farmers and southern plantation owners

Washington’s Farewell

• After two terms (8 years) in office, George Washington chose to retire from politics.

o In Washington’s Farewell Address, he urged two things:1. Don’t form permanent military alliances or get involved in the

affairs of Europe (both will threaten the sovereignty of the United States)

2. Don’t form political parties – they threaten to split the country

The Election of 1796 and

the John Adams

Administration

• The election of 1796 was an important election in U.S. History, because it was the first election that featured political parties:

o John Adams ran for the Federalists

o Thomas Jefferson ran for the Democratic-Republicans

The X,Y,Z Affair• Early in John Adams’ presidency, the French Navy

began to seize American merchant ships in the Atlantic in retaliation for Jay’s Treaty with Britain, and U.S. neutrality during the Anglo-French Waro President Adams sent an American delegation to France to discuss the

ship seizures.• Upon their arrival in Paris, three French diplomats demanded a

bribe from the Americans before opening an diplomatic talkso Angered at the disrespect from France, the American

delegation returned to the United States

• Response to the X,Y,Z Affair:o Americans were furious when newspapers began to circulate reports of

how the French treated the American diplomatso John Adams ordered a build up of the United States Army and

Navy in preparation for war with France

• When the French heard of the American military build up, they apologized and invited the American delegation to return to France to open diplomatic talks.

The Alien and Sedition Act (1798)

• John Adams’ administration took steps to undermine their opponents (Democratic-Republicans):

o The Naturalization (Alien) Act – raised the amount of time that an immigrant had to wait before attaining U.S. citizenship from 5-14 years.• Passed because most immigrants to the U.S. supported the

Democratic-Republicans

o The Sedition Act – Imprisoned or fined newspaper editors that published negative articles about the President or Congress• A clear violation of the 1st Amendment to the Constitution

• There was widespread opposition to the governmental abuses of the Adams administration:

o The Virginia and Kentucky Resolutions:• Resolutions written by James Madison and Thomas Jefferson that

were adopted by the state legislatures of Virginia and Kentucky.o They asserted that the constitution was a contract between

the Federal government and the states, and if the federal government failed to uphold the contract (as was the case with the Sedition Act), then the states had the right to nullify (cancel out) the contract.