FORMING A NEW REPUBLIC
Chapter 9
1ST PRESIDENTIAL ELECTION
 Held in 1789
 Washington won, becoming our 1st president
 Was inaugurated, or sworn in as president in NYC
 Runner up was John Adams and he became VP
FEDERAL JUDICIARY ACT OF 1789
 Created the federal court system
 Established 6 justices for Supreme Court (now its 9)
 John Jay appointed by Washington as 1st Chief Justice of
Supreme Court
CABINET- ADVISE THE PRESIDENT
 Secretary of War (now called Secretary of Defense): Henry Knox
(in charge of military defense)
 Secretary of State: Thomas Jefferson (dealt with other
countries)
 Secretary of Treasury: Alexander Hamilton (manages gov’t $)
DEBT PROBLEM
 State and national gov’t borrowed money to win the revolution
(from other countries and private citizens) and had to pay that
money back
 The gov’t also promised to pay soldiers with back pay plus
interest for fighting in the revolution
 1789 debt= $52 million
HAMILTON’S SOLUTIONS TO FINANCIAL
PROBLEMS
 3 step plan: Pay off all war debts, raise gov’t revenue, and create
a national bank
 Also wanted the national gov’t to pay off the war debts of the
states
CONTROVERSY OVER DEBT REPAYMENT
 Southern states objected to the federal gov’t paying off states
war debts bc many southern states were almost paid off
 In exchange for their support, the gov’t promised to move the
nations capital from NYC to the south (becomes Washington,
DC)
NYC 1780
NYC 2013
RAISING $ FOR USA
 Hamilton favored tariffs, or taxes on foreign made goods, than
taxes on citizens
 Tariffs raise $ for the gov’t and also promote growth of
American businesses
 Hamilton wanted to create a national bank that would loan
money, create a currency ($), and be a safe place to keep $
FIGHT OVER THE NATIONAL BANK
 Jefferson and Madison opposed the national bank
 Thought it would create a shady relationship between gov’t
and the wealthy
 Thought it couldn’t/shouldn’t be done b/c the Constitution
didn’t create a national bank
NATIONAL BANK CREATED
 1791, the National Bank is formed
 Gov’t used the “elastic clause” of Article 1 of the Constitution to
justify its creation
 The elastic clause says that the gov’t can do what it feels is
necessary and proper to carry out its powers
POLITICAL PARTIES BEGIN
 The fight over the national bank started the move towards
political parties
 One party will support strict and literal interpretation of the
Constitution and favor power to the states and the other will
support a looser interpretation which gives the national gov’t a
lot of power
BATTLE OF FALLEN TIMBERS (1794)
US army fought Native Americans of the Northwest Territory
US won the battle and force the Native Americans to give up
much of their territory within the Northwest Territory
WHISKEY REBELLION (1794)
 Group of western PA farmers revolted against new tax on
whiskey
 Farmers attacked a local tax collector and threatened to attack
Pittsburgh
 Washington sent 13,000 soldiers to stop the rebellion and rebels
gave up quickly without a fight
 Easy victory by the gov’t proved that the federal gov’t could
enforce its laws
WAR IN EUROPE (1793)
 Revolution in France (1789) and France and England go to war
 Washington decides that USA will remain neutral
 Jefferson thought we should help the French
 Hamilton thought we should help the British in the war with
France b/c we needed the British as trade partners.
JEFFERSON QUITS (1793)
 Jefferson was tired of Washington always supporting Hamilton
 Jefferson also didn’t like the criticism he faced for saying we should support
France
JAY’S TREATY (1796)
 John Jay negotiated treaty with British
 British left Ohio Valley area and paid $ to USA for ships they had
seized during the French and British War
PINCKNEY’S TREATY (1795)
 Treaty with Spain
 Gave Americans free travel on Mississippi River and use port of
New Orleans and set southern border of US with Florida (at time
Spanish controlled)
BENJAMIN BANNEKER
 Helped plan the layout of the new nation’s capital (Washington DC)
 Was a self educated African American
PRESIDENT WASHINGTON LEAVES
 Washington decided that 8 years was enough as president and wanted to retire
 In his farewell address he warned about political divides and parties that would
create
 He also warned future presidents to keep the country neutral
POLITICAL PARTIES FORM
 Democratic Republican party-founded by Jefferson and Madison
 Federalist Party-founded by Alexander Hamilton
 Were both created out of the differences on how the gov’t
should work and where powers of gov’t should be (states or
national gov’t)
1796 PRESIDENTIAL ELECTION
 Democratic Republicans- Thomas Jefferson
 Federalists- John Adams
 Adams wins and Jefferson becomes VP
 Result is that two men of different beliefs in how gov’t works, now have to work
together as president and VP (TROUBLE!!!!)
XYZ AFFAIR
 France had been seizing US ships and cargo
 Adams sent representatives to fix problems with the French
 French officials tried to get a bribe and a loan from Americans in
exchange for stopping to seize American ships (US said no)
 As result of attempted bribe, Congress disbanded all treaties
with France and started seizing French ships and cargo
 Also a result, Congress voted to expand and fund the military
more
ALIEN AND SEDITION ACTS
 Targeted aliens, or people from other countries living in US but
not yet citizens
 Gave gov’t broad arrest powers
 Extended the wait time for becoming a citizen
 Banned sedition, or stirring up rebellion (used this part of law to
shut down newspapers with opposing views from the Federalist
party controlled gov’t)
VIRGINIA AND KENTUCKY RESOLUTIONS
 Insisted on nullification, or right of a state to cancel any act of
Congress it felt was unconstitutional
 Were a way for the Democratic Republicans to challenge the
Alien and Sedition Acts
NEW CAPITAL
 1800 was first year the federal gov’t was in Washington DC moving from NYC