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
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