The First Congress Takes Action
Among its first actions, Congress proposed a Bill of Rights and sent
it to the states for ratification. Anti-Federalists had demanded the
addition of such amendments as a condition of supporting the
Constitution’s ratification.
James Madison drafted the document and drew inspiration from
George Mason’s Virginia Declaration of Rights.
The first ten amendments were ratified on December 15, 1791.
Congress also passed the Judiciary Act of 1789 that set up the
federal courts system, including the Supreme Court.
The Bill of Rights (Amendments I-V)
I
Freedom of Religion,
Speech, Press, Assembly,
and Petition
The essential freedoms
necessary for all citizens to
express their views
II
Right to Bear Arms
Citizens have the right to
defend themselves
III No Quartering of Troops in Standing military forces are a
Private Homes in Peacetime threat to freedom (memory of
British troops?)
IV “Right to Privacy” –’ no
unwarranted searches
V
Needed to protect property
rights (memory of the writs?)
Rights of the Accused
Limits government’s power to
Guaranteed by Due Process take away freedom/property
The Bill of Rights (Amendments VI-X)
VI
Right to a Speedy &
Public Trial by Jury
Aims to guarantee justice
for all citizens
VII
Right to a Trial by Jury in
Civil Cases
Applies fair trial standards
to property cases
VIII
No Cruel or Unusual
Punishment
Fines and punishments
should not violate basic
human decency
IX
“Rights” Not Limited by
Those Spelled Out
Avoids limiting rights
X
Powers Reserved to the
States and People
Designed to limit national
government power and
preserve state’s rights
Washington’s First Cabinet
Washington created the first Cabinet of executive officers:
Secretary of State:
Thomas Jefferson
(Virginia) – handled
foreign affairs and
official government
documents
Attorney General:
Edmund Randolph
(Virginia) – chief
lawyer for the
national government
Secretary of the
Treasury: Alexander
Hamilton (New York)
– managed the
government’s
finances
Secretary of War:
Henry Knox
(Massachusetts) – ran
the military and
managed Indian
affairs
Hamilton vs. Jefferson

Even though Washington sought to maintain unity, a division
emerged within his Cabinet between Hamilton and Jefferson

These disagreements led to the creation of the nation’s first
two political parties – Federalists and Republicans
Hamilton and the
Federalists
Jefferson and the
Republicans
Views on People
Leader/Party Hamilton (Federalists)
Jefferson (Republicans)
View of
People
*people are focused on
their own self-interest
and can’t be trusted
*people are generally good
and can be trusted
*only the wealthy and
well-educated should be
trusted with power
*power in the hands of a
few will lead to corruption
in government
*wealthy urban elites
have the best interests of
the country at heart and
are better educated to
make good decisions
*citizen-farmers are the
“heart” of the nation and
can make the best
decisions if provided with
good information
View of
Leadership
Views on Government
Leader/Party
Hamilton (Federalists)
Jefferson (Republicans)
View of
Government
*strong centralized
government can best
defend natural rights
*strong centralized
governments are
dangerous
*state sovereignty leads
to disunity/weakness
*states are best suited to
protect the people’s rights
*liked the wide-ranging
powers of government
*concerned it granted too
much power
*loose interpretation
(liked the elastic clause)
*strict interpretation
(liked the 10th
Amendment)
View of the
Constitution
Views on Domestic Policy
Leader/Party Hamilton (Federalists)
Debt & Taxes *favored centralized
management of national
and state debts
*favored excise taxes
and tariffs to raise
revenue and protect
American industry
Central Bank
Jefferson (Republicans)
*favored state management
of debts and taxation
*distrusted the national
government acquiring too
much power over the
economy and too much
money
*wanted a powerful bank *distrusted giving too much
to support government
power to potentially corrupt
and business
wealthy elites
Views on Foreign Policy
Leader/Party
French
Revolution
Hamilton (Federalists) Jefferson (Republicans)
*distrusted the radical
*supported the French
French Revolution
Revolution
Britain vs.
France
*pro-British – wanted to
model our system on the
British system of strong
government and banks
*pro-French – wanted to
honor our alliance with
France even if it meant
war with Britain
Jay’s Treaty
(1794)
*believed it was the best
agreement possible and
necessary to keep peace
with Britain
*believed it was a “sellout” to the British
because we didn’t get all
that we wanted
Hamilton’s
Financial Plan
Revolutionary War Debts
The United States had
acquired about $54
million in debts from
the Revolutionary War
– $42 million to
American citizens
– $12 million to
foreigners
 The states had $25
million more in war
debts.

st
1

Secretary of the Treasury
President Washington’s
Secretary of the
Treasury Alexander
Hamilton proposed in
his Report on Public
Credit his plan to fix the
economic crisis facing
the young nation
ALEXANDER HAMILTON
Report on Public Credit

Hamilton’s plan in this report (1790)
featured four major areas:
1) Assumption of states’ war debts by
the federal govt.
2) Redemption of bonds sold by the
govt. under the Articles of
Confederation
3) Selling of new national securities to
create a permanent national debt
4) Excise tax on whiskey
1 – Assumption of State Debts
Many southern states had
repaid all of their debts
 Most indebted states were
in the North
 Southerners claimed
Hamilton was protecting
Northern business interests
at the expense of the South
 Hamilton was able to sway
Southerners to support this
by promising the
permanent capital would be
located in the South

SITE OF THE FUTURE CAPITOL
(Between Maryland and Virginia
along the Potomac River)
2 – Redemption of Bonds
During the war the government issued bonds to
people who had lent it money or served in the
army
 When the govt. failed to repay the bonds,
speculators offered to buy them at much lower
than their face value.
 Hamilton proposed that all bonds be repaid at
face value.
– This would be a way to win confidence in the
new government
– Sound bonds would be a a sign of nations
financial and health and encourage Americans
to invest in nation’s future

2 – Redemption of Bonds
Opponents, like James Madison,
wanted the original bond holders
to be paid.
– He stated that only Hamilton’s
speculator friends (rich
northeasterners) would profit
– war veterans would be
cheated out of their money as
they sold their bonds for next
to nothing to speculators
 This proved unworkable as govt.
was unable to identify the
original bond holders, and
Hamilton’s plan passed

JAMES MADISON
3 – Selling Securities for Permanent
National Debt
Hamilton planned to raise the $54 million to
pay off the national debt (to foreign nations
and Confederate bond holders) by “funding”
it
 New securities would be sold which would be
a combination of federal stock and western
lands
 The new securities would pay 4% interest as
the old bonds paid 6% (thus govt. saved
money) and would be safer investments than
the old bonds

3 – Selling Securities for Permanent
National Debt

Hamilton recommended that the debt
from the new securities should not be
paid off
– The 4% annual interest could easily
be paid off by collecting tariff money
and excise taxes
– Investors would enjoy the profits and
safety of investing money in these
new securities
4 – Excise Tax on Whiskey
This tax on whiskey was
relatively small but
angered western farmers
who relied on the sale of
whiskey produced from
their grain
 Led to the 1794 Whiskey
Rebellion
 Hamilton was sent by
Pres. Washington with
13,000 troops to put this
rebellion down

TAX COLLECTOR RUN OFF

Money from this tax
helped pay state
debts and interest on
new securities sold
Further Economic Measures

ALEXANDER HAMILTON
Hamilton later added
two other reports (in
1791) that featured the
following:
5) A National Bank
6) Tariffs to support
industry
5 – Bank of the United States
Private investors would own
and operate the bank.
 The federal government would
have a safe place to deposit
tax revenues.
 The bank could give
inexpensive loans to the govt.
in times of need
 The bank would also have the
power to issue paper currency
backed by the federal govt.

1ST BANK OF THE U.S.
5 – Bank of the United States
Arguments over the creation of the B.U.S.:
– Opponents argued it would give rich northerners
who invested in the bank too much influence
over government
– Opponents argued that no mention of Congress
setting up national banks is contained in the
Constitution (strict construction or strict
interpretation)
– However, Hamilton argued that Congress can
pass any laws necessary to carry out its
expressed duties (loose construction)
 A 20 year charter for the B.U.S. was passed in 1791

6 – Protective Tariffs
Hamilton sought tariffs to:
– protect infant American industry for a short term
until it could compete
– raise revenue to pay the expenses of government
– raise revenue to directly support manufacturing
through bounties (subsidies)
 Both parties supported the idea of a tariff though
southerners and westerners in time would support
lower ones than those sought by northerners
 Subsidies to industry didn’t pass, but became part
of the upcoming American System plan

Two Visions for the Country
Hamilton envisioned a future
based on urban elites and the
growth of commerce and
industry
Jefferson saw a future based
on responsible citizenfarmers and an expanding
agrarian republic
Federalists found support in
major port cities and the
North in general
Republicans found support in
rural areas and especially in
the South
Conflict #1: National Debt & National
Capital


• Jefferson helped work out
the “Compromise of 1790”
• Madison supported
Hamilton’s debt plan in
exchange for Hamilton’s
pledge to support the choice
of the Potomac as the site of
the nation’s new capital

In 1790, Congress refused
to pass Hamilton’s debt
assumption plan because
of opposition from James
Madison and other
Southerners who thought
it gave too much power to
the national government
Once an ally of Hamilton in
the ratification debate,
Madison distrusted
Hamilton’s views on
executive power
Madison and other
Southerners wanted the
nation’s permanent capital
located in the South
Conflict #2: The Whiskey
Rebellion
Western Pennsylvania farmers
rebelled against high excise
taxes on whiskey in 1794
 Federalists argued that national
power must be asserted to
demonstrate the new country’s
stability and to make the point
that challenges to government
policy must be peaceful
 Republicans supported the
farmers, arguing that the excise
taxes were an unfair burden


Washington led 15,000 militia
into western Pennsylvania and
put an end to the rebellion,
asserting the power of the
national government
Why do you think tax collectors were tarred and
feathered?
Why do you think Washington chose to lead the troops
himself?
Results of Hamilton’s Plan

Two political parties formed:
– Federalists – those who
supported Hamilton’s plan
– Democratic-Republicans –
led by Thomas Jefferson
who feared the plan
would give too much
power to the national
govt. and support the rich
in the north
THOMAS JEFFERSON
Results of Hamilton’s Plan
Revolutionary War debts were paid off
– High state taxes (like those that led to Shay’s
Rebellion in Mass.) were lightened when states
war debts were assumed by the federal govt.
 U.S. Economy grew:
– Exports tripled in the next 5 years
– Wealthy become tied to the success of the new
government
– U.S. had money available when it needed it (for
example the Louisiana Purchase)

Washington’s Farewell Address
Before he retired, Washington gave a farewell address
(speech). In it he
 Warned against political parties - he thought they caused
divisions (factions) that could destroy the nation.
 Urged the nation to remain neutral and not become
involved in permanent or long-term foreign alliances.
 Warned against a powerful military.
 Urged Americans to maintain and value a sense of
national unity.
 Washington ends second term with popularity and
prestige DIMINISHED—no longer seen as a man above
politics for backing Hamilton.

John Adams Becomes
President
After Washington
retired, his VicePresident, John Adams
became the second
president.
 Thomas Jefferson came
in second. He became
Vice-President.

nd
2
XYZ Affair
The French had been seizing American ships so
they couldn’t trade with England. (Anger after the
war!)
 American ministers told talks would occur only if
the Americans agreed to loan France $10 million
and to pay the minister a bribe of $250,000. The
Americans refused. The incident became known as
the XYZ Affair.

Alien and Sedition Acts
President Adams was criticized for the XYZ affair
by Democratic-Republican newspapers.
 He blamed the papers and new immigrants for
his problems.
 To silence his critics, the Alien and Sedition Acts
were passed by the Federalist controlled
Congress.


The 1798 Alien And Sedition Acts attempted
to muzzle Republican critics.
– Residency for citizenship (Naturalization)
raised from 5 to 14 years
– Can deport “dangerous” aliens
– Illegal to defame public officials (written
to expire in 1801 just in case the fed’s
lose the next election)
– For the first two years it is very popular-seen as necessary to control immigrants
and ensure domestic safety
35
Election of 1800

With John Adams
threatening American
civil liberties with the
Alien and Sedition
Acts
– It’s time for another
election…
– Who is the public
going to pick this
time?
Election of 1800

Federalists
– John Adams
 1st sitting president who
had to seriously
campaign to keep his job

Democratic –
Republican
– Thomas Jefferson
 VP who really wants to
be POTUS
– Charles Pinckney
 Picked because of
success from XYZ Affair
– Aaron Burr
 Popular politician within
Democratic –Republican
party
The Big Issue: Alien and
Sedition Acts

Jefferson and Madison authored the Virginia and Kentucky
resolutions in protest.

Adams violated 1st Amendment.

They maintain that since the US A is JUST a federation of
independent states, the states could nullify Federal (National)
laws (precursor to the Nullification Crisis and the Civil War).

Although John Adams kept the US out of war with France the
Alien and Sedition Acts will keep him from being reelected.
Election of 1800 Breakdown
•
Thomas Jefferson Aaron Burr
John Adams
-
•
Problem:
•
•
73 electoral votes
73 electoral votes
65 electoral votes
– If there is a tie for 1st, who wins?
• Who becomes VPOTUS?
• It goes to the House of Representatives to pick from
the top 2 candidates!
In the case of a tie…House of
Representatives picks the new POTUS

In the H of Reps
– The majority political party is the Federalists:
 They refuse to vote for T. Jefferson
– They pick Burr just because they hate Thomas Jefferson
– The Democratic-Republican’s make up the rest
 They vote for Jefferson
 What happens?
– It’s a tie vote 30 straight times…
 Then, it gets weird….
Enter Alexander Hamilton
•
Because he hated Aaron
Burr so much…
– He works with Bayard to get
the Federalists to not vote at
all.
– Jefferson may have agreed to
protect Hamilton’s plan.
– Hated Jefferson less.
• That way Jefferson could win!
– Becomes 3rd POTUS
• Aaron Burr is furious
– He becomes VPOTUS
– Because of this….
» Aaron Burr and
Hamilton will be lifelong
enemies…
 Until one shoots
the other.
The U.S. Constitution gets a new
amendment

12th amendment
– Added in 1803
 Created 2 ballots for
presidential elections:
 1 for POTUS
 1 for VPOTUS
 That way there can
never be a tie
again….we hope.
So what happens after the election of
1800…

John Adams is very disappointed he took 3rd.
– Goes home to Massachusetts to retire.
 Showed that the government was strong enough to endure a nasty political
fight.

Aaron Burr and Alex Hamilton?
– It takes 4 years, but
 It’s time to duel it out…