AP US History
• America has just constructed a new form of government under
the Constitution
• President?
• Judiciary?
• Bill of Rights?
• We have to be very cautious about our foreign relations we can
not afford to go to war. We are still very weak and vulnerable.
• George Washington is drafted President in 1789
• REASON:
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Trustworthy
War Hero
Aligned the North with South
Not like other Politicians
• He didn’t want to be President
• He establishes Cabinet (Not in Constitution)
• Washington will set the precedent for every President after himself
• Importance: W/O promise Constitution wouldn’t have been
ratified most likely
• Purpose: Intended to protect individual liberties from a
potentially tyrannically strong central government
• Consists of the first 10 Amendments of the Constitution
------------------------------------------------------------------------------Judiciary Act of 1789: Organized the Supreme Court w/ chief
justice and five associate justices
• Set up Federal District Courts (13)
• Alexander Hamilton is a key member of the
young government: “Father of National
Debt/Modern Banking”
• GOAL: To correct economic problems that had
cripple the Articles of Confederation
• Report on Public Credit 1790
• PLAN: Shape gov financial policy to favor the
wealthy, in turn they would lend the gov
monetary/political support. Then the prosperity
would flow down to the masses
• 1st Objective: to bolster the national credit
• Needed Congress to take on the entire national debt
• Funding Par: Meant Federal gov would pay back its debt at face value,
plus interest ($54 Million at the time + $13 Million interest)
• Lack of Confidence from people, This will build TRUST in our nation
• Congress passes act in 1790
• 2nd Objective: Hamilton wanted Congress to assume state debts
(Assumption) of $21.5 Million.
• Assumption: National debt would assume state debts
• Argument: b/c debt was incurred fighting for national independence it
should be taken on by national government
• Thought: assumption would chain states more closely together (Support)
• Problem: States with large debt (EX: Mass) wanted this but states w/
small debt (EX: Virginia) didn’t
• Solution: Virginia would get federal district (now D.C) on the Potomac
(Commerce/prestige) and Assumption would get passed through Congress.
• 3rd Objective: Create revenue to pay off debts
• How could the Federal government pay off debt?
• ANSWER: Customs duties and excise tax (on few domestic items)
• Interesting how they had just fought a war revolving around taxes but are
now more then willing to implement tax to pay off debt much like Britain
had tried to do.
• Hamilton saw the national debt as “National Blessing”
• The more people gov owes the more people want it to succeed. This will
cause UNION ADHESIVNESS
• Customs Duties (Tariffs)
• Tariffs depend on vigorous foreign trade to make money (critical to Hamilton’s
plan)
• 1st Tariff Law (1789): passed by Congress (8% on value of dutiable imports)
• GOAL: Revenue, protect industry in its infancy
• Excise Tax (internal revenue 1791)
• First was a tax on whiskey (7 cents/gallon): Paid by seller
-Challenged in 1794 by Whiskey Rebellion (Gov shows it will not put up with
armed mobs)
• Problem: Whisky is a form of currency on the frontier
• 4th Objective: Bank of the United States (Capstone)
• Private institution in which gov is major stockholder and would deposit its
surplus funds.
• POSITIVES:
1. Strongbox for Federal Gov (Safe place for money)
2. Federal Funds would stimulate business by being in circulation
3. Sound an stable national currency
Thomas Jefferson
Alexander Hamilton
• The Bank becomes national Unity issue
• Support for the bank is rooted in the North with commerce/financial
centers
• Opposition for the bank is located in the agricultural South
• Bank of United States is created by Congress in 1791 (20yr Charter)
• Located in Philadelphia
• $10 Million capital (1/5 owned by Federal Gov)
• Stock sold out in 2hrs (support/faith)
• We see a lack of Unity in the “United” States
• EX: Differing views on bank, Federalist/Anti-Federalists, etc.
• Hamilton’s Plan had stabilized national credit but all of his plans went
against state rights which is still a well supported thought.
• Permanent: organized opposition begins to form (Founders didn’t
expect this b/c it seemed disloyal)
• Democratic-Republican: (Jefferson/Madison; pro-French)
• Federalists: (Hamilton; pro-British
• The two party system has survived since this time (1792)
• The Franco-American Alliance of 1778 is still in effect (lifetime):
Britain/France at war
• PROBLEM: Americans needed commerce from the British so they can’t
support the French.
• Dem-Rep say we owe France for our Freedom (pro-war)
• Federalists were against war (pro-British)
• REASONS: our military is weak, economically unstable still, Political disunity
• “strategy of delay” if new nation could stay out of European wars for a
few decades it would be big enough (popu) and strong enough to be
successful.
• Neutrality Proclamation (1793)
• States America will officially be neutral in the conflict
• Warned American citizens to be impartial towards both armed camps
• RESULTS:
• This proves that self-interest is the cement for alliances
• Hamilton’s hopes for economic development depended on trade w/
Britain. War with them would ruin this plan
• The Jay Treaty (1794)
• John Jay sent by Washington to avert war with Britain
• Americans would have to make full compensation to outstanding British
debts.
• Britain consented to pay damages for seizers of American
ships/impressment of American sailors.
• British would take troops from American soil sometime
• Results:
• Revitalized the Dem-Rep party. WHY?
• Angered southern farmers b/c they had been trading freely during
the Neutrality Proclamation.
• Pinckney’s Treaty (1795): America-Spain
• Ends hostility on the Mississippi
• Granted America the disputed lands of West Florida
• Allows expansion
• KEY Points
1.These treaties assured that America would stay out of the European
Wars
2.These two treaties allow America to grow economically
• Washington’s Legacy as President
1.
2.
3.
4.
Established solid central government (EX:
Whiskey Rebellion)
West was expanding (Treaty of Greenville)
Merchant ships on seas (Commerce growing)
Kept Nation out of war = Foreign Policy!
• John Adams
• Pro-British (NE)
• Vice President Jefferson (Pro-French, South)
• Bad News:
• Adams has to follow Washington
• Hamilton hates him
• On the verge of war with France
• France is outraged by Jay’s Treaty with Britain. (WHY?)
• France begins to seize American merchant ships (take goods)
• Won’t accept America’s new envoy to France
• XYZ Affair
• Adams sends 3 reps to France to negotiate lost American goods and peace
with France.
• France wants bribe to talk but America refuses to pay just talk
($250,000)
• Congresses response:
• Enforces embargo on French
• War efforts pushed along (costs money)
• Result: America is fighting an undeclared war with France (1798-1800)
• Convention of 1800
• Napoleon Bonaparte becomes dictator of France
• He wants to conquer Europe and rid himself of American squabble
• RESULT:
• Led to a Quasi War with France (undeclared)
• France agreed to annul 22yr of marriage of (in)convience w/ America
• US had to pay damage claims to American shippers
• The anti-French Federalists under Adams try to restrict the
power of pro-French immigrants and Dem-Rep party.
1.
Naturalization Act: residence requirements raised from 5yrs to 14yrs
to become citizen (Voter)
2.
Alien Act: permits President to order the imprisonment or deportation
of non-citizens (French) in time of hostilities.
3.
Sedition Act: Prevents written attacks on Congress or President.
Freedom of Speech and press taken away (1st Amendment)
• Kentucky Resolution (1798):
• Written by Thomas Jefferson
• It voids the Alien and Sedition Acts and Naturalization Act.
• Stated that States got to choose which laws to accept
• Virginia Resolution (1798)
• Written by James Madison
• Stated if it is not written in the Constitution you do not have to follow it as
law.
• States can nullify laws that oppose Constitutions
• Nullification becomes a big issue in the future