8 th Grade A New Nation notes with Answers
Challenges Facing the New Government
Internal Challenges
1.
Organizing the Government

Congress passed laws to set up three departments in the executive branch:
Treasury, State, and War

Judicial branch: Judiciary Act of 1789
2.
The Nations First Economic Crisis

Problem: Nation and states were deep in debt

Solution: Alexander Hamilton proposed a three part plan. Congress agreed to repay all federal and state debts and establish a national bank.
3.
The Whiskey Rebellion

To raise money, Congress imposed a tax on all whiskey made in the USA that led to a revolt.

Washington sent in the militia, which confirmed the strength of the national governments.
4.
Political Disagreements

Two parties formed Republicans, Federalists.
5.
Conflicts in the Northwest Territory

Reasons U.S. upset with Britain: Britain had not removed their troops after
10 years and gave guns and ammunition to the Native Americans

Source of conflict with Native Americans: Wanted to keep their land and
Americans wanted to settle it

Terms of the Treaty of Greenville: Native Americans give up all of their land from the Ohio River to Lake Erie
External Challenges
6.
The French Revolution

Federalist reaction: denounced the violence of the revolution

Republican reaction: Supported the revolution and said that some violence was to be expected
7.
France and Britain at War

U.S. position: remained neutral

Effect of position: neither Britain or France would trade; both countries stopped U.S. ships and seized cargo; Britain even took U.S. sailors
8.
Troubles with Britain ( led to Jay’s Treaty)


Americans agreed to: Pay debts owed to British merchants

British agreed to: Pay for the ships it had seized, withdraw its troops from the Northwest Territory, and stop aiding the Native Americans

British did not agree to: Recognize a U.S. right to trade with france or to cease impressments of U.S. sailors
9.
Troubles with France
 Jay’s Treaty and the XYZ Affair led to an undeclared war with France

U.S. agreement with France: France would stop seizing American ships
10.
Alien and Sedition Acts

Increasing tensions with France prompted the Federalist – led government to pass laws that made it harder to gain citizenship and restricted Freedom of Speech.