Early America (1789-1860) Main Ideas • • • • • Washington & the new national government Managing national debt & banks Political parties Expanding west Conflict & change Washington & the New National Government • Question to consider: – What steps did Washington take to make the new government work? Washington & the New National Government • Washington inaugurated April 30, 1789 • Setting up an executive office – Congress created three Cabinet departments to help the President: – Members of the Cabinet advised the President and directed their departments. Washington set a precedent by choosing well-known leaders to serve in the Cabinet: • Thomas Jefferson = Sec. of State • Alexander Hamilton = Sec. of Treasury • Henry Knox = Sec. of War Washington & the New National Government • Setting up a judicial branch – The Constitution created a judicial branch but did not specify its format – Judiciary Act of 1789 created the Supreme Court, along w/ a circuit of federal and district courts • Appeal process: – decisions made by a state court could be appealed to a federal court on constitutional issues • Federal supremacy: – federal laws > state laws – Marbury v. Madison judicial review (S. Court can declare laws & acts of Congress “unconstitutional”) Managing National Debt & Banks • Questions to consider: – What was Hamilton’s plan to reduce the nation’s debt and build the economy? – What were the causes and results of the Whiskey Rebellion? Managing National Debt & Banks • The problem – The U.S. had a huge national debt—the total amount of money that a government owes to others. – The national & state governments had borrowed by issuing bonds—certificates that promise to repay the money loaned, plus interest, on a certain date. • Hamilton’s plan – Establish a national bank funded by the gov’t AND private investors – Buy up old bonds, issue new ones to keep trust of investors & have money for debt repayment Managing National Debt & Banks • The Debate – Madison argued that Congress could not make a national bank if the Constitution didn’t set one up; plus many southern states had already paid THEIR debts – Strict vs. loose interpretation of the Constitution • Strict: if the Constitution doesn’t say it, you can’t do it • Loose interpretation: How does the “necessary and proper” clause fit in? – Congress can make any laws or set up institutions that are “necessary and proper” for the country • The compromise – Hamilton promised to support putting the nation’s capital in the South if southerners agreed to his plan for repaying state debts. Managing National Debt & Banks • Whiskey Rebellion – Causes • To raise money for the Treasury, Congress approved an excise tax – tax on a product’s manufacture & sale – on whiskey • Farmers who grew corn said was easier to get their product to market & make a profit if they turned their corn into whiskey. – What did they do? • They rebelled, marching in protest and tarring and feathering tax collectors. – How did the federal gov’t respond? • Sent 13,000 militiamen (national army) to squash the rebellion Political Parties • Many competing views in early America led to creation of separate parties – groups with similar ideologies and political goals • Federalists – called for a strong central gov’t (Hamilton) • Democratic-Republicans – wanted strong state gov’t (Jefferson) – Theory of this party is called “Jeffersonian republicanism” Political Parties • Election of 1800 – 1st time P & VP had the same number of votes – tie-breaker • Election of 1824 – rift in the Republican party – “Jacksonians” accused another republican, Henry Clay, of helping the other party win (he was appointed Sec. of State by Adams); corruption scandal – Clay & his faction became the National Republican Party – Jackson & his faction became the Democratic Party • Spoils system = hiring supporters and friends to government positions • Presidents – Jefferson (pg. 75, 113-114) – Madison (pg. 114) – Monroe (pg. 116-117) – Jackson (pg. 123-126)