Bellwork • After reading all four sections, are you a Jeffersonian or Hamiltonian? Explain your decision.
Institutions of Power • The first task of Congress was to give the President the bureaucracy to handle all of his jobs. • In the first Congress (1789) they created the Department of State, the Department of the Treasury, the Department of War, and the office of Attorney General.
Who were they? • Jefferson – Secretary of State • Hamilton – Treasury Department • General Knox – Secretary of War • Edmund Randolph – Attorney General
The Cabinet • Washington regularly met with these men to ask for their advice. • The department heads came known as the cabinet – a group of advisers to the president.
Bellwork • Get the American Spirit and review Hamilton’s notes on the National Bank. • Complete your box.
The Judicial Branch • Congress also organized the judicial branch. • In the Judiciary Act of 1789, Congress established 13 district courts, 3 courts of appeal, and the Supreme Court. • With the Senate’s consent, Washington chose the federal judges and named John Jay as the first chief justice of the Supreme Court.
The Bill of Rights • One of the most important acts of Congress was the introduction of the Bill of Rights.
Financing the Government • After the government was organized the next pressing issue was finding a source of revenue. • Madison and Hamilton submitted plans.
Madison’s Plan • Madison suggested that the federal government raise most of its money by taxing imports from other countries. • Congress passed the Tariff of 1789. This law required importers to pay a percentage of the value of their cargo when they landed in the US. • SHIPPERS also had to pay tonnage – a tax based on how much their ships carried.
Hamilton’s Plan • Hamilton agreed with and supported the tariff but he thought the government should have the ability to borrow money. • He asked Congress to “take on” the debt of the Confederation Congress. • The debt – to fund the Revolutionary War, we issued bonds (paper notes promising to repay money after a certain length of time)
Hamilton Continued • By 1789, the United States owed roughly $40 million to American citizens and $11.7 million to France, Spain and the Netherlands. • Hamilton thought that by taking on these debts at their full value, the wealthy creditors, bankers, and merchants who owned the bonds would have a stake in the federal government’s success. Plus they might loan money in the future.
Opposition to Hamilton's Plan • Madison was STRONGLY opposed to Hamilton’s plan. He thought it was unfair to the original purchasers of the bonds (farmers and war veterans, and widows). • These people sold their bonds to speculators (people willing to take a risk in hopes of future gain). Madison was mad that speculators who paid as little as $10.00 for a $100 bond would now receive full value.
Southern Concerns • Southerners were also ticked because Northerners owned most of the bonds, and Southern tax money would be used to pay them off. • Madison was worried that creditors would eventually dominate American society and endanger liberty. • Debate about the plan raged for months. In the end there was a compromise. The South agreed to the plan and the capital was moved from New York to the District of Columbia.
The Bank of the United States • Hamilton asked Congress to create a national bank. He thought the government needed the bank to manage its debts and interest payments. • The bank would also issue bank note – paper money, national currency. • The South opposed the plan. They feared Northern merchants would own most of the bank’s stock. • Madison argued the Congress could not establish a bank - it wasn’t an enumerated power.
Washington's Decision • Congress passed the bank bill. • President Washington now had to decide if he wanted to sign the bill or to veto it. • Attorney General Randolph, Secretary of State Jefferson (and of course Madison) opposed the bill. They didn’t think congress had the power to create a bank. • Hamilton argued “necessary and proper”. • (Art. 1, Sect. 8)
The Whiskey Rebellion • Hamilton also believed the federal government also HAD to establish its right to tax the people. • Hamilton talked Congress into imposing a tax on the production of whiskey. • The new tax ENRAGED Western farmers. Why?
Whiskey Rebellion • In the West: -they used whiskey as currency - the Spanish closed the Mississippi to shipping so farmers got their grain to market (across land) in stills. • The farmers immediately started complaining about the tax, in the summer of 1794 rebellion erupted. • In Pennsylvania, farmers terrorized tax collectors, stopped court proceedings, robbed the mail, and destroyed farms and still of compliant farmers.
Hamilton • Hamilton wanted to establish FIRMLY the authority of the federal government. • He talked President Washington into crushing the rebellion. So Washington shows up with 15,000 troops. The sight of the troops caused the rebels to disperse.
Political Parties • During Washington’s first term in office, the debate over the National Bank split the Congress into factions. These factions became the nation’s first political parties. • Hamilton’s peeps were the Federalists. • Madison and Jefferson’s posse were the Democratic Republicans.
Bellwork • Many historians believe that in order to gain the support of the South in 1790 for his controversial financial plans, Alexander Hamilton offered to a. Protect the importation of slaves beyond 1808 b. Amend the constitution to protect slavery in perpetuity c. Locate the national capital in Virginia d. Support the Virginia and Kentucky Resolutions e. Promote cotton growing through direct federal subsidies
Although Congress accepted most of Alexander Hamilton’s economic proposals, it rejected his • a. Report on the Public Credit • b. Call for direct subsidies to manufacturers • c. plans for a Bank of the United States • d. call for a whiskey tax • e. call for a tariff
Comparing the Two Parties Federalists: -National Gov. Supreme -Ruling power given to the wealthy and educated -Government should promote manufacturing -Loose interpretation of the Constitution -Protective tariffs to protect domestic industries Democratic – Republicans -State governments supreme -Ruling power given to all landowners -Government should promote agriculture -Strict interpretation of the Constitution -Protective tariffs burden farmers
Partisan Politics • Shortly after Washington was sworn in (1789) the French Revolution began. • For the most part, Americans sympathized with the revolutionaries in France. • However, radicals took control and executed the King and Queen, seized property, and declared war on Britain.
Partisans • The United States traded with both Britain and France. Because of our ties to both countries, we found ourselves embroiled in the European conflict.
Washington's Quagmire The Treaty of 1778 with France required the United States to help defend France’s colonies in the Caribbean. On April 22, 1793, Washington issued a proclamation declaring he United States to be “friendly and impartial” toward both warring parties. Despite our neutrality, the British navy began intercepting all neutral ships carrying goods to French ports.
Jay's Treaty • Washington sent John Jay to Britain to seek a solution . • The treaty was not great for the United States, but it did avoid war. • When word of the treaty reached the American people, the Republicans accused the Federalists of being pro-British. • The Spanish were worried the British and the Americans were allies. They feared conquest of their colonies in America. • They signed the Pinckney Treaty – allowing the US the right to navigate the Mississippi River.
Washington Leaves Office • His farewell address was widely published in newspapers. • He warned against dividing the country into North against South or East against West. • He warned against the power of political parties. • He warned against the US becoming • too attached to any foreign nation.
The Election of 1796 • The Federalists rallied around John Adams. • The Republicans nominated Thomas Jefferson. • Adams won 71 to 68.
Adams..trouble from the beginning • The French were upset about Jay’s Treaty – they began seizing American goods bound for Britain. • French actions caused people to call for war. Adams sent Pinckney, Gerry and Marshall to France to negotiate. • France insulted America by refusing to meet with them…unless we paid a bribe. This was called the X,Y,Z Affair. • Irate Americans called for war with France. • 1798 Congress suspended trade with France and told the Navy to capture French ships. • The two nations were soon fighting an undeclared war at sea - Quasi War.
The War Between Parties • At the height of French anger the Federalists pushed four laws through Congress. They became known as the Alien and Sedition Acts. • The first three laws were aimed at aliens – people living in the country who were not citizens. 1. The first required immigrants to wait 14 years before becoming citizens. 2 & 3 The next two laws gave the president the power to deport without trial any alien deemed dangerous to the US. 4.This law made it a federal crime to utter or print anything “false, scandalous, and malicious against the Federal Government.
The Virginia and Kentucky Resolutions • The Republican controlled legislatures of Kentucky and Virginia passed resolutions (written by Jefferson and Madison) criticizing the Alien and Sedition Acts. • The bills argues that since the states created the Constitution, they could declare federal laws unconstitutional. • The bills were based on two theories: interposition and nullification.
Jefferson in Office • Jefferson thought Washington and Adams had behaved like kings. He changed the style of the presidency. He acted more like a common man. • Jefferson hoped the limit the scope of government – he aid off the debt, cut government spending, and did away with the whiskey tax. Instead of a standing army, he planned to rely on local militia.
Marbury v. Madison • Before they left office, the Federalists passed the Judiciary Act of 1801. • The Judiciary Act created 16 new federal judges. Importantly, Adams appointed John Marshall as Chief Justice of the Supreme Court. Marshall is responsible for increasing the power of the court. • Marbury received an appointment as Justice of the Peace in Washington – as part of the midnight judges. The documents were not delivered. • The case established the idea of judicial review.