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Chapter 9 Section 1 page 277 Hamilton’s Financial Plan – (a Federalist position) Steps to improve the nation’s finances 1. paying off all war debts 2. raising government revenues (through tariffs) 3. creating a national bank tariff – tax on imported goods purpose of tariffs=> 1. raises money for the government (ensures steady flow of income) 2. encourages people to buy American made products 3. encourages growth of American industry placed highest tariff on foreign goods such as shoes and textiles that America bought in great quantity – this would ensure a steady flow of income for the government – it would also encourage Americans to buy American made products – which would encourage growth of American manufacturing inaugurate – sworn in or inducted into public service in a formal ceremony (such as Washington as President) Congress decides to address George Washington, our first president, Mr. President precedent – example that would become standard practice (such as the Cabinet) Cabinet – heads of departments to help the President (his chief advisers) – they help him solve the challenges facing the new nation Secretary of War (Henry Knox) Oversee the nation’s defenses Secretary of State (Thomas Jefferson) Oversees relations between the United States and other countries Secretary of Treasury (Alexander Hamilton) Manages the government’s money Attorney General (Edmund Randolph) Advises government on legal matters (lawyer) Federal Judiciary Act of 1789 Established the federal court system (Supreme Court and lower federal courts) (John Jay – 1st Chief Justice of the Supreme Court) Capital Compromise – In exchange for southern support of the plan (paying off national debt) – Northerners agreed to place the new nation’s capital in the South – Jefferson agreed to Hamilton’s plan Location: on the Potomac River between Virginia and Maryland (Washington, D.C.) Alexander Hamilton (favors the following) (Federalist position) 1. government should encourage business and industry 2. rich merchants and manufacturing 3. strong national government National Bank (part of Hamilton’s financial plan) this would meet many needs: 1. 2. 3. gives the government a safe place to keep money would make loans to businesses and government ***most importantly, would issue bank notes – paper money to be used as currency Overall, Hamilton’s plan would strengthen the central government (this worries Jefferson and Madison) CONFLICT OVER HOW THE CONSTITUTION SHOULD BE INTERPRETED LEADS TO DEVELOPMENT OF POLITICAL PARTIES: Strict construction => narrow or strict interpretation (Thomas Jefferson and the Democratic-Republicans) grant only powers listed in the constitution Loose construction => broad or flexible interpretation (Alexander Hamilton and the Federalist Party) Allows Congress to use powers not specifically granted to it Federalists favor a strong court system (it makes central government stronger) (Elastic Clause: also know as the "necessary and proper" clause [Article I Section 8 #18] Clause really helped Hamilton : creation of national bank Ch 9 Sec 2 – page 282 Creating America note form Battle of Fallen Timbers – Little Turtle had earlier defeated federal troops, but thinking that the Northwest Territory was critical to the security and growth of the new nation, Washington sent in Anthony Wayne – Little Turtle urged the Native Americans to negotiate, but they refused..this led to the defeat of Native Americans led by Little Turtle at Fort Miami by American commander “Mad Anthony” Wayne Native Americans expected to get help from British, but did not get it. Treaty of Greenville – The Battle of Fallen Timbers crushed Native American hopes of keeping their land in the NW Territory. Twelve tribes signed this treaty in 1795 – they agreed to cede, or surrender, much of present-day Ohio and Indiana to the U.S.government (gave up land) French Revolution- financial crisis led the French people to rebel against their government, they demanded liberty and equality - at first Americans supported the revolution, however, the revolution became very bloody, extremists started the Reign of Terror and beheaded lots of people needlessly Neutral – not siding with one country or the other Jay’s Treaty – British agreed to pay damages for U.S. vessels they had seized, British agreed to leave the Ohio Valley by 1796……….the treaty however failed to open up the profitable British West Indies trade to Americans, therefore it was unpopular *Whiskey Rebellion – revolt by western Pennsylvania farmers against the whiskey tax (farmers used whiskey as “money” to get whatever supplied they needed – Washington was prepared to enforce the tax and crush the Whiskey Rebellion, they feared that not to act might undermine the new government and weaken its authority……….the revolt was put down very quickly => proving the government under the new constitution was very strong *Pinckney’s Treaty – helped reduce tensions along the frontier – a treaty with Spain gave Americans the right to travel freely on the Mississippi River, gave them the right to store goods at the port of New Orleans without paying customs duties, Spain accepted the 1st parallel as the northern boundary of Florida and the Southern boundary of the United States *Both Whiskey Rebellion and Pinckney’s Treaty have to do with farmers trying to get products to market. Chapter 9 Section 2 Terms and Names (defined or identified) see info above. 1. Battle of Fallen Timbers – 2000 Native Americans clashed with “Mad” Anthony Wayne at a site which was covered with trees that had been struck down by a storm – the Indians were defeated. This crushed their hopes of keeping their land in the Northwest Territory 2. Treaty of Greenville - this turned over much of present-day Ohio and Indiana (land in the Northwest Territory) from Native Americans to the United States government 3. Whiskey Rebellion - Western Pennsylvania farmers rose up against he United States government 4. French Revolution – result of a financial crisis which led the French people to rebel against their government demanding liberty and equality 5. Neutral – not siding with one country or the other 6. Jay’s Treaty – treaty which ended dispute with Britain over American shipping during the French Revolution…….British agreed to pay damages for U.S. vessels they had seized and they also agreed to leave the Ohio Valley (supposedly kept the British out of Ohio Valley) 7. Pinckney’s Treaty - treaty with Spain which gave Americans the right to travel freely on the Mississippi River and also the right to store goods at the port of New Orleans without paying customs duties 8. Little Turtle – Native American which led his people to defeat the United States in the Ohio Valley Ch 9 Section 3 page 287 1. foreign policy – relations with the governments of other countries … Washington’s parting advice on foreign policy: remain neutral and “steer clear of permanent alliances with any portion of the foreign world” He warned that agreements with foreign nations might work against US interests Americans wanted to support France in the French Revolution (they were our ally), but France is at war with Britain (our biggest trading partner) This puts U.S. in a difficult position. Domestic policy: relations with the states and its government – like the Whiskey Rebellion (citizens of Western Pennsylvania protesting the tax on whiskey) 2. political party – a group of people that tries to promote its ideas and influence government… it also backs candidates for office … 1st political parties: Democratic- Republicans and Federalists…………. John Adams is the most vote getter in the 1797 election. He will be president. He is our second president. He is a Federalist. Thomas Jefferson (a Democratic-Republican)is the runner-up (he was the second most vote getter) based on the Constitution top votes: president 2nd most votes: vice president…..this is all changed with an amendment where the vice president will be elected on a separate ballot. Democratic-Republicans Party – Jefferson and his supporters…… name reflected their strong belief in democracy and the republican system. Their ideas drew farmers and workers to the new party Federalist Party – Hamilton and his supporters ( Northern merchants and manufacturers) George Washington believed that political parties would split the nation. 3. XYZ Affair – 1797 incident in which French officials demanded a bribe from U.S. diplomats (people representing the interests of the United States) 4. Alien and Sedition Acts – acts passed by a Federalist Congress (John Adams 2nd president) in 1798 which targeted aliens – immigrants who were not yet citizens ……..one act increased the waiting period for becoming a US citizen from 5 to 14 years…other acts gave the president the power to arrest disloyal aliens or order them out of the country during wartime…a 4 th act outlawed sedition, saying or writing anything false or harmful about the government…..clamped down on Freedom of speech and the press (Jefferson and Madison wrote resolutions or statements passed by the Kentucky and Virginia legislatures – called the ………. Kentucky Resolutions => proposed nullification: the idea that a state could nullify (to make legally null and void) the federal law within the state (proposed by Jefferson) Virginia Resolutions => a state could interpose or place itself between the federal government and its citizens (proposed by Madison) These resolutions declared that the Alien and Sedition Acts violated the Constitution 5. States’ rights – in theory: states had rights that the federal government could not violate Jefferson and Madison use this theory (states’ rights) as the basis for the Kentucky Resolutions and Virginia Resolutions These resolutions would make the state governments stronger than the national government.