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Launching The Ship of State George Washington: The first President He wanted to use power to the fullest to ensure liberty and order in the new nation. 1789: 3 departments were created – Treasury Department, State Department, and a War Department. He had to choose these department heads – cabinet. Hamilton vs. Jefferson The Formation of political Parties Appointed to head the Treasury Department. Federalist: believed in a strong central government. Appointed to head the State Department Democratic– Republican: He believed in strong states rights. The National Debt Jefferson: He did not want the central, or national, government to pay off the debt. He believed that the individual states should pay their own share. The war was fought mainly in the north. Why should the southern states take on the northern states debt? Hamilton: He believed that the national debt must be paid off. He thought that if it was paid off then foreign countries would once again trade with America. He also believed that if the debt was paid off then Americans would invest in their own country. The Bank of the United States Hamilton: (Federalist party) He proposed the creation of the Bank of the United States. He thought that the government could deposit tax money into the bank. It could print paper money, called bank notes, to represent money they had on deposit. They could make loans to merchants and manufacturers, which might expand trade. Bank of the United States President Washington was not sure if he would pass the bill or not. He was not sure that the constitution gave him the right to create such a bank. Hamilton believed in a loose construction of the Constitution. He thought the government could create the bank because the constitution did not state they couldn’t. Jefferson opposed the Bank. He believed in a strict construction of the constitution. He thought that since the constitution did not state that they could create a bank then it can’t be created. President Washington chose to favor Hamilton’s plan and the Bank was created. French Revolution The citizens of France rebelled against the monarchy. However, extremists, or radicals, gained power in France. 1793: War broke out against England and France. Who should America favor? France or England. French Revolution Washington issued the neutrality Proclamation. He chose not to favor either side. France and England began to seize American ships. They ignored the Proclamation. Jay’s Treaty Jay’s treaty: This was a treaty with England. England agreed to withdraw troops along the western frontier and to improve trade relations. They also agreed to pay damages to ship owners whose vessels were seized. America agreed to pay off debts owed to British merchants before the Revolutionary War. Pinckney’s Treaty Relations with Spain were awful. Spain refused to recognize the border between Florida and New Orleans. They refused to let ships pass through New Orleans to the Gulf of Mexico. Spain was afraid that England and America made a secret alliance. So they tried to improve relations with America. Pinckney’s Treaty: 1795, Spain signed this treaty accepting the American version of the Florida boundary. It allowed American merchants to travel freely along the Mississippi River and to pass freely into the Gulf of Mexico. Whiskey Rebellion An excise tax on whiskey was passed by congress. Farmers must pay this tax. It angered farmers who used the surplus of rye and other grains to turn into into whiskey. They felt it was unfair to all the farmers. Farmers in Pennsylvania began to protest. They bullied tax collectors, tried to prevent courts from meeting and marched on Pittsburgh. Whiskey Rebellion Washington sent 13,000 troops, led by Hamilton, to stop the rebellion and enforce the new tax laws. The rioters disappeared. The Constitution worked! The President enforced the law. Election of 1796 Those who favored Hamilton’s financial policies took on the name of the Federalist Party. Those who opposed Hamilton and his ideas were known as the Democratic-Republican party. Hamilton was the obvious choice to run for President but he was not born in the U.S. So John Adams was chosen as the candidate for the Federalist party. Election of 1796 Jefferson ran as the Democratic- Republican candidate. Adams received 71 electoral votes. Jefferson received 68 electoral votes. Adams became the new President while Jefferson became the Vice-President. This election showed us that the way we elect the President and Vice President must be changed. The Problem with the French The French were extremely angry at Jay’s treaty. French warships continued to seize American ships and their cargo on the high seas. 1797: Adams tries to send three U.S. diplomats to meet with Frances foreign minister, Talleyrand. XYZ Affair X, Y, Z, Affair: However, when the diplomats arrived three secret agents met them instead of Talleyrand. They said that they would not be allowed to speak with Talleyrand unless they paid them a bribe ($250,000). In addition, they wanted America to make a large loan (10,000,000) and apologize for the harsh remarks about France that Adams had made. Alien and Sedition Acts In the summer of 1798 Congress passed the Alien and Sedition Acts. They were a series of laws aimed at foreigners and to silence critics of the Federalists. 1. Lengthened the time it took to become citizens. 2. Gave the President power to jail or to deport foreigners he considered dangerous to the peace of the Untied States. 3. It made it a crime to write, print, or publish statements discrediting the government, members of Congress, or the President. Alien and Sedition Acts They were passed to attempt to frighten the Republicans into silence. It allowed the press to attack Jefferson and protect Adams. Jefferson was furious. War or Peace? Adams: He wanted to be reelected in the 1800 election. If he could win the dispute with France he would guarantee himself reelection. 1799: He sent three new diplomats to France. Convention of 1800: Signed an official treaty with France agreeing to stop the threat of a fullfledged war. Most Federalists were furious because they wanted to go to war. This hurt his reelection chances. The Virginia and Kentucky Resolutions: These were statements written by Vice President Jefferson and Madison arguing that the government had overstepped its powers. It stated that the states gave the power to the Federal government. If Congress passed a law the Constitution did not give it the power to pass, any state could call that law unconstitutional. States Rights! The resolutions brought up the idea that states should control themselves. States Rights!!