Download Launching The Ship of State

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!!