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Unit 2
THE YOUNG REPUBLIC
Chapter 4 Section 1
FEDERALISTS AND REPUBLICANS
1789-1816
Creating a New Government
 George Washington had to take the new
constitution and turn it into a decent
government
 Cabinet – group of advisors to the President
 Secretary of State – Thomas Jefferson
 Secretary of the Treasury – Alexander Hamilton
 Secretary of War – Henry Knox
 Judiciary Act of 1789
 13 District Courts, 3 Court of Appeals, Supreme Court
 Chief Justice of the Supreme Court – John Jay
Creating a New Government
 The Bill of Rights
 James Madison was firm in wanting a Bill of Rights
 Congress agreed on 12 Amendments and sent
them to be ratified by the states
 10 were approved by the states
 1 – 8 amendments – protect the rights of individuals
 9 – 10 amendments – set limits on the powers of the
new national government
Creating a New Government
 Who’s going to pay for this new government??
 Financing the new government
 Tariff of 1789 – James Madison’s Idea
 Required importers to pay a percentage of the value of
their cargo when they came to the US
 Shippers had to pay a tonnage requirement
 Who hates this tariff?????
 SOUTHERNERS – High tonnage rates = more expensive
shipping tobacco and rice to Europe
 Also the imported goods that the South NEEDED would cost
a lot more
Creating a New Government
 Financing the Government
 Hamilton’s Economic Plan
 Supported the Tariff of 1789 but he believed the
government should have the ability to borrow
money
 During the Revolutionary War the government had
issued bonds
 By 1789 the US owed $40 million to American Citizens,
$11.7 million to France, Spain and the Netherlands
 Bonds had fallen in value to 10 cents on the dollar
 Hamilton wanted the Bonds paid at full value
Creating a New Government
 Does everybody like Hamilton’s Plan?????
 Opposition to Hamilton’s Plan
 Madison and Southerners were upset because
Northerners owned most of the bonds – the tax
money used to pay off the bonds would come
from the South
 Compromise is in Sight!!
 If the South would vote for Hamilton’s Plan then the
United States’ capital would be moved from New
York to a place along the Potomac River and it would
be called the District of Columbia
Creating a New Government
 The Bank of the United States
 Hamilton’s Idea
 Said the US needed a bank to manage its debts and
interest payments
 Bank would also issue paper money – provide a
national currency
 South does not like the idea of a bank
 Said the North would own most of the bank’s stocks
 Madison disagrees with the bank as well but for a
different reason
Creating a New Government
 The Bank of the United States
 Enumerated Powers
 Power that is specifically mentioned in the Constitution
 Madison objected to the bank because of this
 Implied Powers
 Power that is not listed in the Constitution but is necessary
for the government to do it’s job
 Congress agreed to the bank
 Hamilton pointed out Article I, Section 8 of the Constitution
which gave the federal government the power ‘to make all
laws which shall be necessary and proper to execute its
responsibilities
 Bank of the United States was created with a 20 year
charter
Creating a New Government
 The Whiskey Rebellion
 Congress imposed a tax on the manufacture of
Whiskey
 Pennsylvania farmers and whiskey manufactures
were MAD!!!!
 Farmers terrorized tax collectors, stopped court
proceedings, and robbed the mail
 Washington sent 15,000 troops to stop the
rebellion and the rebels gave up the rebellion
without a fight
The Rise of Political
Parties
 Because of Hamilton’s financial plan Congress
became divided based on their view of the
federal government’s role
 Federalists – Supported Hamilton (Federal)
 Democratic-Republican (called Republicans in
their day) (Modern Day Democrats) –
Supported Madison and Jefferson
The Rise of Political
Parties
 Hamilton and the Federalists
 Hamilton favored a strong federal government
 Believed that democracy was dangerous to liberty
 Believed manufacturing and trade were the basis
of national wealth and power
 Favored artisans, merchants, manufacturers, and
bankers
 Who was left out of this Party??
The Rise of the Political
Parties
 Jefferson and the Republicans
 Thomas Jefferson emerged as the leader
 Believed that the strength of the United States
was independent farmers – Agrarianism (Ag)
 Believed the wealthy would corrupt the
government and threaten the rights and liberty of
ordinary people
 Stood for the rights of states against the federal
government
The Rise of Political
Parties
 The two political parties dived the country
regionally
 Republicans – Rural South and West
 Federalists - Northeast