AP US History

• America has just constructed a new form of government under the Constitution• President?• Judiciary?• Bill of Rights?

• We have to be very cautious about our foreign relations we can not afford to go to war. We are still very weak and vulnerable.

• George Washington is drafted President in 1789

• REASON: • Trustworthy• War Hero• Aligned the North with South• Not like other Politicians• He didn’t want to be President• He establishes Cabinet (Not in Constitution)

• Washington will set the precedent for every President after himself

• Importance: W/O promise Constitution wouldn’t have been ratified most likely

• Purpose: Intended to protect individual liberties from a potentially tyrannically strong central government

• Consists of the first 10 Amendments of the Constitution

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Judiciary Act of 1789: Organized the Supreme Court w/ chief justice and five associate justices

• Set up Federal District Courts (13)

• Alexander Hamilton is a key member of the young government: “Father of National Debt/Modern Banking”

• GOAL: To correct economic problems that had cripple the Articles of Confederation• Report on Public Credit 1790

• PLAN: Shape gov financial policy to favor the wealthy, in turn they would lend the gov monetary/political support. Then the prosperity would flow down to the masses

• 1st Objective: to bolster the national credit

• Needed Congress to take on the entire national debt

• Funding Par: Meant Federal gov would pay back its debt at face value, plus interest ($54 Million at the time + $13 Million interest)

• Lack of Confidence from people, This will build TRUST in our nation

• Congress passes act in 1790

• 2nd Objective: Hamilton wanted Congress to assume state debts (Assumption) of $21.5 Million.

• Assumption: National debt would assume state debts

• Argument: b/c debt was incurred fighting for national independence it should be taken on by national government

• Thought: assumption would chain states more closely together (Support)

• Problem: States with large debt (EX: Mass) wanted this but states w/ small debt (EX: Virginia) didn’t

• Solution: Virginia would get federal district (now D.C) on the Potomac (Commerce/prestige) and Assumption would get passed through Congress.

• 3rd Objective: Create revenue to pay off debts

• How could the Federal government pay off debt?

• ANSWER: Customs duties and excise tax (on few domestic items)

• Interesting how they had just fought a war revolving around taxes but are now more then willing to implement tax to pay off debt much like Britain had tried to do.

• Hamilton saw the national debt as “National Blessing”• The more people gov owes the more people want it to

succeed. This will cause UNION ADHESIVNESS

• Customs Duties (Tariffs)• Tariffs depend on vigorous foreign trade to make money (critical

to Hamilton’s plan)

• 1st Tariff Law (1789): passed by Congress (8% on value of dutiable imports)• GOAL: Revenue, protect industry in its infancy

• Excise Tax (internal revenue 1791)• First was a tax on whiskey (7 cents/gallon): Paid by seller

-Challenged in 1794 by Whiskey Rebellion (Gov shows it will not put up with armed mobs)

• Problem: Whisky is a form of currency on the frontier

• 4th Objective: Bank of the United States (Capstone)

• Private institution in which gov is major stockholder and would deposit its surplus funds.

• POSITIVES:1. Strongbox for Federal Gov (Safe place for money)2. Federal Funds would stimulate business by being in

circulation3. Sound an stable national currency

Thomas Jefferson Alexander Hamilton

• The Bank becomes national Unity issue

• Support for the bank is rooted in the North with commerce/financial centers

• Opposition for the bank is located in the agricultural South

• Bank of United States is created by Congress in 1791 (20yr Charter)• Located in Philadelphia• $10 Million capital (1/5 owned by Federal Gov)• Stock sold out in 2hrs (support/faith)

• We see a lack of Unity in the “United” States• EX: Differing views on bank, Federalist/Anti-Federalists, etc.

• Hamilton’s Plan had stabilized national credit but all of his plans went against state rights which is still a well supported thought.

• Permanent: organized opposition begins to form (Founders didn’t expect this b/c it seemed disloyal)

• Democratic-Republican: (Jefferson/Madison; pro-French)• Federalists: (Hamilton; pro-British

• The two party system has survived since this time (1792)

• The Franco-American Alliance of 1778 is still in effect (lifetime): Britain/France at war• PROBLEM: Americans needed commerce from the British

so they can’t support the French.

• Dem-Rep say we owe France for our Freedom (pro-war)

• Federalists were against war (pro-British)• REASONS: our military is weak, economically unstable still,

Political disunity

• “strategy of delay” if new nation could stay out of European wars for a few decades it would be big enough (popu) and strong enough to be successful.

• Neutrality Proclamation (1793)• States America will officially be neutral in the conflict• Warned American citizens to be impartial towards both

armed camps

• RESULTS:• This proves that self-interest is the cement for

alliances

• Hamilton’s hopes for economic development depended on trade w/ Britain. War with them would ruin this plan

• The Jay Treaty (1794)• John Jay sent by Washington to avert war with Britain• Americans would have to make full compensation to

outstanding British debts.• Britain consented to pay damages for seizers of American

ships/impressment of American sailors.• British would take troops from American soil sometime

• Results:• Revitalized the Dem-Rep party. WHY?• Angered southern farmers b/c they had been trading

freely during the Neutrality Proclamation.

• Pinckney’s Treaty (1795): America-Spain

• Ends hostility on the Mississippi• Granted America the disputed lands of West Florida• Allows expansion

• KEY Points1.These treaties assured that America would stay

out of the European Wars2.These two treaties allow America to grow

economically

• Washington’s Legacy as President

1. Established solid central government (EX: Whiskey Rebellion)

2. West was expanding (Treaty of Greenville)

3. Merchant ships on seas (Commerce growing)

4. Kept Nation out of war = Foreign Policy!

• John Adams• Pro-British (NE)• Vice President Jefferson (Pro-French,

South)

• Bad News: • Adams has to follow Washington• Hamilton hates him• On the verge of war with France

• France is outraged by Jay’s Treaty with Britain. (WHY?)• France begins to seize American merchant ships (take goods)• Won’t accept America’s new envoy to France

• XYZ Affair• Adams sends 3 reps to France to negotiate lost American

goods and peace with France.• France wants bribe to talk but America refuses to

pay just talk ($250,000)• Congresses response:• Enforces embargo on French• War efforts pushed along (costs money)• Result: America is fighting an undeclared war with France

(1798-1800)

• Convention of 1800

• Napoleon Bonaparte becomes dictator of France• He wants to conquer Europe and rid himself of

American squabble

• RESULT:• Led to a Quasi War with France (undeclared)• France agreed to annul 22yr of marriage of (in)convience

w/ America• US had to pay damage claims to American shippers

• The anti-French Federalists under Adams try to restrict the power of pro-French immigrants and Dem-Rep party.

1. Naturalization Act: residence requirements raised from 5yrs to 14yrs to become citizen (Voter)

2. Alien Act: permits President to order the imprisonment or deportation of non-citizens (French) in time of hostilities.

3. Sedition Act: Prevents written attacks on Congress or President. Freedom of Speech and press taken away (1st Amendment)

• Kentucky Resolution (1798):

• Written by Thomas Jefferson • It voids the Alien and Sedition Acts and Naturalization Act.• Stated that States got to choose which laws to accept

• Virginia Resolution (1798)

• Written by James Madison• Stated if it is not written in the Constitution you do not have

to follow it as law. • States can nullify laws that oppose Constitutions • Nullification becomes a big issue in the future