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Section 1 The First President *Precedent: *cabinet: *national debt: *bond: *speculator: *unconstitutional: *tariff: with relief and enthusiasm. All that was needed was a leader to guide the new nation. The Nation s First President In 1789, George Washington took office as the first president in New York City, which was then the nation s capital. John Adams became Vice President. Many Americans were still worried that a new president may try to make himself King. They all trusted Washington however, and he gave up all of his military power. Washington was aware of the difficulties he faced. He knew that the precedents, or traditions he established as a president would set the future for the United States. Washington set up three new precedents or traditions. One precedent Washington established had to do with the way people addressed him. Vice President John Adam wanted to address Washington as your highness, the President of the United States. But in the end, Washington wanted to be addressed as Mr. President. In the second precedent Washington established (came up with) his cabinet members. Finally Washington established a two term limit (you can only be pres. twice) for the Executive office. President Washington Main Idea: President Washington and the new congress established the departments in the executive branch, set up the nations court system, and added the bill of rights to the constitution. Celebrations erupted (exploded) in the streets of Philadelphia, New York, Boston, and Charleston in 1789. News of the Constitution s ratification was greeted The First Congress In 1789 Congress established three executive departments: a Department of State to take charge of foreign affairs, a Department of Treasury to handle the nation s money, and a Department of War to manage the military. To fill positions, Washington chose prominent political figures or famous 1

political figures of the day. Thomas Jefferson became Secretary of State, Alexander Hamilton as secretary of Treasury, and Henry Knox as secretary of War. Together, all these me made up the advisors or cabinet members for Washington. Washington also appointed John Jay as Supreme Court Chief of Justice. left all the government economic (money) matters to his Secretary of Treasury, AlexanderHamilton. The new nation faced serious financial problems. The national debt-is the amount the national government owes-was growing. The Continental Congress had borrowed millions of dollars from the Netherlands, France, and the American citizens during the Revolutionary war. What was Hamilton s Plan In 1790, Alexander Hamilton, the Washington s First Cabinet Strengthening the Economy Main Idea: Alexander Hamilton, the secretary of treasury under Washington, worked to fix financial problems and strengthen the economy. Washington himself rarely (almost never) proposed laws, and he instead approved the bills that were presented to him. Washington really focused on foreign affairs and military matters. He Secretary of Treasury, proposed (offered an idea) that the federal government pay off all the debts they owed to foreign governments and the money owed to its citizens who fought during the Revolutionary War. Hamilton argued that these states had fought during the Revolution so they were owed money. Hamilton also argued that payment of state debts would give the citizens a 2

strong interest in the success of the federal government. Opposition to the Plan Congress agreed to pay the foreign countries back. However, the plan to repay it s citizens unleashed a storm of protests. At the beginning of the Revolutionary War, many American soldiers were promised a paycheck. The government issued these men bonds or paper notes promising to repay the money after a certain length of time(like an I.O.U.). While these men were waiting for their payment, they went ahead and sold their bonds to people called speculators for less money. Hamilton proposed that these bonds be paid off at their original value. Opponents (people against) believed that Hamilton s plan would make speculators rich. Compromise Results in a Capital To win support for his plan, Hamilton worked out a deal with Southern leaders. They voted for his plan to pay off the state debts, and in return he supported locating the nations s capital to the South. A special district was laid out between Virginia and Maryland along the Potomac River. This district became Washington D.C.. While workers prepared the new city for the federal government, the nation s capital was moved from New York to Philadelphia. The Fight Over the Bank Hamilton also asked congress to create a national bank. The bank could hold all the money collected from taxes. It could also lend money to citizens and businesses. James Madison and Thomas Jefferson did not like this idea. They believed it would give the wealthy (rich) people to much power over the federal The original bond owners felt betrayed by Hamilton. They had lost money when they sold their bonds to the speculators. Stronger opposition came from southern states which had accumulated much less debt than the northern states. Southern states complained that they would have to pay more than their share of money under Hamilton s plan. government. Jefferson charged the plan as being unconstitutional. Hamilton argued that although the Constitution did not specifically say that Congress could create a bank, Congress still had the power to do so. In the end the president agreed with Hamilton and the bill was passed. 3

What is a Tariff? Although most American s earned a living by farming, Hamilton thought the development of manufacturing would make America s economy stronger. He proposed a tariff or tax on imports, that would to encourage people to buy American goods. Hamilton also proposed to add other taxes. Opposition to the Tariff Many American s did not like the tax. The South especially since they did not have a manufacturing economy. Jefferson and Madison led strong opposition (were against) to Hamilton s economic program. Hamilton s new taxes favored merchants, bankers, and people getting rich on the debts of others. Jefferson was concerned over the farmers and laborers. Hamilton and Jefferson Under Alexander Hamilton s economic plan, the national government exercised new financial powers. Soon, however, more and more people stood against Hamilton s beliefs. The opposition to Hamilton came from Thomas Jefferson and once friend James Madison. Hamilton s policies (ideas) favored merchants, bankers, and speculators, his opponents spoke for the interest of farmers and laborers (workers). When Hamilton favored increasing the power of the federal government, Jefferson wanted to limit it. They had a very different vision of what America should become. Section 2 Early Challenges neutrality: not taking sides in any dispute impressment: British attacks on American ships. The Whiskey Rebellion Main Idea: Hamilton s taxes led to rebellion in western Pennsylvania and changed the way the government handled protesters. Far removed from the hustle and bustle of trade and shipping along the Atlantic coast, farmers on the western frontier lived quite differently. In fact, western ways seemed almost primitive to the travelers from the East. Life in the West Before there were canals or railroads, transporting or moving goods from western farms to eastern markets (where the goods are sold) was very expensive. Western farmers did not ship their grain east of the Appalachian Mountains because transporting the grain was expensive. A wagon load of whiskey was worth much more than a wagon load of grain, so western farmers distilled their grain into whiskey before they shipped it to market. Farmers also used whiskey to trade. Instead of money, they used whiskey to pay or buy things. The Tax Leads to Protest In 1791, both houses of congress placed a tax on whiskey to help pay the national debt. In 1794, a large mob armed with 4

swords, guns, and pitchforks attacked tax collectors and burned down buildings. This armed protests was called the Whiskey Rebellion. Unlike Shay s rebellion, this time the national government had the power to stop the protesters. Hamilton urged President Washington to send a large army to crush the rebels (protesters). Washington sent an army of 15,000 over the Appalachian Mountains only to find the mob had disbanded. Washington s actions sent a clear message to the American public, the government would use force to maintain order. Citizens must use constitutional means to change a law, not violence. Washington's actions also showed the strength of the new government under the new constitution. Struggle Over the West The British and the Spanish did not want the United States to acquire new territory (land) so they encouraged Native Americans to fight the American settlers to protect their land. Washington sent an army to restore order (bring peace). The Native Americans demanded that the Americans leave the land north of the Ohio River. At the Battle of Fallen Timbers American troops defeated the warriors of Shawnee Tribe Chief Blue Jacket. The native Americans surrendered most of their land in present day Ohio in the Treaty of Greenville. This treaty set the precedence with how the United States would deal with Native Americans. Problems with Europe Main Idea: President Washington wanted the nation to remain neutral in foreign affairs. Shortly after Washington was inaugurated in 1789, the French Revolution had begun. The American people cheered on the French, since the French had helped the Americans win their independence against Britain. By 1793, the French Revolution had turned extremely bloody. The leaders had executed the king and queen of France and thousands of French citizens. This violence was beginning to divide Americans. Washington Proclaims Neutrality By 1793, Britain and France were at war. Washington did not want to get involved, he wanted to keep his neutrality-not take sides in the conflict (problem). The French wanted help from Americans and they tried to recruit (gather) American 5

volunteers to attack British ships. Washington issued (announced) a Proclamation of Neutrality. It said that American citizens may not fight in the war and British and French warships may not enter American ports. The few Americans that volunteered to help the French were now attacking British ships. Outraged by the French attacks at sea, the British decided to begin capturing American ships and forcing the crew into the British navy, this was known as impressment. Infuriated, the Americans were getting very close to war with Great Britain. A Controversial Treaty Washington sent Chief Justice John Jay to try to find a peaceful solution to the problem with Britain. The British were willing to listen to Jay since it would only be harder to carry on a war with France. The British didn t want to stop trading with the U.S. as well. In Jay s treaty, (agreement/ contract) the British agreed to evacuate their forts on American soil (land), to pay for damages on the ships they had seized (stolen), and to allow some American ships to trade with British colonies in the Caribbean. Few Americans agreed with Jay s treaty. The disagreed because the treaty did not even mention the issue of impressment. Although Washington did not like the treaty either, he agreed to it to stop the issues with Britain. He sent the treaty to the senate who approved it after much debate (arguments). Washington s Farewell. In September 1796, after 7 years, Washington announced that he would not continue as president. Plagued with a variety of ailments (he was sick), the 64 year old president was looking forward to retirement. Washington felt troubled because of the divisions that were happening in American politics, and especially with the new political parties that were being established, which he felt were of great danger. Washington s farewell address (speech) was published in a Philadelphia newspaper. In it he attacked the evils of forming different political parties and entangling (involvement) in foreign affairs. He urged citizens to, Observe good faith and justice towards all nations...it is our true policy to steer clear of permanent alliances. Section 3 The First Political Parties 6

Content Vocabulary *Partisan: favoring one side of an issue. *implied powers: powers suggested but not directly stated in the Constitution. *caucus: meeting of members of a political party * alien: immigrant who is not a citizen but living in the United States. * sedition: activities aimed at weakening established government *Nullify: legally overturn *states rights: the rights that belong to the states and not to the federal government Hamilton and Washington s views were named Federalists. Federalists believed in a strong national government. Federalist admired (looked up to) Britain and did not trust France. Federalists supported banking and business. Strong Federalists support came from the northeastern states and even wealthy landowners in the south. Jefferson and Madison organized people who disagreed with Hamilton. Jefferson s political party was named the Republicans, or the Democratic- Republicans. Republicans supported France and opposed pro-british policies. Small farmers and city workers favored the Republicans. Opposing Views Main Idea: Americans began to take opposing sides on issues by the 1796, and as a result, two political parties emerged. Political Parties Emerge When Washington was president Thomas Jefferson and Alexander Hamilton were always arguing and often took opposing views. Washington usually supported Hamilton s views. As people s opinions changed, it divided the nation into two different political parties. People who supported Views on the Constitution Hamilton favored a loose interpretation of the United States Constitution. Jefferson and Madison followed the constitution very strictly. The People s Role s and Republicans disagreed on wether ordinary people could be trusted in government. The two parties disagreed on the role ordinary citizens should play in government. Federalists, like Hamilton believed that the public should not become involved in politics. People should elect honest, educated men who owned property to represent them and protect their rights. Hamilton said, the people are turbulent (disorderly) and changing; they seldom judge or determine right. Republicans, like Jefferson feared a strong central government controlled by only a few people. They believed that liberty depended on the participation of ordinary people. In a speech, Jefferson 7

said, I am not among those who fear the people. They, and not the rich, are our dependence (what we depend on) for continued freedom. Washington tried to get his two cabinet advisors to work out their differences. By 1793 Jefferson was so unhappy that he resigned (quit) as Secretary of State. In 1795, Hamilton resigned (quit) too as Secretary of Treasury. The rival political parties moved further apart. The Election of 1796 Jefferson finished second, winning 68 votes. According to the constitution, at that time, the person with the second highest number of electoral votes became vice president. Jefferson therefore became the new vice president. The new administration that took office on March 4, 1797, had a Federalist president and a Republican vice president. President John Adams Main Idea: John Adams dealt with many things in office, including a dispute (argument) with France, which led to a group of measures called the Alien and Sedition Acts. In the presidential election of 1796, candidates sought office for the first time as members of a political party. To prepare for the election, the Federalists and Republicans held meetings called caucuses. In one of these meetings, Federalist nominated (voted for) Vice President John Adams for President and Charles Pickney for Vice President. The Republicans nominated Thomas Jefferson for President and Aaron Burr for Vice President. Adams and Jefferson who had been good friends, now became rivals. s would win most of their votes from the North. The Republicans expected to carry the South. In the end, Adams received 71 electoral votes, winning the election. The year was 1797 and the second president of the United States, John Adams had served his country since before the election and spent most of his life in government. One of Massachusetts most active patriots, he later became ambassador to France and Great Britain. Under Washington he served as vice president for two terms. The XYZ Affair When Adams took office, the nation faced a crisis with France. At the time, France and Britain were at war with each other. The French viewed the treaty signed by John Jay as an American attempt to aid (help) Britain win the war. To punish the United States, French seized 8

(kidnapped)american ships that carried cargo (stuff) to Britain. Adams wanted to avoid war with France. In 1797 he sent delegates (representatives on Adams) to France to try and resolve (fix) the situation. The French foreign minister, Charles de Talleyrand, refused to meet with the Americans. Instead Talleyrand sent three agents (Adams referred to the three agents as XZY) to the United States who demanded a bribe and a loan for France from the Americans. Not a six pence, the Americans replied. Adams was furious. The president urged congress to go to war with France. The incident became known as the XYZ Affair. Undeclared War with France Congress responded to Adams request by strengthening the armed forces (army). Congress established a Navy in 1798 and set aside money for building warships. Congress also increased the size of the army and named George Washington Commanding General. Between 1798 and 1800, the United States and France clashed on a number of occasions, but war was never officially declared. Adams s representatives negotiated (worked out) an agreement with France in September 1800 that ensured (promised) peace. In the view of most Americans however, France had become an enemy. Alien and Sedition Acts Because there was a threat of war with France, and because France had now become America s enemy, people were becoming more suspicious of aliens- immigrants who were not citizens but were living in the U.S. Many Europeans who came to the United States in the 1790 s supported the ideas of the French Revolution. Some Americans questioned wether these aliens would remain loyal to the United States if war really was to begin with France. Federalists in Congress responded with strict laws to protect the nation s security. In 1798 Congress passed a group of measures (laws) known as the Alien and Sedition Acts. Sedition refers to activities aimed at weakening established government. Many Federalists believed that the laws would weaken the Republican Party but instead they hurt the Federalists. The law offended new immigrants and made them join the Republican party. The Republicans Respond For some Americans, fear of a strong central government abusing its powers was coming true. The Republicans looked to the states to keep and defend people s rights and liberties. Vice President Jefferson and James Madison drafted (wrote) a document protesting the laws passed against immigrants. The Virginia and Kentucky Resolutions of 1788 and 1789 claimed (said) that the Alien and Sedition Acts violated the Constitution. Jefferson also wanted each state to nullify or legally overturn (get rid of) federal laws that it considered unconstitutional. Jefferson believed that a state had the right to disobey any law passed by the Federal government if that law violated the rights of citizens. What Are States Rights? 9

The Kentucky and Virginia Resolutions affirmed (stated as a fact) the principle of states rights. The states had the right to assert (prove) their power to protect it s citizens rights. As the 10th amendment stated, powers not granted by the constitution are left to the states to decide. criticized the Kentucky and Virginia Resolution as a step toward the break-up of the union. They argued that if any state could nullify any federal law it considered unconstitutional, the power of the federal government would cease (stop). John Adams would certainly not win reelection. Hamilton and the rest of the Federalist turned their backs to their own president, John Adams. Adams peace resolution also split the Federalists. The way was prepared for Thomas Jefferson to again run for president in the election of 1800. Making Peace with France As the election of 1800 came closer, the Federalists found themselves under attack. They wanted Adams to step up the war with France. If war continued, they expected to win reelection (Adams would win the election again). The Federalists thought the Americans would not switch presidents in a time of war. Adams refused to rush to war, especially for the reason of winning reelection. Instead he appointed a committee to seek peace with France. Adams negotiated an agreement with France in September 1800 that ensured peace. 10