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å È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 1 (continued) 1. What decisions were made by the First Congress during its first year that helped shape the future of the government? ÒÓ Ô Õ Ö Ú í ý Û Ú í Ø Ý The amount of money the government owed, called the à æ â ã ß à æ ê î è â, was increasing. Alexander Hamilton, the Secretary of the Treasury, proposed that the new government pay off the debt accumulated by the Confederation government. Many people were opposed to this because they were not sure how it could be done fairly, including Congress. Congress did agree to pay the debts owed to foreign countries. Southern states also were against Hamilton s plan because they had less accumulated debt than the Northern states. Hamilton agreed to locate the new nation s capital in the South between Virginia and Maryland in exchange for support for his plan. Washington, D.C., became a special district along the Potomac River. 2. Why did Southerners oppose Hamilton s plan to repay war debts? SS.D.2.3.3: Knows the various kinds of specialized institutions that exist in market economies. ÒÓ Ô Õ Ö Ú í Ú Ý Hamilton proposed three actions to help build a strong economy. He proposed creating a national bank, the Bank Madison and Jefferson believed that doing so would be ä à Þ ß à á â ã â ä â ã ß à æ ê because the creation of a national bank was not provided for under the terms of the Constitution. President Washington agreed with Hamilton and signed a bill that created a national bank. Hamilton also proposed collecting a tax, called a â æ é ã, on imported goods. He wanted to encourage the development of manufacturing. He also hoped to encourage people to buy goods made in the United States, instead of buying goods from other countries. Congress approved low tariffs to collect money but not to protect American industry. The American Journey 91

È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 1 (continued) Last, Hamilton proposed collecting federal taxes to pay for the operation of the federal government and to pay off the national debt. Congress approved different taxes, including a tax on whiskey made in the United Hamilton s proposals gave the federal government new powers. They also divided Congress and the nation. Many people, including Jefferson and Madison, were afraid of a strong national government with economic powers controlled by the rich and powerful at the expense of the average American. 3. Why did Southerners oppose many of Hamilton s proposals for building a strong economy? 92 The American Journey

ñ å È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 2 ß é ä á è ò ã â ó â è ô â ß ß õ ì æ ö è á ú ù ú EARLY CHALLENGES KEY TERMS neutrality Not taking sides in a conflict (page 265) impressment The act of forcing men into military service (page 265) DRAWING FROM EXPERIENCEII Have you ever been in a situation where two of your friends were arguing and you did not want to take a side? Why did you want to stay neutral, or stay out of the argument? In the last section, you read about how Washington and Congress established a cabinet of advisers and an economic plan for the new government. This section focuses on how the new government asserted its power in the West and tried to stay out of European conflicts. ORGANIZING YOUR THOUGHTSII Use the chart below to help you take notes as you read the summaries that follow. Think about how the new government struggled over control of the Northwest Territory. Challenges the New Government Faced Home Abroad 1. 2. 3. 1. 2. 3. The American Journey 93

È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 2 (continued) READ TO LEARNII ÒÓ Ô Õ Ö Ú í Ü Û Ú í Ý In July 1974, a large mob of people from western Pennsylvania rebelled and attacked the tax collectors who were trying to collect Hamilton s tax on whiskey. The farmers needed to make whiskey and other goods to trade for items they needed. They did not have the money to pay the tax or pay for the goods they needed. The tax made them angry because it affected their way of life. Washington sent an army to stop the Whiskey Rebellion. He wanted citizens to learn that there were peaceful ways to change the law. He was willing to use force as needed to prevent uprisings. The farmers rebellion ended when the army crossed the Appalachian Mountains. 1. Why did farmers rebel when Hamilton placed a tax on whiskey? ÒÓ Ô Õ Ö Ú í Ý SS.C.2.3.3: argument that all rights have limits and knows the criteria commonly used in determining when and why limits should be placed on rights. SS.B.1.3.3: Knows ways the social, political, and economic divisions of the United States have changed over time. Spain and Britain helped Native Americans keep Americans from settling between the Appalachian Mountains and the Mississippi River. The Native Americans believed that the United States had no authority over them. Washington signed treaties with Native American tribes. He was worried about foreign involvement in the Northwest Territory. There was fighting between American settlers who ignored the treaties and Native Americans over lands promised to them. Washington sent troops to the Northwest Territory in November 1791 to end the fighting. The American army was beaten by the Miami people, led by Little Turtle. The Miami people then formed an alliance with the Shawnee and Delaware tribes to protect their lands. Washington sent another army when Native Americans insisted that all settlers north of the Ohio River leave. The United States won the Battle of Fallen Timbers near present-day Toledo, Ohio. They defeated more than 1,000 Native Americans under Shawnee chief Blue Jacket. The Native Americans signed the Treaty of Greenville in 1795, giving up most of their lands in present-day Ohio. 2. How did the Treaty of Greenville end the problems Americans faced in the West? 94 The American Journey

È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 2 (continued) ÒÓ Ô Õ Ö Ú í ) Û Ú í í Ý When the French Revolution began in 1789, it reminded the Americans of their fight for independence. They were excited for the people of France who had helped them during the Revolutionary War. When Britain and France went to war in 1793, however, President Washington did not want to choose sides. Some Southerners sided with France, and many manufacturers and merchants sided with Britain. France wanted American volunteers to help them attack British ships. President Washington declared that French and British ships were not welcome in American ports. He also issued a Proclamation of 0 è ä â é æ ê ã â ", not allowing Americans to take sides and fight in the war. Ignoring Washington, a few hundred Americans signed up to help the French capture British ships and steal their cargoes. This ended once the ports were closed to France and Britain. Because America traded with the French, the British attacked American ships. The United States was angered by the attacks and because the British forced American men off merchant ships and into the British navy. This ã ç ì é è á á ç è à â and British involvement in the West led to increased tensions between the Britain and the United Washington sent John Jay, chief justice States, to Britain to work out a peaceful solution. Britain did not want to go to war with the United The United States and Britain signed Jay s Treaty. Britain agreed to leave American lands, pay for the ships they had damaged, and allow some American trade with British colonies in the Caribbean. Debts from before 1776 were also settled. The Treaty was unpopular with many Americans because it did not address impressment or British interference with American trade. Washington and the Senate debated the treaty but signed it to reach a peaceful settlement with Britain. The disagreements between Spain and the United States were settled in 1795, with the signing of Pinckney s Treaty. Spain knew that the United States and Britain could join together against Spain after Jay s Treaty was made. They wanted to protect their empire in North America. The treaty allowed Americans to travel on the Mississippi River and trade in New Orleans. 3. Why was Jay s Treaty unpopular? The American Journey 95

È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 2 (continued) ÒÓ Ô Õ Ö Ú í í Ý After serving two terms, Washington decided to retire to Mount Vernon. He worried that the development of political parties and foreign conflicts would threaten the United Washington s influence is still alive today. Presidents serve no more than two terms, a precedent set by Washington. Achieving peaceful solutions with other countries without resorting to military power unless absolutely necessary has become the foundation of the United States foreign policy. We continue to honor Washington s contributions by remembering his birthday each year. 4. What precedents set by Washington are still in effect today? 96 The American Journey

ñ å È É Ê Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Í É Î Ë Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ï Ð É Ñ Ñ Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Ì Study Guide: Chapter 8, Section 3 ß é ä á è ò ã â ó â è ô â ß ß õ ì æ ö è á ú ù ú ú THE FIRST POLITICAL PARTIES KEY TERMS partisan Favoring one side of an issue (page 268) implied powers caucus Powers that were not specifically mentioned in the Constitution (page 268) Meetings held by political parties to choose the party s candidates for office (page 269) alien Immigrants living in a country who are not citizens (page 271) sedition Activities aimed at weakening established government (page 271) nullify To cancel (page 271) states rights A theory in the Kentucky and Virginia Resolutions of 1788 and 1789, which said that a state could determine whether the federal government had gone beyond its constitutional powers (page 271) DRAWING FROM EXPERIENCEII Do you favor the viewpoints of a certain political party? Which political party do you favor? What political party viewpoints on particular issues do you favor? In the last section, you read about how the new government was trying to keep peace at home and avoid war abroad. This section focuses on how political parties got started and the positions they supported. ORGANIZING YOUR THOUGHTSII Use the chart below to help you take notes as you read the summaries that follow. Think about how different values led to the creation of the nation s first political parties. Political Party Federalists Democratic-Republicans Viewpoints SS.A.1.3.1: Understands how patterns, chronology, sequencing (including cause and effect), and the identification of historical periods are influenced by frames of reference. The American Journey 97

! " # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # $ % " # # # # # # # # # # # # # # # # # # # # & ' ( ( # # # # # # # # # # # # # # Study Guide: Chapter 8, Section 3 (continued) READ TO LEARNII )* +, -. / 0 1 2 / 1 3 4 Americans often had opposing views or opinions about different issues. People sided with leaders who supported their viewpoints. Most people supported one side of an issue, or were 5 6 7 8 9 : 6 ;. Political parties began to form by 1796. Many Americans, including George Washington, were not in favor of political parties. They believed that political parties would divide Americans rather than unite them. Two cabinet members, Hamilton and Jefferson, often supported different viewpoints on many issues. Washington, who warned others about the negative effects of political parties, usually shared Hamilton s viewpoints. Two political parties appeared by the mid-1790s. They had different beliefs about economic policy, foreign relations, the power of the federal government, and interpretations of the Constitution. Federalists supported the ideas of Alexander Hamilton. They believed in a strong federal government, supported Britain over France, and supported shipping and banking interests. They agreed with Hamilton that the federal government had 9 < 5 = 9 >? 5 @ A > 7 :, powers that were not directly stated in the Constitution. Federalists believed that representatives or elected officials made decisions for the people. They did not want people to become involved in politics. They believed that only educated men who owned property should hold public office. Federalists were supported by much of the Northeast, including New England, and wealthy plantation owners in the South. Democratic-Republicans, or Republicans, led by Thomas Jefferson, opposed Hamilton s ideas. They believed in limiting the power of the government, supported France over Britain, and opposed Hamilton s policies. They believed that the federal government had no power to take actions unless they were spelled out in the Constitution. They opposed a strong central government controlled by a wealthy few. They wanted ordinary people involved in the government. The Democratic-Republicans were supported by small farmers and urban workers of the Middle Atlantic states and the South. Both Hamilton and Jefferson resigned from their cabinet positions by 1793. B 6 C D C : > :, or meetings to choose each party s candidates, for the presidential election of 1796 were held. Vice President John Adams and Charles Pinckney were nominated by the Federalists for president and vice president. Thomas Jefferson and Aaron Burr were nominated by the Democratic-Republicans. Adams won the election with three more electoral votes than Jefferson. The United States had a Federalist president and a Democratic-Republican vice president. At the time, the Constitution gave the office of vice president to the person with the second-highest number of votes. SS.C.1.3.2: Understands major ideas about why government is necessary and the purposes government should serve. 98 The American Journey

! " # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # $ % " # # # # # # # # # # # # # # # # # # # # & ' ( ( # # # # # # # # # # # # # # Study Guide: Chapter 8, Section 3 (continued) 1. Why were political parties formed in the United States? )* +, -. / 1 3 2 / 1 / 4 When Adams became president, France was attacking American ships that were headed for Britain. France believed that the United States was trying to help Britain win the war. When Adams sent a group of people to France to discuss their concerns, the French foreign minister sent three agents instead of meeting with the Americans himself. The agents wanted the United States to loan money to France. Adams refused. Congress prepared for war by establishing a Navy Department, providing money to build warships, and building a larger army. George Washington came out of retirement and was appointed commanding general. French and American naval forces fought with each other between 1798 and 1780. Americans took control of more than 90 armed French ships. While they fought an undeclared war on the seas, many Republicans who supported France in the past were voted out of office. Americans also wondered whether immigrants who were living in the country but were not citizens would support the United States if it declared war with France. Federalists in Congress passed the Alien and Sedition Acts in 1798 for security reasons. These acts included provisions for : >? 9 8 9 @ ;, or activities that weaken the established government. Virginia and Kentucky believed these acts violated the Constitution. Madison and Jefferson wrote two resolutions, known as the Kentucky and Virginia Resolutions, which claimed that the Alien and Sedition Acts violated the Constitution. The resolutions included their belief in : 8 6 8 > : E 7 9 F G 8 :, where a state could decide if the federal government was operating within its constitutional powers. They claimed that states had the right to cancel, or ; C = = 9H I, federal laws within their states. Before the election of 1800, Federalists wanted President Adams to declare war with France to benefit them politically. Instead, Adams appointed a commission to find a peaceful solution for the difficulties with France. An agreement was reached with France in 1800, and the attacks on American ships stopped. Adams won peace with France, but lost the support of Hamilton and many Federalists. The division in the Federalist Party helped Jefferson in the election of 1800. 2. How did Madison and Jefferson respond to the Alien and Sedition Acts? SS.C.1.3.2: Understands major ideas about why government is necessary and the purposes government should serve. The American Journey 99