Transcript Economics - East Lycoming School District

The New Leaders
Chapter 5, Section 4
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On April 30, 1789, George Washington took the oath of office as
the first President of the United States.
– Washington’s inauguration, or official swearing-in ceremony,
was attended by thousands.
• Leading Federalist John Adams of
Massachusetts became Vice President.
Washington’s Cabinet
• Washington also selected a Cabinet, a group of federal
leaders who both advise the President and head national
agencies.
• Washington’s Cabinet included many prominent
Americans. He named Edmund Randolph of Virginia to the
post of Attorney General and kept Henry Knox as Secretary
of War. Thomas Jefferson was named Secretary of State
and Alexander Hamilton became Secretary of the Treasury.
Thomas Jefferson
Chapter 5, Section 4
Secretary of State Jefferson
• After serving several years as
ambassador to France, Thomas
Jefferson returned to the United
States in 1789. He quickly
became involved again in
domestic affairs, or the country’s
internal matters.
• In addition to being a politician,
Jefferson was a planter, writer,
and inventor. His interest in
architecture led him to build
several homes, including his
most famous, Monticello.
• Jefferson was not a strict
Federalist and later became one
of Washington’s harshest critics.
Alexander Hamilton
Treasury Secretary Hamilton
• Alexander Hamilton was
chosen to head the
government’s largest
department, the Department
of the Treasury.
• Hamilton had been an officer
in the Continental Army
during the Revolution, where
he had carried out important
military missions.
• In contrast to Jefferson,
Hamilton believed that
governmental power, properly
used, could accomplish great
things.
Washington’s Government
Chapter 5, Section 4
• Washington knew that during his first administration, or term
of office, he and his officials were establishing precedents for
how to govern. A precedent is an act or statement that
becomes an example, rule, or tradition to be followed.
• Washington worked to establish a tone of dignity in his
administration. The President held regular receptions for
government officials and was escorted by soldiers when he
traveled. Although he felt that such pomp was necessary to
command respect, others saw these activities as reminiscent
of a king and his court.
Washington Reelected
• In 1792, Washington won unanimous reelection.
His second term, however, became marked by
criticism and controversy
Planning a Capital City
Chapter 5, Section 4
The Need for a Capital City
• During Washington’s first year in
office, the government resided in
New York City.
• In 1790, the capital was moved to
Philadelphia while a new capital
could be planned and built.
• The Residence Act of 1790 specified
a 10-square-mile stretch of land on
the border between Maryland and
Virginia for the new capital. This
area, to be called the District of
Columbia, would be governed by
federal authorities, not by either
state.
Planning the District of Columbia
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African American mathematician
Benjamin Banneker helped
survey the city. French architect
Pierre-Charles L’Enfant
developed the city plan.
The District of Columbia, later
renamed Washington, District of
Columbia, was designed to echo
the beauty and structure of
European capital cities.
The federal government moved
there in 1800.
Today, Washington, D.C.,
remains the most visible legacy
of the Federalists’ belief in the
power and dignity of the new
government.
Hamilton’s Program
Chapter 6, Section 1
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As Treasury Secretary, Alexander Hamilton was responsible for
developing an economic program that would help repay the huge
debts incurred during the Revolution.
In 1790, Congress approved Hamilton’s plan to allow the federal
government to take responsibility for debts acquired by individual
states.
Southern states resisted this plan at first, since they did not want
to help pay back the loans owed by northern states. However,
Hamilton won southern support by promising to locate the
nation’s new capital in the South.
By assuming states’ debt, the federal government indirectly
increased its strength. Since creditors now had an interest in the
United States, not just individual states, they would help ensure
that the new nation did not collapse.
Hamilton’s Strategy and Opponents
Chapter 6, Section 1
Hamilton’s Strategy
• To raise money to pay off debts,
Congress created a tax on
whiskey and a tariff, or a tax on
imported goods.
• Rather than pay off all debt at
once, the United States paid
interest, an extra sum of money
that borrowers pay creditors in
return for loans.
• Hamilton believed in a loose
construction of the Constitution.
That is, he believed that the
government could take any
action that the Constitution did
not forbid.
Hamilton’s Opponents
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Many Americans disliked
Hamilton’s plan for the
national government to take
over state loans, viewing it as
interference in state affairs.
Many also disliked Hamilton’s
new taxes.
Secretary of State Thomas
Jefferson was particularly
opposed to Hamilton’s plans.
Jefferson favored a strict
construction of the
Constitution, believing that
the government should not
take any actions other than
those specifically called for in
the Constitution.
Foreign Policy Issues
Chapter 6, Section 1
The French Revolution
• The French Revolution sharply
divided Americans. Federalists
saw the French Revolution as a
democratic revolution gone
wrong. Supporters of Jefferson,
however, viewed it as an
extension of the American
Revolution.
• The political split grew more
intense in 1793, when the French
ambassador to the United States,
“Citizen” Edmond Genêt, tried to
convince private Americans to
fight with the French against the
British.
American Neutrality
The United States did not want to offend either
nation in the war between Britain and France.
• President Washington issued a proclamation of
neutrality in 1793, stating that the United States
would remain neutral, or not take either side. This
would not be easy.
Jay’s Treaty
• In 1794, Washington sent Chief Justice John Jay to Britain
to negotiate an agreement with the British. The agreement,
which became known as Jay’s Treaty, was highly
controversial in the United States because it contained no
protection for American shipping.
– Britain promised to leave western territory
– Promised to pay back shipping losses
– U.S. agreed to pay back pre-revolution debt
• South not happy
Consequences of Jay’s Treaty
• Washington Administration loses popularity
• Spanish assume the U.S. is moving closer to the
British
– Sign Pinckney Treaty, giving the U.S. disputed
territory in Florida, and access to the Mississippi
River
– France also assumes we are moving closer to the
British
The Whiskey Rebellion
Chapter 6, Section 1
•
In western Pennsylvania and other frontier areas, many people
refused to pay the new tax on whiskey.
– In addition to being a popular beverage, whiskey was one of
the only products made out of corn that farmers could
transport to market without having it spoil.
• Sometimes even used it as currency
• The resulting Whiskey Rebellion followed in the
tradition of Shays’ Rebellion and protests against
the Stamp Act. Rebels closed courts and
attacked tax collectors.
• President Washington and Secretary Hamilton
saw the Whiskey Rebellion as an opportunity to
demonstrate the power of the United States
government. An army sent to the Pittsburgh area
soon dissolved the rebellion, demonstrating the
United States’ commitment to enforcing its laws.
Political Parties Emerge
Chapter 6, Section 1
The Jeffersonian Republicans
• Two political parties began to
emerge in the new nation. A
political party is a group of
people who seek to win elections
and hold public office in order to
shape government policy and
programs.
• The Federalists formed one of
these parties. The other,
composed of critics of the
Federalists, were called
Republicans or DemocraticRepublicans because they stood
for a more democratic republic.
To avoid confusion, historians
call them the Jeffersonian
Republicans.
The Election of 1796
• President Washington chose not to run for a third
term in 1796.
– With the nation politically divided, the election
of 1796 was close.
• The Federalists won a narrow victory,
making John Adams the second President.
- Jefferson, who finished second in the
electoral vote race, became the new
Vice President.
• In his Farewell Address of 1796, Washington drew on his
years of experience and offered advice for the young nation
in the years ahead. He warned against competing political
parties and advocated a foreign policy of neutrality.