3.

10 - Shaping a New Republic

● George Washigton
- Why is his presidency so important?
● Shapes expectations of all future presidents including how to address the
president and only serving 2 terms. Aso brought together the cabinet
● Cabinet: Secretaries of the Executive Department
- Was unanimously elected as the 1st president of the United States
- Was Washington part of a federal party?
● No, but he favored Federalists Initiatives
- Established executive departments each with a secretary
● Executive Department
- President = 1 man
- Several roles to fulfill
- Created presidential cabinet
- Creates:
● State Department: Incharge of foreign affairs. If GW wants to
make alliance with a country he would talk to his secretary
- Secretary of state Thomas Jefferson
● Treasury Department: In charge of currency
- Alexander Hamilton
● War Department: Militaries (now called DOD)
- Henry Knox
● Department of Justice: Enforces the law,
- Attorney: Edmund Randolph (who gave virginia plan)
- Basic function of executive branch: Enforce laws
- These 4 men (Jefferson, Hamilton, Henry Knox, Edmund Randolph)
made up GW cabinet, with whom he met everyday to discuss issues
related to their department
● Alexander Hamilton
- Served as GW secretary and had most influence on GW presidency
- Known for establishment of National Bank
● National Bank Overview
- Reasoning was that if a bank was established then it would unify states
and improve credit of the USA.
- His idea to improve U.S credit was to absorb each state's debts from the
Revolutionary War into a national debt.
● National Bank
- Center for banks
- Deposit federal funds
- Known as the Bank of the the United States
- National bank = BUS
- Becomes bank for banks.
- Federalist believed in modern economy and bank is center of model economy
- Place where federal government can place funds
 - Problem was an early constitution dilemma:
● “Thus shall create a bank of the United States” doesn't say that.
● Legal basics of creation of this bank was put into constitution (Article 1)
Anything legislative branch things in necessary they can legislate for.
● Elastic Clause (Necessary proper): If you believe it's necessary then you have
legal right to legislative for it
● Opponents:
- Anti-Federalist who thought states would lose power
- Thomas Jefferson led a fraction of plp in south who thought this would
only benefit the rich
- Jefferson agreed with Hamilton's plan but in exchange the National
Capital was placed in the south.
● National Capital: Washington DC is created. DC is on the border
of Maryland and Virginia but it was named after GW.
● Debt
- Hamilton's plan for debt:
● States were severely in debt. Federal government decided to free the states and
take in that burden through what is called ASSUMPTION
- What Hamilton wanted was a small manageable national debt. No taxes but bonds.
Basically I can buy a $10 bond and then wait 5 years and sell it for $13
- American plp would become the stakeholders in this. More specifically the rich and
powerful.
● Benefits = If rich and powerful have a stake in the government then they would
want the country to be successful b/c they want their money back
● New Revenue
- Sale of public land: Selling Western land (Northwest ordinance)
- Excise Tax: Sin tax (tax on things we shouldn't be doing. Ex. Whiskey)
- Tariffs: Tax on imports. #1 source of revenue

● Federal Court System

- Only court mentioned in the constitution is the supreme court
- Judiciary Act of 1789, which established a Supreme Court with one chief justice and five
associate justices.
● French Revolutionary War
- Nation of plp with no nation
- The French British war began at the end of the GW presidency b/c they trade with other
nations and french demands they only trade with them
- GW wants to stay neutral and has nothing to do with it.
● Foreign Affairs
- Jay's Treaty
● With britain. Britain decided to trade with the USA b/c they want
money and need guns for textilines.
 ● GW sent John Jay to Britain to deal with peace and keep
neutralization
- Pinckney's Treaty
● With Spain
● Allowed US to use New Orleans for trade along Mississippi river
- Nothing with french
- GW issued the Proclamation of Neutrality 1793
● Proclamation of Neutrality 1793
- Said US was going to go neutralized in the french revolution
- This angered Jefferson and he reigned from cabinet
● Citizen Genet
- As a result of that, France’s minister Edmond Genet broke all rules of diplomacy
appealing directly to the American plp to support french cause
- Even Jefferson approved of Washington's request to the French government that they
remove Genet. Recalled by his government, he decided to stay in the US where he
became a citizen later.
● Conflict with American Indians
- Conflicts began as westward expansion into the ohio river valley kept continuing
- There were rumors saying that the british were supplying arms to these indians and
encouraging them to attack westward moving Americans
- Begins the Battle of Timber Falls
● U.S army clashed with a confederacy of the American Indian tribes and defeated
them.
● Effect was the indian surrender of all lands in the ohio river valley (Treaty of
Greenville) which of course opened for the American Settlement
● Public Land Act: Orderly procedures for dividing and selling federal land at
moderate price
● Whiskey Rebellion
- Shays rebellion showed that AOC was bad
- Whiskeys rebellion: plp who were angry about whiskey taxes.GW gathers army and outs
of rebellion.
- What does shays and whiskey tell us?
● Shays showed flaws in government but whiskey showed the strength of the new
government in this constitution.
● Political Parties
- Federalist vs Anti-Federalist
- Federalist party: supported Hamilton's Financial program
- Democratic-Republican Party: opposed Hamilton's program
- Federalists
● Leaders: John Adams, Alexander Hamiltion
● View: Interpret loosely, Strong central government
● Foreign Policy: Pro-British
● Military: Large peacetime army and navy
● Economic Policy: Aid Business, create national bank, support high tariffs
 ● Supporters: Northern business owners, Large landowners
- Anti-Federalist
● Leaders: Thomas Jefferson, James Madison (changed from federalist to Anti)
● View: Interest strictly, Weak central government
● Foreign Policy: Pro-French
● Military: Small peacetime army and navy
● Economic Policy: Favor Agriculture, oppose national bank, oppose high tariffs
● Supporters: Skilled workers, small farmers, plantation owners
● Washington's Farewell Address
- Assisted by Alexander Hamiltion, GW wrote a farewell speech and published in
newspapers in late 1796
- Main Ideas:
● Do not get involved in European Affairs
● Do not make “permanent alliances” in foreign affairs
● Do not form political parties
● Do not fall into sectionalism
● John Adams Presidency
- 2nd president: Not very good; 1 term; Federalist
- Moved away from european affairs
- Significant Events
● XYZ Affair
● Alien and Sedition Acts
● Election of 1796
- Adams vs Jefferson
- Adams won by 3 electoral votes
- Adams was President; Jefferson was Vice president
- the 12th amendment gets rid of the policy that the lost candidate is vice president
(Imagine Biden being President and Trump being vice president…Uhh not good..)
● XYZ Affair
- French revolution was major issue presented to Adams during presidency
- Adams sent delegation to Paris to negotiate with French government
- French ministers, identified as XYZ requested bribes for entering negotiations
- Americans refused. Adams tried to keep it a secret to avoid another war but news leaked
- The French got lots of hate. The Democratic Republicans (Pro-French) drained down and
Federalist got lots of support and came up with Alien and Sedition Acts
● Alien and Sedition Acts
- Alien Acts
● Naturalized act, which increased from 5 to 14 years required for immigrants to
qualify as US citizens.
● All aimed at french immigrants living in USA

- Sedition Acts
● Made it crime to publish anything scandalous against the government will be
thrown in jail; Freedom of speech is disobeyed
 ● Americans react b/c this is what means of overreach. Backfires on Federalist
● They become increasingly unpopular
- Kentucky and virginia resolutions
● Power is drive from the states; Compat theory
● Argue that since power comes from the states, the states have the right to not
follow federal law
● Nullifying laws: States don't need to follow federal law, if they don't believe in it
● Dangerous about this theory: Federal government would have less power and
“state sovereignty’ could come back; States could simply choose not to follow
federal law
● As a reaction to aliena and sedection acts is argument used by southern states
over slavery, segretionist. This theory will be talked about by Martin John Luker.
Massive effect on state federal relationships
● Argument against Nullifying is simple; Federal law reigns supreme
● Nullification has never been allowed due to that
● In 1800, the war came to an end with french.

● Election of 1800
- Jeferson wins
- 12th amendment; Loser is not Vice President; Vice president will be elected
separately
- Judiciary Act of 1801
● Purpose: Strengthen federal position
● Before adams goes off office he hires Marshall as the chief of justice;
Served for 35 years
● John marshall was to the judicial branch as george washotn was to the
executive branch
● He sent the future to how everyone else should be