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Judiciary Act of 1789
Created the federal court system with a Supreme Court (John Jay as first Chief Justice + 5 associate justices), district, and circuit courts. It established judicial authority and strengthened the structure of the federal government by balancing state and national power, laying the foundation for the U.S. legal system. Created position of attorney general.
French Revolution (1789-1799)
The French people overthrew their monarchy, inspired by Enlightenment and American ideals. This deeply divided Americans—Federalists saw it as violent chaos, while Jeffersonian Republicans viewed it as a struggle for liberty. The split forced Washington to issue the Neutrality Proclamation to protect U.S. stability and avoid being drawn into the European war.
Neutrality Proclamation (1793)
Issued by George Washington declaring that the U.S. would stay neutral in the conflict between France and Britain. It protected the young nation's economy and unity but angered Jeffersonians who wanted to support France. The controversy led directly to the Citizen Genet Affair, where a French envoy tried to violate neutrality.
Jay's Treaty (1794)
Negotiated by John Jay between the U.S. and Britain to end disputes over trade and frontier forts. Britain agreed to leave its forts and pay for ship seizures(did not stop impressement), while the U.S. agreed to repay pre-Revolution debts. The treaty kept peace but angered France, who felt betrayed, leading to the XYZ Affair.
XYZ Affair (1797-1798)
French agents demanded bribes from American diplomats before peace negotiations. Americans refused, sparking outrage and the slogan "Millions for defense, but not one cent for tribute." This led to the undeclared Quasi-War with France and gave Federalists an excuse to pass the Alien & Sedition Acts to silence criticism.
Alien & Sedition Acts (1798)
a set of four laws passed by the Federalist-controlled U.S. Congress that raised the residency requirement for citizenship, gave the president the power to deport non-citizens, and made it a crime to criticize the government. -Led to Kentucky and Virginia resolutions
Kentucky & Virginia Resolutions (1798-1799)
Written by Jefferson and Madison in response to the Alien & Sedition Acts, claiming that states could nullify unconstitutional federal laws. This defended free speech and states' rights, and set a precedent for later conflicts over federal versus state power leading up to the Civil War.
Pinckney's Treaty (1795)
Agreement between the U.S. and Spain granting Americans navigation rights on the Mississippi River, the right to deposit goods at New Orleans, and a clear boundary with Florida. Spain agreed out of fear of a U.S.-British alliance after Jay's Treaty, and it strengthened western trade and security.
Treaty of Greenville (1795)
After General "Mad Anthony" Wayne's victory at the Battle of Fallen Timbers, Native tribes ceded most of Ohio and Indiana to the U.S. in exchange for payment and hunting rights. It ended frontier conflict, reduced British influence, and opened the Northwest Territory to American expansion.
Washington's Farewell Address (1796)
George Washington's final message to the nation warned against permanent foreign alliances and political parties. It promoted unity and isolationism, setting a foundation for early U.S. foreign policy and establishing the two-term presidential tradition. John Adams becomes President.
Alexander Hamilton
Federalist and first Secretary of the Treasury who built the U.S. financial system through debt assumption, excise taxes, and the creation of the Bank of the United States. His strong central government policies caused opposition from Jefferson and sparked the Whiskey Rebellion, testing federal authority.
Bank of the United States (1791)
George Washington accepted his idea and signed the bank into law with a capital of $10 million, and ⅕ of the capital owned by the federal government. The stock was put into open public sale and a large crowd ended up subscribing in less than a few hours, this gave the bank immediate capital and operations began quickly.Influence and impact
National currency:
The bank's banknotes provided the closest thing to a national currency at the time, as state-chartered banks could issue their own notes.
Economic influence:
Due to its large size and branches in major port cities, the bank's policies had a significant influence on the entire country's economy and lending practices.
Political debate and expiration
Constitutional controversy:
The bank's creation was controversial, with opponents like Thomas Jefferson arguing it was unconstitutional and created an elite, monopolistic institution.
Charter expiration:
The bank's charter expired in 1811, and the opposition from the Democratic-Republican party ultimately led to its failure to be renewed.