U3,T3: Creating a National Policy

Alexander Hamilton's financial plan

WHAT: Alexander Hamilton's actions as the first Secretary of the Treasury; consisted of establishing credit by paying of the national debt at par (at face value), borrowing more (especially from wealthy Americans), creating a national bank, and using tariffs and excise taxes to boost federal revenue.
WHY: Hamilton's short-term goals: establish the nation's financial stability, provide government support to the nation's financial interests, and encourage development of domestic industry; Hamilton's long-term goal was to make the U.S. a major commercial and military power.
WHEN: 1790s.
SO WHAT: most of Hamilton's ideas were put into place during the Washington administration, setting the foundations for the nation's economic development; opposition to Hamilton's plan contributed to the formation of the first major political parties.

Bank of the United States

WHAT: national bank which issued a uniform currency, made business loans, and collected tax monies.
WHO: proposed by Alexander Hamilton, first Secretary of the Treasury.
WHEN: chartered in 1791.
SO WHAT: debates over the constitutionality of the national bank led to the creation of the first political parties.

trickle-down economic theory

WHAT: an economic theory that states the economy will thrive by setting policy which benefits business owners; in turn benefiting all through the creation of new businesses, products, and jobs.

strict constructionist

WHAT: interpretation of the Constitution which uses the 10th Amendment to argue that powers not explicitly given to Congress by the Constitution are reserved to the states.
WHO: used by Democratic-Republicans (Jefferson & Madison).
SO WHAT: this interpretation of the Constitution limits the power of the federal government.

loose/broad constructionist

WHAT: interpretation of the Constitution which uses the "necessary and proper" clause (also known as the "elastic" clause) in the Constitution to argue that Congress may "stretch" it's powers in order to do what is "necessary and proper" to fulfill the powers enumerated to Congress in the Constitution.
WHO: used by Federalists (Hamilton).
SO WHAT: this interpretation of the Constitution increases the power of the federal government.

necessary & proper clause (aka Elastic Clause)

WHAT: clause in the Constitution which says Congress has the power "to make all Laws which shall be necessary and proper" for executing the powers of Congress enumerated (listed) in the Constitution. (a.k.a. elastic clause)
SO WHAT: used by broad constructionists to grant the federal government more power.

Federalist Party

WHAT: one of the first two national political parties; supported a strong central government, strong banking and trade, and closer ties with England than with France.
WHO: led by Alexander Hamilton, supported by George Washington and John Adams.
WHEN: lasted from the 1790s through the War of 1812.
SO WHAT: the fact that the Federalist Party was supported by the first two presidents meant that they set governmental precedents that would be followed by later generations.

Republican Party (a.k.a. Democratic-Republican Party)

WHAT: one of the first two national political parties; supported states' rights, agricultural interests, and closer ties with France than with England.
WHO: led by Thomas Jefferson and James Madison.
WHEN: lasted from the 1790s through the war of 1812, but began changing during the Era of Good Feelings.
SO WHAT: the first "opposition" party, the Republicans challenged policies enacted by the Washington and Adams administrations.

Neutrality Proclamation (1793)

WHAT: President George Washington's statement of U.S. neutrality in the wars between Britain and France.
SO WHAT: Washington effectively broke the alliance made by the U.S. and France during the American Revolution (which angered some Americans, contributing to the development of political parties); this action (combined with Washington's Farewell Address) also established a precedent of neutrality that the U.S. would follow until after WWII.

Jay's Treaty (1794)

WHAT: treaty with Britain in which Britain agreed to vacate forts in the Northwest Territories, but did not address American shipping concerns.
WHEN: 1794 (during the Washington administration).
SO WHAT: pro-France Americans accused the administration of aligning too closely with monarchical Britain rather than revolutionary France; contributed to the formation of the first political parties.

Pinckney's Treaty

WHAT: treaty with Spain which allowed the U.S. open transportation on the Mississippi River (owned by Spain at the time).
WHY: Spain noticed that Jay's Treaty was favorable to Britain and wanted to do something nice for the U.S. so the U.S. wouldn't think about teaming up with GB against Spain.
SO WHAT: trade on the Mississippi River was vital for U.S. economic development.

Whiskey Rebellion (1794)

WHAT: violent protest by western Pennsylvania farmers against the federal excise tax on whiskey.
WHEN: 1794 (during the Washington administration).
SO WHAT: Washington responded by marching troops into Pennsylvania; his response contributed to the division of political parties because Federalists supported his action as maintaining order, while Republicans argued he threatened civil liberties.

Farewell Address (1796)

WHAT: address to the nation from George Washington which was published in newspapers as he left the presidency.
SO WHAT: Washington set precedents as our first president - he stepped down after two terms, and in this address, he reminded the U.S. to remain free of permanent foreign alliances (which the U.S. did until after WWII).

XYZ Affair (1797)

WHAT: incident in which the French foreign minister's three anonymous agents (X, Y, and Z) demanded payments from American diplomats to stop French plundering of American ships.
WHEN: 1797 (during the Adams administration).
SO WHAT: American refusal to pay the bribe was followed by two years of undeclared war at sea with France (the quasi-war).

quasi-war (1797-1798)

WHAT: undeclared war between the U.S. and France.
WHY: deteriorating relations between the U.S. and France, as illustrated by the XYZ Affair.
WHEN: Adams's administration.
SO WHAT: the fighting angered Democratic-Republicans who began speaking/publishing attacks on the Federalist Adams administration, leading to the passage of the Alien & Sedition Acts.

Alien & Sedition Acts (1798)

WHAT: laws that limited the freedoms of speech and press and restricted the liberty of non-citizens.
WHEN: during the Quasi-War against the French.
WHO: passed by the Federalists under the Adams administration.
WHY: because Republicans were criticizing the Adams administrations actions against France.
SO WHAT: one of the first constitutional conflicts, these laws caused the drafting of the Virginia & Kentucky resolutions which introduced the idea of nullification; this is also an example of how civil liberties are often restricted during times of crisis/war.

Virginia & Kentucky Resolutions (1798-1799)

WHAT: resolutions passed by the Virginia and Kentucky legislatures which advocated states' rights, arguing that states could nullify federal law.
WHO: written by James Madison and Thomas Jefferson.
WHY: in response to the Alien & Sedition Acts.
WHEN: 1798-1799 (during the Adams administration).
SO WHAT: early example of the constitutional conflict between federal and state power.

nullification

WHAT: the concept that a state has the right to invalidate a federal law within its own state borders.
WHEN: first expounded in Thomas Jefferson's draft of the Kentucky resolution against the Alien and Sedition Acts.
SO WHAT: this principle would later be cited by South Carolina to resist the "Tariff of Abominations" (1832), by southern states to explain their secession from the Union (1861), and again by southern states to oppose the Brown v. Board decision (1954).

the "Revolution of 1800"

WHAT: first time that an American political party surrendered power to the opposition party; Jefferson, a Republican, had defeated incumbent Adams, a Federalist, in the presidential election.
WHEN: 1800.
SO WHAT: illustrated the first "peaceful transfer of power" which proved that political parties would not in fact ruin the American experiment.