History 1301 Unit Two: Quiz Three

prof.: chad tomaselli @ grayson college

problems in new US left over from old country

problems in new US left over from old country

debt, mercantilism, interior security

the cabinet

created by washington; a group of people who run different things in executive branch

• not in constitution

Secretary of Treasury

handled money (taxes, tariffs, etc.)

• originally Alexander Hamilton

Secretary of State

handles states, foreign policy, everything else

• originally Thomas Jefferson

Secretary of War

oversaw daily military functions (president still over whole military)

Attorney General

handles enforcement of law

policies from First US Congress

1. tariff of 1789

2. judiciary act of 1789

tariff of 1789

established national gov.’s right to regulate trade and raise or lower taxes

• sig: tariffs used to raise money until great depression

Judiciary Act of 1789

created national tiered court system

• Supreme Courts → Circuit (Appeal) Courts → District Courts → State Courts

Chief Justice of Supreme Court

head of supreme court, calls session to order, has more say on appeals

Section 25 of Judiciary Act

establishes almost any act can appeal to SCOTUS

• money and civil cases can go but are rarely seen

• US is first country to do so

hamilton’s “Public Good and Elitism” philosophy

stated gov should not be selfish but should do things for the people, divided people into two groups:

• elites (rich, entrepreneurs, business owners, political figures)

• masses (everyone else)

elitist must be on board for social action or change will be very hard

debt in 1789

loans were at 15% of original value

• elites bought farmer’s loans while they were waiting for gov to repay them

Funding (in Hamilton’s Funding & Assumption Plan)

government bought every IOU at their original value with government bonds

• traded one big loan for the people’s little loans

• gov only paid interest off in beginning

Assumption (in Hamilton’s Funding & Assumption Plan)

national government assumed/took on state debt

problems and compromise in Funding & Assumption

Jefferson threatened to remove assumption but agreed if capital city was in south, he’d ignore it

Powers of First Bank of the US

1. print money/ issue currency

2. store money

3. make loans to businesses

4. control interest rates @ other banks

significance of First Bank of US

1. started debate over constitution interpretation

2. created financial stability

strict construction

believed government could only do what is specifically written in constitution and nothing else

• so national bank, cabinet, etc. were unconstitutional

loose construction

believed government should follow constitution but with reasonable room for interpretation

• pointed to “Necessary and Proper” clause of constitution

significance of strict vs loose construction argument

1. still argued over today but under different name

2. dynamic between those in power and choice of interpretation still exists

ideas of Federalist Political Party

1. hamiltonian economics

2. high tariffs

3. more taxes

4. favored Northern, Urban environment

5. preferred Britain as foreign partner

ideas of Democratic - Republican Party

1. jefferson’s economics

2. low tariffs

3. less taxes

4. favored southern, rural environment

5. preferred France as foreign partnerf

election of 1792

Washington had to be convinced to run again

• pres.: Washington

• VP: John Adams

Whiskey Rebellion (1794)

Hamilton taxed the production and sale of whiskey, farmers began to rebel, but stopped at when Washington sent volunteer army

3 significances of Whiskey Rebellion

1. established national government’s ability to deal with internal disturbances

2. set precedent of how gov. would treat rebellions (send army or nat. guard)

3. showed new gov. and const. could and would enforce the law

Northwest Indian War (1785-95)

large coalition of Natives banded together to fight further American colonization of West, led to discovery that british troops were violating treaty by still occupying Western US

• gave people reason to push for war

Jays Treaty (1794)

washington sent John Jay, who was not secretary of state, to prevent war with Britain:

1. british agreed to remove troops finally from US soil

2. brit. gave US favored nation status in regards to trade

3 outcomes of Jay’s Treaty

1. no promise from British to end impressment

2. everyone generally disliked treaty because it solved no issues

3. senate accepted treaty b/c only alternative was war w/ British

3 significances of Jay’s Treaty

1. did prevent war with british that US would’ve lost

2. first high criticism of washington as a president

3. step in formation/definition of political parties

Election of 1796

President: John Adams, Federalist

VP: Thomas Jefferson, Democratic Republican

• first election where party affiliation mattered

• Federalists controlled all 3 branches

XYZ Affair (1797)

set of latter between Adams and french ministers saying that in order to meet with Talleyrand:

1. US had to give french $10m dollar loan

2. US had to give personal gift to Talleyrand of $250k

Quasi War (1798-1800)

undeclared naval war between french and america

Convention of 1800

napolean, now ruling france, agreed with Adams to be friends/allies, promised free trade

origins of Alien and Sedition Acts

federalist party wanted to limit political influence of french immigrants and attack Democratic-Republican Party for anti-government press

Alien Friends Act

gave president power to deport any resident alien deemed dangerous to the safety and peace of US

• never used, expired 1800

Alien Enemies Act

immigrants from a nation at war with US could be deported w/out cause

• not used by Adams, but still exists today under different name in code of law

Sedition Act

criticizing federal government or president was a crime

• aimed at democratic-republican press, was used numerous times

significance of Alien and Sedition Acts

1. gave president powers not in constitution

2. issues/acts controversial then and still today

3. biggest negative on Adam’s legacy/presidency/career

Virginia and Kentucky Resolution (1798)

Thomas Jefferson and James Madison met with Southern and Southwest states secretly to interpret constitution as response to Alien and Sedition Acts

Compact Theory

in creating and ratifying constitution, states gave up power to national government and wrote out specific powers for national gov. → states have power to interpret constitution

Nullification

declares that states can nullify a law through lack of enforcement if they find it unconstitutional

• only worked if majority of states agreed

• did not officially repeal law but removed law’s power

contract theory

opposing constitutional interpretation theory to compact theory; people wrote and ratified constitution → courts interpret through judicial review

• favored by supreme court and national government

significances of Compact Theory and Nullification

1. despite being invalid, states kept trying (and failing) to use nullification

2. southern leaders based right to secede on compact theory