APUSH Unit 3 - 214-219

Executive Departments

1. Department of State: Thomas Jefferson (Foreign Affairs)

2. Sectary of Treasury: Alexander Hamilton (Finance)

3. Secretary of War: Henry Knox

• All assisted President George Washington

Judiciary Act of 1789

An act that established a federal district court in each state and three circuit courts to hear appeals from the districts

• supreme, circuit, and district courts

What was the significance of the Judiciary Act?

established the federal court system separate from individual state courts

• Fufilled Article III of the Constitution

• Ensures judicial independence and vests judicial power in one court

The Bill of Rights

10 amendments protecting fundamental natural rights provided by James Madison that were ratified by the states in 1791.

• Erased the fears of the anti-federalists

• Secured the legitimacy of the constitution

Hamilton’s Economic Program

Hamilton wished to promote economic growth, strengthen the new nation’s finances, and give financial interests such as Eastern merchants a stake in the new government.

• Proposed to establish a national bank and assume state debts incurred during the Revolutionary War

• Goal: Enhance national authority and assist finacers and merchants

Hamilton’s Economic Program: Redemption

The part of Hamilton’s financial plan involved paying off all Revolutionary War debts at face value to establish a national credit

• Fueled by federal revenue from tariffs on imports and an excise tax on whiskey

What was the goal of Hamilton’s redemption plan?

To stimulate the economy by concentrating capital in the hands of investors

• would create a stable financial system and foster a national market.

Hamilton’s Economic Program: Assumption

The part of Hamilton’s plan that involved the federal government taking $25 million in the remaining Revolutionary War debts from individual states.

• Stabilized the new nation’s economy and build national credit

• Strengthen central authority

The Bank of the U.S. (1790)

A jointly owned bank by private stockholders

• Provided stability through loans

• Handled governments funds

• Issued bills of credit

Consequences of Hamilton’s financial plans

Hamilton’s plan split the federalists into two halves; feds and democratic Republicans

• Also paid down the national debt

Jefferson’s Agricultural Vision

Wished to form an economy based primarily on agriculture where independent, land-owning yeoman farmers formed the backbone of a democratic society

• The French Revolution disrupted European markets, which led to dependency on the United States to supply materials like grain and meat

• Pursued westward expansion

Elastic Clause

Empowers Congress to create laws deemed necessary and proper for executing its enumerated powers.

• Concept was used by Hamilton to defend the creation of a BUS

• Eventually won support, and thus the bank was ratified

• Jefferson held a “strict” interpretation of the constitution while Hamilton held a “loose” one

What did Hamilton propose in his financial plan?

1. BUS

2. Excise Tax (Whiskey; which was consumed by common folk)

3. Funding at par (to pay money back given from other countries at a good rate in return for good interest—wealthy made sure the U.S. was successful)

4. Assumption of State Debts (Made the Fed. Gov. more powerful; Southern states were conflicted as they had already paid their debts)

5. Tariffs (To encourage manufacturing in the home country—only tax imports, not exports)