A New Nation

A Young Nation

• Under the Articles of Confederation, the United States was weak and divided.

• The Constitution created a stronger federal government

• The nation was still not fully united

• The first president of the United States needed to be a strong leader

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Washington to Lead

• George Washington was the first president 

• His qualifications included:

  • Hero of the Revolutionary War
  • President of the Constitutional Convention

• He was unanimously chosen by the Electoral College

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New Ground

“My station is new…, I walk on untrodden ground. There is scarcely any part of my conduct which many not hereafter be drawn into precedents” -George Washington in 1789

In the excerpt:

• Untrodden means new

• Scarcely means hardly

• Hereafter means in the future

• Drawn into precedent means used as an example

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Lesson Objectives:

• Explain Alexander Hamilton’s plan to help the new nation’s finances

• Describe the nation’s challenges in staying neutral in European affairs

• Contrast the political beliefs of the Federalists with the beliefs of the Jeffersonian Republicans

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Lesson Question: How did new challenges lead to divisions after America’s independence?

• Financing the War

• Staying Neutral

• New Political Parties

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The First Cabinet

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The Debt Problem

• The secretary of the treasury faced a serious problem

• The federal and states governments had borrowed money to pay for the Revolutionary War

• The federal government owed about $54 million in debt

• The state governments owed about $25 million in debt

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Economic Hard Times

The debt caused people to lose confidence in government

• The federal government had trouble borrowing money to pay its bills

• Each state was allowed to print its own money

• All the different types of money made trade difficult

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Alexander Hamilton (1757 - 1804)

• Served as first secretary of the treasury

• Was born in British West Indies but attended college in New York

• Became Washington’s aide during Revolutionary War

• Supported a strong national government

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Hamilton’s Debt Plan

Hamilton wanted the federal government to pay off all national and state debts

Take on state debts:

• This would increase the influence of the national government

Pay off all debts:

• This would show the world that the United States was economically strong.

Economic Health:

• This would encourage business leaders to support the US government

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A National Bank

Hamilton wanted to create a national bank

This bank could:

• Issue a national currency

• Loan money to federal government and to businesses

• Hold government money in a safe place

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Promote industry

Hamilton also wanted to increase support for US manufacturing

• He hoped this would improved the US economy 

• The plain failed

• Many Americans felt that farming was more important to their nation

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Thomas Jefferson (1743 - 1826)

• Was a statesman and leader from Virginia

• Was the author of the Declaration of Independence

• Disagreed with many of Hamilton’s plans and ideas

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Opposing Hamilton’s Plan

Jefferson and his supporters opposed some of Hamilton’s plans:

• Opposed a strong national government

• Felt that states without debt should not have to pay for others

• Supported farming over industry

• They failed to block the debt plan and bank, but they did stop his plans for promoting industry

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The Whiskey Rebellion

In 1794, farmers in Pennsylvania rebelled against a Hamilton tax on whiskey

• President Washington responded with force to put down the rebellion

• Jefferson disagreed with the show of government force

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Foreign Threats

The United States was a young, weak nation

• Relations with Great Britain and France were tense

• There countries were enemies and pressured the US to take sides

• Jefferson favored France, but Hamilton favored Great Britain

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Washington Stays Neutral

Washington wanted the United States to say neutral

• Hoped to keep the US from being drawn into foreign wars
• Helped to keep the US neutral when France and Britain went to war in 1793

As the United States grew stronger, this goal would be more difficult

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U.S. Neutrality and the Jay Treaty

Wars between France and Great Britain impacted the United States

• Both countries pressured the US to stop trading with their enemy

• Many Americans did not want to be neutral

• In 1794, Washington sent John Jay to negotiate the Jay Treaty with Great Britain

• It builds closer economic ties with Great Britain

• It caused more division in America

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The US, France and Britain Today

Today, the United States is strongly allied with both France and Great Britain

• This alliance led to all three nations fighting on the same side in World Wars I and II

• It became even stronger during the Cold War

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Jefferson’s Strict Construction Argument

Jefferson wanted to interpret the Constitution very specifically

Jefferson believe in strict construction:

• Government can only do what the Constitution specifically says it can do.
• These specific powers are called express powers

“The Constitution does not specifically give Congress the power to create this bank”

• For Jefferson, creating a national bank was unconstitutional

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Hamilton’s loose Construction Argument

Hamilton had a different interpretation of the Constitution

Hamilton believed in loose construction

• Government should have all the powers “necessary and proper” to carry out its duties.
• These are called implied powers

“The Federal government needs a national bank to carry out its duties.”

• For Hamilton, creating a national bank, was needed to help the federal government do its job

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The First Political Parties

Federalist Party: Formed by supporters of Hamilton

Democratic - Republican Party: Formed by supporters of Jefferson

= Divisions in government

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Federalists and Democratic - Republicans

Hamilton and Federalists:

• Thought the US should not take sides in Foreign wars
• Favored closer ties with Great Britain
• Supported a strong federal government that controlled the states
• Supported the national bank

Jefferson and Democratic - Republicans:

• Supported France and its revolution

• Supported states’ rights and smaller federal government

• Opposed the national bank and supported rural farmers

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Hostility on the Two Sides

• The two political parties were hostile toward each other 

• Mechants, bankers, and land owners tended to favor the Federalists.

• Farmers, new immigrants, and ordinary citizens tended to support the Democratic - Republicans

• Only respect for Washington kept the parties from full-scale attacks on each other

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Washington’s Farewell Address

• Washington gave a Farewell Address at the end of his presidency

• Warned against becoming entangled in foreign alliances

• Warned against phony patriotism

• Argued against the formation of political parties

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