Chapter 2-The New Republic
-Early problems for USA: $52 million debt from Confederation, no navy, army of 400 men, Spain closed Mississippi River to US trade, Britain kept forts in Great Lakes region

-George Washington chosen as first president, John Adams as VP
-Congress passed Judiciary Act to set up federal Courts, John Jay chosen as first Chief Justice of Supreme Court by Washington, who also chose the first Cabinet: Secretary of State Thomas Jefferson, Secretary of Treasury Alexander Hamilton, Secretary of War Henry Knox, Attorney General Edmund Randolph

-Hamiltons’s plan for the debt=high tariffs, Assumption of the US, fed. gov’t assume state debt, this plan opposed by Alexander Hamilton; fear that AH’s plan was bad for farmers & the South, led to first official political parties: Federalists vs. Democratic Republicans

-Jefferson (D-Rs) believed in a strict construction of the Constitution (the gov’t cannot do anything unless the law says it can), Hamilton (Feds) believed in a Loose construction (the gov’t can do anything unless the law says it cannot)

-Hamilton’s plan passed through Congress, concession to the South was moving the US capital from New York to Washington

- Whiskey Rebellion: Farmers in Western Pennsylvania resented tax on whiskey, intimidated and attacked tax collectors, reminiscent of pre-Revolutionary era, suppressed by 12,000 militia-men without much of a fight, controversy over using force (Feds. vs. D-Rs)

-How should US act in war between France & Britain in 1793? US too weak militarily to get involved, Feds were pro-British, D-Rs were pro-French, 90% of US imports came from Britain, Washington said US was neutral, but British seized US ships in Caribbean trading with French, Washington sent John Jay to negotiate with the British and Thomas Pinckney to negotiate with the Spanish

-Jay’s Treaty was supposed to pull British soldiers out of Great Lakes forts, US would pay off debts to British, but British still reserved the right to restrict US shipping, heavily opposed by D-Rs in Congress, treaty narrowly ratified.

-Pinckney's Treaty, gave American shipping rights on Mississippi River, right of deposit in New Orleans, established northern boundary of Florida (still Spanish territory)

-Washington had been re-elected in 1792, chose not to run in 1796 (no 22nd Am. yet), famous for writing his “Farewell Address”, warned Americans about the dangers of political parties (factions) and permanent Alliance

-John Adams (Fed) narrowly beat Jefferson (D-R) in 1796, Jefferson became VP

-1796-1798-French navy began seizing US merchant ships, led to XYZ Affair -US diplomats demanded to pay $250,000 just to talk, seen as a major insult, hurt view of French in US, also hurt D-R party (still pro-French), led to Federalist Congress starting a US Navy, fed. gov't had to raise taxes

-Federalist dominated Congress also passed the Alien & Sedition Acts: made it a crime to criticize the fed. gov’t, especially for immigrants (who typically favored D-Rs), used by Feds to silence opposition, in newspapers, truth was a valid defense, but burden of proof fell on the defense, major violation of 1st Amendment, but Federalists dominated the Supreme Court, and would not have declared the law unconstitutional

-Virginia & Kentucky Resolutions-written by Madison & Jefferson, proclaimed that the Alien & Sedition Acts were unconstitutional, further said that state could nullify (declare null and void) this or any other federal law that it considered unconstitutional

-1800-Adams (Fed) runs for re-election, Jefferson (D-R) wins, Aaron Burr becomes VP, called the “Revolution of 1800” because of the peaceful transfer of power, first of its kind in the world

-12th Amendment to US Constitution added before next election; as Jefferson & Burr had actually tied in votes; House of Representatives decided the outcome, opponents of Jefferson tried to sabotage the House