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Launching the New Republic

Launching the New Republic. Chapter 7 part I. What problems faced the new nation in 1789?. NC and RI still haven’t joined Union Indians restless in West Western Americans thinking secession Why? Spain closed New Orleans to trade Westerners wanted gov’t to fix this HUGE financial crisis

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Launching the New Republic

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  1. Launching the New Republic Chapter 7 part I

  2. What problems faced the new nation in 1789? • NC and RI still haven’t joined Union • Indians restless in West • Western Americans thinking secession • Why? • Spain closed New Orleans to trade • Westerners wanted gov’t to fix this • HUGE financial crisis • European affairs • Constitutional dilemmas

  3. Vague Constitution • In what ways was the Constitution vague? • Powers of executive branch • Role of judicial branch • Rights of people • What did people fear? • Too much executive power = despotism

  4. How were problems addressed? • How did Washington ease fears about “despotism?” • Used his powers lightly (only 2 vetoes) • Let Congress do most of political work • Dealt mainly w/ military affairs

  5. Washington’s Administration • Vice President • John Adams • Secretary of State: • Thomas Jefferson • Sec. of the Treasury • Alexander Hamilton • Secretary of War • Henry Knox • Attorney General • Edmund Randolph

  6. Judicial Branch • How was the judicial branch solidified? • Judiciary Act of 1789 • Congress sets up federal circuit and district courts in each state • Sets # of SC Justices at 6 • Includes a Chief Justice of SC • Who does GW appt. as 1st Chief Justice? • John Jay

  7. Freedoms & Liberties • How are people’s rights guaranteed? • Bill of Rights – who is main architect? • James Madison • What does it do? • Amendments 1-8 = personal liberties • Amend. 9-10 = reserves powers to people, states

  8. Native Americans • How did Washington deal w/ Indian Affairs? • In south and west – preserved Indian rights to lands • Treaty of New York – w/ Creek Indians, later renounced • In Ohio Valley – used military force vs. Indians allied w/ British (poor results) • Encouraged assimilation (usually failed)

  9. Western Settlers • Why were Americans in Tennessee, Kentucky, etc. thinking secession? • Spain had closed New Orleans to American merchants • Thought gov’t was doing nothing to fix problem • Spanish, French agents exploit sentiment, encourage dissent • How does gov’t deal w/ issue? • Admits TN, KY, VT as states • New Orleans reopened to trade

  10. Financial Crisis • What was Alexander Hamilton’s plan to deal w/ national debt ($54 million)? • Sell gov’t bonds & western lands to raise the $54 million – but DON’T pay off debt • Use revenue to pay off allies from war ($12 million) • Federal gov’t will pay off state debts ($25 million) • Pay off interest on remaining national debt – excise tax on whiskey, duties on imports • Nat’l debt now down to $42 million – make it a permanent debt. Why? - nat’l unity – would unite interests of gov’t and the “moneyed” class (bankers, creditors, etc)

  11. National Bank • Why did Hamilton favor a National Bank? • Safe place to deposit tax revenue • Make inexpensive loans to gov’t if needed • Issue paper currency • Authority to regulate state banks • Offer credit to general public

  12. Hamilton’s critics • Main Critics: • Jefferson, Madison • Criticisms of debt plan? • Punished states that had paid most of debt (especially South) • Rewarded speculators that had purchased gov’t securities (not the patriot soldiers that had earned them) – they would earn interest on them • Criticisms of Nat’l Bank? • Dangerous relationship b/w wealthy & gov’t • Could corrupt Congress • Possibly Unconstitutional

  13. Hamilton’s Legacy • Successful in creating National Bank • Credit plan successful – how did he get support? • Move capital to VA for Southern support • Promotion of industry influenced econ. Development of northeast • Caused much resentment in South, rural west (class issues) • Strengthened a permanent link between business and gov’t • Helped speed up development of parties • Helped cause Whiskey Rebellion – how? • Killed in a duel by a rival politician • Most evil American ever!!!

  14. European affairs • What was going on in Europe? • French Rev. • France at war w/ much of europe • Why did NE hate France? • NE very Protestant, France secular and Catholic • Most trade in North went to Britain • Why did South hate Britain? • Felt Britain encouraged slave rebellion

  15. Citizen Genet • Who was Genet? • What did he do?

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