Chapter 9 - Launching the New Ship of State

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1789 - U.S. population 2x every 25 years!

1791 - Vermont becomes the 15th state!

President - George Washington

Vice-president - John Adams

1st cabinet: (unwritten constitution)

          Sec. of State - Thomas Jefferson

          Sec. of the Treasury - Alexander Hamilton

          Sec. of War - Henry Knox

Chart: page 151

Bill of Rights - Protect individual liberties against the central government

Amendment #10 - the "states' rights" amendment

1789 - Judiciary Act organized the Supreme Court with John Jay as its first Chief Justice

Hamilton's economic plan:

          1. Funding of the national debt - $54 million

          2. Assumption of the state debts - $21.1 million

*Designed to get the support of the wealthy class for the federal government

Logrolling > National capital on the Potomac River

          3. Debt to be paid by custom duties (tariffs) which made trade with England important

                    - Increased duties opposed by agriculture and the commercial classes

                    - Excise tax then passed on whiskey > Whiskey Rebellion!

          4. Bank of the United States

                    - Constitutional?

                    - Strict construction vs. loose construction

                                States rights vs. federal power

                                     Jefferson vs. Hamilton

                     - Emergence of political parties

Republicans vs. Federalists

Republicans - Party of the "loyal opposition"

Federalists:     Led by Alexander Hamilton

                      Rule by the "best people"

                      Strong central government

                      Govt. support for business

                      Pro-British

                      Law and order

Republicans:   Led by Thomas Jefferson

                      Sympathy for the common people

                      Weak central government

                      National debt should be paid

                      Govt. support for agriculture

                      Universal education

                      Pro-French

Evolution of political parties: chart on p. 161