Ch 4

• Judiciary Act 1789– Established 13 federal district courts and 3 circuit

courts

Debt

• Bonds- paper notes that citizens would get if they loaned the United States Money during the Revolution– Original Owner– Speculator

40 million owed to regular citizens and $11.7 million to France, Spain and Netherlands.

• Andrew Jackson wanted to pay back the speculators.

• Thomas Jefferson and James Madison wanted to pay back the original owner of bonds. To get Jefferson and Madison to agree with Hamilton’s plan Hamilton agreed to move the Capital of the U.S. from New York to an area along the Potomac river in Virginia ( became Washington D.C)

National Bank

• Alexander Hamilton wants a National Bank – Make loans to government and private citizens– Issue PAPER MONEY which would stimulate trade,

investments and economic growth.

– Thomas Jefferson and many Anti-Federalist did not like the idea. Gave federal govt to much control and gave the private investor( that bought stock in bank- generally northerners- to much control of the bank and the economy)

Also

• Jefferson said Hamilton had no Constitutional right to set up the bank. The “enumerated” powers of the Constitution did not give explicit powers to set up a bank

• Hamilton said the powers were “Implied” by the use of the “necessary and proper”clause

• As a result of the divisions created by the issue of repayment of bonds and the issue over the National Bank created political parties.

• Federalist party :Alexander Hamilton and those that favored a strong federal government

• Democrat- Republicans: Thomas Jefferson and those in favor of a small government.

• John Jay’s treaty-– France declares war on Britain in 1793. Both sides

wanted the U.S to chose sides. We didn’t want to. – Britain began seizing U.S. ships that were shipping

goods to the French for trade.

George Washington sent John Jay to Britain to attempt to settle the dispute

Jay’s Treaty

• British refused to stop seizing U.S. ships because they knew we depended heavily on trade with the British.

• They agreed to create an international trade commission to hear merchant complaints

• The British insisted on creating a commission that would hear the complaints of the British that wanted repayment of their revolutionary war debts from U.S

• They did give the U.S. “favored status” which meant that we could keep trading with Britain

Pickney’s Treaty

• Thomas Pickney’s TreatySpain joined French in battle with British.

Spain feared (after Jay’s treaty) that the U.S. was joining Britain in the war. Spain controlled Florida and the territory west of the Mississippi River. Spain feared that together the U.S. and Britain would attempt to seize its North American land holdings. So, Spain wanted to negotiate with the U.S.

Pinckney’s Treaty

• Spain agreed to allow U.S rights to use the Mississippi river and to trade in the Port of New Orleans and established the northern border of Florida as the 31st parallel.

Washington’s Farewell Address

• September 19, 1796• NO POLITICAL PARTIES• NO POLITICAL ALLIANCES WITH FOREIGN

COUNTRIES

Election of 1796

• Federalist nominated John Adams• Democrat-Republicans nominated Thomas

Jefferson.

Adams won

• President Adams had to deal with the French aggression against the U.S. after Jay’s treaty. the French start seizing our ships now.– Many Federalists wanted to declare war against

the French.

We began seizing the French ships. Became known as the Quazi War.

• Federalist – Alien and Sedition Acts.• People living the country that were not citizens could

not become citizens for 14 years. (many were from France and Britain and generally supported the democrat-republicans)• The President could deport them without a trial• It became a federal crime to speak or print anything

bad about the government or federal official

• Because of the bad decisions by Federalist- Thomas Jefferson won the election of 1800 and Adams was not re-elected

Jefferson’s Presidency

• Jefferson wanted to lessen the control the federal government had.– The Federalist and Adams( during his term as

President)Passed the Judiciary Act of 1801( just before Adams was leaving office). This act created 16 new federal judgeships. Adams filled them full of federalist in the hopes to block anything Jefferson tried to do.

• One of Jefferson’s first acts was to repeal the Judiciary Act of 1801. But he couldn’t Constitutionally remove the judges but…– William Marbury was one of the Judges elected by

Adams to be a justice of the peace but had not yet been sworn in by Adams before Adams left office. Jefferson instructed James Madison( who was now Secretary of State) to not swear Marbury in. Therefore, his judgeship would be void. Marbury Sued

Marbury V Madison

• Marbury’s case went to the Supreme Court.– Supreme court ruled in favor of Madison( even

though the majority of the judges were Federalist) They said that Marbury should have been given his judgeship BUT- the Supreme Court has no Constitutional right to rule on cases like this based on the Judiciary Act of 1789 being very specific about the fact that it was unconstitutional for them to issue writs. This est. idea of JUDICIAL REVIEW

Judicial Review

• The power by the Supreme Court to determine if laws passed by Congress are Constitutional and if not strike them down. This gave the Supreme Court a lot of power

Louisiana Purchase

• 1803 Napolean the Emperor of France was wanting to conquer the world. He needed money. He had negotiated the Louisiana territory away from Spain in 1800.

• U.S. bought this territory for a total of 15 million dollars( 11.25 million for territory and 3.75 million to pay off French debts owed to America). We originally were going to by New Orleans for $5 million but then Napoleon need more money.

Lewis and Clark

• Merriwether Lewis and William Clark headed up the Missouri River in 1804. Were led by Sacagawea to explore the new territory

• Jefferson funded much of the expedition himself

• Essex Junto– New England Federalist talked about seceding

from the United States after the Louisiana Purchase. They feared with the new states that would arise they would lose power and influence. Did not do it. Aaron Burr decided to run for governor of New York to strengthen New York’s power. Alexander Hamilton publicly spoke out against Burr. Burr challenged Hamilton to a dual. Hamilton was killed

Trade Restrictions and War of 1812

• Jefferson re-elected in 1804. France and England still fighting. U.S got sick of it and passed Embargo Act of 1807 stopping trade with Europe. This hurt U.S. merchants.

• War Hawks-wanted to attack the British over all of this

• War of 1812- U.S against Britain. Primarily we wanted Canada and for British to stop attacking our trade ships and allow us to trade with other European Countries

• War ended in 1814• Andrew Jackson becomes famous because he

led U.S forces in the battle of New Orleans that stopped the British from advancing. Federalist party was destroyed over its lack of support of the war.

• Treaty of Ghent 1814 officially ended war

• James Monroe elected President in 1816 (James Madison was President after Jefferson from 1809-1817)– Era of Good Feeling

Second Bank of the United States- in 1811 ( when the 20 year charter was up on the 1st bank) the Republicans had blocked the renewal of the charter. No National bank was disastrous.

• Second Bank of the United States was proposed in 1816 by John C. Calhoun. Bill passed and James Madison signed it before he left office.

McCulloch v Maryland

• Maryland attempts to tax the Federal bank in Baltimore.– Justice John Marshall said the federal govt does

have right to establish Fed. Bank because of “necessary and proper” clause. Also, that federal government is superior to state government.