Louisiana Purchase-1803. Jefferson as president. Napoleon feared an American takeover
of Louisiana so he sold it to them for $15million. Forced Jefferson to reconsider his strict
interpretation of the Constitution-accepted it loosely. Sent Louis and Clark to explore the
people, animals, and features of the territory. Purchase very controversial esp. with
Hamilton. Caused increased party conflict.
Federalists vs. Democratic Republicans- Federalists: Hamilton & Adams. Industrial.
Loose interpretation of Const, strong federal gov’t, pro-British, strong military, North-
eastern bankers and merchants. DRs- Jefferson & Madison, agricultural, strict
interpretation of const, weaker federal gov’t, pro-french, opposed standing army, southern
farmers. Events that caused party conflict- Jay’s Treaty, XYZ Affair, Alien & Sedation
acts, Whiskey Rebellion, Election of 1896
report of Hamilton’s Financial Plan. 1791. It was the most
controversial. It issued loans, it was a federal depository, and was jointly owned by gov’t
and private stockholders. It helped to develop and support US’s economy. It regulated
currency and issued bonds. Jefferson didn’t like bank because it used industrialization
factor and it was a strict interp of the Const. GW sides with Hamilton and puts it into
Hamilton’s Financial Plans-Series of 4 plans throughout the later 1700s. In order: Credit,
Duties and taxes, National bank, and manufacturing. Nat’l bank was most controversial.
Credit-makes US more reliable. Duties & taxes-gained money for gov’t. Nat’l bank-
expands fed power. Manufacturing-brings industrialism. Caused party conflict b/t
Federalists and D.R.s
Nullification- Jackson for States’ rights but not if it would lead to disunion. 1828 SC
proposes nullification in response to Tariff of Abominations which sets up problem which
should have more power-states or federal gov’t? Theory says-each state has right to
decide whether to obey federal law or to declare it null and void. 1832 Congress passes a
new compromise tariff; SC led by Calhoun decides to nullify it. Passes a resolution
forbidding collection of tariff in state. Jackson reacted strongly with force bill. Said that
president had right to take military action and proclaimed to SC that nullification was
treason. Compromised and lowered tariff.
Indian Removal Act-1830. Controlled by States. Compelled Native Americans to leave
traditional homelands and resettle further west. Act forced resettlement of thousands of
Indians. 1835 most eastern tribes forced west. 1836 created Bureau of Indian Affairs.
Jackson sponsored this because he didn’t like the Indians because he fought against them
in the War of 1812. Caused Indian territory to get increasingly smaller. After Jackson left
office, Trail of Tears 1838. US army forced 15000 Cherokees to leave GA (4,000 died in
travel). Moved them westward. The Cherokee Nation resisted relocation led by John
Ross. Supreme court sided w/Cherokees but Jackson refused to listen to Supreme Ct.