taxes tax on specific item such as whiskey 1 Would protect American infant

Taxes tax on specific item such as whiskey 1 would

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taxes (tax on specific item such as whiskey) 1. Would protect American “infant” industries from foreign competition 2. Raise revenue to pay off the debt • Part 3: Created a NATIONAL BANK that would help create a stable, healthy economy, and currency • Huge debate over the Bank of the U.S. & the power of the fed gov. under the new Constitution – Jefferson (Jeffersonian Republicans): Constitution did not give Congress the authority to create a bank • Strict interpretation of the Constitution – Hamilton (Federalist): the “necessary and proper” clause allowed Congress to create the Bank of United States since it was necessary to carry out its enumerated powers • Loose (Broad) interpretation of the Constitution First Party System • First party system would develop during the 1790’s – No mention of political parties in the Constitution Federalist vs. Jeffersonian Republicans Federalist • Supported Hamilton’s economic vision (manufacturing)
• Advocated loose interpretation of the Constitution • Strong central government • Pro England Jeffersonian Republicans • Supported Jefferson’s economic vision (agrarian society) • Advocated strict interpretation of the Constitution • Favored state rights • Pro French Whiskey Rebellion • Part of Hamilton’s financial plan included an excise tax on whiskey • Farmers in Western Pennsylvania refused to pay the tax – Seen as a challenge to the authority of the new federal government • Remember the failure of Articles in dealing with Shay’s Rebellion • Washington takes over the state militia and stops the rebellion by show of force – Demonstrated to many the power and effectiveness of the federal government – Critics such as Jefferson disturbed by use of force Foreign Policy: France • French Revolution deeply divided America – Should the U.S. help France? – Federalist: concerned about violence & wanted to avoid war with England – Democratic Republicans:
extension of our own fight for liberty & England was seizing American ships • Washington issued Proclamation of Neutrality (1793) declaring the U.S. neutral • French minister to the U.S. Citizen Edmond Genet traveled in the U.S. trying to convince people to support France Foreign Policy Issues: England & Spain • England continued to cause the U.S. problems: 1) Impressment, 2) occupied forts in the west • Chief Justice John Jay sent to England to negotiate • Jay’s Treaty (1794): British agreed to leave the forts on the frontier – Said nothing about stopping Britain’s harassment of American ships or Native issue – Does keep the U.S. neutral! • Spain had previously blocked American access to the Mississippi river • Pinckney treaty (1795) Spain agrees to allow the U.S. usage of the Miss. River and the port of New Orleans – Made the northern boundary of Florida the 31st parallel Native Americans • Native American land continued to be encroached upon by settlers moving west • Native tribes formed the Northwest Confederacy under the Miami chief Little Turtle • Battle of Fallen Timbers (1794) natives defeated by U.S. army led by General Anthony Wayne

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