Overview
President George Washington took the Oath of Office on April 30, 1789, making him the first President of the United States. Four days later, the First Congress was seated, and the new Federal Government went into operation. Washington and Congress were immediately met with several challenges, including:
- Development of the Federal Court System and the Executive Branch.
- Handling debt carried over from the American Revolutionary War.
- Maintaining peaceful relations with Britain, France, and Spain.
- Maintaining domestic order over taxation policies.
- Maintaining peace with Native American Indians.
Creating the Federal Court System and the Executive Branch
The Constitution established the Judicial Branch and the Supreme Court but left it up to Congress to further define the courts. On September 24, Congress passed the Judiciary Act of 1789, establishing six Supreme Court Justices, 13 Federal District Courts, and three Federal Circuit Courts.
As the Chief Executive, Washington was given the authority to appoint “Officers of the United States” and “Heads of the Departments.” Together, Washington and Congress passed legislation that transitioned three departments that existed under the Articles of Confederation to the new government and created a new position:
- The Department of War, with Henry Knox as Secretary of War.
- The Ministry of Foreign Affairs was renamed the Department of State, and Thomas Jefferson was Secretary of State.
- The Finance Office was renamed the Department of Treasury, and Alexander Hamilton was Secretary of the Treasury.
- Attorney General was established, and Edmund Randolph was appointed.
At first, Washington met with the four men individually. However, starting on November 26, 1791, he met with all of them at once, establishing the concept of the “President’s Cabinet.”
Hamilton and the Banking System
As Secretary of the Treasury, Hamilton worked to solve the issue of debts that were carried over from the war by the Confederation Congress and the States. Hamilton produced a report that called for the Federal Government to assume responsibility for most of the State debts and to levy taxes on foreign imports. In 1790, Congress agreed to a compromise that resulted in the Funding Act, which implemented Hamilton’s plan for debt and credit, and the Residence Act, which established Washington, D.C.
Afterward, Hamilton proposed establishing the First Bank of the United States to collect taxes, hold government funds, and make loans to the government and borrowers. Thomas Jefferson and James Madison opposed this, thinking it would give too much power to the Federal Government. Congress ultimately passed a bill creating the bank for a term of 20 years, which was signed into law by Washington.
The Rise of Political Parties
The debate over Hamilton’s fiscal policy contributed to the development of America’s first two political parties — the Federalists and Democratic-Republicans. Although Washington did not side with either party, he often sided with the Federalists, who were led by Hamilton.
One of the main debates between the two parties was how the Constitution gave Congress authority to create organizations not explicitly mentioned, such as the National Bank. While the Democratic-Republicans argued the Constitution did not specifically say Congress could create a new organization, Federalists pointed to the “Necessary and Proper Clause,” which gave Congress the power “To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.”
The First Bank of the United States did as Hamilton hoped and helped improve the economy, pay off war debts, and build public confidence in the new Federal Government.
The French Neutrality Crisis
Meanwhile, the French Revolution started in 1789, which created issues for Washington’s Administration. The Revolution was inspired by America’s own revolution and ideals, such as Democracy and Federalism. Although the American public initially supported the French Revolutionaries, the situation changed when France declared war on Britain in 1793.
France urged the U.S. to uphold its obligations per the Treaty of Alliance (1778). It sent Edmond-Charles Genêt to persuade American leaders to allow privateering and military expeditions to be launched from U.S. territory. Washington declined to support France and issued a Neutrality Proclamation on April 22, 1793, stating the U.S. would not assist either nation in the war.
Jay’s Treaty and Relations with Britain
Tensions also existed with Britain because ships from the Royal Navy were stopping American merchant ships, seizing sailors, and forcing them to join their crews (Impressment).
In response, Washington sent John Jay to negotiate with British officials. Jay successfully negotiated a treaty that improved trade between the U.S. and Britain but left many issues resolved, including the dispute over Impressment.
France was outraged over Jay’s Treaty, as were many Americans who supported the French Revolution. However, it helped keep the U.S. from going to war, which it was not prepared or equipped to do.
Pinckney’s Treaty of San Lorenzo
Although the British and French threat to the United States in North America was limited, Spain still controlled vast territories from Florida westward to California, and tensions existed over the southern and western borders of the U.S. Pinckney’s Treaty (1795) resolved the border disputes and promoted trade between the two nations along the Mississippi River and in New Orleans. Spain also expanded its Mission System in the West, hoping to strengthen its control of places sparsely populated areas like California.
The Federal Government Ends the Whiskey Rebellion
Another significant event that contributed to the development of political parties was the Whiskey Rebellion. In 1791, Congress, at Hamilton’s urging, approved an excise tax on a few domestic items, including whiskey. The Democratic-Republicans opposed it because of the negative impact on Western farmers. Violence erupted, and in 1794, hostilities escalated, and several thousand insurgents marched on Pittsburgh, Pennsylvania. Washington personally led an army of more than 13,000 militiamen over the Allegheny Mountains to confront them, and they dispersed. The successful suppression of the Whiskey Rebellion helped confirm the supremacy of the Federal Government and the right of Congress to levy and collect taxes on a nationwide basis. However, Thomas Jefferson believed the government had used the army to stifle legitimate opposition to unfair government policies.
U.S. Victory in the Northwest Indian War
Although Britain ceded the Northwest Territory to the U.S. in the Treaty of Paris, many of the Native American Indians living in the region did not acknowledge American authority. As early as 1783, Iroquois leader Joseph Brant started organizing a confederation of Indian Tribes in the Northwest Territory. Although some tribes made treaties with the U.S., Brant’s Northwest Indian Confederacy carried out raids on American settlements, which slowed Westward Expansion. The conflict ended in 1794 when General Anthony Wayne led U.S. forces to victory at the Battle of Fallen Timbers. The Northwest Indians signed the Treaty of Greenville in 1795, giving control of most of the Northwest Territory to the United States. The following year, Washington started the Factory System, which was intended to manage formal trade between the U.S. and Indians and help the Indians transition to an agrarian culture.
Washington’s Farewell
After eight years in office, Washington decided to retire. He sent his “Farewell Address” to a Philadelphia newspaper, which printed it in September 1796. The address had two purposes: to announce he would not seek reelection and to give final advice to the nation. In retiring, he set a precedent for Presidents to serve no more than eight years. This has only been exceeded by Franklin Delano Roosevelt during the Great Depression and World War II. Washington identified Sectionalism, party politics, and foreign influence as major dangers to the republic and called on the nation to remain unified and for the people to recognize their duty to the nation.
Adams and Jefferson
John Adams was elected President in 1796 in the third Presidential Election and the first between candidates from the political parties. Adams represented the Federalists, while Thomas Jefferson represented the Democratic-Republicans. Per the Constitution in 1796, Jefferson became the Vice President. This set the stage for more tension between the parties — and between the two Founding Fathers who had been close friends and allies during the American Revolution.
The XYZ Affair and More Tension with France
Not long after Adams was elected, tensions with France increased over the seizure of American merchant ships on the high seas. Adams responded by sending commissioners to France. However, French Foreign Minister Talleyrand refused to meet with them and sent his own agents to meet with the Americans. The French agents demanded an apology from Adams for statements he had made about the French government, a large loan, and bribes. The Americans rejected these demands and informed Adams of the situation. Outraged Federalists called for war with France over what became known as the “XYZ Affair.”
The Quasi-War with France
As tensions increased, members of the Federalist Party rallied around the slogan, “Millions for defense, but not one cent for tribute,” and Congress re-established the United States Navy on April 30, 1798. The small American fleet, under the leadership of Thomas Truxton, quickly established itself as a significant naval force by winning several key battles against the French Navy. This conflict is known as the “Quasi-War” because neither nation declared war.
The Alien and Sedition Acts Target Foreign Influence
As anti-French sentiment grew, so did public criticism of President Adams, primarily from leaders of the Democratic-Republican Party. The Federalists, who controlled Congress, responded by passing the Alien and Sedition Acts. The acts were controversial and criticized as being unconstitutional and violating Freedom of Speech.
AHC Notes
- June 18, 1798 — The Naturalization Act extended the residency period from 5 to 14 years for aliens seeking citizenship; this law was aimed at Irish and French immigrants who were often active in Democratic-Republican politics.
- June 25, 1798 — The Alien Friends Act allowed the expulsion of aliens deemed dangerous during peacetime.
- July 6, 1798 — The Alien Enemies Act allowed the expulsion or imprisonment of aliens deemed dangerous during wartime. This was never enforced, but it did prompt numerous Frenchmen to return to France.
- July 16, 1798 — The Sedition Act provided for fines or imprisonment for individuals who criticized the government, Congress, or the President in speech or print.
The Virginia and Kentucky Resolutions and Nullification
Thomas Jefferson and James Madison turned to state legislatures to oppose the Alien and Sedition Acts. Jefferson wrote resolutions for the Kentucky legislature, declaring Federal Laws “null and void” within Kentucky. Madison wrote resolutions for the Virginia legislature, expressing opposition to the laws. Both states called on others for support but were criticized. The Resolutions were not adopted by others. However, they established the concept of “Nullification,” a key part of the ideology that led to the Nullification Crisis (1832–1833) and the Secession Crisis (1860–1861).
Convention of 1800 and Peace
The French Revolution ended in 1799 when Napoleon Bonaparte took control of the government in a coup. Although the French Revolutionary Wars continued, Adams and Napoleon sought to restore peaceful relations. Commissioners met at the Convention of 1800 and agreed to the Treaty of Mortefontaine.
The Revolution of 1800 Ushers in the Age of Jefferson
Like Washington, Adams avoided an all-out war with a European nation. However, divisions within the Federalist Party and public outrage over the Alien and Sedition Acts led to Jefferson defeating Adams in the 1800 Presidential Election. Jefferson referred to his victory as a “revolution” comparable to 1776, as the Federalists were swept from power and the Democratic-Republicans took control of the Federal Government.
Although this launched the “Age of Jefferson,” the second phase of the “New Nation Era,” it also led to a rift between Jefferson and Adams that lasted for many years. The two did not speak or write to each other until 1812, when fellow Founding Father Benjamin Rush suggested their friendship and contribution to the cause of American Independence was greater than their political differences.
Thematic Focus — America in the World
APUSH Topic 3.10’s first thematic focus is “America in the World,” and the diplomatic, economic, cultural, and military interactions between empires, nations, and peoples shape the development of America and America’s increasingly important role in the world.
Learning Objective
The Learning Objective is to explain how and why competition intensified conflicts among peoples and nations from 1754 to 1800 through the following Historical Developments.
Historical Developments
The United States used diplomacy to deal with the ongoing British and Spanish presence in North America, as Americans pushed westward, beyond the Appalachians, and sought free navigation of the Mississippi River. John Jay negotiated Jay’s Treaty with Britain, which removed British troops from forts on the Western Frontier. Thomas Pinckney negotiated Pinckney’s Treaty with Spain, which gave Americans access to the Mississippi River and New Orleans.
Disagreements between Federalists and Democratic-Republicans developed over the issues of free trade and foreign policy, which were created by the French Revolutionary Wars and the French Revolution.
The Spanish expanded their mission settlements into California, providing new opportunities for social mobility among soldiers, but also contributed to the enslavement of Native American Indians through bonded labor.
The relationship between the Federal Government and Indian tribes was unclear because Article 1, Section 8, Clause 3 of the Constitution indicates they are sovereign nations. In the minds of many American leaders, the Proclamation of 1763, which reserved the Northwest Territory for the Indians as hunting grounds, was ceded to the U.S. in the Treaty of Paris (1763). The Indians ceded lands in the Ohio Valley to the U.S. in the Treaty of Greenville, but conflicts with Indian Nations continued in the South.
Thematic Focus — Politics and Power
APUSH Topic 3.10’s second thematic focus is “Politics and Power,” which refers to the debates fostered by social and political groups about the role of government in American social, political, and economic life and how they shaped government policy, institutions, political parties, and citizens’ rights.
Learning Objective
The Learning Objective is to explain how and why political ideas, institutions, and party systems developed and changed in the new republic through the following Historical Developments.
Historical Developments
During George Washington’s and John Adams’s presidential administrations, political leaders created institutions and precedents that put the principles of the Constitution into practice. This includes the establishment of the Federal Court System and departments within the Executive Branch. Important precedents are the President’s Cabinet and serving two terms in office.
Political leaders in the 1790s took various positions on issues such as the relationship between the Federal Government and the States, economic policy, foreign policy, and domestic policy, particularly the handling of the Whiskey Rebellion. This led to the formation of America’s first two political parties, the Federalist Party and Democratic-Republican Party.
In his Farewell Address, George Washington encouraged national unity while cautioning against political factions and the danger of permanent foreign alliances.
Review Video
This video from Heimler’s History provides an excellent overview of APUSH 3.10. You can also check out our APUSH Guide, which provides a look at all Units and Topics in the APUSH Curriculum.
Vocabulary and Notes
The following terms and definitions relate to the Key Concepts for Unit 3 and are broken into sections by APUSH Themes. Within the explanations of APUSH 3.10, Terms are links to content on American History Central that should provide a more comprehensive understanding of each topic. Terms and definitions are organized according to the APUSH Themes:
APUSH Themes
- American and National Identity
- Work, Exchange, and Technology
- Migration and Settlement
- Politics and Power
- America in the World
- Geography and the Environment
- Culture and Society
American and National Identity — People
John Adams
John Adams (1735–1826) was the second President of the United States (1797–1801) and a key Founding Father. As a diplomat, he played a significant role in the American Revolution, helping to negotiate the Treaty of Paris (1783), which ended the war. Adams was also instrumental in drafting the Massachusetts Constitution and advocating for independence in the Continental Congress. As President, he faced challenges such as the Quasi-War with France and signed the controversial Alien and Sedition Acts.
Joseph Brant
Joseph Brant, also known as Thayendanegea (1743–1807), was a Mohawk leader and British ally during the American Revolution. As a member of the Iroquois Confederacy, Brant advocated for the protection of Indigenous lands and sided with the British, believing they were more likely to preserve Indigenous sovereignty. He led raids against American settlements in the frontier regions and played a significant role in the war’s northern theater. After the war, Brant worked to secure land for his people in Canada, helping to establish a settlement for the Iroquois near modern-day Ontario.
Edmond-Charles Genêt
Edmond-Charles Genêt, also known as Citizen Genêt (1763–1834), was a French diplomat sent to the United States in 1793 during the French Revolution. His mission was to gain American support for France’s war against Britain and Spain. Genêt’s actions, such as recruiting privateers and encouraging Americans to attack British ships, violated U.S. neutrality and caused a diplomatic crisis. President George Washington demanded his recall. However, due to threats on his life. Genêt was allowed to remain in the U.S. and settled in New York.
Don Manuel de Godoy
Don Manuel de Godoy (1767–1851) was a Spanish diplomat who served as the Prime Minister of Spain and a key figure during the late 18th and early 19th centuries. He was a favorite of King Charles IV and negotiated critical treaties, including Pinckey’s Treaty (1795) and the Treaty of San Ildefonso (1796), which aligned Spain with France during the Napoleonic Wars. Godoy’s policies, including the loss of Spanish territories and alliances with Napoleon, earned him widespread criticism and led to his eventual downfall during Spain’s political turmoil in 1808.
Alexander Hamilton
Alexander Hamilton (1755–1804) was a Founding Father, the first Secretary of the Treasury (1789–1795), and a key architect of the United States’ Financial System. A leader of the Federalist Party, Hamilton promoted a strong central government, established the National Bank, and advocated for industrial and economic development. He co-authored The Federalist Papers to support the ratification of the Constitution.
Henry Knox
Henry Knox (1750–1806) was an officer during the American Revolutionary War and the first Secretary of War under President George Washington. One of Washington’s most trusted Generals, Knox is famous for leading the “Noble Train of Artillery” that transported guns from Fort Ticonderoga to Boston, which helped break the Siege of Boston in 1776. As Secretary of War (1789–1794), Knox established the U.S. Army, organized defenses, and managed relations with Native American Indian tribes.
John Jay
John Jay (1745–1829) was a Founding Father and the First Chief Justice of the Supreme Court. Jay represented New York in the Continental Congress and was an author of the Federalist Papers. He wrote the Constitution of New York and served as Governor from 1795-1801. Jay played an important role in foreign relations, helping negotiate the Treaty of Paris (1763) and Jay’s Treaty (1794).
Thomas Jefferson
Thomas Jefferson (1743—1826) was a Founding Father and the third President of the United States. He wrote the Declaration of Independence and founded the University of Virginia. He also served as Governor of Virginia, Virginia Congressman, Minister to France, Secretary of State under George Washington, and Vice President under John Adams. Jefferson was one of the early leaders of the Democratic-Republican Party.
King Louis XVI
King Louis XVI (1754–1793) was the monarch of France from 1774 until his execution during the French Revolution. Known for his indecisive leadership and financial mismanagement, Louis faced mounting crises, including widespread economic hardship and discontent over the inequities of the Ancien Régime. His decision to summon the Estates-General in 1789 unintentionally sparked the French Revolution, leading to the rise of revolutionary assemblies like the National Assembly.
James Madison
James Madison (1751–1836) was the fourth President of the United States and a principal author of The Federalist Papers. Some consider him the “Father of the Constitution.” He also wrote the Virginia Resolves, protesting the Alien and Sedition Acts.
Thomas Pinckney
Thomas Pinckney (1750–1828) was an American statesman and diplomat best known for negotiating Pinckney’s Treaty (1795) with Spain. This treaty established U.S. navigation rights on the Mississippi River, defined the boundary between the U.S. and Spanish Florida, and allowed Americans access to the port of New Orleans. Pinckney also served as Governor of South Carolina and was a candidate for Vice President in the 1796 election.
Edmund Randolph
Edmund Randolph (1753–1813) was an American attorney, politician, and the first U.S. Attorney General (1789–1794). He also served briefly as Secretary of State under George Washington. Randolph presented the Virginia Plan at the Constitutional Convention, which proposed a strong central government with three branches. Randolph opposed the Jay Treaty, which led to criticism from Federalists, who accused him of sharing confidential documents with France. Although Randolph was innocent, he resigned as Secretary of State in 1795.
Junipero Serra
Junípero Serra (1713–1784) was a Spanish Franciscan missionary who founded the first nine of the 21 California missions, beginning with Mission San Diego de Alcalá in 1769. Serra aimed to convert Native American Indians to Christianity and integrate them into Spanish colonial society. While he is credited with expanding Spanish influence in California, his legacy is controversial due to the harsh treatment and cultural upheaval caused by the Spanish Mission System.
Charles Talleyrand
Charles-Maurice de Talleyrand-Périgord (1754–1838) was a French diplomat and statesman who played a key role during the French Revolution, Napoleonic era, and Bourbon Restoration. Known for his pragmatism, Talleyrand served as France’s Foreign Minister and negotiated treaties that expanded France’s influence. He was also involved in the XYZ Affair, where his agents demanded bribes from American diplomats, sparking tensions between France and the U.S.
Thomas Truxton
Thomas Truxtun (1755–1822) was a U.S. naval officer famous for his service during the Quasi-War with France. As captain of the USS Constellation, Truxtun achieved notable victories, including the capture of the French frigate L’Insurgente in 1799 and the engagement with La Vengeance. His leadership helped establish the credibility of the young U.S. Navy and earned him widespread acclaim.
George Washington
George Washington (1732–1799) was the first President of the United States (1789–1797), Commander of the Continental Army during the American Revolutionary War, and a Founding Father. Known as the “Father of His Country,” Washington also presided over the Constitutional Convention in 1787. His presidency established important precedents, including the formation of a Cabinet, neutrality in foreign affairs, and the peaceful transfer of power. Washington’s Farewell Address warned against political factions and entangling alliances.
Anthony Wayne
Anthony Wayne (1745–1796), nicknamed “Mad Anthony” for his bold, aggressive military tactics, was a U.S. General and hero of the American Revolutionary War. Wayne played key roles in battles such as Brandywine, Germantown, and Monmouth. After the war, he led U.S. forces in the Northwest Indian War, decisively defeating Indian forces at the Battle of Fallen Timbers (1794). This victory led to the Treaty of Greenville, which secured U.S. control over much of present-day Ohio, solidifying U.S. authority on the Western Frontier.
Work, Exchange, and Technology
Spanish Mission System
The Spanish Mission System was a network of religious and military outposts established by Spain in the Americas, including California, during the 18th and 19th Centuries. Designed to convert Native American Indian populations to Christianity and integrate them into Spanish colonial society, the missions often relied on Bonded Labor. The Missions disrupted Indian cultures and economies, resulting in significant social and demographic changes.
Mission San Diego de Alcalá
Mission San Diego de Alcalá, established in 1769 near modern-day San Diego, was the first of 21 Spanish missions in California. Founded by Father Junípero Serra, it aimed to convert local Kumeyaay People to Christianity and integrate them into Spanish colonial life. The mission became a center for agriculture, trade, and religious activities but relied on Bonded Labor, often under coercive conditions.
Bonded Labor
Also known as “Debt Labor” or “Debt Peonage,” is a system in which individuals are bound to work for an employer to pay off a debt. This form of labor often traps workers in a cycle of dependency, as their earnings are insufficient to cover the debt, interest, or living expenses. It was commonly used during the Colonial Era and by the Spanish in New Spain.
Migration and Settlement
Marietta, Ohio
Marietta, founded in 1788, was the first permanent settlement in the Northwest Territory, established by the Ohio Company of Associates. Located at the confluence of the Ohio and Muskingum Rivers, it played a key role in the Westward Expansion of the United States under the Northwest Ordinance of 1787. Named after Marie Antoinette of France, Marietta became a center for trade, governance, and military organization on the Western Frontier.
Politics and Power — Executive Branch
Presidential Cabinet
The Presidential Cabinet is a group of senior advisors and department heads who assist the President in governing and implementing federal policies. Established during George Washington’s Presidency, the Cabinet initially included the Secretaries of State, War, Treasury, and the Attorney General. Over time, it has expanded to include additional departments, reflecting the growing complexity of the federal government. Cabinet members are appointed by the President and confirmed by the Senate.
Department of State
The Department of State, established in 1789, is responsible for managing U.S. foreign affairs and international relations. It oversees diplomatic missions, negotiates treaties, and represents the U.S. in global organizations. The Secretary of State, the department’s head, is a key advisor to the President on foreign policy and is fourth in the presidential line of succession.
Department of War
The Department of War, created in 1789, managed the defense and military operations of the United States during its early years. It oversaw the Army and fortifications but was replaced in 1947 by the Department of Defense, which combined the War and Navy Departments under a unified military structure.
Department of Treasury
The Department of Treasury, established in 1789, manages the nation’s finances, including collecting taxes, issuing currency, and managing public debt. It plays a key role in economic policy and oversees institutions such as the Internal Revenue Service (IRS) and the U.S. Mint. The Secretary of Treasury advises the President on fiscal and economic matters.
Attorney General
The Attorney General, established as part of the Judiciary Act of 1789, serves as the chief legal officer of the Federal Government. The Attorney General leads the Department of Justice, represents the U.S. in legal matters, and provides legal advice to the President and executive departments.
22nd Amendment
The 22nd Amendment, ratified in 1951, limits the President to two terms in office or a maximum of ten years if they assume the presidency mid-term. This amendment was introduced after Franklin D. Roosevelt was elected to four terms, breaking the precedent set by George Washington. It formalized term limits to prevent the concentration of power in the executive branch. See Amendments to the United States Constitution.
Politics and Power — Legislation
Judiciary Act of 1789
The Judiciary Act of 1789 established the Federal Judiciary System, creating a three-tier structure with District Courts, Circuit Courts, and the Supreme Court. It defined the number of justices on the Supreme Court (six at the time) and outlined the jurisdiction of Federal Courts. The act also established the office of the Attorney General and provided mechanisms for appeals. This foundational law was essential in implementing Article III of the Constitution, ensuring a functioning judiciary.
Compromise of 1790
The Compromise of 1790 was an agreement between Alexander Hamilton, Thomas Jefferson, and James Madison to resolve disputes over federal economic policies and the location of the nation’s capital. Hamilton secured support for his plan to have the Federal Government assume state debts, while Jefferson and Madison obtained an agreement to locate the capital along the Potomac River, leading to the creation of Washington, D.C. This compromise balanced sectional interests and solidified early federal authority.
Funding Act
The Funding Act of 1790 was part of Alexander Hamilton’s Financial Plan to stabilize the U.S. economy. It authorized the Federal Government to assume and fund State debts from the Revolutionary War by issuing new federal bonds. This act aimed to establish creditworthiness for the young nation and consolidate financial obligations under the Federal Government, reinforcing central authority.
Residence Act
The Residence Act of 1790 authorized the establishment of a permanent capital for the United States along the Potomac River, later named Washington, D.C. The act was part of the Compromise of 1790, balancing Northern and Southern interests. The temporary capital was set in Philadelphia until 1800, when the Federal Government officially moved to the new capital.
Politics and Power — Alien and Sedition Acts
Alien Enemies Act
Passed in 1798 as part of the Alien and Sedition Acts, the Alien Enemies Act authorized the President to detain or deport non-citizens from hostile nations during wartime. It aimed to safeguard the United States from espionage or sabotage but was criticized for its potential abuse of power. Unlike other Alien and Sedition Acts, this law remains in effect, though its use has been limited.
Alien Friends Act
Passed in 1798, the Alien Friends Act allowed the President to deport non-citizens considered dangerous to national security, even during peacetime. It gave the executive branch broad authority to expel foreign nationals without due process. This act expired in 1800 and faced significant criticism for targeting immigrants, many of whom supported the Democratic-Republican Party.
Naturalization Act
The Naturalization Act of 1798 extended the residency requirement for immigrants seeking U.S. citizenship from 5 years to 14 years. Part of the Alien and Sedition Acts, it sought to reduce the political influence of immigrants, who were perceived as favoring the Democratic-Republicans. The act was repealed in 1802, restoring the 5-year residency requirement.
Sedition Act
The Sedition Act of 1798 criminalized false, scandalous, or malicious statements against the federal government, Congress, or the President. Enacted to suppress dissent during tensions with France, it was widely condemned as an infringement on free speech. The act was used to prosecute Democratic-Republican journalists and expired in 1801. Its unpopularity contributed to the defeat of the Federalists in the 1800 election.
Nullification
Nullification is the theory that States have the right to invalidate federal laws deemed unconstitutional. Based on the ideas of Thomas Jefferson and James Madison, it was first suggested in the Virginia and Kentucky Resolutions (1798–1799) in response to the Alien and Sedition Acts. Nullification became a significant constitutional debate in the 19th century, particularly during the Nullification Crisis of the 1830s, a precursor to the Civil War.
United States Navy
The United States Navy, established in 1794, was initially created to combat piracy and protect American shipping. Its importance grew during the Quasi-War with France (1798–1800) and the Barbary Wars. The Navy played a crucial role in defending U.S. interests overseas, asserting American independence, and securing trade routes. By the War of 1812, it had established itself as a key piece of the nation’s defense.
Politics and Power — Economy
Hamilton’s Financial Plan
Alexander Hamilton’s Financial Plan, introduced in the 1790s, aimed to stabilize the U.S. economy and strengthen federal authority. The plan included the federal assumption of State debts, funding the national debt through Government Bonds, establishing the First Bank of the United States, and creating Excise Taxes to generate revenue. It sought to promote economic growth, establish creditworthiness, and tie the interests of wealthy creditors to the Federal Government.
Hamilton’s Report on Manufactures
Alexander Hamilton’s Report on Manufactures (1791) argued for federal support of industrial development to diversify the U.S. economy beyond agriculture. He advocated for Protective Tariffs, Subsidies for Manufacturers, and Infrastructure Improvements to encourage Domestic Production. Though Congress did not implement many of his recommendations at the time, they became key pieces of Henry Clay’s American System.
Credit
Credit refers to the ability to borrow money based on the promise of future repayment. Hamilton prioritized establishing strong national credit to attract domestic and international investors. By funding the National Debt and assuming State debts, he built confidence in the Federal Government’s financial reliability, enabling the U.S. to secure loans and grow economically.
Creditors
Creditors are individuals, institutions, or governments that lend money or extend credit with the expectation of repayment, typically with interest. In the context of early U.S. history, Creditors played a vital role in financing the Revolutionary War by purchasing war bonds issued by state governments. Under Hamilton’s Financial Plan, the Federal Government assumed State debts and issued new Bonds to these Creditors, consolidating the debt and ensuring repayment. This policy established the U.S. government’s creditworthiness and tied creditors’ economic interests to the success and stability of the federal system.
Currency
Currency is the money used as a medium of exchange within an economy. Alexander Hamilton’s creation of the First Bank of the United States helped issue a stable, uniform national Currency, replacing the unreliable State-Issued Notes and creating a foundation for a functional economy and trade system across the States.
Debt Assumption
Debt Assumption was a key element of Hamilton’s Financial Plan, wherein the Federal Government assumed responsibility for the debts incurred by the states during the American Revolutionary War. This policy aimed to centralize financial obligations and unify the States under federal authority. It was part of the 1790 Compromise that also established the national capital along the Potomac River.
Debt Funding
Debt Funding involved replacing old Revolutionary War debts with new Government Bonds issued at face value to creditors. This policy, part of Hamilton’s Financial Plan, aimed to stabilize the national debt, establish U.S. creditworthiness, and create confidence in the new Federal Government’s ability to manage its finances.
Domestic Production
Domestic Production focuses on goods and materials manufactured within a country. Hamilton promoted policies like Protective Tariffs and Infrastructure Improvements to encourage American industries to produce goods domestically, reducing reliance on foreign imports and fostering economic independence. His emphasis on Domestic Production laid the groundwork for U.S. industrial growth.
Excise Tax
An Excise Tax is a tax on specific goods or activities. As part of Hamilton’s Financial Plan, the Excise Tax of 1791 placed a levy on distilled spirits, leading to the Whiskey Rebellion (1794) in Pennsylvania. The tax aimed to generate revenue for the Federal Government but faced resistance, particularly from frontier farmers, who viewed it as an unfair burden.
First Bank of the United States (National Bank)
The First Bank of the United States (1791–1811), established in 1791 and chartered for 20 years, was created to manage the nation’s debts, issue Currency, and stabilize the economy. Hamilton argued that the bank would promote financial order and encourage investment. Though controversial, the bank became a cornerstone of the early U.S. Financial System until its charter expired in 1811.
Funding the National Debt
Funding the National Debt refers to the policy of managing and stabilizing a country’s existing Debt by converting it into Interest-Bearing Bonds that creditors could rely on for consistent returns. Proposed by Hamilton as part of his Financial Plan in the 1790s, the Federal Government consolidated Revolutionary War debts and issued new Bonds to creditors at face value. This policy aimed to establish the financial credibility of the new government, attract investment, and tie the economic interests of wealthy creditors to the stability of the federal system. Funding the debt transformed it into a tool for economic growth and laid the foundation for the U.S.’s ability to secure future loans and expand its financial system.
Government Bonds
Government Bonds are Debt Securities issued by the Federal Government to raise funds, typically promising repayment with interest. Hamilton’s Financial Plan relied on Bonds to fund the National Debt, attract investment, and create a financial system that tied creditors’ interests to the stability of the Federal Government. Bonds became a critical tool in early U.S. economic policy.
Infrastructure Improvements
Alexander Hamilton proposed Infrastructure Improvements, such as the construction of roads, bridges, and canals, to support economic growth and facilitate commerce. These projects would improve transportation for goods and raw materials, connecting regional markets and enabling industrial expansion. Though not implemented during his tenure, such investments became central to U.S. economic policy in the early 19th century.
National Debt
The National Debt refers to the total amount of money a government owes to creditors. Alexander Hamilton believed that managing and funding the National Debt was essential for establishing the nation’s financial credibility. His Financial Plan turned Revolutionary War debts into a tool to promote economic stability, attract investment, and unify the nation under a centralized financial system.
Protective Tariffs
Protective Tariffs are taxes imposed on imported goods to make them more expensive, encouraging consumers to buy domestically produced products. Proposed in Hamilton’s Report on Manufactures (1791), they were intended to foster the growth of American industry by shielding it from foreign competition. Although they were not fully implemented in Hamilton’s time, they became central to U.S. economic policy in the 19th century.
Subsidies for Manufacturers
Subsidies for Manufacturers involve government financial support to encourage the growth of domestic industries. Hamilton’s Report on Manufactures advocated for Subsidies to help American Manufacturers compete with established foreign industries. While Congress did not adopt these Subsidies, the idea influenced later policies promoting industrialization through government assistance.
Politics and Power — Treaties with Indian Nations
Proclamation of 1763
Issued by King George III after the French and Indian War, the Proclamation of 1763 established a Boundary Line along the Appalachian Mountains to prevent settlers from encroaching on Indian Hunting Grounds west of the line. It angered Americans eager for Westward Expansion and became a source of colonial resentment toward British rule. The Proclamation Line played a role in clarifying legal ownership of Western Lands, including the resolution of the Yazoo Land Scandal.
Treaty of Hard Labour (1768)
The Treaty of Hard Labour, signed in 1768, was an agreement between British officials and the Cherokee Nation. It ceded Cherokee lands in present-day West Virginia to British settlers. The treaty was one of several agreements attempting to clarify land claims in the aftermath of the Proclamation of 1763.
Treaty of Fort Stanwix (1768)
The 1768 Treaty of Fort Stanwix was negotiated between British officials and the Iroquois Confederacy. It extended the boundary line established by the Proclamation of 1763, allowing settlers access to lands in present-day Kentucky and Ohio. Although the Iroquois agreed to the treaty, it ignored the claims of other Indian Tribes, leading to further conflicts.
Treaty of Lochaber (1770)
Signed between British representatives and the Cherokee Nation, the Treaty of Lochaber ceded additional Cherokee lands in present-day West Virginia and Kentucky. It aimed to settle disputes over boundaries established by earlier treaties, but like other agreements, it further reduced Cherokee territory.
Treaty of Fort McIntosh (1785)
The Treaty of Fort McIntosh was signed between the United States and several Native American tribes, including the Wyandot, Delaware, Chippewa, and Ottawa. It established boundaries for Native lands in the Ohio region and forced tribes to cede much of their territory. The treaty was part of U.S. efforts to secure land for settlement but was met with resistance, leading to continued frontier conflicts.
Treaty of Fort Harmar (1789)
The Treaty of Fort Harmar reaffirmed earlier treaties, including Fort McIntosh, and attempted to resolve disputes over land in the Ohio Region. Negotiated between the United States and tribes such as the Wyandot, Delaware, and Shawnee, it clarified boundaries but failed to address Indian grievances, leading to continued hostilities in the Northwest Indian War.
Treaty of Greenville (1795)
The Treaty of Greenville was signed following the U.S. victory at the Battle of Fallen Timbers (1794) and ended the Northwest Indian War. Indian Tribes ceded large portions of land in Ohio and Indiana to the United States in exchange for goods and formal recognition of their remaining territories. The treaty marked a turning point in U.S. expansion, solidifying American control over the Northwest Territory while displacing Indians.
America in the World — Treaties with European Nations
Treaty of Paris (1783)
The Treaty of Paris, signed on September 3, 1783, officially ended the American Revolutionary War. It recognized the independence of the United States and established its borders, extending from the Atlantic Ocean to the Mississippi River and from Canada to Florida. The treaty granted Americans fishing rights off Newfoundland and required the U.S. to compensate Loyalists for lost property.
Jay’s Treaty (1794)
Jay’s Treaty, negotiated by John Jay, aimed to resolve lingering tensions between the United States and Great Britain after the Revolutionary War. Signed in 1794, the treaty sought to address British occupation of forts in the Northwest Territory, trade disputes, and the Impressment of American sailors. While it avoided war and improved trade relations, many Americans criticized it for failing to address key issues like British interference with U.S. shipping and Impressment.
Pinckney’s Treaty (1795)
Pinckney’s Treaty, also known as the Treaty of San Lorenzo, was signed in 1795 between the United States and Spain. Negotiated by Thomas Pinckney, it resolved territorial disputes, granted the U.S. navigation rights on the Mississippi River, and allowed the use of the port of New Orleans for American goods. The treaty strengthened U.S.-Spanish relations and promoted Westward Expansion by securing vital trade routes for American settlers.
Treaty of Mortefontaine (1800)
The Treaty of Mortefontaine, also known as the Convention of 1800, was an agreement between the United States and France that ended the Quasi-War. The treaty re-established peaceful relations, nullified the 1778 Franco-American Alliance, and provided for fair treatment of ships from both nations. Negotiated under President John Adams, it averted full-scale war with France and allowed the U.S. to maintain neutrality in European conflicts.
America in the World — French Neutrality Crisis
Citizen Genet Affair
The Citizen Genêt Affair (1793–1794) was a diplomatic controversy involving Edmond-Charles Genêt, the French Ambassador to the United States, during the early years of the French Revolutionary Wars. Genêt openly violated U.S. neutrality by recruiting American Privateers to attack British ships and organizing expeditions against Spanish territories. His actions endangered U.S. relations with Britain and Spain. The incident reinforced America’s commitment to avoiding war with European nations.
Washington’s Proclamation of Neutrality
Issued in 1793, Washington’s Proclamation of Neutrality declared the United States neutral in the conflict between France and Britain. It established that the U.S. would not take sides in European wars and warned citizens against involvement in actions that might violate neutrality laws. The proclamation set an important precedent for Foreign Policy in the New Nation Era.
Neutrality Act
The Neutrality Act of 1794 codified the principles of Washington’s Proclamation of Neutrality by prohibiting American citizens from participating in foreign conflicts or assisting nations at war. The law forbade private military actions, such as outfitting ships for foreign powers, to ensure U.S. neutrality. The act was designed to prevent incidents like the Genêt Affair.
America in the World — Adams and France
XYZ Affair
The XYZ Affair (1797–1798) was a diplomatic incident between the United States and France during John Adams’ presidency. French agents, referred to as X, Y, and Z, demanded bribes and loans from American diplomats to begin negotiations to resolve maritime disputes. The U.S. rejected the demands, sparking outrage and calls for war at home. This event led to the Quasi-War with France and increased tensions between Federalists and Democratic-Republicans.
Quasi-War
The Quasi-War (1798–1800) was an undeclared naval conflict between the United States and France, fueled by French attacks on American ships and the controversy over the XYZ Affair. The U.S. responded by re-establishing the United States Navy and authorizing Privateers to engage French vessels. The conflict ended with the Treaty of Mortefontaine, restoring peaceful relations. It marked a significant assertion of American maritime power and neutrality.
Alien and Sedition Acts
The Alien and Sedition Acts (1798) were four laws passed by the Federalist-controlled Congress during heightened tensions with France. These laws increased residency requirements for citizenship, allowed the deportation of foreigners deemed dangerous, and criminalized criticism of the government. Widely criticized as unconstitutional, they intensified political divisions and fueled opposition from Democratic-Republicans.
Virginia and Kentucky Resolves
The Virginia and Kentucky Resolves (1798–1799), written by James Madison and Thomas Jefferson, were political statements opposing the Alien and Sedition Acts. They argued that States could nullify federal laws deemed unconstitutional, asserting the principles of States’ Rights. These Resolves became a cornerstone of the States’ Rights Doctrine and set the stage for future conflicts over federal power.
Geography and the Environment
Connecticut Western Reserve
The Connecticut Western Reserve was a tract of land in present-day northeastern Ohio that Connecticut retained ownership of after the American Revolution as part of its original Colonial Charter. It was eventually sold to settlers, and the region played a key role in Westward Expansion. Its name reflects Connecticut’s influence on the area’s settlement and culture.
Firelands
The Firelands were a portion of the Connecticut Western Reserve in Ohio, set aside in 1792 to compensate Connecticut residents whose homes were destroyed during British raids in the American Revolutionary War.
Mississippi River
The Mississippi River, one of North America’s most significant waterways, served as a crucial boundary and trade route in early American history. It was established as the western boundary of the United States in the Treaty of Paris (1783) and later became essential for commerce and expansion, especially after the Louisiana Purchase (1803).
New Orleans
New Orleans, founded by the French in 1718 and later controlled by Spain, became a vital port for American trade after the Mississippi River was designated as the U.S.’s western boundary. Its strategic importance increased after the Louisiana Purchase, as it served as a gateway for agricultural exports from the Old Northwest and Mississippi River regions.
Old Northwest
The Old Northwest refers to the territory north of the Ohio River and east of the Mississippi River, encompassing present-day Ohio, Indiana, Illinois, Michigan, Wisconsin, and part of Minnesota. Governed under the Northwest Ordinance of 1787, the region became a focal point for westward expansion, Native American resistance, and the development of new States.
Spanish California
Spanish California (1769–1821) was a colony established by Spain, featuring Missions, Presidios, and Pueblos along the Pacific coast. The Spanish aimed to convert Native American Indians to Christianity and establish control over the region through the Mission System. Spanish California was later ceded to Mexico and became a U.S. territory after the Mexican-American War (1846–1848).
Spanish Florida
Spanish Florida, under Spanish control during much of the Colonial Era, included present-day Florida and parts of the Gulf Coast. Spain ceded Florida to Britain in 1763 but regained it in 1783 as part of the Treaty of Paris. In 1821, Spain sold Florida to the United States under the Adams-Onís Treaty, allowing for U.S. expansion in the Southeast.
Trans-Mississippi Region
The Trans-Mississippi Region refers to the land west of the Mississippi River, encompassing much of the present-day western United States. During the 19th Century, it became a focus of U.S. expansion through events like the Louisiana Purchase (1803), which doubled the nation’s size. The region included territories such as the Great Plains, Rocky Mountains, and areas reaching the Pacific Coast. It played a central role in Westward Expansion, Indian displacement, and economic development through agriculture, mining, and transportation. The Trans-Mississippi Region was also significant in the Civil War, with battles fought over control of key territories.
Culture and Society
Whiskey Rebellion
The Whiskey Rebellion (1794) was an armed protest in western Pennsylvania against the federal Excise Tax on distilled spirits. Frontier farmers, who relied on whiskey production, viewed the tax as unfair and oppressive. President George Washington led a federal militia to suppress the rebellion, showcasing the strength and authority of the new Federal Government under the Constitution.
Northwest Indian War
The Northwest Indian War (1785–1795) was a conflict between the United States and a confederation of tribes in the Northwest Territory (modern Ohio and Indiana). Indians, supported by Britain, resisted U.S. expansion into their lands. Key events included the defeat of U.S. forces at the Battle of the Wabash (1791) and the American victory at the Battle of Fallen Timbers (1794). The war ended with the Treaty of Greenville (1795), which forced the Indians to cede significant territories to the United States, opening the Old Northwest for settlement.
Fur Trade and the Factory System
The Fur Trade Factory System, established by the U.S. government in 1796, sought to regulate trade with Native American Indians. Government-run trading posts, called “Factories,” provided goods in exchange for furs. This system intended to maintain peaceful relations with the Indians and control trade on the Western Frontier. The system ended in 1822, replaced by private fur traders, including the American Fur Company, as Westward Expansion intensified.
Culture and Society — Northwest Indian Confederacy
Cherokee
The Cherokee Nation was originally located in the southeastern United States, including present-day Georgia, North Carolina, and Tennessee. Known for adopting aspects of European culture, they faced displacement during Westward Expansion, culminating in the Trail of Tears (1838–1839) under the Indian Removal Act.
Iroquois
The Iroquois, or Haudenosaunee, is a confederation of six nations (Mohawk, Oneida, Onondaga, Cayuga, Seneca, and Tuscarora) based in the northeastern U.S. During the American Revolution, they were divided, with some supporting the British and others siding with the Americans. They were eventually displaced from their ancestral lands, moving West and into Canada.
Delaware
The Delaware, also known as the Lenape, were originally from the Mid-Atlantic region, including present-day New Jersey, Pennsylvania, and Delaware. They were among the first tribes to encounter European settlers. Displaced by colonization, they moved westward through treaties and conflicts. The Delaware were key participants in the Northwest Indian War and signed the Treaty of Greenville in 1795.
Miami
The Miami originally inhabited areas of present-day Indiana, Ohio, and Illinois. Known for their military resistance, the Miami allied with other tribes in the Northwest Indian War. Leaders like Little Turtle achieved early victories against U.S. forces but ultimately signed the Treaty of Greenville, ceding much of their territory to the United States.
Odawa
The Odawa, or Ottawa, are an Algonquian-speaking people who lived around the Great Lakes, particularly in Michigan and Ontario. Known for their role in the Fur Trade, the Odawa also participated in various conflicts, including Pontiac’s Rebellion and the Northwest Indian War, aligning with other tribes to resist U.S. expansion.
Ojibwa
The Ojibwa, also known as the Chippewa, are one of the largest Native American tribes, originally inhabiting areas around the Great Lakes. They were active in the Fur Trade and allied with the French and British in various colonial conflicts. The Ojibwa later resisted U.S. expansion in the Northwest Territory, participating in the Northwest Indian War.
Potawatomi
The Potawatomi played a significant role in Native alliances against U.S. expansion. They participated in the Northwest Indian War and supported Tecumseh’s confederation during the War of 1812. Many Potawatomi were forced to relocate west of the Mississippi.
Shawnee
The Shawnee originally lived in the Ohio Valley and were central figures in resistance to U.S. Westward Expansion. Leaders like Blue Jacket and Tecumseh led military and political efforts to protect their lands. The Shawnee were prominent in the Northwest Indian War and later forced westward by U.S. expansion.
Wyandot
The Wyandot, also known as the Huron, were originally based in the Great Lakes Region. They allied with both the French and British during colonial conflicts and later joined the Northwest Indian Confederacy to resist U.S. expansion. The Wyandot were signatories to the Treaty of Greenville, ceding much of their land to the United States.
Unit 3 Topics and Key Concepts
Key Concepts
3.1 — British attempts to assert tighter control over its North American colonies and the colonial resolve to pursue self-government led to a colonial independence movement and the Revolutionary War.
3.2 — The American Revolution’s democratic and republican ideas inspired new experiments with different forms of government.
3.3 — Migration within North America and competition over resources, boundaries, and trade intensified conflicts among peoples and nations.
Topics
- 3.1 — Contextualizing Period 3
- 3.2 — The Seven Years’ War (The French and Indian War)
- 3.3 — Taxation Without Representation
- 3.4 — Philosophical Foundations of the American Revolution
- 3.5 — The American Revolution
- 3.6 — The Influence of Revolutionary Ideals
- 3.7 — The Articles of Confederation
- 3.8 — The Constitutional Convention and Debates over Ratification
- 3.9 — The Constitution
- 3.10 — Shaping a New Republic
- 3.11 — Developing an American Identity
- 3.12 — Movement in the Early Republic
- 3.13 — Continuity and Change in Period 3
