ssahna_irnsg_units_AC.book Page 122 Thursday, December 8, 2005 12:19 PM
Chapter 8
Launching a New Nation
(1789–1800)
What You Will Learn
The new federal government dealt with challenges at home
and abroad. During John Adams’s presidency, disagreements increased between the parties.
Key Events
1789
Washington
organizes new
government
departments and
appoints heads.
Senate approves
Jay’s Treaty with
Britain.
1798
“XYZ Affair”
becomes public
and sours relations with France.
Congress passes
the Alien and
Sedition acts.
Section 1
Washington Takes Office
Section 1 Focus Question
How did President Washington set the course for the new
nation? To begin answering this question,
• Learn about the first President, George Washington.
• Understand the nation’s first economic crisis.
• Read about Hamilton’s financial plan.
• Find out about the Whiskey Rebellion.
Section 1 Summary
Washington organized the executive branch, and Hamilton
worked to end the nation’s financial crisis. The Whiskey
Rebellion tested the new government.
✓ Checkpoint
List the members of President
Washington’s cabinet.
______________________________
______________________________
______________________________
______________________________
The First President
George Washington set many precedents, or examples, as
the first President. He created new federal departments.
Alexander Hamilton led the Treasury, Thomas Jefferson led
the State Department, Henry Knox was Secretary of War,
and Edmund Randolph was Attorney General. The group
was called the Cabinet. The Judiciary Act of 1789 created a
federal court system led by the Supreme Court. ✓
The Nation’s First Economic Crisis
The American Revolution left the nation in debt. The debt
was mostly in bonds. A bond is a certificate issued by a
government for an amount of money that the government
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Unit 3
Chapter 8
Section 1
© Pearson Education, Inc., publishing as Pearson Prentice Hall. All Rights Reserved.
1795
Chapter 8 Focus Question
As you read this chapter, keep this question in mind:
How did Americans respond to internal and external
challenges?
ssahna_irnsg_units_AC.book Page 123 Thursday, December 8, 2005 12:19 PM
© Pearson Education, Inc., publishing as Pearson Prentice Hall. All Rights Reserved.
promises to pay back with interest. Speculators, or people
who invest in a risky venture in the hope of making a large
profit, bought bonds for less than they were worth. Many
believed it was unfair to pay speculators in full. ✓
Hamilton’s Financial Plan
Hamilton developed a plan to solve the country’s financial
crisis. The first part of the plan was for the government to
pay back all federal and state debts. Many southern states
did not want the federal government to pay state debts
because they had already paid theirs on their own. Eventually the South agreed to this part of the plan. In return, the
government agreed to build its capital in the South.
The second part of Hamilton’s plan was to charter a
national bank. Jefferson argued that a national bank was
unconstitutional—contrary to what is permitted by the
Constitution. He called for a “strict” interpretation, or reading, of the Constitution. Hamilton, on the other hand, called
for a “loose” interpretation. He believed that the Constitution gave Congress the power to do things not directly
allowed. A national bank was created, but interpretation of
the Constitution still provokes disagreement today.
Southerners also opposed Hamilton’s idea for a national
tariff, or a tax on imported goods. The tariff raised federal
funds and also protected United States’ manufacturers. This
helped northern industries because it protected them from
lower priced foreign goods. Since southerners had little
industry, the tariff hurt them by raising prices. Congress did
not pass the tariff. ✓
The Whiskey Rebellion
Congress put a tax on all whiskey made and sold in the
country. Some Pennsylvania farmers who were against the
tax started a violent protest. Washington sent federal troops
to Pennsylvania, showing that armed rebellion would not be
accepted. ✓
✓ Checkpoint
After the American Revolution, the
nation’s debt was mostly in what
form?
______________________________
Vocabulary Builder
Provoke comes from the Latin verb
provocare, which means “to call
out.” What is being “called out” in
the underlined sentence?
______________________________
✓ Checkpoint
Name the two types of constitutional interpretation used during
the debate about the national bank.
______________________________
______________________________
✓ Checkpoint
What caused the Whiskey
Rebellion?
______________________________
Check Your Progress
1. What two crises occurred during the early part of President George Washington’s administration?
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2. What were the three parts to Hamilton’s financial plan?
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Unit 3
Chapter 8
Section 1
123