The Early National
Period (1789-1800)
Major Problems Facing the New
Republic
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England closes markets to American
goods
Flooding of U.S. market with foreign
goods (Dumping)
Impressment of sailors after 1793
English remain in northwest forts,
inciting Indian uprisings
National bankruptcy
Spain closes Mississippi to American
traders
The Judiciary Act of 1789
Creates federal court structure
 Circuit, appellate, and Supreme
Courts
 Judicial roles are
not clearly defined
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Hamilton’s Treasury Program
(1791)
Create national bank and bond sales
 Assumption of state debts
(creditor and state loyalty)
 Accept former government
certificates at full value
(elites and government)
 High tariff policy, excise taxes, and
sale of federal lands to pay debt
(Report on Manufactures, 1792)
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Republican Opposition to
Hamilton’s Treasury Program
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Poor sold certificates in duress
Solvent states paid debts already
High taxes hurt farmers, consumers
Congress cannot create a national
bank
Creditor class will control national
wealth, policy
Industry will create urban world and
landless classes
The Bill of Rights (1791)
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Civil Liberties
Protecting the individual from the
state
Checks on governmental
power
The Whiskey Rebellion (1791)
Excise tax causes Western farmers to
resist federal law
 Washington leads army against
farmers
 Laws can be challenged only
by constitutional means
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The French Revolution (1789) and
American Responses
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Workingmen, Republicans like it
Merchants, churchgoers, aristocrats
hate it
Citizen Genet and French privateers
(ending the French alliance)
Washington’s Proclamation of
Neutrality (Maintaining
independence in hostile
environment)
Jay’s Treaty (1795)
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Battle of Fallen Timbers in Ohio
Valley (1794) forces British
negotiations
Forts to be evacuated
Commercial relationship between
England and U.S.
No addressing of impressment issue
The Pinckney Treaty (1795)
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Spain recognizes American rights to
river commerce
Right of deposit in New Orleans
Agreement on Florida border
Washington’s Farewell Address
(1797)
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Adams (Federalist) elected President
in 1796
Two term limit becomes precedent
Avoid development of faction
Avoid entangling foreign alliances
Quasi-war with France (17981800)
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American neutrality angers French
XYZ affair
U.S. Navy created (1798)
Caribbean battles
1800 agreement with
Napoleon ends conflict
Alien and Sedition Acts (17981800)
Deportation of foreigners
deemed dangerous
 Residency requirements
from 5 to 14 years
 Criticism of U.S. policy
in wartime forbidden
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Virginia and Kentucky Resolutions
(1798)
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Madison and Jefferson co-author
States do not surrender rights to
review constitutionality of federal
laws (interposition)
States rights and civil liberties
stressed
Lack of judicial review necessitates
resolutions
Congress repeals Alien and Sedition
Acts (1801)
The Election of 1800
Jefferson emerges with victory
 Peaceful transfer of power between
parties
 Development of the
loyal opposition
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