Chapter 7 Flashcards
What was the outcome of the 1789 election? (first under the new Constitution)
Federalist control of new government; large Federalist majorities in Senate and House of Representatives. George Washington chosen as president by Electoral College representatives. John Adams, with 34 votes, became Vice President.
the 1789 Judiciary Act established….
a hierarchal system of federal courts. At the top was the Supreme Court; then district courts in each state and three circuit courts of appeal.
what did the Supreme Court consist of?
a Chief Justice and five associate justices
By creating an entire apparatus, the Judiciary Act ensured that federal laws…
and rights would be adjudicated uniformly throughout the nation
who was the first Chief Justice?
John Jay
What did the ten constitutional amendments, known collectively as the Bill of Rights, do?
reconciled Anti-Federalists to the Constitution. The adoption of the amendments helped convince North Carolina and Rhode Island to enter the Union.
How did Congress raise revenue?
- trade duties
- the Tonnage Act 1789
What was the trade duty?
five per cent on most items, 7.5 per cent on certain listed items, duties as high as 50 per cent on 30 specific items like steel, nails, hemp, molasses, ships, tobacco, salt, indigo and cloth.
what did the trade duty try to do?
protect American manufacturers from foreign competition
What was the Tonnage Act 1789?
it stated that American ships should pay a duty of six cents per ton. American built but foreign-owned ships should pay a duty of 30 cents/ton and foreign-built and -owned ships 50 cents/ton.
Who did Washington choose as Secretary to the treasury?
Alexander Hamilton
Who did Washington choose as Secretary of state
Thomas Jefferson
Who was General Henry Knox?
secretary of war
who was Edmund Randolph?
attorney general, the government’s legal adviser
What were Hamilton’s main ideas?
nationalist, united, strong nation, he wanted the states’ power to wither away to ensure the federal government’s supremacy. He saw Washington as a sort of constitutional monarch and himself as prime minister.
What was Hamilton determined to do?
to restore national credit, as he believed it was essential to bind the moneyed classes to the new government
When did Hamilton publish a series of important financial reports, outlining this programme for government finances?
1790-1
Hamilton proposed the repayment of____
the foreign debt at face value rather than at the depreciated market rate
Who objected to Hamilton’s state debt assumption scheme?
southern states who had provided for the repayment of their debts and objected to paying some of the large debts owed by northern states who stood to gain most from the assumption plan.
Madison became Hamilton’s _______….
leading opponent, persuading Congress in April 1790 to reject the state debt proposal,.
What concessions did Hamilton give for Hamilton’s plan to be passed?
- generous allowances to states that had already settled debts
- permanent national capital would be in the South, at a site on the Potomac River to be chosen by Washington
Congress finally passed the legislation for Hamilton’s plan in….
August 1790
Hamilton’s programme resulted in the USA’s national debt soaring to over…
$80 million. 80 per cent of the federal government’s annual expenditure was needed to service the debt.
December 1790 Hamilton issued a second report on public credit which included…
a proposal for a tax on distilled spirits (passed March 1791) to aid in raising revenue to cover the nation’s debts, establishing the precedent of a federal excise tax.
in what ways were Hamilton’s credit measures successful?
- value of government bonds rose sharply
- federal government could borrow money both at home and abroad
- public credit restored so foreign capital flowed into the USA
- productivity increased and prosperity returned
Hamilton’s proposed Bank of the United States revived Robert Morris’s idea.
- modelled on the Bank of England
- capital of $10 million
- one-fifth to be subscribed by the government
- four-fifths by private investors
When did the Bank of the United States open?
Philadelphia in December 1791
What was Hamilton’s most visionary report?
the report on manufacturing where he laid won a comprehensive plan for industrialisation through a system of protective tariffs and government subsidies for the new industries.
Jefferson and Madison became leaders of those who took the name Republican / Democratic-Republicans…
thereby implying that the Federalists aimed at a monarchy
J.C Miller (1960) claimed that the ideological differences between the Federalists and the Republicans were
‘greater than those which have generally existed between major American political parties’