Chapter 1788-1809 ,,:

Political Parties
Develop

T
he United States was well on its way to a lasting
government when the states ratified the Constitution.
The next 20 years saw the first three presidents take
office. The American political system also came to be during
this period. In this chapter, you will learn about the first three
presidents and the first political systems.

Goals for Learning

♦ To list the parts of Alexander Hamilton's financial plan
♦ To explain what Washington accomplished as
president
♦ To describe what happened during President
Adams's term
♦ To explain what happened in the election of 1800
♦ To describe what Jefferson accomplished as president
~ To describe the Louisiana Purchase and why it was
significant
♦ To describe some important Supreme Court cases

1798 Congress 1804 Lewis and

1801 President Clark begin to
passu Allen and Jefferson takes explore Louisiana 1
Sedition acts office Territory
1795

7 President 1798 Thomas Jefferson

stakes
1803 United 1807 ( ,
~nd James Madison States purchases passes f. • ,
Wf'lte Kentucky and Louisiana Territory Act
Virginia resolutions
 Lesson 1 The First Administration

The Constitution became law on June 21, 1788. It did not

provide for a body of presidential advisers. Congress created
A group ofadvisers three departments and one office in 1789. The heads of each
to the president
department would help the president make decisions.
Treasury
A place where money is President Washington appointed four advisers: Thomas Jefferson
stored; the government from Virginia was named secretary of state; Alexander Hamilton
department that from New York, secretary of the treasury; Henry Knox from
handles money Massachusetts, secretary of war; and Edmund Randolph from
Virginia, attorney general. This group was called the Cabinet.
A Cabinet is a group of advisers to the president. It was
established as a permanent part of the American government.
Washington's early decision to form a Cabinet shows how he
thought a democratic government should work. He chose people
whom he knew and trusted to be members of his Cabinet.

What Was Alexander

The first Cabinet was (from left) Henry
Knox, Thomas Jefferson, Edmund
Randolph, Alexander Hamilton, and
President Washington.
Hamilton's Financial Plan?
The United States was in debt because of the
long, costly war and the weakness of the
Articles of Confederation. This weakness was
a result of conflict among the states. The
treasury, a place where money is stored, was
empty. Congress had passed the Tariff Act of
1789, but the money collected was not enough
to pay the amount owed. The states also had
large debts. To gain the respect of nations
across the ocean, the United States would have - - -l
to pay off this debt. In addition, the treasury
needed money to run the government.
The task of getting the country out of debt
was put into the hands of Alexander
Hamilton, secretary of the treasury. Hamilton I
recommended that several important financial .----~-- . . ··1
measures be taken. _;
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88-1809 Political Parties Develop Chapter 8 155

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 Details of Hamilton's financial plan include:
Bond • Pay the $10 million owed to foreign nations.
A document that is
proofof money owed
• Pay the $40 million owed to people who had lent money to
the government during the war.
Interest
Money paid to someone
• Have the central government take on the debts that the
who lends money states were left with from the war.
-Hamilton's plan was not popular with many in Congress.
The idea of paying off the debts of the states was especially
unpopular with southern states. These states had paid off most
of their debts, while the northern states still had large amounts
of unsettled debts. Jefferson and Madison did not agree with
Hamilton's plan. However, they agreed to help him gain the
support of Congress. In exchange, they wanted Hamilton to do
them a favor. Hamilton was to try to obtain a southern location
as the nation's capital instead of New York. Hamilton agreed.
With the help of Jefferson and Madison, Hamilton's plan passed
in Congress. The District of Columbia, now our nation's
capital, was established.
In order to decrease the debt
to people who had lent money
to the government, Hamilton
suggested giving them bonds
that would pay interest over a
period of time. A bond is a
document that is proof of
:::==~~~~ -. money owed. Interest is
money paid to someone
who lends money.

George Washington was

officially made president in
this building, Federal Hall, in
New York City. This was the
nation's capital at the time.
The capital later became the
District of Columbia.

156 Unit 3 Revolution and the New Nation

j
 Hamilton also helped organize the First Bank of the United
ustry States as a safe place for funds collected as taxes. He set up the
Related to business United States mint where the first American coins were put into
and manufacturing
use. Hamilton gave the country a sound financial plan.
Under Hamilton's plan, the government was able to pay off its
debts. Taxes raised enough money to keep the government
working. Trade increased and industry grew. The people of
other countries, as well as Americans, gained a greater respect
for the United States government.
Lesson 1 Review On a sheet of paper, write the correct word
Word Bank
or words from the Word Bank to complete each sentence.
Alexander
Hamilton 1. The president's team of close advisers is called the _ __
bonds 2. In 1788, the United States had many large debts and an
Cabinet empty _ __
northern
3. As secretary of the treasury, ___ developed a
southern
financial plan.
treasury
4. The ___ states did not want the country to pay off the
debts of the ___ states.
What do ~.. ii 5. Part of the plan was to give ___ to people owed money
you think , . ·'1JI by the government.
What do you

-~~
think may have
happened if the ... Biography
United States
had not paid off Mother Elizabeth Seton: 1774-1821
its debt? Mother Elizabeth Seton was the first native-
born American to be declared a saint. Born
Elizabeth Ann Bayley, she married William M. .,\
':1

Seton in New York in 1794. The couple had %\.~;.•<l

five children. After her husband died in 1803, ·~

Elizabeth became a nun. Called Mother Seton, ".·.

she founded the Daughters of Charity in

1809. She started the first private religious school and the first ' '
Roman Catholic orphanage in the United States. On September 14,
1975, the Roman Catholic Church made her Saint Elizabeth Ann
Seton. Her feast day is celebrated on 'January 4.

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1788-1809 Political Parties Develop Chapter 8 157

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