1789 1797 George Washington o Unanimously elected 1789

1789 -1797

• George Washington o Unanimously elected 1789 & 1792 o V. P. John Adams (came in 2 nd Place) • Problems of the new government o o Major debt Small army, No Navy Port of New Orleans was closed to American trade G. B. still had forts in the N. W. Territory • Judiciary Act 1789 o Established the federal court system • District (Circuit Courts), Appellate Courts, Supreme Court o John Jay, 1 st Chief Justice

• Washington’s First Cabinet o o State Department: Thomas Jefferson Treasury Department: Alexander Hamilton Department of War: Henry Knox Attorney General: Edmund Randolph

Hamilton’s Economic Plan • Federalist • War debt needed to be paid by all of the states since they all benefitted from Independence • Called for the Federal government to assume the debts of the states o This didn’t seem fair to the southern state because most of the debt was held by the North

Hamilton’s Economic Plan Action Result Lasting Legacy Pay foreign debt and interest in full Restore national credit Established the U. S. as trustworthy Federal government assumes the debts of the states Bring stability to country; stimulate the economy Unified the country Impose Excise taxes and tariffs Pay debts and increase manufacturing Established precedent of nation paying its debts Create a Nation Bank and national currency Help government regulate economy and commerce Created model on which today’s federal reserve is based

Hamilton’s Economic Plan • Benefits of the system o Support from wealthy Americans o It would enrich investors who put that money back into the American economy • Southern opposition o Why should they pay debts twice? o Agreed to the plan when the national capital was moved to VA from NY • Loose v. Strict o Hamilton justified the plan due to “implied powers”- Loose interpretation o T. Jefferson and J. Madison opposed the plan (specifically the national bank) favoring a strict interpretation of the Constitution • Jefferson argued the system looked too much like G. B. , feared it would lead to income inequality o Congress approved the plan in 1792, the new capital became known as Washington D. C.

The Whiskey Rebellion • Farmers in W. PA were angry about the excise tax on whiskey o Farmers attacked tax collectors • Washington sent troops under Hamilton’s command to put down the rebellion o o Most rebels stayed home or ran away Jefferson mocked the incident A cause of the two party system Demonstrated that the Federal Government would enforce laws passed by Congress

Two Party System • The Framers had wanted to avoid political parties o Threaten unity of the Republic o The first two parties developed out of conflict within Washington’s cabinet Federalists Democratic Republicans Led by Hamilton, Adams Jefferson, Madison Strong central gov’t Strong state gov’t Econ based on trade and industry Econ based on Agriculture Pro British Pro French Loose Interpretation Strict Interpretation Wealthy, well educated Common Man North South

Washington’s Foreign Policy • U. S. had territory in the “West” but it was not under their control o Native Americans (Miami Tribe) o British-still occupied forts in the Northwest Territory • N. A. ’s led by Chief Little Turtle defeated American troops in the Ohio Valley o Washington sent re enforcements led by Gen. Anthony Wayne o Defeated Little at the Battle of Fallen Timber • Treaty of Greenville- Gave land to U. S. , opened the Ohio Valley to settlement

Washington’s Foreign Policy • Relations with Europe o 1789 -French Revolution • 1793 French Revolution turned really violent, declared war on all European monarchies o Americans divided along party lines o 1793, G. B. and France are at war • U. S. is still dependent on G. B. for trade • Washington issued the Proclamation of Neutrality o Foundation of U. S. foreign policy!!! o G. B. and France still tested us

Washington’s Foreign Policy • Jay’s Treaty o To avoid war with G. B. o G. B. would leave forts in the N. W. territory o Required U. S. to pay debts from before the Revolution o Not a popular treaty o Who did this treaty upset? ? ? • Pinckney's Treaty o U. S. needed to move goods up and down the MS River o Guaranteed American shipping rights on the MS River and access to the port of New Orleans, Northern boundaries of FL o Important Commerce Treaty

Washington’s Farewell • Washington declined to run for a 3 rd term • Gave his Farewell Address in 1797 o What political advice does Washington offer in his Farewell Address? o Avoid entangled alliances o Avoid political parties