Chapter 10 Launching the New Ship of State

Chapter 10: Launching the New Ship of State

Population growth • 1789 - population doubling every 25 years! • Still 90% rural • Only 5% lived west of Appalachian mountains

George Washington • Unanimously elected first president • “precedent president”

Presidential Cabinet • Advisors for the president

Secretary of State • Thomas Jefferson

Secretary of the Treasury • Alexander Hamilton

Secretary of War • Henry Knox

The Bill of Rights • Added because of anti-federalist criticism • Madison wrote and guided through Congress

Judiciary Act of 1789 • Organized federal court system

Hamilton Revives the Corpse of Public Credit • Lots of schemes • Needed to borrow money from countries • Needed to raise national credit

Congress assumes war debt • $54 million • Also state debt: 21. 5 million • Ulterior motives: tie the states to the federal government/strengthen federal government

Fight in Congress • Compromise: Virginia agrees if DC was put on the Potomac River

How to pay $75 million debt? • Custom duties/tariffs • Excise taxes

Custom duties/tariffs • Need foreign trade • First tariff law- 8% on all imports

Excise taxes • Just taxes • whiskey

Hamilton’s not done though… • National Bank: – Private institution but government would be primary stockholder – Federal Treasury would deposit money – Print paper money

Constitutional? Yes: Hamilton • “loose interpretation” • “necessary and proper” No: Jefferson • “Strict interpretation”

And the verdict is. . . • Washington goes with Hamilton • National Bank created in 1791 • Chartered for 20 years

Emergence of political parties • Hamilton vs. Jefferson • Origin of two-party system • Hamilton- Federalists • Jefferson-Democratic-Republicans

Whiskey Rebellion • 1794 • Pennsylvania • Corn (yes, I know) farmers upset about whiskey tax- begin revolting and tarring and feathering

Whiskey Rebellion • Washington sent in troops and suppressed rebellion • Respect for federal government • Unlike which rebellion?

French Revolution- 1789

Revolution starts • Yay! We love revolutions!

Reign of Terror Starts • Federalists scared.

Washington’s Neutrality Proclamation • 1778 - Franco-American alliance still on the books • This is awkward… • Should we enter the war? Let’s not…

Washington’s Neutrality Proclamation • Washington didn’t believe nation was strong enough • Starts trend of isolationism • Jeffersonian Democratic-Republicans not pleased

British probs • Still British posts in the NW Territory- didn’t want to give up the fur trade • British allied with Indians, used them as a buffer

Little Turtle • Chief of the Miami Indians • Not in Florida. In Northwest Territory.

Battle of Fallen Timbers • Miamis attacked Americans • Defeated Americans • British refused to shelter them

Treaty of Greenville-1795 • Miami Confederacy gave up land, in return they get: – $20, 000 – $9, 000/year – Right to hunt on lands – Recognition of sovereignty

• People begin to call for war against Great Britain

Jay’s Treaty- 1794 • John Jay sent to negotiate treaty with GB • Britain promised to: – Evacuate NW Territory – Pay for damages to seized Am. Ships – But nothing else really – Also, America supposed to pay those pesky pre. Revolutionary war debts

Pinckney’s Treaty- 1795 • Spain scared about being left out of America. British alliance (religion) • Gave America what they wanted: – Opened MS River – Opened Port of New Orleans – Gave most of West Florida

Washington’s Farewell • Decides to not run for a 3 rd term • Precedent not broken until 1940 by FDR • 22 nd Amendment • Did a lot of great things, most importantly he left a secure central government