Washington’s Domestic Policy

Emerging Political Parties What is the fundamental argument between the two emerging political parties? Who leads the Democratic Republicans? Who leads the Federalists? Why is Jefferson opposed to the National Bank? Who wins this argument?

Hamilton’s Domestic Program Had to figure out a way for US to pay off its war debts and become economically stable Felt that the gov’t had to direct the economy for the people Plan-_the Federal gov’t would assume all the states’ debts Needed approval by_Congress Southern States_refused to help pay the war debts of the _Northern States Compromise- South would help with the debt problem, BUT the capital had to move South from Philly (result?) Capital moved to Wash DC

Assuming State Debts Hamilton hoped his plan would strengthen the Federal Government How? European Banks and American merchants (who we owed the $ to) would not want a government that owed them $ to collapse  Creditors would then care about the success of the new nation

Does money grow on trees? Hamilton needed to figure out a way for the new gov’t to raise revenue How? New tariffs- 1) a tax on imported goods 2) a “_whiskey tax_” on hard liquor Don’t pay debt all at once (national debt) Paid off only the interest each year National Bank of the US created to handle this matter Was this creation of the national bank constitutional?

Opposition to Hamilton’s Plan Led by Jefferson Felt that it interfered in _local and state affairs_ Felt that Hamilton’s taxation policy was too similar to GB’s taxation of the colonies in 1760’s-1770’s (Stamp Act, Townshend Acts etc..)

The Whiskey Rebellion 1794 In Western PA and other rural areas, farmers protested the new federal tax on whiskey Whiskey = $$$ Rebels in PA closed the courts and attacked tax collectors_ Washington and Hamilton saw this as an opportunity to showcase the strength of the new federal gov’t Sent an 13,000 man army to Pittsburgh, PA to dissolve the rebellion Govt’s show of force ended the “Whiskey Rebellion” with little bloodshed Historical marker in PA

Washington’s Foreign Policy

American Neutrality The US did not want to offend GB or France b/c their navies would disrupt our trade G.W. issued a Proclamation of Neutrality in 1794 However, both GB and FR seized our trading vessels that were headed to the opposing country despite the US being neutral A debate rose on whether we should remain neutral or not

Jay’s Treaty G.W. felt we needed to avoid war with GB Sent Chief Justice John Jay over to London to make a treaty with Great Britain Provisions: GB agreed to leave its forts in the Ohio and Mississippi River valleys Both nations agreed to expand trade w/ each other However, GB would NOT agree to stop seizing and searching our ships John Jay

Washington says “Farewell” Would not seek a 3rd Term and wrote a “Farewell Address” to the nation Stated Do NOT form political parties as it may stir up rebellion Remain neutral in the wars and conflicts of European nations Has the US listened to Washington?