Washington’s Presidency

Growing national debt Hamilton & Jefferson disagreed about the power of govt

Hamilton presented a 3 step program to improve financesHamilton presented a 3 step program to improve finances #1: Congress to pay off all war debt#1: Congress to pay off all war debt –Combine all state debts into a single national debt…$52 million Many Southern states had repaid their debtMany Southern states had repaid their debt –Did not like being asked to help Northern states

#2: Raise government revenue#2: Raise government revenue Hamilton felt industry (manufacturing) would make economy strongerHamilton felt industry (manufacturing) would make economy stronger –Proposed a tariff to encourage American products –South had little industry & opposed the tariff Congress should approve many new taxesCongress should approve many new taxes New taxes would give govt. new financial powersNew taxes would give govt. new financial powers The tax would ensure a steady flow of income to the governmentThe tax would ensure a steady flow of income to the government

#3:Congress should create a national bank #3: Congress should create a national bank that would serve many purposes give government a safe place to keep money Bank would give government a safe place to keep money Businesses would be helped through loans Bank would issue bank notes (paper money used as currency)

Plan would strengthen the federal governmentPlan would strengthen the federal government Plan worried Jefferson and Madison about too much federal powerPlan worried Jefferson and Madison about too much federal power Called the plan unconstitutionalCalled the plan unconstitutional Argued for a strict interpretation of the ConstitutionArgued for a strict interpretation of the Constitution –Constitution does not mention a bank so government cannot create one Hamilton believed in a loose interpretationHamilton believed in a loose interpretation A very broad and flexible view of powerA very broad and flexible view of power Doing what is “necessary and proper”Doing what is “necessary and proper”

use Hamilton’s financial plan Nation would use Hamilton’s financial plan Create a new Southern capital called City of Washington, District of Columbia

Congress passed an excise tax on distilled whiskey Farmers made whiskey from surplus corn Farmers bartered whiskey (traded it for other products, not money) Efforts to collect tax were stepped up in July 1794 Mob of armed people attacked tax collectors President Washington crushed the rebellion by personally marching with an army of 13,000

Began the year of Washington’s inaugurationBegan the year of Washington’s inauguration –Originally seen as a good thing in America By 1793, the Revolution turned bloodyBy 1793, the Revolution turned bloody Many Americans were offended by the violence, attacks on religion, disregard of individual libertiesMany Americans were offended by the violence, attacks on religion, disregard of individual liberties Britain went to war with France in 1793Britain went to war with France in 1793

Hamilton attacked Jefferson in the press Jefferson secretly started his own newspaper The common people, & Jefferson, acknowledged Revolutionary France The commercial classes, & Hamilton, preferred England, their main source of business The country divided into 2 groups

NEUTRALITY French wanted us to help in war with BritainFrench wanted us to help in war with Britain –They were our allies in the American Revolution Washington encouraged neutralityWashington encouraged neutrality –Discouraged American involvement Proclamation of NeutralityProclamation of Neutrality –Prohibited Americans fighting in overseas war –Barred warships in American ports Britain ignored it & attacked usBritain ignored it & attacked us

Jay’s Treaty Washington sent John Jay, chief justice of the Supreme Court, to negotiate a treaty British must withdraw from America, pay damages,& allow some ships to trade in the CaribbeanBritish must withdraw from America, pay damages, & allow some ships to trade in the Caribbean Many Americans wanted trade with British West Indies, which it did not open French were outraged & saw this as dealing with the devil

Washington’s Farewell Address Farewell addressFarewell address –Attacked evils of political parties/division –Attacked entangling ourselves in foreign affairs Farewell influenced foreign policy for more than 100 yearsFarewell influenced foreign policy for more than 100 years