1. Washington as President

2. Growing national debt Disagreed about the power of government How should the constitution be interpreted?

3. #1: Pay off all war debt Combine federal & state debts into a single national debt Combine federal & state debts into a single national debt = $77 million 3 step program to improve finances Hamilton presented a 3 step program to improve finances Year Gross Domestic Product (Output) Total Population National Debt Debt/Population ($ per person) 1790$240,000,0003,930,000$75,463,476.52$19.20 1791S250,000,0004,050,000$77,227,924.66$19.07 1792$270,000,0004,170,000$80,358,634.04$19.27 1793$300,000,0004,300,000$ 78,427,404.77$18.24 1794$350,000,0004,430,000$80,747,587.39$18.23 1795$420,000,0004,560,000$83,762,172.07$18.37 1796$470,000,0004,700,000$82,064,479.33$17.46 1797$450,000,0004,840,000$79,228,529.12$16.37

4. Propose a tariff to encourage American industry (manufacturing) & make economy strongerPropose a tariff to encourage American industry (manufacturing) & make economy stronger New taxes strengthen federal financial powerNew taxes strengthen federal financial power –New tax on whiskey proposed Taxes would ensure a steady flow of income to the government #2: Raise government revenue

5. #3:Congress should create a national bank #3: Congress should create a national bank Give government a safe place to keep money Businesses would be helped through loans Bank would issue bank notes (paper money used as currency)

6. Plan would strengthen the federal governmentPlan would strengthen the federal government Hamilton believed in a loose interpretationHamilton believed in a loose interpretation A very broad and flexible view of power Doing what is “necessary and proper”

7. Thomas Jefferson & James Madison felt it gave too much federal powerThomas Jefferson & James Madison felt it gave too much federal power Called 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

8. Use Hamilton’s financial plan (pleases Federalists) Create a new Southern capital called City of Washington, District of Columbia (pleases DR)

9. Issues: Foreign & Domestic

10. Whiskey tax receipt, 1794

11. The Tax Hamilton tries to increase revenue for the U.S. Government Tax on all distilled spirits (whiskey) passed Congress in 1791Tax on all distilled spirits (whiskey) passed Congress in 1791

12. Alcohol in Western Society Made from excess corn, whiskey was very important to western economy Grain that had been distilled into whiskey was made a lot of profit Whiskey was a form of currencyWhiskey was a form of currency to trade for what they needed

13. Whiskey Production Large scale business Paid tax annuallyPaid tax annually –6¢ per gallon Passed cost on to consumerPassed cost on to consumer Small scale personal Couldn’t pay the tax annuallyCouldn’t pay the tax annually Didn’t sell it, couldn’t pass cost on to consumerDidn’t sell it, couldn’t pass cost on to consumer

14. Rebellion Begins From Pennsylvania to Georgia western farmers refuse to pay taxFrom Pennsylvania to Georgia western farmers refuse to pay tax Efforts to collect the tax were increased in 1794Efforts to collect the tax were increased in 1794 Tax collectors were attackedTax collectors were attacked

15. Rebellion Location Rebellion in the western part of the state

16. Washington takes Action Washington calls up over 13,000 militia troopsWashington calls up over 13,000 militia troops Harry Lee is put in command (father of Robert E. Lee)Harry Lee is put in command (father of Robert E. Lee) Washington also rides at the head of the troopsWashington also rides at the head of the troops

17. End of Rebellion Militia breaks up rebellionMilitia breaks up rebellion Rebels were arrestedRebels were arrested Washington offers pardons in exchange for oaths of loyaltyWashington offers pardons in exchange for oaths of loyalty Washington reviews the troops - Carlisle, Pennsylvania September 1794

18. Began the year of Washington’s inaugurationBegan the year of Washington’s inauguration Originally seen as a good thing until it became violent Many Americans hated the violence, attacks on religion, disregard of individual liberties Britain went declared war to take advantage of a weak French governmentBritain went declared war to take advantage of a weak French government

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

20. NEUTRALITY France wanted US to help fight BritainFrance wanted US to help fight 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 & attackedBritain ignored it & attacked

21. American Treaties Washington sent John Jay, chief justice of the Supreme Court, to negotiate a treaty Jay’s TreatyJay’s Treaty –British 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 –Many Americans did not like the treaty Thomas Pinckney created a treaty with Spain to resolve trade on the Mississippi RiverThomas Pinckney created a treaty with Spain to resolve trade on the Mississippi River France was outraged & saw this as dealing with the devil

22. Washington’s Farewell Address Farewell addressFarewell address –Attacked evils of political parties/division –Against entangling ourselves in foreign affairs Influenced foreign policy for more than 100 yearsInfluenced foreign policy for more than 100 years