1. The Early Republic (1789-1800) “’tis the event which I have long dreaded” -George Washington on his Presidential election Eliseo Lugo III

2. Washington as President He understood the importance of precedent He was elected as the first President of the United States in 1789. He was inaugurated on April 30,1789. An inauguration is a ceremony in which the President takes the oath of office and officially becomes President. George Washington established these three departments within the executive branch after Congress passed them into law. These were: Department of the Treasury, Department of State, and the Department of War. These departments would be established to provide the President with experienced advisors within the Executive Branch. Washington at time of his Presidency

3. Washington as President continued He established the First Cabinet. The President’s Cabinet is his group of selected advisors. He wanted to be called “Mr. President” instead of “His Excellency” Demanded promptness to meetings, formality Signed Judiciary Act of 1789 which established the Federal Court System. The main job of the Federal Courts was to hear appeals from State Courts. An Appeal is to ask that a court decision be reviewed by a higher court.

4. The Nations First Economic Crisis The American Revolution had left the nation with a large debt. The debt was mainly in the form of bonds. A bond is a certificate issued by a government for an amount of money that the government promises to pay back with interest. The new American government needed to figure out a way to pay back Bond investors. The majority of purchasers of these bonds were speculators. Speculators are people who invest in a risky venture in the hope of making a large profit. Another Crisis dealt with the federal governments obligation to pay back state debts. The person who would deal with this early economic crisis would be Alexander Hamilton.

5. Alexander Hamilton C o-author- The Federalist Papers I ndustrial vision of America’s future A dmired Britain’s strong central government and industrial strength A mbitious, hardworking A ppointed first Secretary of the Treasury by George Washington O rdered to solve nation’s financial problems Alexander Hamilton

6. Hamilton’s Financial Plan 3 Parts: 1)Report on Public Credit- Federal government assumes all state debts 2)Report on Banking- Asked Congress to create a Bank of the U.S. to issue currency, manage debt, etc. 3)Report on Manufactures- pass a protective tariff to stimulate domestic manufacturing

7. Opposition to Plan Thomas Jefferson argued that there was no where in the Constitution that allowed for Congress to set up a national bank Jefferson argued that establishing a National Bank was unconstitutional Unconstitutional is defined as contrary to what is permitted in the Constitution. Southerners felt plan favored Northern states They debated over the meaning of Constitution, specifically Article 1 Section 8 of the Constitution that gave Congress the power to make all laws that were “necessary and proper” “strict” vs “loose” interpretation Was bank “necessary and proper” for the nation? Thomas Jefferson James Madison

8. Bank of the United States Most controversial part of Hamilton’s plan Led to formation of America’s modern political parties Federalists (pro-Bank), Democratic-Republicans (anti-Bank) 1791- Washington sides with Hamilton, Bank is created (BUS) First Bank of the US- Philadelphia

9. The Whiskey Rebellion 1791- at Hamilton’s urging, Congress imposes a direct tax on whiskey Alexander Hamilton had hoped this tax would raise funds for the Treasury. What would occur instead would be a revolt that tested the strength of the new government. Summer of 1794- Rebellion occurred in western Pennsylvania George Washington leads 15,000 troops to put down rebels Significance of the Whiskey Rebellion- It firmly established authority of new government Washington clearly demonstrates “commander- in-chief”

10. Why whiskey? Farmers had a hard time getting their grain to market, so they turned their grain into whiskey, which was easier to transport. They got more money for the whiskey anyway. Farmers traded the whiskey for salt, sugar, and other goods. Farmers used whiskey as money to get whatever supplies they needed. Farmers did not have the money to pay for the tax.

11. The Rebellion In the summer of 1794, a group of farmers in Western Pennsylvania rebelled against the whiskey tax and staged the Whiskey Rebellion. One group beat up a tax collector and coated him with tar and feathers. Supreme Court rules that the situation in Western Pennsylvania cannot be controlled by civil authorities and that a military response is needed.

12. The Government Responds Alexander Hamilton wanted the government to look strong. He encouraged President Washington to stop the revolt. Federal troops marched to Western Pennsylvania and put down the revolt. Washington had proved that the government would deal with people not obeying the law.

13. End of Whiskey Rebellion Washington issues a proclamation ordering the militia to march against the insurgents As troops hike the region, rebels scatter No loss of life, rebellion is squashed. George Washington leads 15,000 troops to put down rebels Significance of the Whiskey Rebellion- It firmly established authority of new government George Washington showed that the new nation was not going to tolerate any form of rebellion

14. The First Two Political Parties The first two political Parties were the Federalists and the Democratic- Rebublicans. Supporters of Alexander Hamilton formed the Federalist Party Supporters of Thomas Jefferson and James Madison organized the Democratic-Republican Party

15. Early Political Parties Alexander Hamilton and Federalists Supported a strong central government Rule by wealthy, educated Industrial vision loose interpretation of the Constitution Pro-England Protective tariffs Thomas Jefferson and James Madison and the Democratic- Republicans Supported strong state governments Rule by the common man Agrarian (agricultural) vision strict interpretation of the Constitution Pro-France Anti- tariffs

16. Early Political Parties (con’t) Federalists Supported by artisans, merchants, manufacturers, bankers North, urban cities Basis for modern Republican party Democratic- Republicans Supported by farmers South, western frontier Basis for modern Democratic Party

17. Foreign Policy Under Washington Revolution in France divides America 1793- Washington’s Neutrality Proclamation (England vs France) Impressments of American ships Impressment is the act of seizing someone and forcing them into service Jay’s Treaty (1794) Pinckney’s Treaty (1795) Chaos in France

18. Western Expansion under Washington In the 1780s and 1790s the area between the Appalachian Mountains and the Mississippi River are settled rapidly This settlement would lead to conflicts with Native-Americans in Northwest Territory Battle of Fallen Timbers (1794): American troops vs native confederation

19. Washington Leaves Office Washington asked to run for 3 rd term, refuses (precedent) Writes Farewell Address before leaving Warns against sectionalism, political parties, entangling foreign alliances Washington retires to Mount Vernon after serving as President

20. Think About It… 1)Why was the issue of precedent important to Washington during his term as President? 2)Why was Hamilton’s Financial Plan important to the early success of the nation? 3)Why did Washington elect to not serve a third term?