1. President G. Washington (1789-1797)
April, 30, Inaugurated in New York City (on Wall Street)
57 years old
married to Martha
from Virginia
salve owner
only unanimously elected president
Vice President John Adams
(very limited power - president of Senate)

2. President G. Washington (1789-1797)
1st Congress:
Established 3 executive departments
Treasury (Sec. Alexander Hamilton)
State (Sec. Thomas Jefferson)
War (Sec. Henry Knox)
Also created positions of:
Postmaster General
Attorney General (our nation’s chief law enforcement officer)

3. President G. Washington (1789-1797)
#1 Problem = Debt – owed to:
Foreign nations (such as Spain and France)
States (from war)
Citizens (bonds)
Alexander Hamilton (Sec. of Treasury) - Became most powerful man in government
influenced by Adam Smith’s Wealth of Nations (1776)
$ circulation = economic growth - HOW?
Capitalism
Most businesses privately owned
Competition and free market determined prices and production. => SUPPLY+DEMAND

4. President G. Washington (1789-1797)
Hamilton’s Plan:
Assume state debts (to help stimulate local economies)
Tariffs (as the main source of govt. income & to promote American businesses)
National Bank (stabilize currency and encourage circulation)
Arguments against/for:
STRICT CONSTRUCTION Madison and Jefferson opposed National Bank, said it was unconstitutional (not an enumerated power)
LOOSE CONSTRUCTION Hamilton invoked elastic clause saying it was “necessary and proper” (implied power)
Jefferson demanded the capital be in the South (settled dispute)

5. President G. Washington (1789-1797)
Challenges in the Trans-Appalachian West
“Indians”
Resisted Ohio Valley settlement & wanted own nation
Helped British maintain forts
Battle of Fallen Timbers (Ft. Miami) - Anthony Wayne
Treaty of Greenville

6. President G. Washington (1789-1797)
Challenges in the Trans- Appalachian West
British
Kept forts in Ohio Valley
Jay’s Treaty (1794)
After victory at Fallen Timbers
Got British out of new territory
Opened trade to West Indies
Spain
Claimed all of western N. America
Controlled New Orleans
Incited local Indians against U. S.
Pinkney’s Treaty 1795
Opened the Port of New Orleans for deposit and navigation of the Mississippi River
Spain also agreed to stop inciting local Indians

7. President G. Washington (1789-1797)
Challenges in the Trans-Appalachian West
Western Settlers
Tended to be antifederalists
Resisted taxes & Gov. control
Whiskey Tax (1794) –Hamilton
=> Whiskey Rebellion (Western Pennsylvania)
tax collectors chased away & tarred & feathered-
Hamilton convinced Washington to send in troops (major controversy!)
Peaceful resolution

8. President G. Washington (1789-1797)
Another challenge = French Revolution
Divided Americans
Revolution took violent and radical turn
Hamilton and many wanted to keep good trade relationship with British - supported defeat of the revolutionaries
Others supported the French people and their fight for freedom from the monarchy
Washington = NEUTRAL
1794 British began seizing US merchant ships in West Indies and began the practice of “impressment”
This led to the eventual creation of the best, fastest, navy on the seas