1. Washington’s Domestic Policy

2. 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?

3. 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

4. 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

5. 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?

6. 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..)

7. 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

8. Washington’s Foreign Policy

9. 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

10. 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

11. 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?