1. George Washington Challenges and Solutions

2. Economic Problems War Debt –Owed to foreign countries Netherlands France Spain –Owed to merchants and citizens Image

3. Hamilton’s Financial Plan Pay off all war debts –Some states had already paid their portion –Compromised with move of Capital Raise government revenue –Tariffs of imported goods Money for national government Encourage growth of American businesses Create a national bank –Safe place for nation’s money –Issue one currency –Loans to businesses and government Strengthen national governm,ent

4. Different Interpretations of Constitution Strict or flexible? Is the national bank constitutional? Anti-feds –Strict interpretation –Unconstitutional as power not spelled out Feds –Loose interpretation –“Necessary and Proper” clause Need powers not specifically stated to carry out job

6. Securing NW Territory Competition for land Trans-Appalachian West –Britain –Spain –Native Americans Mississippi River vital for trade Washington sends troops

7. Battle of Fallen Timbers Ohio River Valley Washington sends troops to fight Natives 1790 Little Turtle (Miami Tribe) –Shawnee –Ottawa –Chippewa Natives think Brits will aid, but don’t Treaty of Greenville (1795) –Twelve tribes –Surrender to U.S. government Ohio Indiana

8. Whiskey Rebellion Western Pennsylvania Grain and Whiskey important products Farmers make whiskey from grain –Cheaper and easier to ship whiskey –Can ship more whiskey than grain Tax on whiskey cuts into profits Farmers resisted tax by rebelling –Beat up and tar and feather tax collector –Armed themselves Washington sends troops (Oct. 1794) –Image –Won’t let rebels weaken authority of fed. Gov’t.

10. French Revolution 1789 Caused by financial crisis Inspired by American Revolution –French demand Liberty Equality –Overthrow King Louis XVI

11. French Revolution - cont European monarchs in fear France declares war –Britain –Holland –Spain Who, if anyone, should the U.S. support? –French helped us –Just finished war with Britain Washington –Neutral –“Friendly and impartial” –Congress passes law forbidding help to either side

13. Jay’s Treaty Britain seizes American cargo ships –French West Indies –Challenge neutrality John Jay, Chief Justice, negotiates with British –Stop seizure of ships –Give up forts on NW frontier –1794-1796 Treaty –British leave Ohio River valley –British pay for damages to American ships –Trade with British West Indies fails

15. Pinckney’s Treaty Thomas Pinckney 1795 Treaty with Spain –Americans travel freely along Mississippi River –Americans could store goods Port of New Orleans Free of customs duties –Northern boundary of Florida at 31st parallel –Southern boundary of U.S. at 31st parallel

16. Court System Congress creates Supreme Court –How many justices? –How much power? –How to divide authority Federal government State government Federal Judiciary Act of 1789 –Supreme Court One chief justice (John Jay) Five associate justices (eventually nine) –Lower Federal courts with less power