Essential Question: What early precedents in American government were established in Washington’s first 2 terms as president? How did ideological differences between Jefferson & Hamilton contribute to the rise of America’s first political parties?

George Washington & America’s 1st Political Parties The Young Republic, 1789-1800 George Washington & America’s 1st Political Parties

Building the Machinery of Gov’t The Constitution created a “general framework” of gov’t but it was up to the 1st president & the 1st Congress to fill in the details: The “gov’t” in 1789 had no federal court system, navy, or tax collection system The Senate spent 3 weeks debating how the president should be addressed One committee proposed: "His Highness the President of the United States and Protector of the Rights of the Same" The new government consisted of nothing more than 75 post offices, a large debt, a small number of unpaid clerks, and an army of just 46 officers and 672 soldiers. There was no federal court system, no navy, and no system for collecting taxes.

Building the Machinery of Gov’t With James Madison’s leadership, the House of Representatives: raised revenue by passing a protective tariff & a tax on liquor gave structure to the executive branch by creating the State, Treasury, Justice, & War Depts organized a federal court system via the Judiciary Act of 1789 Consisted of a Supreme Court with six justices, a district court in each state, and three appeals courts

Washington as President The unanimous choice for the leader of the infant republic was George Washington He established many precedents: Created the 1st cabinet Delivering an inaugural address The title “Mr. President”

Washington as President Washington’s 1st term as president was defined by domestic policy: He helped define a strong & active presidency Appointed strong, able leaders to cabinet posts Focused on the U.S. economy Traveled to every state to “show the people” their national gov’t

Washington’s Cabinet Alexander Hamilton, Secretary of Treasury Henry Knox, Secretary of War Hamilton & Jefferson proved to be his most capable cabinet members but were also the most divisive because they had vastly different views on the role of gov’t for the new nation George Washington, President Washington acted as president as he did as a military general: he surrounded himself with capable subordinates, listened to their advice, then made the final decision Edmund Randolph, Attorney General Thomas Jefferson, Secretary of State

Alexander Hamilton Hamilton believed a strong central gov’t was best for America: He wanted the U.S. to grow as an industrial power with less dependency on Europe He wanted the U.S. economy to mirror the English economy He feared democracy would lead to anarchy; power should be in hands of wealthy citizens As Sec. of Treasury will shape Economic future of nation 4 4

Thomas Jefferson Jefferson believed that a limited gov’t would preserve liberty: He saw the U.S. as an agrarian nation with active foreign trade to buy manufactured goods He trusted the common people over the elitist aristocracy He favored close ties with France, especially when the French Revolution began 5 5

Hamilton’s Economic Plan for America

Hamilton's Economic Plan $54 million in national debt $25 million in state debts By 1789, one of America’s biggest challenges was its huge debt Hamilton’s Report on Public Credit (1790) proposed: “Funding” the national debt “Assumption" of state debts Creating a national bank Gov’t aid to manufacturing + ~$25 million still owed by states) 6 6

Funding and Assumption And an excise tax on distilled liquors (whiskey) Funding: Congress to redeem U.S. certificates of debt at face value to prove to foreign investors that the U.S. would repay its debts Assumption: Federal government would purchase states' debts to gain a better interest rate & create a “national” problem rather than individual state problems In 1790, Washington signed into law Hamilton’s proposals on funding & assumption 7 7

The Bank Controversy Hamilton proposed the creation of a National Bank that would be privately owned, but federally chartered to regulate finance Madison & Jefferson opposed the Bank of the U.S. (BUS) because: It appeared to favor the rich Its creation was not mentioned in the Constitution This type of interpretation of the Constitution is called “strict construction” 8 8

The Bank Controversy Hamilton defended creating a BUS under Article 1, section 8: The Necessary & Proper Clause gave Congress “implied powers” to interpret the Constitution This “Elastic Clause” allowed Hamilton to make a successful “loose construction” argument Congress chartered the Bank of the United States in 1791

Promoting Manufacturing Report on Manufacturing sought to boost manufacturing & reduce U.S. dependency on Europe Opposition to Hamilton’s plan: Madison feared strengthening the federal gov’t would destroy state sovereignty Jefferson feared that the rise of cities would destroy agriculture & agrarian civic virtue 9 9

Foreign Affairs

The Battle over Foreign Affairs France was engulfed in the French Revolution; The U.S. supported the revolution, but feared its radical & bloody nature In the 1792 election, Washington was unanimously chosen again Foreign policy became the focus of Washington’s 2nd term: War between England & France broke out in 1793 which divided Americans over who to support U.S. neutrality seemed to be the best option 10 10

The Peril of Neutrality Americans seemed to favor France due to French assistance in the American Rev Hamilton & Jefferson wanted neutrality but disagreed how: Jefferson: punish England (due to impressment) by cutting off trade & reward France Hamilton: England needed to be appeased, not coerced Washington signed Proclamation of Neutrality (1793) to keep America out of foreign wars Genet Affair: French diplomat Edmond Genet challenged American Neutrality repeatedly in public Impressment- taking men into the navy by force with or without notice British seizing American ships headed for French Ports 11 11

Jay's Treaty with England John Jay demanded from England The removal of British soldiers from western forts in America payment for impressed ships acceptance of U.S. neutrality Jay’s Treaty (1794) British vacated western forts U.S. gained trade in West Indies But, England did not recognize impressment and seizure of ships The treaty avoided war with England but did not get the British to pay Southerners for lost slaves or merchants for impressed ships The House challenged the Senate’s Constitutional authority to ratify the treaty Unpopular but did keep neutrality 12 12

Pinckney’s Treaty with Spain Prior to 1795, Spain closed U.S. access to the Mississippi River & encouraged Indian attacks But, Spain interpreted Jay's Treaty as Anglo-American alliance against Spain & signed the Treaty of San Lorenzo (Pinckney’s Treaty): Spain reopened the Mississippi Settled the disputed border between Florida & U.S. (31st Parallel) 15 15

Treaty of Greenville with Indians To end Indian attacks against white settlers in the West, the U.S. fought an Ohio Indian alliance led by the Shawnee at Battle of Fallen Timbers (1794) Led to the Treaty of Greenville: Indians ceded lands in Ohio The U.S. promised “fair” dealings with Indian nations Settlers rushed to Georgia, Kentucky, Tennessee, Ohio, & western New York The end of the American Revolution unleashed a rush of white settlers into frontier Georgia, Kentucky, Tennessee, Ohio, and western New York. Hundreds died as Indians resisted the influx of whites onto their lands. To open the Ohio country to white settlement, President Washington dispatched three armies. Twice, a confederacy of eight tribes led by Little Turtle, chief of the Miamis, defeated American forces. But in 1794, a third army defeated the Indian alliance at the Battle of Fallen Timbers in northwestern Ohio. Under the Treaty of Greenville (1795), Native Americans ceded much of the present state of Ohio in return for cash and a promise that the federal government would treat the Indian nations fairly in land dealings. 14 14

America’s First Political Parties

America’s 1st Political Parties Represented the “Spirit of 1776” & the fight against tyranny Also called Jeffersonian Republicans or simply, Republicans Disagreements over Hamilton’s financial plans & Anglo-French Wars led to the 1st political parties: Democratic-Republicans: led by Jefferson, favored states’ rights, “strict construction,” ties to France, & liberty Federalists: led by Hamilton, favored a strong national gov’t, “loose construction”, ties to England, & public order Represented the “Spirit of 1787” & the fight for a stronger national gov’t 10 10

Whiskey Rebellion Hamilton interpreted the rebellion as a Jefferson-inspired conspiracy Jefferson saw it as an excuse by Federalists to raise an army to intimidate Republicans The whiskey tax led yeomen in western Pennsylvania to start a Whiskey Rebellion in 1794 When the governor of PA refused to act, Federalists saw the revolt as a threat to safety Washington himself led the U.S. army to suppress the rebellion Both parties used the event to attack each other Rioted with the same fervor as those against the Stamp Act Political polarization was further intensified by the outbreak of popular protests in western Pennsylvania against Hamilton's financial program. To help pay off the nation's debt, Congress passed a tax on whiskey. On the frontier, the only practical way to transport and sell surplus corn was to distill it into whiskey. Frontier farmers regarded a tax on whiskey in the same way as American colonists had regarded Britain's stamp tax. By 1794, western Pennsylvanians had had enough. Some 7000 frontiersmen marched on Pittsburgh to stop collection of the tax. Determined to set a precedent for the federal government's authority, Washington gathered an army of 15,000 militamen to disperse the rebels. In the face of this overwhelming force, the uprising collapsed. The new government had proved that it would enforce laws enacted by Congress. Thomas Jefferson took a very different view of the "Whiskey Rebellion." He believed that the government had used the army to stifle legitimate opposition to unfair government policies. 17 17

Whiskey Rebellion, 1794 His mere presence (and the 15,000 soldiers he brought with him) was enough to end the Whiskey Rebellion Political polarization was further intensified by the outbreak of popular protests in western Pennsylvania against Hamilton's financial program. To help pay off the nation's debt, Congress passed a tax on whiskey. On the frontier, the only practical way to transport and sell surplus corn was to distill it into whiskey. Frontier farmers regarded a tax on whiskey in the same way as American colonists had regarded Britain's stamp tax. By 1794, western Pennsylvanians had had enough. Some 7,000 frontiersmen marched on Pittsburgh to stop collection of the tax. Determined to set a precedent for the federal government's authority, Washington gathered an army of 15,000 militamen to disperse the rebels. In the face of this overwhelming force, the uprising collapsed. The new government had proved that it would enforce laws enacted by Congress. Thomas Jefferson took a very different view of the "Whiskey Rebellion." He believed that the government had used the army to stifle legitimate opposition to unfair government policies.

Washington's Farewell Address Washington never acknowledged the faction in his cabinet, he tended to side with the Federalist perspective of gov’t Washington was not limited by the Constitution to 2 terms, but in 1796 he announced his decision to retire Washington’s Farewell Address: Warned against political parties Warned against “entangling alliances” with foreign nations (led to the precedent of non-intervention in foreign affairs) Washington’s decision to retire established the precedent of 2 terms in office for presidents 18 18

Discussion Question: George Washington is universally agreed to be the most significant of America’s Founding Fathers… But, who is the 2nd most important of these early political leaders: James Madison? Alexander Hamilton? Thomas Jefferson? Someone else? Make an argument for each & then rank order them with a clear justification for your #1 choice

Hamilton/Jefferson Comparison (Federalist) Jefferson (Democratic-Republican) What was his vision of the role of government (National or State?) Payment of National & State Debts Tariff on Imported Goods The U.S. Economy: (Manufacturing or Farming?) Creating a National Bank Interpretation of the Constitution Whiskey Tax and Whiskey Rebellion Support for the French Revolution

Hamilton/Jefferson Discussion Summarize the fundamental idea at the heart of the Federalists/Anti-Federalist disagreement. In what ways is this similar to the idea at the heart of the Hamilton/Jefferson conflict? In what ways is it different? Who’s vision for America, Hamilton’s or Jefferson’s, do you feel was most appropriate for America in 1790? Explain