The Early Republic 1789- 1828

Part 1: The Presidency of George Washington 1789- Washington is inaugurated as the nation’s first President

1:1: Washington’s Domestic Policy

The Constitution allows the President to choose officials in executive departments This is known as the Cabinet This was one of Washington’s first precedents Precedent- an action taken for the first time which is followed by others afterwards

Creating a Stable Economy The biggest problem in the new government is economic Government owes 54 million dollars The states owe another 24 million

Alexander Hamilton, Secretary of the Treasury, has a plan 1. Repay the Debt The national government should pay off the debts of both the states and the national government to establish good credit 2. Create a National Bank A national bank can be a place to deposit taxes, provide sound currency, and make national loans 3. Whiskey tax To raise money from Western farmers 4. Protective Tariff To protect American businesses from foreign competition Tariff- a tax on imported goods

Jefferson and Madison believed that the Constitution did not give the federal government the right to a national bank This disagreement gave rise to America’s first political parties Political parties- associations that try to elect their members to government offices so that they will pass laws favorable to their ideas

Hamilton and his followers become known as Federalists Jefferson and his followers call themselves the Democratic- Republicans The disagreement is made worse by the French Revolution

The First Political Parties (foldable)

Defeat of the Protective Tariff All of Hamilton’s ideas are passed except for the tariff (Southerners oppose high tariffs, it makes their crops harder to sell)

How tariffs work

The Whiskey Rebellion 1794 Western farmers rebel against the new taxes on whiskey; they refuse to pay their taxes and threaten tax collectors Washington leads the militia to put down the rebellion The rebels flee before any fighting takes place

1:2: Washington’s Foreign Policy

War breaks out between Britain and France in 1793 The Federalists support Britain The Democratic Republicans support the French

The Proclamation of Neutrality America is not ready for war, on either side. He adopts a policy of neutrality- The US will not take either side in any European conflict

Meanwhile, John Jay negotiated a treaty with the British over trade Thomas Pinckney negotiates a treaty with Spain The US can trade goods down the Mississippi River, all the way to New Orleans

Washington’s Farewell Address Washington decides to retire, and writes a letter/speech to say bye He delivers some important advice to the country

Washington’s Farewell Address, primary document