1. Washington’s Presidency
Unit 2, Lesson 2

2. Essential Idea
Under Washington, the authority of the federal government to enforce laws and manage the economy was established.

3. Washington’s Election
Profile of Washington
Election
Inauguration
George Washington was an imposing physical specimen and an impressive resume. However, he preferred a quiet life at in home of Mount Vernon, Virginia to the hectic life of politics. He was not a politician and did not even really want to be president.
From Sarah: Really?  Then why did he wear his war uniform around?  While I would agree with people that would generally characterize Washington as humble, I would not elevate him to a God who lowers himself to walk among the mortals.  He may not thought of himself as a politician, but neither did Jefferson.  That doesn't mean it wasn't one, nor does it mean he wasn't crafty.
However, he was “drafted” by the Electoral College by unanimous decision (only president ever to be selected unanimously) in 1789
Washington’s inauguration took place in the temporary capital of New York City on April 30, 1789, on a balcony overlooking Wall Street (John Adams was from New York and was Washington’s VP…maybe Adams had more influence than previously thought)

4. Setting Precedents for Government
Cabinet
Bill of Rights
Judiciary Act of 1789
Hamilton vs. Jefferson Activity
Washington, as the first president, had the unofficial role of setting precedents for the new government
First, he established the president cabinet, a group of advisors to the president.
His Secretary of State was Thomas Jefferson, a believer is strong state and weak federal governments
His Secretary of Treasury was Alexander Hamilton, a believer is a strong federal government
Attorney General was Edmund Randolph
What do you notice about the cabinet so far? (Washington employs men who he thinks best for the job, not just those who have the same political beliefs—Washington was a unifier)
His Secretary of War was Henry Knox, a Revolutionary War hero who was probably the best leader after Washington
Under Congress quickly adopted the Bill of Rights, as was agreed upon during the ratification debate. This was a good example of compromise. Though they did not HAVE to, the Federalists kept their promise.
Congress also quickly passed the Judiciary Act of This law organized the Supreme Court and the federal courts (the judicial branch section of the Constitution is short and this beefed it up)
Specifically, the Judiciary Act of 1789 organized the Supreme Court to have 5 justices and a chief justice.
The act also established 13 district courts and 3 circuit courts of appeals.
John Jay, one of the collaborators on the Federalist Papers, became the first chief justice of the Supreme Court

5. Hamilton’s Financial Plan
Alexander Hamilton
Purpose of Financial Plan
Hamilton’s Plan
One of the largest and most pressing issues for the new government to address was its financial problems
Alexander Hamilton presented Congress with a new financial program to put America’s finances on a firm and stable foundation
Hamilton believed that the rich were rich for a reason (think: Social Darwinism).  Therefore, if you were to write economic policy that would help the poor, it would do no good because they will not keep it.  However, the rich have proven that they handle money well.
Hamilton’s plan was intended to favor wealthier groups. As prosperity grew, it would pass on to the masses

6. Hamilton’s Financial Plan Components
Repay war bonds (funding at par)
Northern/Federalist reactions
Southern/Anti-federalist reactions
Hamilton’s Financial Plan had four main components
Pay back war bonds. A war bond is essentially a loan from the people to the government to help pay for a war. The loan is repaid with interest after a set time.
Obviously, the Revolutionary War was expensive.
Who would have bought war bonds? (People in the North) Why? (the Revolution started there, many battles fought there, most of the radicals in favor of the war lived there)
Northern/Federalist reactions- liked this idea, they would get profitable returns on their investments
Southern/Anti-Federalist reactions- disliked idea, wouldn’t benefits much from bonds being repaid, taxes they paid would be used to fund the repayment, so in a way their tax money was going into the pockets of the Northerners/Federalists
From Sarah: This is actually "funding at par." The problem was that bankers were speculating in the bond market.  During the war and right after (esp. after Shay's Rebellion) people lost confidence in the government.  Figuring the government wouldn't last long enough to give them their money + interest back.  They started selling them cheaply to the speculators.  They were buying them for pennies for the dollar.  The speculators stood to make lots of money.  In order to help raise confidence, Hamilton offered to fund the bonds "at par" or face value.  If people feared they wouldn't get the interest from their bond, they could turn it in and not have to worry about losing their money.  Hamilton was still accused of favoring the North (where the bankers were) because many rural (Southern and Western) people had sold their bonds.  Remember what "western" means in this time period.  Western Massachusetts (Shay's) and Western Pennsylvania (Whiskey) count as "western."

7. Hamilton’s Financial Plan Components
Bank of the United States
Northern/Federalist reactions
Southern/Anti-federalist reactions
2. Create a Bank of the United States (National Bank)- a centralized bank would serve as the bank for the government.
It would hold government funds.
Stock in the bank would be sold to the public. (wealthy Northern merchants mostly)
The bank would also regulate the economy by printing the currency (no more “not worth a Continental”) and there would be no more state currencies.
The bank could regulate the interest rates that banks charged, which would help regulate the economy (stimulate or prevent irresponsible expansion)
Northern/Federalist reactions- liked the idea because it centralized control of the economy (a Federalist idea) and they Federalists tended to be in the business class and would be the ones holding stock in the bank
Southern/Anti-federalist reactions- saw the bank as too much government (Hamilton modeled it after the Bank of England)
From Sarah: Another compromise: they agreed that the bank would need to gain a recharter in 20 years.  It could then be considered a non-permanent institution.
The Bank of the United States can be seen as the forerunner of the Federal Reserve that we have today

8. Hamilton’s Financial Plan Components
Funding at par
Assumption of state debts
Northern/Federalist reactions
Southern/Anti-federalist reactions
Washington, D.C.
3. Fixing the debt problem
Funding at par- meant that the federal government would pay off its debts—all of them. Why? (this would help the nation’s credit and provide financial stability
Any modern day equivalents? (current debt crisis had hurt the American credit rating)
In addition, Hamilton called for the assumption of state debts, meaning that the state debts would be paid by the national government (one time deal)
How could the federal government justify doing this? (the states had gone into debt mostly by financing the war for independence, which was a national cause)
Northern/Federalist reactions- liked the idea, especially since the Northern states had gone into more debt for the war
Southern/Anti-federalist reactions- did not like the idea, the Southern states had much less debt, and were not a fan of Hamilton’s idea that assumption would “chain the states more tightly to the federal chariot”
Some states had already paid off their debts, especially in the South. Why should they have to continue to pay?
Thomas Jefferson, the Anti-federalist leader, agreed to this component of the plan (actually, the whole plan, including the BUS) on the condition that the capital of the United States would be placed along the Potomac River. (remember, New York City was temporary…Washington was named after the former president had died in 1799)
**By now, the anti-federalists are “dead” but this group now forms opposition to Hamilton and soon becomes the Democratic-Republican Party
Why move the capital? (Washington was centrally located (more accurately, it was located IN the South) in the states and would therefore not be so influenced by the Federalists, who tended to live in the North. Moving the capital south would, at least theoretically, help southern interests be heard better)

9. Hamilton’s Financial Plan Components
Tariffs and excise taxes
Tariff of 1789
Northern/Federalist reactions
Southern/Anti-federalist reactions
Reactions to Hamilton’s Plan
How would Hamilton pay for all these measures? (taxes)
4. Raise money through tariffs (import taxes) and excise taxes (tax on specific item)
Tariff of 1789The 8% tariff had a two-fold purpose- 1. raise revenue for the government 2. protect infant industries in America from being undercut by foreign companies
Northern/Federalist reactions- like the idea, the program protected northern industry (South was agricultural)
Southern/Anti-federalist reactions- disliked the idea. Southerners exported many goods to Europe, and Europe’s response to the tariff was to create tariffs of their own. Result? (Southern goods are taxed by European countries, hurting the Southern economy)
Also, one of the excise taxes was placed on whiskey, which is made from corn, which is a Southern made product.
The excise tax targeted Southern-made goods, not affecting Northern industry (unfair!)

10. Analyze (open discussion)

11. Future Implications Sectionalism The Civil War
Sectionalism- loyalty to the interests of one's own region or section of the country, rather than the nation as a whole
How do we see sectionalism intensifying? (Hamilton’s plan created more division between Federalists and Anti-federalists (becoming Democratic Republicans) and also between the North and the South and West.
However, sectionalism is not yet a major issue. Jefferson leaves most of Hamilton’s plans intact when he becomes president.
Eventually, sectional differences will be a major contributor to the outbreak of the Civil War, how? (slavery is a sectional issue, state vs. federal government is a sectional issue)

12. Debating the National Bank (B.U.S.)
Thomas Jefferson
Alexander Hamilton
B.U.S. created (1791)
Political Parties form
Within the cabinet, Alexander Hamilton and Thomas Jefferson debated over whether to have a national bank.
Thomas Jefferson’s arguments- the Constitution makes no mention of a national bank (anti-Federalists believed in strict/constructionist interpretation) and therefore was not allowed (STRICT INTERPRETATION)
The 10th Amendment said that powers not given SPECIFICALLY (enumerate/expressed powers) to the federal government were reserved for the states (eventually Andrew Jackson destroys the bank by putting the money into state banks)
Also, Jefferson worried that the bank increased the power of the central government too much
Alexander Hamilton’s arguments- Hamilton believed that what the Constitution didn’t prohibit it permitted (Jefferson said the opposite, what the Constitution didn’t permit it prohibited) and he evoked the necessary and proper/elastic clause to justify this. The enumerated powers of trade regulation and taxing made a national bank necessary and proper (LOOSE INTERPRETATION)
Hamilton’s view prevailed, and the national bank was given a 20 year charter in One fifth was owned by the federal government, the rest was sold in stock to the public (the rich, that is)
Debate over Hamilton’s plan, specifically the national bank, led to the creation of the first two political parties: Federalist (from the Federalists) and the Democratic-Republican (from the anti-Federalists)
The two-party system, more or less, has existed ever since

13. Federalists vs. Democratic-Republicans
Federalist Party:
Leaders
View of Constitution
Foreign Policy
Federalist Party:
Leaders: John Adams, Alexander Hamilton
View of Constitution: loose interpretation, strong central government
Foreign policy: pro-British, why? (similar strong central government, trade relationship, French Revolution was a bit ugly)

14. Federalist Party Military Policy Domestic Policy Supporters
Military policy: large peacetime army and navy
Domestic policy: help businesses, create a national bank, use tariffs and excise taxes
Supporters: Northern businessmen, large land owners

15. Democratic-Republicans
Democratic-Republican Party:
Leaders
View of Constitution
Foreign Policy
Democratic-Republican Party:
Leaders: Thomas Jefferson, James Madison
View of Constitution: Strict interpretation, weak central government
Foreign policy: pro-French, why? (the French believed in a small centralized government, as seen in the French Revolution, D-Rs saw the French Revolution as a child/sister of the American Revolution)

16. Democratic-Republicans
Military Policy
Domestic Policy
Supporters
New Political Parties
Military policy: small peacetime army and navy, why? (why have a big one? Armies can be used to be oppressive tools of an overly powerful central government, so they should be kept as small as possible) D-Rs did support strong STATE militias, however.
Domestic policy: favor agriculture, no national bank, opposed tariffs and excise taxes
Supporters: skilled workers, small farmers, plantation owners

17. Foreign Policy Concerns: French Revolution
Reign of Terror
Should America take sides?
Parties react
Soon after Washington’s inauguration, the French Revolution began. At first, King Louis XVI was merely limited by a constitution. Federalists were concerned that this revolution would cause a “leveling” of the social hierarchy and lead to a spreading of the “mobocracy” Democratic Republicans cheered the revolution as a second chapter of the American Revolution (a “sister” revolution) and cheered the liberty that came with it
Reign of Terror: by 1793, heads began to roll, literally. King Louis XVI was beheaded. Federalists became very uneasy and wondered if the Democratic-Republicans would also turn toward violence. However, Jefferson regretted the violence, but also admitted that sometimes it was necessary
The question: should American help the French with their revolution? (Yes, the French had helped American in their revolution, and the French were fighting for similar ideals. No: King Louis XVI had helped the Americans, not the mobs who had executed him. This revolution was over the top and chaotic)

18. Foreign Policy Concerns: French Revolution
Washington’s Proclamation of Neutrality (1793)
“Citizen” Genêt
Future implications?
In 1793, Washington responded with the famous Proclamation of Neutrality, which went against the popular pro-French sentiments among much of the population. Washington came to this decision unilaterally, without consulting Congress, which angered many.
Thomas Jefferson resigned his position as Secretary of the Treasury in protest.
Why was neutrality important to Washington (and many other Founding Fathers?) (The country was young and not strong enough for war. The country needed to grow in population and strength before getting tangled in foreign affairs)
Future implications? (this foreign policy will appear over and over again in various forms, such as anti-imperialism in Spanish-American War, isolationism in WWI, and the Neutrality Acts in WWII)
Citizen Genet- Edmond Genet (“Jen-ay”) was a French minister to the United States. Objecting to Washington’s policy, Genet broke all the normal rules of diplomacy by appealing directly to the American public to support the French. His behavior eventually had him replaced.
Future implications? (French are viewed suspiciously, maybe even as spies…feeds into the later XYZ Affair and Alien and Sedition Acts)

19. Foreign Policy Concerns: Britain
Impressment
Jay’s Treaty (1794)
Domestic
Foreign reactions
Americans continued to trade with both Britain and France
Impressment- when American ships traded with the French in the West Indies, British ships captured these ships (about 300) and took American seamen. They “impressed” them, meaning they forced them to serve the British navy.
Jeffersonian reaction- war with Britain, or at least an embargo on Britain
Hamiltonian reaction- war and an embargo must both be averted because trade with Britain is key to the national economy and to the success of Hamilton’s Financial Plan
Jay’s Treaty- Chief Justice John Jay was sent as a diplomat to negotiate a deal with Britain.
The agreement: Britain agreed to evacuate its forts in the American western frontier. However, the treaty did nothing to stop future impressment of American sailors
Domestic Reaction- Americans were furious and saw the treaty as a surrender to Britain. Effigies of Jay were “murdered.” Anger was especially high in the Democratic-Republican, pro-French South.
Foreign Reaction- Spain worried that Jay’s Treaty foreshadowed a future American-British alliance. Spain moved quickly to strike a deal with the United States to ensure good relations.

20. Foreign Policy Concerns: Spain
Pinckney’s Treaty (1795)
Land concessions
Mississippi River access
Right of deposit
Early American Foreign Policy
Pinckney’s Treaty was signed in 1795 between the United States and Spain
Land concessions- Spain agreed to the American claim that the northern border of Florida was the 31st parallel. This land became the rest of Georgia and eventually Alabama and Mississippi.
Mississippi River access- the United States was also given unlimited free access to the Mississippi River, why important? (trade!)
Right of deposit- The treaty also gave the United States the "right of deposit" in the port of New Orleans, more valuable than all of the land offered in the treaty.  Right of deposit means that you can use the port.

21. Domestic Concerns: Whiskey Rebellion (1794)
Causes
Washington’s response
Implications
In western Pennsylvania, a major group of farmers refused to pay the federal excise tax on whiskey. They attacked tax collectors, tarred and feathered them, and disrupted the courts where non-tax payers would have been tried.
Washington responded by federalizing the militias of several states and sending about 15,000 troops to western Pennsylvania, where the farmers were dispersed without a fight.
Implications: the federal government showed its force, unlike during Shays’ Rebellion. The new government under the Constitution was strong and respectable after Washington had “used a sledgehammer to swat a fly”

22. Domestic Concerns: Native Americans
British involvement
Miami Confederacy
Battle of Fallen Timbers (1794)
Treaty of Greenville
In defiance of the Treaty of Paris in 1783, Britain still maintained forts in the Western Frontier (despite Jay’s Treaty…this becomes one of the causes of the War of 1812)
While they still occupied the area, the British maintained a lucrative fur trade and tried to build up the natives as a buffer against American expansion
British agents openly sold firearms to the natives
Miami Confederacy- an alliance of eight Indian nations, led by Little Turtle, who terrorized Americans and defeated American armies in the Northwest Territory
Battle of Fallen Timbers- General “Mad Anthony” Wayne routed the Miamis when the British refused to aid them. Abandoned by the British, the Indians had no choice by to sign the Treaty of Greenville
Treaty of Greenville- created a boundary of Native American land and white settlement land

23. Washington’s Farewell Address
Sectionalism
Political Parties
Foreign Policy
In Washington’s Farewell address, never orally delivered but rather printed in newspapers, Washington addressed the major issues of sectionalism, political parties, and neutrality (read next three slides and discuss their meaning)

24. Washington’s Farewell Address
The name of American, which belongs to you, in your national capacity, must always exalt the just pride of Patriotism, more than any appellation derived from local discriminations. With slight shades of difference, you have the same religion, manners, habits, and political principles. You have in a common cause fought and triumphed together; the Independence and Liberty you possess are the work of joint counsels, and joint efforts, of common dangers, sufferings, and successes.
What is Washington calling for?

25. Washington’s Farewell Address
In contemplating the causes, which may disturb our Union, it occurs as matter of serious concern, that any ground should have been furnished for characterizing parties by Geographical discriminations, Northern and Southern, Atlantic and Western; whence designing men may endeavor to excite a belief, that there is a real difference of local interests and views. One of the expedients of party to acquire influence, within particular districts, is to misrepresent the opinions and aims of other districts
What is Washington saying about political parties?

26. Washington’s Farewell Address
The great rule of conduct for us, in regard to foreign nations, is, in extending our commercial relations, to have with them as little political connection as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop…It is our true policy to steer clear of permanent alliances with any portion of the foreign world .
What is Washington’s foreign policy?

27. Washington’s Legacy Central government National security Term “limits”
Washington's Farewell Address
Washington’s impact on the government- Washington helped establish the strong federal government by supporting Hamilton’s financial plan and enforcing the laws, even with the military if necessary (Whiskey Rebellion)
National security- Washington kept the United States out of dangerous foreign entanglements
Term “limits”- Washington voluntarily retired after two terms, though he could have served indefinitely. He set the precedent for serving only two terms, once again breaking contemporary tradition by giving up power. No president aside from FDR ever served more than two terms, and only a few ever even attempted it.