1. Chapter 10: Launching the New Ship of State

2. Population growth 1789- population doubling every 25 years!
Still 90% rural
Only 5% lived west of Appalachian mountains

4. George Washington Unanimously elected first president
“precedent president”

5. Presidential Cabinet
Advisors for the president

6. Secretary of State
Thomas Jefferson

7. Secretary of the Treasury
Alexander Hamilton

8. Secretary of War
Henry Knox

9. The Bill of Rights Added because of anti-federalist criticism
Madison wrote and guided through Congress

10. Judiciary Act of 1789
Organized federal court system

11. Hamilton Revives the Corpse of Public Credit
Lots of schemes
Needed to borrow money from countries
Needed to raise national credit

12. Congress assumes war debt
$54 million
Also state debt: 21.5 million
Ulterior motives: tie the states to the federal government/strengthen federal government

13. Fight in Congress
Compromise: Virginia agrees if DC was put on the Potomac River

15. How to pay $75 million debt?
Custom duties/tariffs
Excise taxes

16. Custom duties/tariffs
Need foreign trade
First tariff law- 8% on all imports

17. Excise taxes
Just taxes
whiskey

18. Hamilton’s not done though…
National Bank:
Private institution but government would be primary stockholder
Federal Treasury would deposit money
Print paper money

19. Constitutional? Yes: Hamilton No: Jefferson “loose interpretation”
“necessary and proper”
“Strict interpretation”

20. And the verdict is . . . Washington goes with Hamilton
National Bank created in 1791
Chartered for 20 years

21. Emergence of political parties
Hamilton vs. Jefferson
Origin of two-party system
Hamilton- Federalists
Jefferson-Democratic-Republicans

22. Whiskey Rebellion 1794 Pennsylvania
Corn (yes, I know) farmers upset about whiskey tax- begin revolting and tarring and feathering

23. Whiskey Rebellion Washington sent in troops and suppressed rebellion
Respect for federal government
Unlike which rebellion?

24. French Revolution- 1789

25. Revolution starts
Yay! We love revolutions!

26. Reign of Terror Starts
Federalists scared.

27. Washington’s Neutrality Proclamation
1778- Franco-American alliance still on the books
This is awkward…
Should we enter the war? Let’s not…

28. Washington’s Neutrality Proclamation
Washington didn’t believe nation was strong enough
Starts trend of isolationism
Jeffersonian Democratic-Republicans not pleased

29. British probs
Still British posts in the NW Territory- didn’t want to give up the fur trade
British allied with Indians, used them as a buffer

30. Little Turtle Chief of the Miami Indians
Not in Florida. In Northwest Territory.

32. Battle of Fallen Timbers
Miamis attacked Americans
Defeated Americans
British refused to shelter them

33. Treaty of Greenville-1795
Miami Confederacy gave up land, in return they get:
$20,000
$9,000/year
Right to hunt on lands
Recognition of sovereignty

34. People begin to call for war against Great Britain

35. Jay’s Treaty- 1794 John Jay sent to negotiate treaty with GB
Britain promised to:
Evacuate NW Territory
Pay for damages to seized Am. Ships
But nothing else really
Also, America supposed to pay those pesky pre-Revolutionary war debts

36. Pinckney’s Treaty- 1795
Spain scared about being left out of America-British alliance (religion)
Gave America what they wanted:
Opened MS River
Opened Port of New Orleans
Gave most of West Florida

37. Washington’s Farewell
Decides to not run for a 3rd term
Precedent not broken until 1940 by FDR
22nd Amendment
Did a lot of great things, most importantly he left a secure central government