1. 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?

2. George Washington & America’s 1st Political Parties
The Young Republic,
George Washington & America’s 1st Political Parties

3. 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.

4. 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

6. 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”

7. 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

8. 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

9. 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

10. 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

12. Hamilton’s Economic Plan for America

13. 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

14. 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

15. 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

16. 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

17. 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

18. Foreign Affairs

19. 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

20. 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

21. 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

22. 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

24. 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

25. America’s First Political Parties

26. 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

28. 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

29. 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.

30. 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 terms in office for presidents 18 18

31. 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

32. 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

33. 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