1. Washington’s Presidency
Unit 3, Lesson 2

2. Essential Idea
America became economically stable but politically divided under Washington, and it faced foreign policy challenges.

3. Congress’ First Actions
Cabinet:
Congress created a group of advisers, the cabinet, to assist Washington
Secretary of State- Thomas Jefferson
Secretary of Treasury- Alexander Hamilton

4. Congress’ First Actions
Judiciary Act of 1789:
Created the federal court system
Established district courts, appeals courts, and the Supreme Court

5. Congress’ First Actions
Bill of Rights:
James Madison wrote the Bill of Rights
These amendments protect individual rights and limit the federal government’s power
Major Amendments:
1st- Freedom of expression
4th- No warrantless searches
5th- Due process of law, no double jeopardy, freedom from self-incrimination, eminent domain
6th- Speedy public jury trial, right to lawyer
10th- Powers not listed for federal government are reserved for states
The Bill of Rights

6. Funding the Government
Economic Issues:
Federal government needed a strong economy and to raise revenue to fund itself
Tariffs:
Tariffs are taxes on imported goods
Tariffs raise money to pay for the government
Tariffs helped the economy by protecting American businesses from foreign competition
However, foreign countries put tariffs on American exports
The plan:
Alexander Hamilton developed an economic plan for the country

7. Hamilton’s Financial Plan
Part 1:
Tariffs and excise taxes
Details:
Tariff of Congress passed this tariff on foreign imports
Congress also passed an excise (luxury) tax on whiskey
This paid for the government and Hamilton’s financial plan
Reactions:
North favored it because it protected American businesses
South and West were angry because their exports were taxed by other countries
South and West were hit hardest by whiskey tax

8. Hamilton’s Financial Plan
Part 2:
Pay back war bonds
Details:
The government paid back money citizens had loaned (war bonds) to pay for the Revolutionary War
Reactions:
North favored this since they owned most war bonds
South and West mad because taxes that hurt them were used to pay back Northern-owned bonds

9. Hamilton’s Financial Plan
Part 3:
Assumption of state debts
Details:
Federal government paid debts states owed
Reactions:
North favored this since they were in the most debt
South and West did not like giving the federal government more power

10. Hamilton’s Financial Plan
Part 4:
Bank of the United States
Details:
The BUS managed the country’s economy, national debt, and national currency
Reactions:
North favored this and owned the most stock in the BUS
South and West thought the BUS was unconstitutional

11. Analyze (open discussion)

12. Political Parties Form
Disagreement over Hamilton’s Plan
Political Parties Form:
Debate over Hamilton’s financial plan, especially the BUS, split Congress into the first political parties
These parties were similar to the past Federalist and Anti-Federalist groups

13. Federalist Party Party: Federalist Leader: Alexander Hamilton
View on Hamilton’s Plan:
Favored Hamilton’s plan
Government Power?
Strong federal, weak states
Location of Supporters:
North
Types of Supporters:
Urban, wealthy, businessmen
Vision for country:
Economy based on manufacturing and commerce (trade)

14. Democratic-Republican Party
Leader:
Thomas Jefferson
View on Hamilton’s Plan:
Opposed Hamilton’s plan
Government Power?
Weak federal, strong states
Location of Supporters:
South and West
Types of Supporters:
Less wealthy, farmers
Vision for country:
Economy based on agrarianism—small independent farms

15. The Whiskey Rebellion (1794)
Western farmers were angry over whiskey tax
They terrorized tax collectors and disputed courts
Government Response:
George Washington PERSONALLY led 15,000 FEDERAL troops to crush the rebellion

16. Significance of Whiskey Rebellion
Such military action was impossible under the Articles of Confederation
Stopping the Whiskey Rebellion proved the strength of the new Constitution

17. American Foreign Policy Issues
Events in Europe:
The French Revolution, inspired by the American Revolution, got out of hand
France declared war on Britain
America traded with both countries
Political Reactions:
Federalists supported Britain due to their strong central government
Democratic-Republicans supported France due to their weak central government

18. American Foreign Policy Issues
Washington:
Decided on foreign policy of NEUTRALITY
America would not pick a side but would TRADE with both countries
British Reaction:
Neither Britain or France liked neutrality
Impressment- Britain captured American trade ships and kidnapped sailors
Britain also used their forts in western America to give Indians weapons to attack settlers with
Washington sent John Jay to Britain to avoid war

19. Jay’s Treaty The Treaty: Jay’s Treaty Terms:
Britain could continue impressment
Britain agreed to give up forts in America (but did not)
Britain gave America “most favored nation” trading status (important)
Reactions:
Americans were furious with the terms
France and Spain worried that America was getting closer with Britain

20. Pinckney’s Treaty The Treaty: Pinckney’s Treaty Terms:
Settled boundary between America and Spanish Florida
Spain let America use Mississippi River and New Orleans for trade
Reactions:
Relationship between Spain and America improved
Americans were happy due to new land and trade

21. Westward Expansion American Settlers:
Settlers wanted to move to the fertile farmland in the Northwest Territory
Native Americans:
Indian tribes reacted angrily, formed a confederacy, and attacked settlers
Conflict and Compromise:
Battle of Fallen Timbers- American forces finally defeated Indian forces
Treaty of Greenville- drew a line to divide American territory into land for settlers and Indians