1. Washington’s Presidency
Unit 3, Lesson 2

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

3. Congress’ First Actions
Congress created a group of advisers, the cabinet, to assist Washington
Secretary of State- Thomas Jefferson
Secretary of Treasury- Alexander Hamilton
Established the President as the head of foreign affairs
Established the President’s influence over congress
Set a precedent (example) by serving only two terms as president

4. Hamilton’s Financial Plan
Part 1: Tariffs and excise taxes
Tariff of Congress passed this tariff on foreign imports
Congress also passed an excise tax on whiskey
Reactions:
North favored it because it protected American businesses
South & West were angry because their exports were taxed by other countries
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

5. Hamilton’s Financial Plan
Part 2: Pay back war bonds
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
The government paid back money citizens had loaned (war bonds) to pay for the Revolutionary War

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

7. Hamilton’s Financial Plan
Part 4: Bank of the United States
Managed the country’s economy, national debt, and national currency
North favored this and owned the most stock in the BUS

8. Political Parties Form
Debate over Hamilton’s financial plan, especially the BUS, split Congress into the first political parties
Jefferson argued the bank was not one of congresses enumerated powers: a power specifically granted to congress by the constitution
(Strict Interpretation/Constructivism)
Hamilton argued the bank was an implied power: a power granted by the elastic clause or necessary & proper clause of the constitution
(Loose Interpretation)
These parties were similar to the past Federalist and Anti-Federalist groups

9. Federalist Party Leader: Alexander Hamilton
Strong federal, weak states
Supporters: Urban, wealthy, businessmen
Vision: Economy based on manufacturing and commerce

10. Democratic-Republican Party
Leader: Thomas Jefferson
Weak federal, strong states
Supporters: Less wealthy, farmers
Vision: Economy based on agrarianism—small independent farms
Location of Supporters:
South and West

12. The Whiskey Rebellion (1794)
Western farmers were angry over whiskey tax
Terrorized tax collectors and disputed courts
George Washington PERSONALLY led 15,000 troops to crush the rebellion
Western farmers refused to pay the excise tax Hamilton’s financial plan placed on whisky
Farmers attacked tax collectors
The rebellion collapsed when Washington sent in troops
Some saw this as proof of the new government’s ability to maintain order
Others (Jefferson) saw this as an unneeded use of force and proof that the government had too much power

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

14. American Foreign Policy Issues
The French Revolution got out of hand; France declared war on Britain
America traded with both countries
Federalists supported Britain, Democratic-Republicans supported France
The French Republic was at war with the European monarchies
Many Americans (Jefferson) believed the US should support the French Republic
Jefferson argued the US should fight with France against Britain because the British were seizing US ships bound for French ports
Merchants wanted to avoid war with Britain, their largest trade partner
1793 Washington declared the US neutral in the conflict
Proclamation of Neutrality!
Jefferson resigned as Secretary of State

15. American Foreign Policy Issues
Washington: Decided on foreign policy of NEUTRALITY
Britain was capturing American trade ships and kidnapped sailors
Britain also used their forts in western America to give Indians weapons
The French Republic was at war with the European monarchies
Many Americans (Jefferson) believed the US should support the French Republic
Jefferson argued the US should fight with France against Britain because the British were seizing US ships bound for French ports
Merchants wanted to avoid war with Britain, their largest trade partner
1793 Washington declared the US neutral in the conflict
Proclamation of Neutrality!
Jefferson resigned as Secretary of State

16. Jay’s Treaty Terms: Britain could continue impressment
Britain agreed to give up forts in America (but did not)
Americans were furious with the terms
France and Spain worried that America was getting closer with Britain
John Jay was sent by Washington to stop the British from seizing US ships and impressing US sailors into the British Navy
In the Treaty, the British agreed to remove troops from the western frontier, but did not mention impressment
Very unpopular treaty, but maintained neutrality
Britain gave America “most favored nation” trading status

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

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

19. Washington’s Farewell Address
1. Danger of Sectionalism
Loyalty only to the needs of one’s own area of the country
2. Danger of Political Parties
Warned that political parties divided the country
3. Danger of Foreign Alliances
America should ONLY trade with other countries
Washington called for national unity, saying Americans should care about the country as a WHOLE
Political parties seek power and lead to corruption
Alliances with other countries could pull America into wars

20. Washington’s Legacy
Washington helped strengthen the federal government
He served only 2 terms and retired, setting an example for future presidents
He established a foreign policy of neutrality, which the country tried to follow