1. The Early Republic

2. Part 1: The Presidency of George Washington
1789- Washington is inaugurated as the nation’s first President

4. 1:1: Washington’s Domestic Policy

5. The Constitution allows the President to choose officials in executive departments
This is known as the Cabinet
This was one of Washington’s first precedents
Precedent- an action taken for the first time which is followed by others afterwards

6. Creating a Stable Economy
The biggest problem in the new government is economic
Government owes 54 million dollars
The states owe another 24 million

7. Alexander Hamilton, Secretary of the Treasury, has a plan
1. Repay the Debt
The national government should pay off the debts of both the states and the national government to establish good credit
2. Create a National Bank
A national bank can be a place to deposit taxes, provide sound currency, and make national loans
3. Whiskey tax
To raise money from Western farmers
4. Protective Tariff
To protect American businesses from foreign competition
Tariff- a tax on imported goods

9. Jefferson and Madison believed that the Constitution did not give the federal government the right to a national bank
This disagreement gave rise to America’s first political parties
Political parties- associations that try to elect their members to government offices so that they will pass laws favorable to their ideas

10. Hamilton and his followers become known as Federalists
Jefferson and his followers call themselves the Democratic- Republicans
The disagreement is made worse by the French Revolution

11. The First Political Parties (foldable)

12. Defeat of the Protective Tariff
All of Hamilton’s ideas are passed except for the tariff (Southerners oppose high tariffs, it makes their crops harder to sell)

13. How tariffs work

14. The Whiskey Rebellion 1794
Western farmers rebel against the new taxes on whiskey; they refuse to pay their taxes and threaten tax collectors
Washington leads the militia to put down the rebellion
The rebels flee before any fighting takes place

15. 1:2: Washington’s Foreign Policy

16. War breaks out between Britain and France in 1793
The Federalists support Britain
The Democratic Republicans support the French

17. The Proclamation of Neutrality
America is not ready for war, on either side.
He adopts a policy of neutrality- The US will not take either side in any European conflict

18. Meanwhile, John Jay negotiated a treaty with the British over trade
Thomas Pinckney negotiates a treaty with Spain
The US can trade goods down the Mississippi River, all the way to New Orleans

19. Washington’s Farewell Address
Washington decides to retire, and writes a letter/speech to say bye
He delivers some important advice to the country

20. Washington’s Farewell Address, primary document