1. Whiskey Rebellion To help pay off the war debt, Washington started to tax whiskey. Rural farmers who grew the grain to make the whiskey were angry. They used whiskey for everything, sometimes even for money, and felt that the tax was unfair. In the summer of 1794, a group of farmers in Western Pennsylvania rebelled against the whiskey tax and staged the Whiskey Rebellion. Challenges to the New Government

2. Why whiskey? Farmers had a hard time getting their grain to market, so they turned their grain into whiskey, which was easier to transport. They got more money for the whiskey anyway. Farmers traded the whiskey for salt, sugar, and other goods. Farmers used whiskey as money to get whatever supplies they needed. Farmers did not have the money to pay for the tax.

3. The Government Responds Washington and Alexander Hamilton had huge problem. How could they fight a rebellion over taxes when they had just done the same thing against England? Washington decided that enough was enough. Taxes might not be popular, but were essential for the U.S. Government to survive.

4. The Government Responds Federal troops led by Washington himself marched to Western Pennsylvania and put down the revolt. Washington had proved that the government would deal with people not obeying the law.

5. After the Revolutionary War the British and their Indian allies refuse to leave the Ohio River Valley. President Washington ordered American soldiers to attack Shawnee, Ottawa, and Chippewa Indians there. After some early defeats, the Americans led by “Mad” Anthony Wayne won the Battle of Fallen Timbers. Problems in the Ohio River Valley Anthony Wayne leading the “Legion of the United States”

6. The defeat at Fallen Timbers forced the tribes to sign the Treaty of Greenville. This treaty gave America control over the present day states of Ohio and Indiana.

7. France goes into chaos!!!! Inspired by the American Revolution and the terrible French economy, the French people start their own revolution against their King, Louis XVI

8. The U.S. in an awkward position. When the French people executed King Louis XVI, the other monarchies in Europe, including England, declare war on the new French Republic. Thomas Jefferson wanted the United States to join the war on the French side. They were our ally during the Revolutionary War and were fighting like Americans had fought for liberty. Alexander Hamilton argued to support England since the British were powerful and the United States main trade partner.

9. Neutrality Washington chose for the nation to be neutral in the war. Congress made it illegal for to help either side, but merchants could still trade with either country. This didn’t stop British Navy ships from attacking American Merchant ships bound for England.

10. Jay Treaty Washington sent John Jay to London and he managed to get a treaty with England known as the “Jay Treaty” -England would not attack American ships and would remove all British soldiers from the Ohio River valley. The treaty and neutrality were mostly unpopular with the people of the United States.

11. Washington’s Farewell Address After 8 long years, Washington decided that two terms was enough and he retired from the Presidency. This set a very important precedent for future presidents. Before he retired, Washington gave a farewell address (speech). In it he: Warned against political parties - he thought they caused arguments Urged the nation to remain neutral and not become involved in foreign alliances and European wars. Warned against a powerful military. Urged Americans to maintain and value a sense of national unity.

12. Political Parties Despite Washington’s warnings, political parties developed. The first two political parties were the Federalists and Democratic-Republicans. Both parties used the press to attack one another and it became very ugly. Political parties haven’t changed much!!!

13. Our Nation’s first two parties The Federalists: -Wanted a strong National Government -Believed in trade, manufacturing and cities. -Favored England in the their War with France -Alexander Hamilton, John Adams The Democratic-Republicans -Didn’t like a strong federal government, favored States Rights -Believed in a rural nation of planters and farmers -Favored France in war -Thomas Jefferson, James Madison

15. John Adams Becomes 2 nd President After Washington retired, his Vice-President, John Adams was elected the second president. He won the election by 10 votes over Jefferson. Since Thomas Jefferson came in second. He became Vice-President. Adams followed many of Washington’s policies including avoiding war with Europe