1. Political Crisis of the 1790s: Part I
APUSH: Spiconardi

2. George Washington George Washington was elected president in 1789
I anticipated, in a heart filled with distress, the ten thousand embarrassments, perplexities and troubles to which I must again be exposed to in the evening of a life, already nearly consumed in public cares
. . . I assure you that my movements to the chair of Government will be accompanied with feelings not unlike those of a culprit who is going to the place of his execution…
George Washington was elected president in 1789
Why Washington?
Seen as virtuous disinterested man
Respected for leading America to victory over the British
Model of self-sacrificing republican virtue
Seen as a cautious and pensive man
But to say I feel pleasure from the prospect of commencing another tour of duty, would be a departure from truth 

3. George Washington Precedents Two-term presidency
FDR would later ignore this precedent
An amendment would be passed limiting presidents to serve a maximum of two terms
The Cabinet  senior advisor’s appointed by the president
Not specifically mentioned in the Constitution

4. Hamilton’s Financial Vision
Hamilton wanted to transform an economically weak United States into a global power comparable to Great Britain
In order to create a vibrant economy, Hamilton needed to nurture the capitalist spirit of Americans
The federal government should encourage entrepreneurship and investment

5. Hamilton’s Financial Vision
“Report on Public Credit”
The United States needed to establish credit, but had over $75 million in debt
Hamilton believed the U.S. had to pay down the debt
How?
Redeem Confederation securities at face value
Most veterans had sold securities to speculators
Federal government would pay off states war debts
Most southern states had already paid off their debts
Jefferson and Madison opposed Hamilton’s plans

7. Hamilton’s Financial Vision
“Report on Public Credit” (Con’t)
The Compromise
In the Summer of 1790, Hamilton, Jefferson, and Madison met
A new national capital would be established on the banks of the Potomac River
Move capital from New York to Philadelphia for 10 years while Washington, D.C. was built
This secures the congressional votes need to pass Hamilton’s plan.
The L’Efant Plan for Washington, D.C.

8. Hamilton’s Financial Vision
The Bank of the United States
Hamilton asked Congress to charter a bank that would be jointly owned by the national government and private stockholders
The national bank would be able to make loans to merchants in order to spur economic growth through deposited tax money
Jefferson believed the bank was unconstitutional

9. Hamilton’s Financial Vision
Strict Interpretation
Loose Interpretation
Jefferson: “The incorporation of a bank, and the powers assumed by this bill, have not, in my opinion, been delegated to the United States, by the Constitution.”
Hamilton: Article 1, Section 8: “The Congress shall have Power ... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.”
This has become known as the ELASTIC CLAUSE

10. Hamilton’s Financial Vision
“Report on Manufactures”
Hamilton needed to find a source of revenue to pay interest on the national debt
How does any government raise money?
Excise tax on whiskey
Hamilton believed this would raise $1.2 million annually
Tariffs
To encourage the purchasing of American manufactured goods, a moderate tariff was placed on foreign goods
Who does this benefit? To whom is it a detriment?
Whiskey Tax Receipt

11. Liberty! Equality! Fraternity!
Whiskey Rebellion (1794)
During this time period, the average American drank five gallons of whiskey per year
With the excise tax on distilled spirits, the demand for corn whiskey farmers distilled had significantly decreased
Whiskey Rebels
Assaulted tax collectors
Burned the home of tax collector
Destroyed the stills of those who paid the tax
Liberty! Equality! Fraternity!

12. Whiskey Rebellion Washington’s Course of Action
Washington issued a proclamation ordering the insurgents home and calling for the militia to head to Pennsylvania
Thirteen thousand soldiers march to the rebellion
Most rebels flee, but twenty were arrested. Only ten stood trial and only two convicted (Washington would pardon them)

13. Whiskey Rebellion Impact of the Whiskey Rebellion
Demonstrates the strength of the new federal government
Government will willing and able to suppress violent resistance of its laws
Sympathizers of the Whiskey Rebels joined the emerging Republican Party
Demonstrates growing divisions in the United States
Whiskey rebellions continued as many continued to refuse paying the tax