1. George Washington & America’s 1st Political Parties
The Young Republic,
George Washington & America’s 1st Political Parties

2. Building the Machinery of Gov’t
The Constitution created a “general framework” of gov’t but it was up to the 1st president & the 1st Congress to fill in the details:
The “gov’t” in 1789 had no federal court system, navy, or tax collection system
The Senate spent 3 weeks debating how the president should be addressed
The new government consisted of nothing more than 75 post offices, a large debt, a small number of unpaid clerks, and an army of just 46 officers and 672 soldiers. There was no federal court system, no navy, and no system for collecting taxes.

3. Building the Machinery of Gov’t
With James Madison’s leadership, the House of Representatives:
raised revenue by passing taxes
gave structure to the executive branch
organized a federal court system Judiciary Act of 1789

4. The Importance of James Madison
“Father of the Constitution;” drafted the Bill of Rights; was the leader of Congress who helped create the 1st federal taxes, depts & courts; & will serve as the 4th president

5. Washington as President
The unanimous choice for the leader of the infant republic was George Washington
He established many precedents to make the presidency:
Created the 1st cabinet
Delivering an inaugural address
The title “Mr. President”

7. Washington as President
Washington’s 1st term as president was defined by domestic policy:
He helped define a strong & active presidency
Appointed strong, able leaders to cabinet posts
Focused on the U.S. economy
Traveled to every state to “show the people” their national gov’t

8. Washington’s Cabinet Alexander Hamilton, Secretary of Treasury
Henry Knox, Secretary of War
George Washington, President
Washington acted as president as he did as a military general: he surrounded himself with capable subordinates, listened to their advice, then made the final decision
Hamilton & Jefferson proved to be his most capable cabinet members but were also the most divisive because they had vastly different views on the role of gov’t for the new nation
Edmund Randolph, Attorney General
Thomas Jefferson, Secretary of State

9. As Sec of Treasury, Hamilton shaped the economy of the new nation
Alexander Hamilton
Hamilton believed a strong central gov’t was best for America:
He wanted the U.S. to grow as an industrial power with less dependency on Europe
He wanted the U.S. economy to mirror the English economy
He feared democracy would lead to anarchy; power should be in hands of wealthy citizens
As Sec of Treasury, Hamilton shaped the economy of the new nation 4 4

10. Thomas Jefferson
Jefferson believed that a limited gov’t would preserve liberty:
He saw the U.S. as an agrarian nation with active foreign trade to buy manufactured goods
He trusted the common people over the elitist aristocracy
He favored close ties with France, especially when the French Revolution began 5 5

12. Hamilton’s Economic Plan for America

13. Hamilton's Economic Plan
$54 million in national debt
$25 million in state debts
By 1789, one of America’s biggest challenges was its huge debt
Hamilton’s Report on Public Credit (1790) proposed:
“Funding” the national debt
“Assumption" of state debts
Creating a national bank
Gov’t aid to manufacturing
+ ~$25 million still owed by states) 6 6

14. Funding and Assumption
Funding: Congress to redeem U.S. certificates of debt at face value to prove to foreign investors that the U.S. would repay its debts
Assumption: Federal government would purchase states' debts to gain a better interest rate & create a “national” problem rather than individual state problems
In 1790, Washington signed into law Hamilton’s proposals on funding & assumption
Foreign investment poured into the U.S.
Was unsuccessfully opposed because most certificates were currently held by speculators 7 7

15. The Bank Controversy Hamilton proposed the creation of a National Bank
Madison & Jefferson opposed the Bank of the U.S. (BUS) because:
It appeared to favor the rich
Its creation was not mentioned in the Constitution 8 8

16. The Bank Controversy Hamilton defended creating a BUS:
The Necessary & Proper Clause gave Congress “implied powers” to interpret the Constitution
Congress chartered the Bank of the United States in 1791

17. America’s First Political Parties

18. America’s 1st Political Parties
Represented the “Spirit of 1776” & the fight against tyranny
Also called Jeffersonian Republicans or simply, Republicans
Disagreements over Hamilton’s financial plans & Anglo-French Wars led to the 1st political parties:
Democratic-Republicans: led by Jefferson, favored states’ rights, “strict construction,” ties to France, & liberty
Federalists: led by Hamilton, favored a strong national gov’t, “loose construction”, ties to England, & public order
Represented the “Spirit of 1787” & the fight for a stronger national gov’t 10 10

20. America’s 1st Political Parties
Political parties were seen as a conspiracy against liberty
Federalists & Dem-Republicans thought it was their duty to destroy the other party
In the Washington & Adams eras, the Federalists dominated politics, but Jefferson’s election in 1800 killed the Federalists
Commoners in the U.S. were highly literate
Newspapers transformed political culture in the U.S.; they were widely read, highly influential, & totally partisan 16 16

21. Hamilton interpreted the rebellion as a Jefferson-inspired conspiracy
Whiskey Rebellion
Hamilton interpreted the rebellion as a Jefferson-inspired conspiracy
Jefferson saw it as an excuse by Federalists to raise an army to intimidate Republicans
The whiskey tax led yeomen in western Pennsylvania to start a Whiskey Rebellion in 1794
When the governor of PA refused to act, Federalists saw the revolt as a threat to safety
Both parties used the event to attack each other
Political polarization was further intensified by the outbreak of popular protests in western Pennsylvania against Hamilton's financial program. To help pay off the nation's debt, Congress passed a tax on whiskey. On the frontier, the only practical way to transport and sell surplus corn was to distill it into whiskey. Frontier farmers regarded a tax on whiskey in the same way as American colonists had regarded Britain's stamp tax.
By 1794, western Pennsylvanians had had enough. Some 7000 frontiersmen marched on Pittsburgh to stop collection of the tax. Determined to set a precedent for the federal government's authority, Washington gathered an army of 15,000 militamen to disperse the rebels. In the face of this overwhelming force, the uprising collapsed. The new government had proved that it would enforce laws enacted by Congress.
Thomas Jefferson took a very different view of the "Whiskey Rebellion." He believed that the government had used the army to stifle legitimate opposition to unfair government policies. 17 17

22. Whiskey Rebellion, 1794
His mere presence (and the 15,000 soldiers he brought with him) was enough to end the Whiskey Rebellion
Political polarization was further intensified by the outbreak of popular protests in western Pennsylvania against Hamilton's financial program. To help pay off the nation's debt, Congress passed a tax on whiskey. On the frontier, the only practical way to transport and sell surplus corn was to distill it into whiskey. Frontier farmers regarded a tax on whiskey in the same way as American colonists had regarded Britain's stamp tax.
By 1794, western Pennsylvanians had had enough. Some 7,000 frontiersmen marched on Pittsburgh to stop collection of the tax. Determined to set a precedent for the federal government's authority, Washington gathered an army of 15,000 militamen to disperse the rebels. In the face of this overwhelming force, the uprising collapsed. The new government had proved that it would enforce laws enacted by Congress.
Thomas Jefferson took a very different view of the "Whiskey Rebellion." He believed that the government had used the army to stifle legitimate opposition to unfair government policies.
President Washington is one of two presidents (Madison is the other) who participated in combat while serving as president

23. Washington's Farewell Address
Washington never acknowledged the faction in his cabinet, he tended to side with the Federalist perspective of gov’t
Washington was not limited by the Constitution to 2 terms, but in 1796 he announced his decision to retire
Washington’s Farewell Address:
Warned against political parties
Warned against “entangling alliances” with foreign nations (led to the precedent of non-intervention in foreign affairs)
Washington’s decision to retire established the precedent of terms in office for presidents 18 18

24. Hamilton/Jefferson Comparison
(Federalist)
Jefferson
(Democratic-Republican)
What was his vision of the role of government
(National or State?)
Payment of National & State Debts
Tariff on Imported Goods
The U.S. Economy: (Manufacturing or Farming?)
Creating a National Bank
Interpretation of the Constitution
Whiskey Tax and Whiskey Rebellion
Support for the French Revolution

25. Hamilton/Jefferson Discussion
Summarize the fundamental idea at the heart of the Federalists/Anti-Federalist disagreement. In what ways is this similar to the idea at the heart of the Hamilton/Jefferson conflict? In what ways is it different?
Who’s vision for America, Hamilton’s or Jefferson’s, do you feel was most appropriate for America in 1790? Explain