UNIT 2 NOTES: Washington and the first Presidency

1. UNIT 2 NOTES: Washington and the first Presidency

2. WASHINGTON'S INAGAURAL • New Constitution and Government take effect on April 30, 1789. • Washington begins his presidency in New York City and alternates between there and Philadelphia. • Capital city at this time was New York City.

3. Establishing a government • Washington and his followers (federalists) believed that the balance of power had tipped towards anarchy after the revolution • Federalist wanted the Constitution to counter democratic excesses • Washington came into office determined to make the national government powerful enough to command respect abroad and to impose order at home • They succeeded but also aroused a determined opposition that feared the federalists consolidation of power came at the expense of states and citizens • The Democratic-Republicans (Jeffersonians) were led by Thomas Jefferson • They were tied to revolutionary ideals of limited government with independent farmer citizens • The fight between these two parties echoed the revolutionary contest between liberty and power

4. THE NEW CAPITAL CITY • In the first year of Presidency the capital was in New York City • In 1790, the capital was moved to Philadelphia • It would remain there for a decade while the new capital city was being built • The Residence Act of 1790 established the District of Columbia as the new capital city • The federal government moved to the new capital in 1800

5. Washington's First Cabinet Cabinet advises the President and heads up an agency of the government • Department of State – Foreign Affairs • Thomas Jefferson ---- Secretary of State • Department of Treasury---Financial affairs • Alexander Hamilton—Secretary of the Treasury • Department of War-------------------Military affairs • Henry Knox----Secretary of War • Attorney General----------------------Legal affairs • Edmund Randolph---Department of Justice • HOW MANY CABINET POSITIONS ARE THERE TODAY???? • 15

6. FIRST SUPREME COURT • President Washington appoints 6 justices to the Supreme Court • 3 from North and 3 from South • Judiciary Act of 1789, Congress created lower courts to assist the Supreme Court. John Jay first Chief Justice of the Supreme Court

7. Alexander Hamilton • Washington filled his cabinet with familiar faces • Alexander Hamilton of New York, his trusted aid during the revolution selected to head the Treasury • Secretary of Treasury • This office dealt with improving the nation’s economy • His main issue became to pay off the nation’s huge war debt • Hamilton believed, in contrast to Jefferson, that government could be used to accomplish great things

8. ALEXANDER HAMILTON

9. HAMILTON’S PROGRAM • One of the biggest issues facing the new nation was the huge debt it owed to other nations and its own citizens following the Revolutionary War • As Secretary of Treasury, Alexander Hamilton had the responsibility of finding a policy that could help the nation pay off its debts and become economically stable • He used this as a chance to push for the kind of government he wanted

10. The National Debt • In 1789 Congress asked Hamilton to report on the public debt • He reported that debt fell into 3 categories • Money owed to foreigners, primarily owed to France from the revolution • Money in national debt owed to citizens who had supplied resources during revolution • Money in state debt to private citizens in revolutionary loans

11. Hamilton’s Plan • Two measures would be used to raise money to pay off debt • In 1789 Congress created a tariff, tax on imported goods • In 1791 Congress placed a tax on distilled liquors (called the whiskey tax) • To fund the national debt Hamilton called for a federal tax on wines, coffee, tea, and other spirits • Spirits would fall mostly on whiskey produced in abundance on the frontier • Most of this money went to pay for the expense of government and creditors • He also wants to form a national bank • Why would creditors go along with this plan? • To satisfy their worries Hamilton outlined a specific budget with a payment plan

12. HAMILTON'S FINANCIAL PLAN • Congress & Sec. of Treasury Alexander Hamilton solve debt problems: • Pay off $80 million debt • Excise tax:Taxes placed on manufactured products • Tariff: a tax on imports • Establish good credit with foreign nations • Create a national bank with a national currency • Raise money for govt backed by gold silver Foreign Debt $11,710,000 Federal Domestic Debt $42,414,000 State Debt $21,500,000 Misc.Revenue ExciseTaxon Whiskey CustomDuties(Tariffs)

13. ASSUMING STATE DEBT’S • Hamilton calls for national government to assume state debt’s • Southern states did not want to help pay back loans owed by northern states • Why would the national government want to add to its debt? • To strengthen it • Most debt was owed to European banks and American merchants • He knew that these lenders would not want any government that owed them money to collapse

14. Hamiltonian economics – the national debt • His plan was that a permanent debt would attract the wealthiest financiers in the country as they would now be dependent on the federal government • The National Debt was at the center and Hamilton’s solution to creating a powerful national state

15. Hamilton’s bank • As part of his plan, Hamilton asked Congress to charter a bank of the United States • The government would store its funds in the bank and would supervise its operations • But the bank would be controlled by directors representing private stockholders • It would print and back national currency and would regulate other banks • It was a carbon copy of the bank of England

16. BANK OF THE U.S. • HAMILTON • Safe place to deposit and transfer money • Provide loans to government and state banks • A national currency---$$$$$ • An investment by people to buy stock into US bank • Constitution did not forbid a national bank….Loose construction of Constitution • National debt good for country • He also cited the “necessary and proper clause” (article 1, sec. 8) • JEFFERSON • Against the Constitution • State banks would collapse • Only wealthy could invest in bank and would control bank than control the government • Hurt the common man • Strict construction…If it is not mentioned in the Constitution than there can’t be a national bank. • Against a national debt

17. Compromise • Finally, Madison and Jefferson compromised with Hamilton • In exchange for accepting proposals on debt, they won his promise to locate the permanent capital on the Potomac river • Hamilton struck a deal: if they would support his economic plan, he would gain northern support to move capital to a southern state • The goal of Jefferson was to distance federal government from commercial cities and put an end to the “republican court” that had formed around Washington • Hamilton’s financial plan was passed in April 1791

18. HAMILTON VS. JEFFERSON • Alexander Hamilton and Thomas Jefferson played a valuable role in the beginning of our nation. • Both were visionaries and influenced the direction our country would go economically, politically and socially. • President Washington was stuck in the middle of these two men as they argued over our country’s beginnings.

19. RISE OF POLITICAL PARTIES political Federalist Beliefs (former Anti-Federalists)Democratic-Republicans Alexander HamiltonJohn Adams Thomas JeffersonJames Madison Leader Manufacturers, merchants, wealthy and educated….Favored seaboard cities Farmers and Planterscommon manFavored the South and West Appealed to • Strong government over statesLoose Construction of Constitution • Implied powers • Wealthy and educated involved • Limit freedoms of speech & press • Preferred govt. similar to a king State’s rights over National Govt.Strict construction of Constitution Expressed/Enumerated powers Common man but educated Bill of Rights is sacred Lesser government the better Ideas of Government DomesticPolicy Supported National Bank—BUSSupported excise taxNational debt good for countryNational govt. assume state debtsTariffs should be high Against National Bank—BUSAgainst excise tax Against National debtStates pay their own debtsTariffs should be low ForeignPolicy Opposed French RevolutionWanted war with FrenchFavored the British Supported French RevolutionOpposed war with FrenchFavored the French

20. Foreign policy • What to do with the world at war? • The French Revolution places the U.S. in a tough spot

21. French Rev FRENCH REVOLUTION LIBERTY, EQUALITY AND FATERNITY • Executions of King Louis the 16th and Marie Antoinettein 1793. • Begins “Reign of Terror” during French Revolution where 40,000 opponents of the new govt. were beheaded. • France goes to war against European kings • France requested US ships to block West Indies from the British • President Washington declared Neutrality and ordered Americans to avoid this war

22. Citizen Genet • During their years of war from 1793-1815, Britain and France would make American isolation and neutrality difficult • In April 1793 France sends Citizen Edmond Genet as a minister to the U.S. • France orders Genet to enlist American aid to help the French cause • The British respond to Genet’s free trade declaration by promising to seize any ship trading with French colonies in the Caribbean • Genet leads Britain to overrun American sovereignty and seize U.S. ships - Impressment

23. IMPRESSMENT Impressment: an act of kidnapping a ship, its contents, men and forcing them into your navy----this became British policy

24. JAY’S TREATY • Washington and Hamilton believed that long-term interests of the U.S. would be best served if we avoided war with Britain • Washington sent Chief Justice John Jay to London to negotiate an agreement • The result is called Jay’s Treaty • Britain agreed to leaves forts in occupied in the NW territory • On every other point however he agrees to British terms • The Jay Treaty makes no mention of impressments or violations of American maritime rights • unable to convince the British to end their practice of stopping American ships at sea • Jay’s Treaty passes through the senate and is ratified in June 1795

25. Pinckney’s Treaty • Pinckney’s Treaty • In March 1796 Thomas Pinckney negotiates a treaty with Spain • Set U.S.-Spain border • Gave us unrestricted travel on the Mississippi • Put an end to Spanish claims in the SW • Helped offset the unpopularity of Jay’s treaty

26. Domestic issues • Trouble with Indians and Whiskey

27. WHISKEY REBELLION • Farmer’s revolt in western Pennsylvania. • Refused to pay Hamilton’ s excise tax • Believed it was an unfair tax. • Were called the “Whiskey Rebels”

28. WHISKEY REBELLION • Issue at hand was testing the power of the new Constitution • Outcome: • Demonstrated to the people that this new constitution was powerful enough to put down domestic rebellions, “mobocracy” • Showed the power of the national government President Washington reviews 13,000 troops of the Western Army assembled at Fort Cumberland, Maryland, to crush the Whiskey Rebellion.

29. The first transition in government

30. ELECTION OF 1796 • Washington refuses to run for reelection in 1796 • Thus sets a two-term limit precedent observed by every President until FDR • Washington’s vice president, John Adams ran on the Federalists side • Thomas Jefferson opposed him • Adams won a close victory and Jefferson became his vice-president

31. WASHINGTON LEAVES • George Washington left office in 1796 • Washington had achieved what he set out to do • In his farewell address he gave two warnings: • 1) He called for a foreign policy of neutrality and to stay out of alliances • 2) He warns against internal political divisions

32. George Washington in Review • http://www.youtube.com/watch?v=Zm5uPqucnHk&list=UUP6OYn7B1t4DRhczjXxEP9g&index=21&feature=plpp_video • The Presidents • http://www.youtube.com/watch?v=I_AL1Xn6UYM

33. WHO ARE THE MIDNIGHT JUDGES?