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George Washington. Challenges and Solutions. Economic Problems. War Debt Owed to foreign countries Netherlands France Spain Owed to merchants and citizens Image. Hamilton ’ s Financial Plan. Pay off all war debts Some states had already paid their portion
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George Washington Challenges and Solutions
Economic Problems • War Debt • Owed to foreign countries • Netherlands • France • Spain • Owed to merchants and citizens • Image
Hamilton’s Financial Plan • Pay off all war debts • Some states had already paid their portion • Compromised with move of Capital • Raise government revenue • Tariffs of imported goods • Money for national government • Encourage growth of American businesses • Create a national bank • Safe place for nation’s money • Issue one currency • Loans to businesses and government • Strengthen national governm,ent
Different Interpretations of Constitution • Strict or flexible? • Is the national bank constitutional? • Anti-feds • Strict interpretation • Unconstitutional as power not spelled out • Feds • Loose interpretation • “Necessary and Proper” clause • Need powers not specifically stated to carry out job
Securing NW Territory • Competition for land Trans-Appalachian West • Britain • Spain • Native Americans • Mississippi River vital for trade • Washington sends troops
Battle of Fallen Timbers • Ohio River Valley • Washington sends troops to fight Natives • 1790 • Little Turtle (Miami Tribe) • Shawnee • Ottawa • Chippewa • Natives think Brits will aid, but don’t • Treaty of Greenville (1795) • Twelve tribes • Surrender to U.S. government • Ohio • Indiana
Whiskey Rebellion Western Pennsylvania • Grain and Whiskey important products • Farmers make whiskey from grain • Cheaper and easier to ship whiskey • Can ship more whiskey than grain • Tax on whiskey cuts into profits • Farmers resisted tax by rebelling • Beat up and tar and feather tax collector • Armed themselves • Washington sends troops (Oct. 1794) • Image • Won’t let rebels weaken authority of fed. Gov’t.
French Revolution • 1789 • Caused by financial crisis • Inspired by American Revolution • French demand • Liberty • Equality • Overthrow King Louis XVI
French Revolution - cont • European monarchs in fear • France declares war • Britain • Holland • Spain • Who, if anyone, should the U.S. support? • French helped us • Just finished war with Britain • Washington • Neutral • “Friendly and impartial” • Congress passes law forbidding help to either side
Jay’s Treaty • Britain seizes American cargo ships • French West Indies • Challenge neutrality • John Jay, Chief Justice, negotiates with British • Stop seizure of ships • Give up forts on NW frontier • 1794-1796 • Treaty • British leave Ohio River valley • British pay for damages to American ships • Trade with British West Indies fails
Pinckney’s Treaty • Thomas Pinckney • 1795 • Treaty with Spain • Americans travel freely along Mississippi River • Americans could store goods • Port of New Orleans • Free of customs duties • Northern boundary of Florida at 31st parallel • Southern boundary of U.S. at 31st parallel
Court System • Congress creates • Supreme Court • How many justices? • How much power? • How to divide authority • Federal government • State government • Federal Judiciary Act of 1789 • Supreme Court • One chief justice (John Jay) • Five associate justices (eventually nine) • Lower Federal courts with less power