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UNIT 2 NOTES: Washington and the first Presidency •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. 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 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 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 •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 Alexander Hamilton Washington filled his cabinet with familiar faces Secretary of Treasury Alexander Hamilton of New York, his trusted aid during the revolution selected to head the 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 ALEXANDER HAMILTON 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 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 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 Foreign Debt $11,710,000 Federal Domestic Debt $42,414,000 State Debt $21,500,000 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 Misc. Revenue Excise Tax on Whiskey Custom Duties (Tariffs) •Create a national bank with a national currency •Raise money for govt backed by gold silver 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 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 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 HAMILTON JEFFERSON •Safe place to deposit and transfer money •Against the Constitution •Provide loans to government and state banks •State banks would collapse •A national currency---$$$$$ •An investment by people to buy stock into US bank •Only wealthy could invest in bank and would control bank than control the government •Hurt the common man •Constitution did not forbid a national bank….Loose construction of Constitution •Strict construction…If it is not mentioned in the Constitution than there can’t be a national bank. •National debt good for country •Against a national debt •He also cited the “necessary and proper clause” (article 1, sec. 8) 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 •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. political Federalist Beliefs Leader Appealed to Ideas of Government (former Anti-Federalists) Democratic-Republicans Alexander Hamilton John Adams Manufacturers, merchants, wealthy and educated…. Favored seaboard cities Thomas Jefferson James Madison Farmers and Planters common man Favored the South and West Strong government over states Loose 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 Domestic Policy Supported National Bank—BUS Supported excise tax National debt good for country National govt. assume state debts Tariffs should be high Foreign Policy Opposed French Revolution Wanted war with French Favored the British Expressed/Enumerated powers Common man but educated Bill of Rights is sacred Lesser government the better Against National Bank—BUS Against excise tax Against National debt States pay their own debts Tariffs should be low Supported French Revolution Opposed war with French Favored the French Foreign policy What The to do with the world at war? French Revolution places the U.S. in a tough spot French Rev •Executions of King Louis the 16th and Marie Antoinette in 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 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 Impressment: an act of kidnapping a ship, its contents, men and forcing them into your navy----this became British policy 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 The result is called Jay’s Treaty Washington sent Chief Justice John Jay to London to negotiate an agreement 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 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 Domestic issues Trouble with Indians and Whiskey •Farmer’s revolt in western Pennsylvania. •Refused to pay Hamilton’ s excise tax •Believed it was an unfair tax. •Were called the “Whiskey Rebels” •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. The first transition in government 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 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 George Washington in Review http://www.youtube.com/watch?v=Zm5uPqucnHk&list=UUP6OYn7B1t 4DRhczjXxEP9g&index=21&feature=plpp_video The Presidents http://www.youtube.com/watch?v=I_AL1Xn6UYM WHO ARE THE MIDNIGHT JUDGES?