Political Crisis of the
1790s: Part I
APUSH: Spiconardi
George Washington
•
•
I anticipated, in a heart filled
the
.with
. . I distress,
assure you
. . ten
. that my
George Washingtonmovements
was
thousand embarrassments,
to the chair of
perplexities
and be
troubles to
will
elected president inGovernment
1789
which I must with
againfeelings
be exposed
accompanied
not
Why Washington? unlike
to
the
evening
of
a life,
Butinto
say
I of
feel
pleasure
from
those
a culprit
who
is
already
consumed
the prospect
of
commencing
to nearly
the place
of his in
• Seen as virtuous going
public
cares
another
tour of duty, would be
disinterested manexecution…
a departure from truth
• Respected for leading
America to victory over the
British
• Model of self-sacrificing
republican virtue
• Seen as a cautious and
pensive man
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
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
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
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.
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
Hamilton’s Financial Vision
Strict 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.”
This has become
known as the
ELASTIC CLAUSE
Loose Interpretation
• 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.”
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
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!
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)
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