Kevin Moffatt
10/21/13 E
1.
Why did Alexander Hamilton push for the federal assumption of state debts?
Hamilton pushed for the federal assumption of state debts in order to encourage state and federal bondholders to look to the central government for eventually payment, therefore strengthening the centralized government as an economic entity. He envisioned creating a large and permanent debt, where new bonds would be issued as old ones were paid off. He believed the result would be that creditors, who were the wealthy class, would have a permanent stake in government success, and therefore be more obligated to help the government economically.
2.
What arguments did Hamilton make to support the creation of a national banking system?
Hamilton argued that a national banking system would fill the void of a well-developed banking system, provide loans and currency, give the government a safe place to deposit federal funds, collect taxes and disburse the government’s expenditures, and would keep up the price of government bonds. Overall, this centralized banking system would provide a stable center to the nation’s small banking system
3.
Identify the two types of taxes that Hamilton proposed.
Hamilton proposed a tax on distillers of alcohol, and a tax on imports. The alcohol tax fell most heavily on the whiskey distillers of the backcountry (Pennsylvania, Virginia, and North
Carolina), and later caused the Whiskey Rebellion. The import tax was aimed to raise revenue and to protect American manufacturing form foreign competition.
4.
What arguments did Hamilton make for the federal government assuming state debts
"at par?" What was the position taken by his opposition on this issue?
Hamilton argued for assuming state debts “at par” because the plan was impractical, and that the honor of the government required that it paid the actual bondholder themselves, not the original lenders who sold the bonds. His opponents, led by James Madison, believed that some of the value should be returned to the original buyers. Madison proposed dividing the federally funded bonds between the original purchasers and the spectators.
5.
How was the assumption issued resolved?
The assumption issue was resolved because Hamilton and his supporters made a bargain with
Virginia to help the bill pass. This deal involved moving the capital to the South, on the banks of the Potomac River, which divided Virginia and Maryland, on land that Washington would choose.
6.
Why did small farmers oppose Hamilton's broad economic program?
Small farmers opposed Hamilton’s broad economic program because they believed that they had to bear a proportionate tax burden. This was because they had to pay both property taxes, but also bore the burden of the excise tax on distilleries and also indirectly bore the tariff on imports. May small farmers believed that the Federalist program was to benefit the wealthy elites.
7.
What were the reasons for the Whiskey Rebellion? Who was it aimed at particularly?
The Whiskey Rebellion was a result of the whiskey excise tax that was put on whiskey distillers, and greatly affected many backcountry farmers who distilled liquor with surplus crops. It was mainly aimed at the Federalists, but the tax collectors were terrorized as a result, similar to Stamp Act collectors had been before the revolution.
8.
How did Washington's reaction to the Whiskey Rebellion underscore the difference between the Constitution and the Articles of Confederation?
Washington’s reaction of mustering a 15,000 army (bigger than the army he commanded for most of the revolution) of three colonial militias showed the power of the new, centralized government, and displayed how the new government could control uprisings and military

affairs. This compares directly to Shays’ rebellion, except while Shays’ rebellion wasn’t stopped until much later, the Constitution allowed Washington do gather an army and defeat the rebellion through intimidation.
9.
How did the government under the Constitution guarantee that people on the frontier would be loyal to it? What was the impact on Native Americans?
The government under the Constitution guaranteed that people on the frontier would remain loyal by accepting their territories as new states in the Union. In becoming new states, these people would now be loyal to the government. This often challenged the Native American’s claim to land, and led to constant land disputes and border wars for ten years.
10.
How and where in the Constitution are Native Indians mentioned? What constitutional issues emerged regarding Native Americans?
The Native Indians are mentioned in barely mentioned in the Constitution, first in Article I, which excluded “Indians not taxed” from being counted in population totals that determined number of seats for a state in the House. They are also mentioned in Article VI, which gave
Congress the power to “regulate Commerce with foreign Nations, and among the several
States, and with the Indian Tribes. The issues that arose were that the Constitution seemed to recognize the Tribes as legal entities, but in contrast, made it clear that they were not foreign nations, but still did not receive any direct representation in the new government. Nothing in the Constitution dictated the main battle between the US and Indians, so this was left to treaties, agreements, and judicial decisions.
11.
What diplomatic problems did the French Revolution and the war that followed pose for the United States? How did Washington and Congress deal with this problem?
The French Revolution and the war that followed because the French wanted the US to honor the old alliance and fight against the British with the French, and the British wanted the
Americans to be allies to fight against France. As a result, Washington and Congress decided to attempt to remain neutral, and maintain a policy of neutrality in the Revolution and the following war.
12.
Identify some of the challenges to American neutrality.
The first major challenge to this neutrality came from France’s first diplomatic representative, Edmond Genet (or Citizen Genet). Genet disembarked in Charlestown and encouraged American ship owners to act as privateers for the French navy, employed
Southern ports to build and outfit French warships, and recruited Rogers Clark to lead a military expedition into Spanish held Florida. Eventually Genet’s party was out of power, and he lost his influence. The second (and even harder) challenge to American neutrality came from the British, when the Royal Navy began seizing hundreds of American ships engaging in trade with the French West Indies. In addition, reports came that the governor general of Canada had delivered a war-like speech to Indians on the northwestern frontier, and America was close to another war with Britain. This was solved by Jay’s treaty.
13.
What were the circumstances that sent John Jay to England? What were the results of his mission? How did Jay's Treaty affect American relations with Spain?
Washington sent John Jay to England in order to avoid a war as a result of the Royal Navy seizing hundreds of American ships. Jay was sent with the goals to secure compensation for the recent British assaults on American shipping, to demand the withdrawal of British forces from the frontier posts, and to negotiate a new commercial treaty. Although he failed to achieve these goals, eh did help prevent a war and established undisputed American control over the whole Northwest. In addition, it produced a good commercial relationship with
Britain, which was essential to the American economy. Jay’s treaty allowed America to settle conflict with Spain, because it raised fears in Spain of a British – American alliance.
This allowed Pinckney’s treaty to get the right to navigate the Mississippi, and to put the northern boundary along the 31 st parallel, where the US wanted it. It also required Spanish authorities to prevent the Indians in Florida from launching raids across the border.