The Early Republic 1789- 1828 Part 1: The Presidency of George Washington • 1789- Washington is inaugurated as the nation’s first President 1:1: Washington’s Domestic Policy • The Constitution allows the President to choose officials in executive departments • This is known as the Cabinet • This was one of Washington’s first precedents • Precedent- an action taken for the first time which is followed by others afterwards Creating a Stable Economy • The biggest problem in the new government is economic • Government owes 54 million dollars • The states owe another 24 million • Alexander Hamilton, Secretary of the Treasury, has a plan • 1. Repay the Debt • The national government should pay off the debts of both the states and the national government to establish good credit • 2. Create a National Bank • A national bank can be a place to deposit taxes, provide sound currency, and make national loans • 3. Whiskey tax • To raise money from Western farmers • 4. Protective Tariff • To protect American businesses from foreign competition • Tariff- a tax on imported goods • Jefferson and Madison believed that the Constitution did not give the federal government the right to a national bank • This disagreement gave rise to America’s first political parties • Political parties- associations that try to elect their members to government offices so that they will pass laws favorable to their ideas • Hamilton and his followers become known as Federalists • Jefferson and his followers call themselves the DemocraticRepublicans • The disagreement is made worse by the French Revolution The First Political Parties (foldable) Defeat of the Protective Tariff • All of Hamilton’s ideas are passed except for the tariff (Southerners oppose high tariffs, it makes their crops harder to sell) How tariffs work The Whiskey Rebellion 1794 • Western farmers rebel against the new taxes on whiskey; they refuse to pay their taxes and threaten tax collectors • Washington leads the militia to put down the rebellion • The rebels flee before any fighting takes place 1:2: Washington’s Foreign Policy • War breaks out between Britain and France in 1793 • The Federalists support Britain • The Democratic Republicans support the French The Proclamation of Neutrality • America is not ready for war, on either side. • He adopts a policy of neutrality- The US will not take either side in any European conflict • Meanwhile, John Jay negotiated a treaty with the British over trade • Thomas Pinckney negotiates a treaty with Spain • The US can trade goods down the Mississippi River, all the way to New Orleans Washington’s Farewell Address • Washington decides to retire, and writes a letter/speech to say bye • He delivers some important advice to the country Washington’s Farewell Address, primary document