Washington’s Presidency
Unit 3, Lesson 2
Essential Idea
• America became economically stable but
politically divided under Washington, and it
faced foreign policy challenges.
Congress’ First Actions
• Cabinet:
• Congress created a
group of advisers,
the cabinet, to assist
Washington
• Secretary of StateThomas Jefferson
• Secretary of
Treasury- Alexander
Hamilton
Congress’ First Actions
• Judiciary Act of
1789:
• Created the federal
court system
• Established district
courts, appeals
courts, and the
Supreme Court
Congress’ First Actions
• Bill of Rights:
• James Madison wrote the
Bill of Rights
• These amendments protect
individual rights and limit
the federal government’s
power
• Major Amendments:
• 1st- Freedom of expression
• 4th- No warrantless searches
• 5th- Due process of law, no
double jeopardy, freedom
from self-incrimination,
eminent domain
• 6th- Speedy public jury trial,
right to lawyer
• 10th- Powers not listed for
federal government are
reserved for states
• The Bill of Rights
Funding the Government
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Economic Issues:
Federal government
needed a strong economy
and to raise revenue to
fund itself
Tariffs:
Tariffs are taxes on
imported goods
Tariffs raise money to pay
for the government
Tariffs helped the economy
by protecting American
businesses from foreign
competition
However, foreign countries
put tariffs on American
exports
The plan:
Alexander Hamilton
developed an economic
plan for the country
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Hamilton’s Financial Plan
Part 1:
Tariffs and excise taxes
Details:
Tariff of 1789- Congress passed this tariff on foreign imports
Congress also passed an excise tax on whiskey
This paid for the government and Hamilton’s financial plan
Reactions:
North favored it because it protected American businesses
South and West were angry because their exports were taxed by other countries
South and West were hit hardest by whiskey tax
Hamilton’s Financial Plan
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Part 2:
Pay back war bonds
Details:
The government paid back money citizens had loaned (war bonds) to pay for the
Revolutionary War
Reactions:
North favored this since they owned most war bonds
South and West mad because taxes that hurt them were used to pay back Northern-owned
bonds
Hamilton’s Financial Plan
• Part 3:
• Assumption of state
debts
• Details:
• Federal government
paid debts states
owed
• Reactions:
• North favored this
since they were in the
most debt
• South and West did
not like giving the
federal government
more power
Hamilton’s Financial Plan
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Part 4:
Bank of the United States
Details:
The BUS managed the
country’s economy, national
debt, and national currency
• Reactions:
• North favored this and owned
the most stock in the BUS
• South and West thought the
BUS was unconstitutional
Political Parties Form
• Disagreement over Hamilton’s Plan
• Political Parties Form:
• Debate over Hamilton’s financial plan, especially the BUS, split
Congress into the first political parties
• These parties were similar to the past Federalist and Anti-Federalist
groups
Federalist Party
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Party:
Federalist
Leader:
Alexander Hamilton
View on Hamilton’s Plan:
Favored Hamilton’s plan
Government Power?
Strong federal, weak states
Location of Supporters:
North
Types of Supporters:
Urban, wealthy, businessmen
Vision for country:
Economy based on
manufacturing and commerce
(trade)
DemocraticRepublican Party
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Party:
Democratic-Republican
Leaders:
Thomas Jefferson
View on Hamilton’s Plan:
Opposed Hamilton’s plan
Government Power?
Weak federal, strong states
Location of Supporters:
South and West
Types of Supporters:
Less wealthy, farmers
Vision for country:
Economy based on agrarianism—
small independent farms
The Whiskey Rebellion (1794)
• The Whiskey Rebellion:
• Western farmers were angry
over whiskey tax
• They terrorized tax collectors
and disputed courts
• Government Response:
• George Washington
PERSONALLY led 15,000
FEDERAL troops to crush the
rebellion
Significance of Whiskey Rebellion
• Significance:
• Such action was impossible under the Articles of
Confederation
• Stopping the Whiskey Rebellion proved the
strength of the new Constitution
American Foreign Policy Issues
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Events in Europe:
The French Revolution, inspired by the American Revolution, got out of hand
France declared war on Britain
America traded with both countries
Political Reactions:
Federalists supported Britain due to their strong central government
Democratic-Republicans supported France due to their weak central government
American Foreign Policy Issues
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Washington:
Decided on foreign policy
of NEUTRALITY
America would not pick a
side but would TRADE with
both countries
British Reaction:
Neither Britain or France
liked neutrality
Impressment- Britain
captured American trade
ships and kidnapped
sailors
Britain also used their forts
in western America to give
Indians weapons to attack
settlers with
Washington sent John Jay
to Britain to avoid war
Jay’s Treaty
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The Treaty:
Jay’s Treaty
Terms:
Britain could continue
impressment
Britain agreed to give up forts in
America (but did not)
Britain gave America “most
favored nation” trading status
(important)
Reactions:
Americans were furious with
the terms
France and Spain worried that
America was getting closer with
Britain
Pinckney’s Treaty
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The Treaty:
Pinckney’s Treaty
Terms:
Settled boundary between
America and Spanish
Florida
Spain let America to use
Mississippi River and New
Orleans for trade
Reactions:
Relationship between
Spain and America
improved
Americans were happy
due to new land and trade
Early American Foreign
Policy
Westward
Expansion
• American Settlers:
• Settlers wanted to move to
the fertile farmland in the
Northwest Territory
• Native Americans:
• Indian tribes reacted angrily,
formed a confederacy, and
attacked settlers
• Conflict and Compromise:
• Battle of Fallen TimbersAmerican forces finally
defeated Indian forces
• Treaty of Greenville- drew a
line to divide American
territory into land for settlers
and Indians