Washington and Adams
Launching a New Nation
What was the country like in 1790?
• Most people lived east of the Appalachian
mountains
• Most people were farmers!
• About 3 million people in the country
George Washington
• 3 thinks he feels needs to be done immediately:
▫ Foster national unity
▫ Get a smoothly functioning government up and
running
▫ National and International Respect
▫ Look at what you watched – what did he get done?
Hamilton’s Financial Plan
• Wants to get the country out of debt. Remember
that we are $80 million in debt in 1790.
• 2 key points to his plan:
▫ Manage the debt
▫ Set up a National Bank
The Plan
• Payment of foreign debts
▫ Reaction is positive
▫ YES
• Federal Government will
ASSUME all state debts
▫ Virginia and Maryland do not
have any debt – feel like they
are being shortchanged.
Agreement made where the
US Capital is moved between
their states
▫ YES
• Funding
▫ Sell government bonds.
▫ Reaction is so-so.
▫ YES
• Taxes
▫ Excise = tax on luxuries
(today this would be cars,
alcohol and cigarettes)
▫ Back then it was Whiskey.
Leads to the Whiskey
Rebellion in Pennsylvania
▫ Protective Tariff
 8% in 1790
Bank of the US (BUS)
• The Bank will hold all the incoming money
• Like any company, investors are needed – so
this means 4/5 of the investors of a Government
institution will be supported by private RICH
citizens.
• Some people (Jefferson) have a big problem with
the BUS – especially the fact that it is not
mentioned in the Constitution
• Hamilton counters with the Elastic Clause
Political Parties
Federalists
Democratic-Republicans
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Hamilton, Adams
LOVE the BUS
Wealthy
Northerners
For strong central government
Educated and rich should
control the country
• Support the British
• Want a high tariff and a strong
military
• Should interpret the
Constitution “loosely”
Jefferson, Madison
Hate the BUS
Common man
States should have more power
Common Man
Admire the French
Low tariff and small army
Should interpret the
Constitution “strictly”
Issues George has to Deal with
• Proclamation of Neutrality (1793): US needs to
say out of foreign wars if at all possible. Why?
• Citizen Genet Affair (1794):
▫ Does not present himself to GW
▫ Tries to get islands in the Caribbean
▫ Tries to get the US to attack Canada
Issues George has to deal with
• British
▫ Seizing US ships
▫ Impressing sailors
▫ Refusing to leave forts in the NW and encouraging Native Americans to
attack Americans
• Jay’s Treaty
▫ Told the British to back off or the US would not trade with them. We are
just bluffing and that bastard Hamilton tells the British we are bluffing
 British agree to leave forts but continue to have contact with the Native
Americans
 Will pay for damages but will continue to seize ships
• Pinckney’s Treaty
▫ With Spain
▫ US allowed to have access to the Mississippi and use New Orleans as a
port to store goods
GW leaves after 2 terms
• Sets the precedent to only serve 2 terms as
President (last until 1940!)
• Gives a Farewell Address
▫ Tells the US to not get involved in any alliances or
treaties that could hurt US independence.
Election of 1796
• Federalists:
▫ John Adams
▫ Thomas Pinckney
• Democratic Republicans:
▫ Thomas Jefferson
▫ Aaron Burr
Issues under Adams
Alien and Sedition Acts
• Intention was to stop the
number of immigrants joining
the D-R Party and to Silence
the opposing newspapers
▫ Aliens must live in the US
14 years before applying for
citizenship
▫ Alien may be deported for
any reasons
▫ Newspaper may not print
anything against the
government of President
Virginia and Kentucky Resolutions
• Written in response to the
Alien and Sedition Acts
• Written by Madison and
Jefferson
• State the “compact theory”states agreed to come together
so should be able to leave
• Idea of NULLIFICATION –
state should be able to declare
a federal law null and void if it
is harmful to their state
Election of 1800
• Federalists:
▫ John Adams
▫ Charles Pinckney
• Democratic Republicans:
▫ Thomas Jefferson
▫ Aaron Burr