George Washington

AND A NEW NATION (1789-1800)

The First President

In 1789, George Washington became the first president of the U.S. under the Constitution.

John Adams became the first vice-president. Americans trusted Washington but feared

future presidents, full of ambition, would abuse the power of the executive office

How should people address the President? Washington preferred “Mr. President”- rejecting the grandeur associated with European monarchs

Washington felt incredible burden to make the new government work

During his 2 terms of office, Washington set many “precedents” or examples for future presidents to follow

Washington’s Cabinet

The President needed talented people around him to help him carry out his duties

Congress created 5 executive departments to help run the country (heads would make up President’s cabinet):

1. State Department: relations with other nations- Thomas Jefferson.

2. Treasury Department: financial matters- Alexander Hamilton.

3. War Department: provide for the nation’s defense- Henry Knox.

4. Attorney General: deal with nation’s legal issues- Edmund Randolph

5. Postmaster General: mail 2 most influential were Thomas Jefferson & Alexander Hamilton. The President was given the power to dismiss cabinet members;

increased his power.

Alexander Hamilton

Thomas Jefferson

The Court System The Constitution only mentioned a Supreme Court.

Judiciary Act of 1789 established a federal court system with 13 district courts and 3 circuit courts.

Federal courts could reverse state decisions. The Supreme Court was the highest court in the land,

and John Jay was chosen as the first chief justice of the Supreme Court.

The first ten amendments- the Bill of Rights- (written by James Madison) was added to the Constitution in 1791. It was added to limit the power of the government and protect individual rights.

John Jay

Financial Problems

The new nation faced serious financial problems after the war. The national debt was growing.

Alexander Hamilton, Secretary of the Treasury, tried to improve America’s financial reputation & strengthen the nation. He came up with a financial plan:

1. Pay off all war debts & bonds (Federal government should pay all debts- even states’ debts)

2. Raise government revenues (tariffs would raise money and encourage American manufacturing)

3. Create a national bank (a safe place for money and could make business loans)

Debating Hamilton’s Plan James Madison led the opposition against Hamilton’s

plan- argued Hamilton’s plan would reward speculators

Government issued bonds during the Revolution but bondholders needed cash so they sold the bonds.

Speculators bought bonds from people for a fraction of the value (10-15 cents on a dollar bond)and would get full the value if government paid the bond back.

Hamilton argued that the government had to pay back debts in full otherwise it risked losing the trust of future investors; crucial to building new nation’s economy.

Congress, after much debate, approved full repayment

A New Capital Southern states

opposed the Hamilton plan. By 1789, they had already paid their debts (had less) & thought other states should do the same

They didn’t want to pay the North’s debts.

A compromise was reached. Southerners would support Hamilton’s plan, and the new capital, Washington, D.C., would be located in the South (between MD and VA).

Bank of the United States

Hamilton plan designed to help both agriculture and industry.

He called on Congress to create a national bank, which they did in 1791.

Hamilton believed this was a “necessary and proper” power of Congress (Article I Sect 8 of Constitution)

Deposited tax dollars into bank; bank issued paper money to pay debts and make loans

Jefferson and Madison disagreed with the national bank. They believed it would only benefit the wealthy.

Jefferson argued that creating a national bank was not an enumerated power of Congress in the Constitution and was not “necessary & proper”

Opposition to Taxes… Again

Hamilton wanted to pass high protective tariffs on imports.

Protect American manufacturers (many in North) but hurt southern farmers because they bought many imported goods.

To raise $ for Treasury, Hamilton also proposed a tax on whiskey.

Farmers in Pennsylvania were angered over this. They often bartered and had no cash for a tax. Refused to pay tax.

A mob attacked tax collectors during the Whiskey Rebellion.

Washington crushed the rebellion with federal troops. He showed that if people wanted to challenge the

government, they should do it peacefully through the Constitution.

The government would use force when necessary.

Trouble with the British

Native Americans in the west denied that America had any authority over them.

They turned to Britain and Spain for help. The British encouraged the Native Americans to

destroy American settlements. They demanded all Americans north of the Ohio River leave the area.

Anthony Wayne was sent to challenge them. The Battle of Fallen Timbers crushed Native

American hopes of keeping their land. In the Treaty of Greenville, Native Americans

gave up all land in present-day Ohio.

The French Revolution & War in Europe The French Revolution began around 1789. It was initially supported by Americans. Things turned bloody, and support declined.

Americans divided over violence- Jefferson supported French & Hamilton/Adams did not

France & US became allies during A. Revolution but Washington wanted to maintain neutrality after the British & French went to war (foreign policy).

Treaty with France deepened divisions in Washington’s cabinet- Jefferson vs Hamilton

The Neutrality Proclamation prohibited Americans from serving in the war & would not support either side. It also barred British & French warships from American ports.

The British were angry over French & American trading. They captured American merchant ships and forced the crews to join the British navy- impressment.

This pushed America closer to war with Britain.

Jay’s Treaty Washington sent John Jay to negotiate with Britain.

They didn’t want a war with the U.S. In Jay’s Treaty:

1. Britain would remove all troops from U.S. soil

2. They would pay damages for ships they’d seized

3. American ships allowed to trade in the Caribbean.

Americans were angry because the treaty did not deal with the issues of impressment or trade interference.

Spain feared America & Britain would team up against them. In Pinckney’s Treaty, Spain agreed to allow Americans access to the Mississippi River & New Orleans.

Washington’s Farewell: In 1796, Washington said no to a 3rd term, setting a precedent (an example for others to follow)

In his farewell address, he warned against the dangers facing the new nation:

1. Evils of political parties would divide the nation

2. Involvement in foreign affairs should be avoided

By the mid 1790s, two distinct political parties had formed:

1. Federalists: Hamilton and Adams-strong federal government.

2. Democratic-Republicans: Jefferson and Madison- limited government power.

Political Parties Hamilton & Jefferson differed in their views of

the Constitution. Hamilton- implied powers, Jefferson- strict interpretation.

Federalists supported representative government- elected officials rule in the people’s name. It was not wise for the public to become involved.

Democratic-Republicans feared government run by a few. Ordinary people should run the government.

Election of 1796 In this election, members of political parties

ran against each other for the first time. Federalists: John Adams & Thomas Pinckney Democratic-Republicans: Thomas Jefferson &

Aaron Burr. Adams won with 71 electoral votes, Jefferson

came in second with 68. Jefferson would be vice-president.

The country had a Federalist president and a Democratic-Republican vice-president.

Adams has Trouble Adams inherited the conflict with France. They were seizing American ships. He wanted to avoid war and sent delegates to Paris to negotiate a deal.

The French foreign minister sent three men to meet with them. They demanded a loan of $10 million and $250,000 for each agent. The French agents referred to themselves as “X,Y, and Z”. The American delegates refused their offer and returned to the U.S.

Adams was furious and anti-French sentiment greatly increased in the United States.

The XYZ Affair caused Congress to consider war with France. They strengthened the army and navy.

Alien & Sedition Acts Americans became suspicious of the French living in

America. As a result, the Federalist –dominated Congress passed the Alien and Sedition Acts.

The Alien & Sedition Acts allowed the president to:1. Deport any immigrant that he felt was against his policies.

2. Arrest anyone who wrote or said anything bad about the government.

These laws openly violated the 1st Amendment rights of freedom of speech and freedom of the press.

“States’ Rights” and Nullification

Many Americans had issues with Adams’s attack on their freedoms, especially Jefferson and Madison.

The Virginia & Kentucky Resolutions (written by Jefferson and Madison) claimed that the Alien & Sedition Acts could not go into effect because they violated the Constitution.

They argued that states could overturn federal laws they felt were unconstitutional. This idea became known as “states’ rights” and limited the power of the federal government.

The Federalists were under attack. Adams’s own party opposed him. This paved the way for Jefferson to win the election of 1800.