In the 1780s - 1790s, the policies of the United States such as the Land Ordinances, creation
of a Bill of Rights, creation of of a national bank, and the Treaty of Greenville encouraged
western expansion, extended Republican institutions, and intensified relationships with
England and the natives.
- Washington’s Administration
- 1st President of the United States in 1789
- Unanimously elected
- Sets many precedents that put the principles of the Constitution into practice
- Two term presidency
- Established the cabinet (group of advisors who serves as the president of
different departments)
- Secretary of State: Thomas Jefferson
- Secretary of Treasury: Alexander Hamilton
- Secretary of War: Henry Knox
- Attorney General: Edmund Randolph
- Conflicts will develop as Federalist ideas are implemented by Hamilton
- Judiciary Act of 1789 organized the Supreme Court with 1 chief justice (John
Jay) and 5 associate justices
- Bill of Rights
- Added to alleviate concerns of the anti-federalists
- Promised for ratification of some states
- 10 amendments written by James Madison
- Reassured anti-federalists
- Hamilton’s Financial Plan
- Developed a financial program to pay off debt and develop American
manufacturing
- Why?
- Established the government as a good creditworthy entity
- Getting credit is the key to success
- Tie the wealthy to the federal government
- To help America’s future manufacturing
- Part 1: Report on public credit called for the federal government to pay off the
national debt at face value and assume the war debts of the states (Assumption
Plan)
- Different states had different amounts of debt
- Jefferson was very opposed, and so was James Madison
- Compromise was reached with Jefferson: the capital of the US would be
moved closer to the south in Washington D.C. (1790)
, - Philadelphia was made the temporary capital until they could
formerly move
- Wanted the capital down south so that there were laws passed that
were in favor of slavery for the south
- Bill passed in 1790
- Now Hamilton has all of this debt
- This is good, because now they can establish credit in order to
acquire more debt, and have more credit in order to “borrow” more
money from other nations (investments)
- Part 2: Hamilton supported higher taxes on imports (tariffs, other country has to
pay to bring stuff into the United States), and excise taxes (tax specific luxury or
domestic items such as whiskey), and miscellaneous taxes
- Would protect American “infant” industries from foreign competition
- Helps pay off the debt very quickly
- United States is established as a good credit nation, just as Hamilton
planned
- Unpopular in Virginia because they didn’t have much state taxes
- Part 3: Created a national bank that would help create a stable, healthy
economy, and currency
- People would invest in the national bank (more wealthy people)
- Established in Philadelphia
- Huge debate over the Bank of the United States and the power of the federal
government under the new Constitution (1792-1793, end of Washington’s first
term)
- Jefferson (Jeffersonian Republicans): Constitution did not give Congress
the authority to create a bank
- Strict interpretation of the Constitution
- Hamilton (Federalists): The “necessary and proper” clause allowed
Congress to create the Bank of the United States since it was necessary to
carry out its enumerated powers
- Loose (broad) interpretation of the Constitution
- Washington asked Jefferson and Hamilton to turn in essays as to why their idea
was better to decide which one to go with
- Bank eventually created
- Started creating the seeds of political parties AND Jefferson and Washington
- Around this time, Washington wins his second term unanimously again, French
Revolution is about to break open
- Whiskey Rebellion
- Part of Hamilton’s plan was to include an excise tax on whiskey
- Farmers in Western PA refused to pay to tax
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