George Washington

Challenges and Solutions

Economic Problems

• War Debt– Owed to foreign countries

• Netherlands• France• Spain

– Owed to merchants and citizens

• Image

Hamilton’s Financial Plan• Pay off all war debts

– Some states had already paid their portion– Compromised with move of Capital

• Raise government revenue– Tariffs of imported goods

• Money for national government• Encourage growth of American businesses

• Create a national bank– Safe place for nation’s money– Issue one currency– Loans to businesses and government

• Strengthen national governm,ent

Different Interpretations of Constitution

• Strict or flexible?• Is the national bank constitutional?• Anti-feds

– Strict interpretation– Unconstitutional as power not spelled out

• Feds– Loose interpretation– “Necessary and Proper” clause

• Need powers not specifically stated to carry out job

Securing NW Territory

• Competition for land Trans-Appalachian West– Britain– Spain– Native Americans

• Mississippi River vital for trade• Washington sends troops

Battle of Fallen Timbers• Ohio River Valley• Washington sends troops to fight Natives• 1790• Little Turtle (Miami Tribe)

– Shawnee– Ottawa– Chippewa

• Natives think Brits will aid, but don’t• Treaty of Greenville (1795)

– Twelve tribes– Surrender to U.S. government

• Ohio• Indiana

Whiskey Rebellion Western Pennsylvania

• Grain and Whiskey important products• Farmers make whiskey from grain

– Cheaper and easier to ship whiskey– Can ship more whiskey than grain

• Tax on whiskey cuts into profits• Farmers resisted tax by rebelling

– Beat up and tar and feather tax collector– Armed themselves

• Washington sends troops (Oct. 1794)– Image– Won’t let rebels weaken authority of fed. Gov’t.

French Revolution

• 1789

• Caused by financial crisis

• Inspired by American Revolution– French demand

• Liberty• Equality

– Overthrow King Louis XVI

French Revolution - cont• European monarchs in fear• France declares war

– Britain– Holland– Spain

• Who, if anyone, should the U.S. support?– French helped us– Just finished war with Britain

• Washington– Neutral– “Friendly and impartial”– Congress passes law forbidding help to either side

Jay’s Treaty• Britain seizes American cargo ships

– French West Indies– Challenge neutrality

• John Jay, Chief Justice, negotiates with British– Stop seizure of ships – Give up forts on NW frontier– 1794-1796

• Treaty– British leave Ohio River valley– British pay for damages to American ships– Trade with British West Indies fails

Pinckney’s Treaty

• Thomas Pinckney• 1795• Treaty with Spain

– Americans travel freely along Mississippi River– Americans could store goods

• Port of New Orleans• Free of customs duties

– Northern boundary of Florida at 31st parallel– Southern boundary of U.S. at 31st parallel

Court System

• Congress creates• Supreme Court

– How many justices?– How much power?– How to divide authority

• Federal government• State government

• Federal Judiciary Act of 1789– Supreme Court

• One chief justice (John Jay)• Five associate justices (eventually nine)

– Lower Federal courts with less power