The Early Republic1789- 1828

Part 1: The Presidency of George Washington• 1789- Washington is inaugurated as the nation’s first President

1:1: Washington’s Domestic Policy

• The Constitution allows the President to choose officials in executive departments• This is known as the Cabinet• This was one of Washington’s first precedents

• Precedent- an action taken for the first time which is followed by others afterwards

Creating a Stable Economy

• The biggest problem in the new government is economic• Government owes 54 million dollars• The states owe another 24 million

• Alexander Hamilton, Secretary of the Treasury, has a plan• 1. Repay the Debt

• The national government should pay off the debts of both the states and the national government to establish good credit

• 2. Create a National Bank• A national bank can be a place to deposit taxes, provide sound currency, and make

national loans

• 3. Whiskey tax• To raise money from Western farmers

• 4. Protective Tariff• To protect American businesses from foreign competition

• Tariff- a tax on imported goods

• Jefferson and Madison believed that the Constitution did not give the federal government the right to a national bank• This disagreement gave rise to America’s first political parties

• Political parties- associations that try to elect their members to government offices so that they will pass laws favorable to their ideas

• Hamilton and his followers become known as Federalists

• Jefferson and his followers call themselves the Democratic-Republicans

• The disagreement is made worse by the French Revolution

The First Political Parties (foldable)

Defeat of the Protective Tariff

• All of Hamilton’s ideas are passed except for the tariff (Southerners oppose high tariffs, it makes their crops harder to sell)

How tariffs work

The Whiskey Rebellion 1794

• Western farmers rebel against the new taxes on whiskey; they refuse to pay their taxes and threaten tax collectors• Washington leads the militia to put down the rebellion• The rebels flee before any fighting takes place

1:2: Washington’s Foreign Policy

• War breaks out between Britain and France in 1793• The Federalists support Britain• The Democratic Republicans support the French

The Proclamation of Neutrality

• America is not ready for war, on either side.• He adopts a policy of neutrality- The US will not take either side in any

European conflict

• Meanwhile, John Jay negotiated a treaty with the British over trade

• Thomas Pinckney negotiates a treaty with Spain• The US can trade goods down the Mississippi River, all the way to New

Orleans

Washington’s Farewell Address

• Washington decides to retire, and writes a letter/speech to say bye• He delivers some important advice to the country

Washington’s Farewell Address, primary document