George Washington- president 1789 – 1797

• VP = John Adams

First acts of government

1. Bill of rights
2. Washington chooses his cabinet
a. Secretary of State- Thomas Jefferson
b. Secretary of Treasury- Alexander Hamilton
c. Secretary of War – Henry Knox
d. Attorney General- Edmund Randolph
3. Judiciary Act of 1789 – establishes lower federal courts
a. The Judiciary Act of 1789 created a rudimentary three-tiered
Federal Court System. Not only did it add a new layer to the
judiciary y that needed to be integrated, but it also allowed the
federal government to institute a rule of law based on the
constitution, instead of one based on British common law. In this
way, congress created an arm for enforcement of national laws
within each state.
4. Chief Justice of Supreme Court – John Jay
5. Hamilton’s Financial Plan
a. Debt payment from war
1. All state debt should be repaid by federal
government
i. South and Jefferson object- they don’t
have much debt.
ii.Compromise = debt will be repaid, but
capitol must be moved from NYC
iii.Washington D.C. – new capitol- is
created from land from Maryland and
Virginia along the Potomac River.
iv.Philadelphia is capitol while D.C. is being
built.
2. National debt, in bonds should be payed to
speculators
i. Jefferson objects to paying national debt,
because it rewards speculators.
 b. High tariffs- a tax on shipments and goods manufactured outside
country and sold inside country.
i. Why?
1. Raise money
2. Encourage people to buy American goods- help
manufacturers.
ii.Jefferson opposes tariffs because it makes goods more
expensive
c. National Bank
i. Strict construction- reads constitution strictly- government
ONLY has specified powers
ii.Loose construction- reads constitution broadly- “elastic
clause”
iii.Why have a national bank?
1. Keep federal money
2. Make loans to businesses
iv.Thomas Jefferson opposes bank-
1. Strict constructionist
2. Doesn’t want so much power in federal government.
v.National bank has a 20 year charter.

Hamilton wanted a national bank to establish financial order in the Unites

States. Hamilton and Jefferson disagreed over this because Jefferson
distrusted the government, while Hamilton did not. Jefferson sympathized
with debtors and farmers. He disliked industrialism and organized finance.
The less power the federal government had, the better. Hamilton supported
a strong central government, industry, commerce, and finance. He
sympathized with creditors and businessmen. He supported a powerful
executive power. He believed in a strong and active government.

Loose construction states that the constitution must be interpreted in light of

historic and societal change and that just because something is not
forbidden in the constitution, that doesn’t mean you can’t do it. Strict
construction states that the constitution means exactly what it says, and is
not open to inference or interpretation.
Problems Facing New Government

1. The French Revolution- French overthrow their king

a. Afterwards, FRENCH VS. BRITISH
i. BOTH sides want help from U.S.
ii.French say: we helped you, you help us
iii.British say: we are good for your economy
iv.Hamilton: help British
v.Jefferson: help French
b. Proclamation of Neutrality
i. Washington says: we are neutral
c. What do French do?
1. Edmund Genet- Frenchmen who comes to U.S. to try
to get American soldiers to fight for France.
d. What do British do?
1. Seize U.S. ships going to French west indies
a. Washington sends John Jay to Britain
e. Jay Treaty
i. British pay damages for seized ships
ii.Americans pay debts to British from pre-revolution
2. Problems with Spain
a. Spanish/American border is Florida
b. Use by U.S. of port in New Orleans
c. Concerned by Jay Treaty- is U.S. becoming chums with Brits???
d. Resolution: Pinckney Treaty
a. Settles border dispute
b. Opens port in NO to trade

Jay’s Treaty was a treaty between the United States and Great Britain
which averted war, solved many issues left over from the American
Revolution, and opened ten years of largely peaceful trade in the midst of
the French Revolutionary Wars. Pinckney’s Treaty established intentions of
friendship between the United States and Spain. It also defined the
boundaries of the United States with the Spanish colonies and guaranteed
the United States navigation rights on the Mississippi River. Thomas Pinckney
negotiated the treaty for the United States and Don Manuel de Godoy
represented Spain. Both of these treaties established peaceful relations with
powerful foreign governments.
 3. Problems with native Americans
Conflict over NW land
Battle of Fallen Timbers- NA’s defeated
Treaty of Greenville- NA’s give up claims to NW land and agree
not to attack settlers there.

The Treaty of Greenville, a treaty between the Western Confederacy and the
United States, which ended the Northwest Indian War, had some possible
consequences for certain Indian tribes. It began the consumption of Native
American land by the white man. The treaty also established the “annuity”
system, which was a system of yearly grants of federal money to Indian
tribes that granted authority for governments to have a lot of influence on
tribal affairs and gave outsiders a lot of control over Indian life.

4. Whiskey Rebellion-
Farmers in western PA are upset about whiskey tax
Civil protests became armed rebellion became full-fledged
insurrection
Washington goes with militia to show authority from Federal Gov.

Washington’s Farewell

Chooses not to run for 3rd term

Speech stresses unity

In his Farewell Address, George Washington spoke about the importance of

unity, and the danger of sectionalism. He spoke of the authority of the
Constitution, the threat of political factions, and the danger of Constitutional
Amendments designed to weaken the government. He also spoke of the
dangers of political parties and the importance of the Constitution’s system
of Checks and Balances, Separations of Powers, and Constitutional
Amendments. Lastly, he spoke of the dangers of permanent foreign
alliances and free trade and the importance of the United States Non-
Interventionism.
Hamilton Jefferson

strong federal gov Strong state gov

Manufactures, businessmen farming

north south

Loose constructionist Strict constructionist

High tariffs Low/no tariffs

Pro British Pro French

FOREIGN AFFAIRS DOMESTIC AFFAIRS

French revolution- both sides want National Debt

help from U.S.

Spain closed New Orleans to U.S. State Debt

trade

Still disputes between U.S. and Britain Federalists vs. Anti-Federalists

from Revolutionary War

North vs. South

Northwest Indian War

Whiskey Rebellion

Good luck!