Chapter 8 -

Early American Problems

1. people were more loyal to their state than to the country – not Americans yet

2. people questioned the Constitution (since the Articles of Confederation didn’t work)

3. the nation was severely in debt.

Making the Government Work

• In 1789, George Washington was inaugurated as the nation’s first President.

• John Adams was the first Vice-President.

• New York City was the first capital of the U.S.

• Washington appointed four men to his first Cabinet.

Domestic Policy - Washington

Raising Revenue

Alexander Hamilton – Head of Dept. of Treasury

• Madison – proposed tariff that would levy tonnage duties on foreign ships and heavier on countries that had no commercial treaty with U.S. TAX COUNTRIES HEAVILY IF THEY WOULD NOT MAKE A TRADE TREATY(wanted to effect Great Britain) – which had no treaty

• Tariffs and tonnage duties imposed on foreigners would help infant manufacturing in United States but would raise prices for others (farmers).

“Should rural consumers be forced to subsidize the nation’s infant manufacturing sector?”

Dealing with Debt

Congress passed a bill in 1791 setting up national banking system.

The Bank of the U.S. was able to:

- print paper money

- use paper money to pay its bills

- make loans to farmers and businesses

Whiskey Rebellion

• Whiskey Rebellion, 1794• first test for new federal government. • Angry farmers in Western Penn. rebelled at tax • Why?

– They were dirt poor, and simply could not afford to pay the tax.

– Unfair that tax placed on poor farmer not merchant. It also planted the seeds for the first liberal/ conservative split, that would wage even until today.

• Washington led 13,000 federal troops (in uniform) in putting down rebellion.

Am I a Federalist or a Republican?

1. Francois Goulet

• Farmer from Georgia

• 5th grade education

2. Brandon Smith

• Lawyer from Boston, MA

• College graduate

3. John Marshall

• Virginia planter

• College graduate

• Future Chief Justice of the Supreme Court

• Believed that the judicial branch was too weak

4. Hans Gruber

• German immigrant

• Pennsylvania farmer

5. Sally Moore

• Mother of five

• Employee of a Massachusetts textile mill

6. James Prescott

• Banker from Delaware

• Member of the Delaware state legislature

7. Mary Worthington

• Merchant from South Carolina

• Sells mainly European products

Foreign Policy - Washington

The French Revolution• Americans supported

revolution in its early stages – saw themselves in the situation.

• Support soured when Reign of Terror began – King and Queen were executed

• Britain and France began to war (1793-1815).

Which side should we take?

Neutrality

• Neutral = not take sides – HARD TO DO!• Relied on trade with both.

• Edmond Genet – French ambassador overestimated American sympathy for France. Recruited active American support

• Washington demanded his recall.• Issue Neutrality Proclamation - 1793

Northwest Territory• Americans

were being attacked by Native Americans – attacks were encourage by British

•Natives defeated in Battle of Fallen Timbers – 1794.•Forced to sign Treaty of Greenville to sell off large chunks of land North of the Ohio River.

Jay’s Treaty

• Chief Justice of Supreme Court – sent to Britain to work out a treaty– Britain agreed to leave the forts it occupied in

Northwest Territory– Britain refused to end impressment - British

commanders board American ships in search of Royal Navy deserters

– Great controversy arose at home – many Americans saw it as a betrayal of revolutionary ideals.

Hamilton Jefferson

Describe the events of the Whiskey Rebellion. Did Washington act appropriately in this situation?

Order and Describe:

Washington’s Farewell Address

XYZ Affair

Jay’s Treaty

Neutrality Proclamation

REMEMBER THAT ADAMS KEPT US OUT OF WAR WITH FRANCE – COST HIM HIS POLITICAL CAREER.