George Washington & National Debt

Chapter 6 – Section 1 & 2

George Washington – 1st President- Washington– Very popular with the people

- Electors from 11 states (Electoral College) met in 1789 to vote on President.

- Washington Elected / John Adams Vice President

George Washington Takes Oath of Office!

Statue of George Washington

The New President- Set examples and traditions (precedents) for

Executive Branch- 2 terms, American Cloth, “Mr. President”, farewell address, meet with cabinet regularly

- Created 1st Cabinet- Alexander Hamilton, Secretary of Treasury and Thomas Jefferson – Secretary of State

- Judicial Branch finalized (Judiciary Act 1789)

The New United States- 4 Million People in 1790

- Mostly farmers – wanted fair tax laws & to settle western lands

- 1st Capital – New York City – 33,000 People

Federal Building – N.Y. City

Alexander Hamilton Plan:- Pay foreign Debt, then Citizens (bond holders),

and free up states to invest in building the economy--create good credit

- Gain Revenue- Protective tariffs and bank interest

- Stabilize- National Bank and National Mint (one single currency)

National Bank- National Bank is needed to Safely Deposit federal

funds and stabilize the economic system

- Make loans to government and businesses

- States’ rights opponents didn’t think the bank was constitutional (Jefferson)

- Limited bank to a 20 year charter

Jefferson’s Views-Against Strong Central Government

-Supports and trusts the people (common man) to rule country*Supported Agriculture and Farmers*Lower Tariffs to keep costs low on products that farmers buy

-Strict Construction- Against using the Elastic Clause to create a National Bank

Opponents to the Bank- Jefferson and Madison opposed idea

- Constitution did not grant power to the federal government to create a national bank

- Strict interpretation of Constitution – Can only do what the Constitution says

N.Y Stock Exchange

Supporters of the Bank- Hamilton – Loose Interpretation of

Constitution (stretch the Elastic)- congress can do what Constitution does not forbid

- Washington and Congress approved National bank in 1791

International Conflicts

*The Neutrality Proclamation - Remained neutral during war between France and England*Jay’s Treaty- Settled disputes with England*Pinckney’s Treaty- Settled a dispute with Spain over The Port of New Orleans, territory, and borders

*Battle of Fallen Timbers- fight with native Americans over western lands*Treaty of Greenville- forced the Natives to give up Northwest Territory to American settlers*Whiskey Rebellion- Washington personally enforces U.S. tax laws

Domestic Conflicts

Farewell Address

*Stay loyal to the union- don’t let anything come between you and your country*Always refer to yourself as an American*Use education to strengthen the country*Beware of political parties*Beware of close foreign alliances*Do not let our nation get into debt