Early American Republic: Hamilton's Fiscal Policies and Washington's Presidency

A comprehensive vocabulary review of early American politics, focusing on Alexander Hamilton's financial policies, George Washington's retirement and Farewell Address, and the presidential election of 1796.

Hamilton's Debt Scheme

Alexander Hamilton's fiscal strategy to manage national debt by borrowing more money from wealthy New York business owners and merchants, using new debt and routine payments with interest to pay off older obligations without raising taxes.

US Bond Yields

Returns on shares of US government debt; rising bond yields indicate increasing government debt levels and declining investor confidence in the government's ability to maintain routine payments.

Thomas Jefferson

The Secretary of State under George Washington who strongly opposed Hamilton's fiscal policies, argued for a strictly balanced budget by the book, and led the early Republican faction.

President for Life Proposal

Alexander Hamilton's controversial suggestion that George Washington should hold the presidency indefinitely rather than serving four-year terms in order to ensure government stability.

George Washington's Retirement (1796)

The precedent-setting decision in 1796 where George Washington stepped down from office to return to his Virginia plantation, voluntarily relinquishing executive power to an elected successor.

Washington's Farewell Address (1796)

George Washington's 1796 farewell statement to Congress and the cabinet offering two major warnings: to avoid internal factions (party politics) and to steer clear of foreign entanglements overseas.

Internal Factions

Party politics and division within government; warned against by George Washington as a divisive threat capable of destroying the young nation from within.

Federalists

The emerging political faction led by Alexander Hamilton and later John Adams that supported Hamilton's fiscal policies and favored internal unity while avoiding foreign entanglements.

Republicans (1790s)

The early political party centered around Thomas Jefferson that opposed Hamilton's financial schemes, championed small government, and favored supporting the revolutionaries in France.

Foreign Entanglements

Involvements in overseas conflicts—such as the French Revolution of the 1790s—which George Washington cautioned could provoke European powers to attack and destroy the vulnerable United States.

Hamilton's Sex Scandal

The first political sex scandal in American history, involving Alexander Hamilton having an affair with the wife of a former Continental Army buddy, effectively ending his viability as a presidential candidate.

Election of 1796

The presidential contest that resulted in Federalist John Adams winning the presidency with the most votes and his political rival, Republican Thomas Jefferson, becoming vice president due to having the second-most votes.

John Adams

The first Vice President of the United States who drafter the Declaration of Independence alongside Jefferson and Franklin, subsequently winning the presidency in 1796 as a Federalist.