2024 Washington Part I

The Washington Administration

In 1789, elected officials convened in New York City to establish the new national government under the Constitution.
Congress met at Federal Hall and conducted business by April 1789.

Passed a tariff bill taxing imports at rates from 5% to 15% to generate revenue.
- This tariff aimed to manage national debt and federal expenses.

James Madison from Virginia created the Bill of Rights, fulfilling Federalist promises during ratification.
Amendments were ratified by 1791.

The Judiciary Act of 1789 established the U.S. Supreme Court, with a Chief Justice and 5 associate justices.
- John Jay became the first Chief Justice.
Created 5 federal circuit courts and 13 federal district courts.
Introduced the office of the Attorney General.

The Electoral College elected George Washington as the first President and John Adams as Vice President.
Washington took the oath of office on April 30, 1789.
Established the President’s Cabinet, comprising heads of administrative departments:
- Department of the Treasury: Alexander Hamilton
- Department of State: Thomas Jefferson
- Department of War: Henry Knox
- Attorney General: Edmund Randolph

Hamilton and Jefferson had significant ideological differences regarding government role:
- Washington often sided with Hamilton.
Hamilton:
- Advocated for a strong central government and civic virtue led by the educated elite.
- Supported a national economy based on trade and manufacturing.
- Favored a loose interpretation of the Constitution, utilizing the Elastic Clause.
Jefferson:
- Promoted a strict interpretation, arguing that the government should only act if the Constitution explicitly permitted.
- Opposed a national bank and tariffs.

Financial Challenges: By 1789, national debt was $52 million, threatening U.S. territorial sovereignty and credit.
- Hamilton's four-part plan aimed to improve national credit and strengthen the government.
Economic Measures:
- Pay off all government debts at full value.
- Pay off state debts to establish national credit.
- Begin collecting taxes and tariffs to manage ongoing interest.
- Establish a national bank to manage government funds and issue currency.

Hamilton proposed a national bank, selling shares to public investors for initial financing.
Jefferson, Madison, and Southern states opposed, concerned about increased tariffs and unequal tax burdens.
- Jefferson critiqued the bank's private investment model as beneficial to the wealthy, not the common populace.

Hamilton brokered a deal: if Southern states approved his financial plan, he would favor a national capital located in the South.
Congress passed Hamilton's plan in 1790-1791, introducing tariffs, an excise tax on whiskey, and chartering the Bank of the U.S.

Settlers felt ignored, facing higher prices due to tariffs and taxation on whiskey.
- Farmers protested the whiskey tax as it impacted their livelihoods, as alcohol was crucial for their economic survival.
Led by farmers in Pennsylvania, the Whiskey Rebellion began in response to federal taxation.
- Washington and Hamilton mobilized a force of 13,000 to quell the rebellion, asserting federal authority.

The response to Hamilton's plan and the Whiskey Rebellion fueled political organization:
- Federalists (Hamilton & Adams):
  - Supported elite governance, a strong central government, high tariffs, and the Bank of the U.S.
- Democratic-Republicans (Jefferson & Madison):
  - Advocated for agriculture-focused economies, low tariffs, and states' rights.
The ideological conflict between these parties characterized American political life early on.