Study Notes on Washington's Presidency

Washington's Presidency

Washington's Cabinet

• Effective Leadership: Washington prioritized leaders who could persuade others to adopt new proposals and ideas.

• Precedent Set: By choosing well-known leaders to serve in his Cabinet, Washington established a model for future leaders.

• Key Figures:

  • Thomas Jefferson: Secretary of State.

  • Alexander Hamilton: Secretary of the Treasury.

Establishment of the Republic

• Time Frame: The period known as the Early Republic spans from 1789 to 1895.

• Context: This era began with the establishment of the U.S. government under the Constitution.

• Impact: The decisions made during this time had lasting effects on the institutions and culture of the United States.

• Leadership Examples: Washington demonstrated leadership qualities and set precedents for future generations.

Presidential Governance

• Constitutional Framework: Though the Constitution provided a framework for the government, it did not detail daily presidential governance.

• Washington's Quote: "There is hardly any part of my conduct that I am not aware has established a precedent."

• Definition of Precedent (PRES uh dent): A decision that sets an example for others to follow.

• Third Term Precedent: Washington chose not to run for a third term, setting a standard that remained until Franklin D. Roosevelt’s election in 1936.

Washington's Cabinet Structure

• First Executive Departments: Established by Congress in 1789. The initial five departments were:

  • Department of State

  • Department of Treasury

  • Department of War

  • Office of the Attorney General

  • Office of the Postmaster General

• Role of Secretaries: Heads of these departments provided advice and managed their respective departments.

Setting Up the Court System

• Supreme Court: The Constitution required a Supreme Court, which Congress organized through the Judiciary Act of 1789.

• Court Composition: The Supreme Court was originally composed of one Chief Justice and five Associate Justices. Currently, it has eight Associate Justices.

• Court System: Established a system of district courts and circuit courts. Lower court decisions could be appealed to the Supreme Court.

Challenges Faced by Alexander Hamilton

National Debt

• National Debt Definition: The total amount of money owed by the government.

• Historical Context: Both the national government and states borrowed heavily during the Revolution. They needed funds to pay soldiers and purchase supplies.

• Financial Figures (1789-1791):

  • Total Income: $4.4 million

  • Government Running Cost: $4.3 million

  • Total Debt: $77.2 million

Economic Plans to Address Debt

• Bond Issuance: The government borrowed money by issuing bonds, which are certificates promising to repay loans with interest on a certain date.

  • Example: An investment of $100 could translate into $100 plus interest by a designated time.

• Hamilton’s Proposal: Hamilton aimed to eliminate government debt and create a stable U.S. economy by:

  • Repaying both federal and state debts.

• Tariff Introduction: He proposed a tariff on imports as a mechanism to fund the government, which Congress passed in 1790.

Opposition to Hamilton's Plan

• James Madison's Resistance: Madison opposed Hamilton’s approach, arguing it rewarded speculators. A speculator is someone who invests in high-risk ventures expecting large returns.

• Historical Context: During the Revolutionary War, bonds were issued to citizens and soldiers as financial support. Many bondholders sold their bonds at a loss before full repayment was made.

• Funding Debate: Hamilton argued full debt repayment was essential to maintain investor trust essential for the new nation's economy. Despite opposition, Congress approved the repayment plan.

Southern States' Opposition

• Debt Assumption Controversy: By 1789, many Southern states had paid off their debts and believed other states should do the same.

• Perceived Inequity: Higher debt levels in Northern states led Southern states to feel disadvantaged by Hamilton’s financial plan.

Creation of the Capital

• New Capital Location: Washington required funds to repay state debts and establish a new capital that was not part of any state.

• District of Columbia: The capital was built along the Potomac River using land from Virginia and Maryland.

National Bank and Economic Policy

• National Bank Establishment: In 1791, Congress created the First Bank of the United States, where government funds from taxation were deposited.

• Paper Currency: The bank issued paper money to manage government bills and loans for farmers and businesses.

• Economic Compromise: The southern states welcomed compromises such as locating the capital in exchange for federal debt assumptions.

Tariffs and Economic Impact

• Tariff Definition: A protective tariff raises costs for imported goods, thus aiding domestic industry but was met with resistance, particularly from Southern farmers who relied on imports.

• Hamilton's Tariff Policy: Although Congress passed a tariff, it was lower than Hamilton’s original proposals. Despite this, it played a crucial role in governmental debt payments.

Whiskey Rebellion

• Tax Introduction: Hamilton proposed a tax on liquor to help reduce national debt, which became contentious among smaller distillers.

• Importance of Whiskey: Farmers converted corn into whiskey due to transport costs, making it more economical to sell.

• Public Reactions: The tax led to widespread protests, particularly during the Whiskey Rebellion in 1794, where thousands marched in Pittsburgh against government tax collectors.

Presidential Response

• Washington's Leadership: Responding decisively, Washington called up the militia to quell the rebellion, demonstrating the government's capacity to enforce its laws and command respect.

• Pardoning Insurgents: Washington pardoned the rebels, believing that mercy should follow strength, illustrating his leadership approach.

French Revolution and U.S. Reactions

• Influence: The French Revolution, starting with the Bastille's fall in July 1789, paralleled American revolutionary sentiment and drew initial American support.

• Internal Conflict: The rise of political violence in France led to divisive opinions among Americans, with individuals like Jefferson supporting the revolution and Hamilton opposing the violent methods employed.

Neutrality Policy

• Washington’s Foreign Policy: Faced with a war between Britain and France, Washington declared a Neutrality Proclamation in April 1793 to avoid entanglement in European conflicts.

• Primary Goals: Protect American trade interests and avoid alliances that could draw the U.S. into war.

• Diplomatic Issues: Washington navigated complex diplomatic waters, facing pressures from both Britain and France while ensuring U.S. interests were maintained.

Diplomatic Agreements and Treaties

• Jay's Treaty (1794): Negotiated by John Jay, addressed British seizure of American ships but faced criticism for not adequately protecting neutral rights.

• Treaty Outcomes: Required Britain to pay damages for seized ships and evacuate forts in the Northwest Territory.

Washington's Farewell Address

• Final Advisements: In 1796, Washington highlighted the risks of political parties and foreign alliances in his farewell address:

  • "It is our true policy to steer clear of permanent alliances with any portion of the foreign world."

• Long-term Impact: Washington's insights shaped U.S. foreign policy for years, emphasizing a cautious approach towards international entanglements and alliances.

Key Takeaways

• The establishment of Washington's presidency set precedents that would shape the executive role and the behavior of future leaders.

• Economic policies enacted under Hamilton revealed a deeper economic divide between the Northern and Southern states.

• Washington’s leadership demonstrated a balance of strength and mercy, asserting federal authority while promoting unity within the nation.

• The Neutrality Proclamation marked a critical pivot in U.S. foreign policy, emphasizing non-interventionism in European conflicts.

Critical Reflection Points

1. Why was the Whiskey Rebellion significant for the early republic?

2. Discuss the implications of Washington's foreign policy decisions for future U.S. interactions with European powers.

3. Analyze Hamilton’s financial plan in the context of early American economic conditions.