Our First Administration

Washington’s Presidency

  • Unanimously elected

  • Took oath of office on April 30, 1789, in the temporary capital of NYC

  • John Adams had 2nd most votes and was elected VP

Washington’s Cabinet

  • The U.S. Constitution didn’t provide this

  • Only 3 department positions

  • The cabinet was shaped by an ideological feud between Thomas Jefferson (TJ) and Alexander Hamilton (AH)

    • State- TJ

    • Treasury- AH

    • War- Henry Knox

    • Attorney General- Edmund Rumdalph

Hamilton’s Financial Plan

  • Report on Public Credit (1790)

    • Plan to shape the fiscal policies of admin to favor wealthier groups

  • Report on Manufactures (1791)

    • Advocated the promotion of the factory system and capitalism

      • A. Smith’s Wealth of Nations, written in 1776

    • The basis of his tariff plan is to protect American manufacturers

5 Components of Hamilton’s Plan

  1. Funding

    • Pay back government debt bondholders with interest

    • The purpose is to bolster national credit

  1. Assumption of States’ Debts

    •  Compromise: North got the assumption of debts, while South got the national   capital moved to the Potomac ~Room Where It Happens: Because we’ll have the banks…~

  1. Tariffs

    • 8% on imports

    • Source of revenue, but also aimed to protect new US industries

  2. Excise Taxes (taxes placed on manufactured products)

    • 1791- 0.7%/gal tax on whiskey

  3. National Bank: Biggest issue

    • Government would be a major shareholder, but the bank would be a private institution

    • “Loose Constructionism"- Powers not delegated to the national government in the Constitution are not prohibited by virtue of the necessary and proper clause

    • Strongly opposed by Anti-Feds

    • G. Washington signed the Bank Measure into law in February 1791

      • “Strict Constructionism”- Bank NOT within the power of Congress to create

Whiskey Rebellion

  • The excise tax struck the SW Penn people

  • “Whickey Boys” torched buildings, tarred and feathered tax collectors, talked of “secession”. 

  • G. Washington summoned the militia of several states (13,000)

Birth of the Two-Party System (reminder)

  • The Founding Fathers feared “factions” 

  • Madison’s Federalist #10 advised that factions cannot be prevented, but they could be controlled

    • Frequent elections and separation of powers

    • Majority rule, but minority rights

First Test: French Revolution 

  • The French declared themselves a “republic,” but then again, not really. ~TJ: “The people are leading.” GW: “The people are rioting! There’s a difference.”~

    • Hamiltonians thought it downright frightening 

    • US?

      • GB got dragged into conflict, and now the US has to take sides

      • US military weak ~Cabinet Meeting #2: We cannot afford another fight!~

Washington’s Neutrality Proclamation (1793)

  • Declared that the US would be neutral

  • Warned US citizens to be impartial to both sides 

Second Test: Jay’s Treaty

  • GB is a thorn in the US’s side

  • Feds did NOT want war with GB

    • (75% of import duties for GB trade)

  • G.W. sent J. Jay to work some magic in 1794

  • Jeffersonian outrage resulted in the creation of the Democratic Republican Party

Washington’s Farewell Address

  • Refused third term

    • Set precedent for two-term presidency

  • Farewell Address

    • Warned of  evils, entangling alliances

    • Isolationism became dominant