Hamilton’s Economic Plan

• Hamilton proposes that the federal government would pay all of its debts and the debts of each state.
• The U.S. could create a bank for deposit government funds
• The bank would be funded by the federal government and wealthy private investors
• Bank would issue money, handle tax receipts, and all government funds
• Hamilton’s reason – This will give creditors an incentive to support the federal government

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Protective Tariff - Tax on imports to protect American goods

Goal:

• To get you to buy American goods.
• Promote manufacturing
• Who does this favor? (North or South)

Hamilton’s Financial Plan High Tariff

• Protective Tariff: tax on imports to protect American goods
• Excise taxes: tax on consumer goods to raise revenue for the federal government & protect American manufacturers from foreign competition
• Opposition
• Southerners opposed this part of the plan because it would make the imported goods that they relied on more expensive.
• Many felt that this would hurt the agricultural south and aid manufacturers in the north.

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New Nation Faces Conflicts

Whiskey Rebellion - 1791

• Farmer’s rebellion over an excise tax on whiskey they produced
• Whiskey critical to economy and farmers refuse to pay tax
• Fed government sends in an Army– Hamilton accompanies them all the way to Pennsylvania
• The Army puts down the rebellion and scatter the rebels without lose of a single life.
• Significant because shows the fed gov has sufficient power to maintain order and security.

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Conflicts in the Northwest Territory

• British Troops remained in forts ten years after the war.
• They were supplying Native Americans with guns.
• Little Turtle of the Miami and Blue Jacket of the Shawnee lead attacks against settlers and defeated the U.S. army soldiers in 1790 and 1791.

Little Turtle and Blue Jacket

“Mad” Anthony Wayne

• “Mad” Anthony Wayne - Sent By Washington in 1794
• Defeats the Natives in August 1794 at the Battle of Fallen Timbers.
• Natives were forced to sign the Treaty of Greenville as a result.

The French Revolution

• The French Revolution began in May of 1789
• At first many Americans support the revolution.
• By 1793 the revolution became very violent. As many as 17,000 people were executed by the guillotine. This was the Reign of Terror
• This splits Americas opinions on the War.

French Revolution

French Revolution

• By 1793 France and Britain go to war
• Both sides want the help of the United States
• Washington wants neutrality.
• Jefferson and the Republicans want to support France.
• Hamilton and the Federalists want to support Britain.
• Solution?
• We try to trade with both sides.
• What do you think will happen as a result?

Troubles at Sea

• Both France and Britain will begin to capture U.S. ships and steal the cargo.
• Britain will start the practice of impressment.
• Impressment-seizing sailors and forcing them to serve in the British Navy.
• 6000 Americans were impressed by the British

The Jay Treaty - 1795

• Washington sends John Jay to England to repair relations with Great Britain
• United States Agrees
• Pay back long standing debts to British Merchants
• Great Britain Agrees
• Withdraw troops from the Northwest Territory.
• Pay for ships that they had already seized.

Jay’s Treaty

• Federalists were pleased because the treaty restored relations with Britain
• Republicans did not like the treaty because the British still did not recognize the right to trade with France
• France would not cease impressment of sailors.
• Barely passes in the Senate.

Washington Retires

• Washington decides to NOT seek a 3rd term.
• Would not be another “King George”
• Steps down in 1796 after 2 terms – unheard of for great leader with unlimited power to voluntarily give it up
• Farewell Address
• Urges U.S. to “steer clear of permanent alliances: with other countries”
• Warns against political parties - “the destroyer of national character”
• Warned against sectionalism - petty disagreements and loyalty to one's own region

Washington’s Accomplishments as President

1. Established a functional government in America.
1. Established the Cabinet
2. 2 term limit to presidency
2. Economy was improving.
3. Avoided war with foreign powers.
4. Forced British to leave the Northwest Territory. Made area safe for settlement.
5. Pickney Treaty. Allowed Americans to use the Mississippi R. and the Port of New Orleans.

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