the gw years domestic issues. gw the first 12 years of the constitution are filled with animosity...
TRANSCRIPT
The GW YearsDOMESTIC ISSUES
GW
The first 12 years of the Constitution are filled with animosity (two terms of GW; one of Adams)
Congress is up and running in 1789, but it is definitely not smooth sailing
There are two political parties developing rapidly Federalists and Republicans Federalists will dominate politics for the first
12 years of the Constitution GW felt that the President should not get
caught up in political controversies, so the parties tend to battle it out over issues
GW
Federalists
Alexander Hamilton
Wealthy
Strong National Govt.
Genuine Nation-State
Complex Commercial Economy
Industrial
Big place in World Affairs
Broad/Loose Constructionists
Republicans
Thomas Jefferson
Less wealthy
Modest (Weak) National Govt.
Yeoman Society (Farmer/Agrarian)
Not Industrial
Isolated
Strict Constructionists
GW
First Cabinet
Pres.- GW (VA)
VP- John Adams (MA)
Sec. of State- TJ (VA)
Treasury- Hamilton (NY)
War- Henry Knox (MA)
Att. Gen.- Edmund Randolph (VA)
John Jay first Chief Justice of
the Supreme
Court
•President Washington appoints 6 justices to the Supreme Court• 3 from North and 3 from South
•Judiciary Act of 1789, Congress created lower courts to assist the Supreme Court.
•President Washington appoints 6 justices to the Supreme Court• 3 from North and 3 from South
•Judiciary Act of 1789, Congress created lower courts to assist the Supreme Court.
Hamilton’s Plan
The dominant figure in the administration becomes Hamilton
Huge influence on foreign and domestic policy
Truly believes in an elite ruling class
The govt. needs support from the wealthy/elite, so it’s important to give them a stake in its success
Hamilton’s Plan
Debt is a HUGE problem that has to be overcome during GW’s presidency
The US is in desperate need of currency
$55-60 million in debt
$12 million to France/Netherlands
$40-plus million to individual Americans
Many soldiers from the Revolution were never paid
Individual States will owe $25 million
Hamilton’s Plan
Taxation will be the key element to the early success of the govt.
Taxes are the foundation of the “Federalist Program”
Protective tariffs- high tax on imports to protect American industry
Revenue tariffs- low tax on imports designed to provide income for the govt. (generally between 5% and 8%)
Excise tax- tax on alcoholic beverages that is placed on the manufacturer, then passed to the customer
Sale of Public lands- additional way to raise revenue
Hamilton’s Plan
Hamilton’s plan has four basic principles: 1) Foreign creditors must be paid
immediately and in full Can’t be independent owing other
nations $ Paying nations quickly and in full
makes us credit-worthy In order to generate money, govt.
needs to tax
Hamilton’s Plan
2) Domestic debt should be paid ASAP and in full
War Bonds
Bonds had fallen by 80%,
Hamilton insists on paying the full amounts
This will show that the govt. makes good on its promises
This will also allow the govt. to enact more taxes
Funding Bill will pass in 1790, but not without a struggle put up by the Republicans
Hamilton’s Plan
3) The Federal Govt. should assume the debts of the States
Whatever an individual state owes, the govt. will assume the responsibility of paying those debts
All of the states fought for the entire nation , therefore the national govt. should take care of them
Generate this money through taxes
Hamilton has to wheel and deal to get this passed
Republicans are against it
Has to agree to move the capital into the South
Assumption Act is passed; Federal City (Washington D.C.) will be created
Hamilton’s Plan
4) The creation of a National Bank
Place for the federal govt. to deposit money
Taxes, private deposits, etc.
The govt. will be able to make loans from here
Can issue paper currency from here, backed by gold/silver
Paper $ can be exchanged for hard currency on demand
Stable center for our weak banking system
Thomas Jefferson’s head nearly blows up over this issue
HAMILTON• Safe place to deposit and transfer
money• Provide loans to government and
state banks• A national currency---$$$$$
• An investment by people to buy stock into US bank
• Constitution did not forbid a national bank….Loose construction
of Constitution• National debt good for country
JEFFERSON• Against the Constitution
• State banks would collapse• Only wealthy could invest in bank and would control bank than control the government
• Hurt the common man• Strict construction…If it is not mentioned in the Constitution than there can’t be a national
bank.• Against a national debt
BUS
Hamilton’s Plan
Republicans are very scared of the Federalists at this stage
Feel as though there will be no limits to federal power if the Federalist Program continues to be unchecked
Republicans also think the federal power is only benefitting Northern states
Many common people are also disillusioned- this isn’t really the government that they signed up for
The Whiskey Rebellion
Things boil over with the Whiskey Rebellion
Western farmers find it very costly to ship grain/corn/rye east
Whiskey was often used as currency; taking that away as well
Anti-tax sentiment is very strong in PA
People will refuse to pay the tax
Will also attack collectors and neighbors
Very similar to Shays; state government slow to act
The Whiskey Rebellion
National Govt. will not be slow to act
GW will personally lead 12,000 troops into PA (militias from 3 states)
Rebellion will be crushed
Leaders will be brought up on charges of treason
GW will pardon them