Washington won the election to continue as a two-term president
1792
Hamilton’s Financial Plan
1. #1 Deal with Debt
2. #2 Create a National Bank
3. #3 Improve Industry
Congress would assume state debt ($25 million) and pay it off along with the national debt ($54 million)
Sell treasury bonds
Excise tax: tax producers of whiskey
Improve the credit-worthiness of the country and boost public confidence
National Bank
A private corporation to deposit and hold public funds, print paper currency, and provide loans to businesses
Protect new & developing industries
Set high tariffs on imported goods
Provide government subsidies to encourage the development of factories
Hamilton’s idea for a National Bank was opposed by
Jefferson, Madison, and other “strict constructionists”
Strict constructionists
Those who follow the exact wording of the Constitution; a narrow interpretation
Loose constructionists
Those who believe in a wider interpretation of the powers in the Constitution
Necessary & Proper Clause (“Elastic Clause”): [Congress can] “make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers”
Jefferson convinced Southerners in 1790 to accept Hamilton’s program (except subsidies to manufacturers) in exchange for a permanent national capital on the Potomac River between Maryland and Virginia
French Revolution (1789-1799) was partially inspired by the American Revolution, with strong public U.S. support
Jefferson was pro-revolution, cheered on liberty and self-government; Washington and Hamilton were cautious and feared anarchy
Proclamation of Neutrality (1793) - Pres. Washington declared neutrality in the French-British conflict, prompting Jefferson’s resignation
Edmond Genêt (“Citizen” Genêt) - ambassador sent by France to seek American support, broke rules of diplomacy, tried to appeal directly to the American people, and commissioned American ships to attack British vessels under the French flag
Causes/Problems of Jay's Treaty: British occupation of forts in western U.S. territory, impressment of U.S. sailors, British challenges to American trade
Results of Jay's Treaty: British would leave forts, U.S. would pay pre-Revolutionary debts to British merchants, committee would meet and discuss impressment, Britain would have favorable trade status
Causes/Problems of Pickney's Treaty: Spain prevented American access to Mississippi River, Spain was afraid of a possible U.S.-British alliance
Results of Pickney's Treaty: U.S. gained access to the Mississippi River, access to the port of New Orleans for trade, U.S. gained territory north of Florida
The Whiskey Rebellion (1794) - Hamilton persuaded Congress to pass excise taxes on whiskey to raise revenue, leading to a rebellion in western Pennsylvania
Significance of the Whiskey Rebellion: Solidified the authority of the national government
Native American alliance known as the Northwestern Confederacy resisted western encroachment by settlers, with some instances of British support
Results of the Battle of Fallen Timbers (1794): U.S. General Anthony Wayne defeated Northwestern Confederacy tribes, leading to the Treaty of Greenville surrendering claims to the Ohio Territory
Public Land Act (1796) - established procedures for dividing and selling federal lands at moderate prices
Washington’s Farewell Address warned against getting involved in European affairs, “permanent alliances”, political parties, and sectionalism
Two-term tradition continued until 1940, setting precedents for future presidents
Debate between Federalists and Anti-Federalists set the stage for parties to develop with organization across state lines
Election of 1796 resulted in John Adams winning the presidency over Thomas Jefferson
XYZ Affair led to a “Quasi-War” between French ships and American navy in the Caribbean