Unit III Study Guide - George Washy Washington 1st...

Download Document
Showing pages : 1 of 7
This preview has blurred sections. Sign up to view the full version! View Full Document
George “Washy” Washington 1st President of the United States Reputation for honesty, bravery, and leadership, and extremely well respected Very reluctant to run for President in 1792- afraid he would die in office and set precedent for life in office Set many precedents for President, generally deferred domestic issues to Congress Generally favored Federalist policies (i.e., well educated enlightened elite would rule for the people but remain independent of popular influence) but tried to stay above factional politics Proclamation of Neutrality (1793), favored strong central gov’t, nat’l bank Farewell address stern warning against parties and factionalism Washington’s Cabinet Four positions- Secretary of War (Henry Knox) Secretary of State (Thomas Jefferson, eventually resigned) Attorney General (Edmund Randolph), Secretary of Treasury (Alexander Hamilton) Hamilton + Jefferson always at odds with each other Alexander Hamilton More or less leader of Federalist party, represented federalist ideals Created ambitious financial program At odds with Jefferson on Washington’s cabinet Eventually killed in duel with Aaron Burr Hamilton’s Financial Plan Consolidate debt by “funding it” with new bonds issued at lower rates (controversial b/c rich speculators would get rich of buying bonds at low prices) Creating permanent national debt, pay only interest, thus maintaining debt at low cost Take on all state debts and combine with national debt (unpopular in South, where most of the state debt had already been paid) Only managed to get it passed by allowing the Capital to be in the south (Washington, D.C.) National Bank Republicans argued it was unconstitutional Hamilton argued “elastic clause” allowed for the creation of a national bank 20 year charter- 1791-1811- mainly helped North Public Debt Debt at this time enormous -$54 million +$25 million in state debts Hamilton’s plan was to first pay off foreign debt to secure credit, and consolidate federal and state debt Debt would become permanent, with only interest payments paid each year It would be financed by excise taxes on goods, such as whiskey Whiskey Rebellion (1794) Whiskey taxes favored large distillers- only paid 6 cents per gallon tax, compared to 9 cents per gallon on small distillers Western Pennsylvanian farmers didn’t like the idea of a “distant government” collecting taxes from them Harassed tax collectors, tar and feathered them, etc. Washington and Hamilton, remembering Shays’ Rebellion, decided it would be a good test to show the new Federal gov’t’s authority, so Washington personally took 15,000 troops to W. Pennyslavania- as the troops arrived, it collapsed, and Washington pardoned two of its leaders who were set to be executed Manufacturing American manufacturing was still in its infant stage Biggest threat from low cost British competition, especially since some British manufacturers were selling below
Background image of page 1
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.