•
Famous dinner – James Madison, Jefferson, Hamilton -> SOUTH
gets capitol to be in Washington DC -> South would pay more debt
to help North
o
During War, gov sold bonds
o
Speculators -> Buy ppl’s bonds for cheap then sell for more
-
1790 ->
SROPC (2
nd
report on Public Credit)
o
National Bank (1
st
major issue to be debated dealing with constitution)
“Defense of the Constitutionality of the bank” – Hamilton
Loose Construction:
Not in Constitution but you give government benefit of the doubt/
Flexibility (More liberal interpretation)
Elastic Clause:
Stretching Constitution to give National gov more power
-
Hamilton Argues Bank is necessary and proper to let Congress carry out functions
-
Implied Powers:
Powers that are not specifically said in Constitution
-
Hamilton:
Why do we need a bank?
o
Bank can print bank notes and circulate money
o
Loan money to government
o
Government puts money in bank
o
Makes America stable and prosperous
o
Models bank after England -> Start with 10 million (2 million from citizens, 8
from private investors)
o
Wants rich to support bank (Bank favors wealthy)
o
Fate of America lies with wealthy
-
National bank lasts 20 years
-
Hamilton wins FROPC/SROPC
1791 – ROM
-
Shoe making and textile industry (Project)
-
Wants to attract skilled immigrants
-
Limited protective tariff
-> Gives gov more revenue
-
THIS IS REJECTED (
people who voted against thought we should be
AGRICULTURAL NATION)
1791 – WHISKEY TASK
-
Wants gov to get more money (Tax on farmers -> Western Pennsylvania)
-
Put on farmers (More on Jefferson’s side)
1794 – WHISKEY REBELLION
-
Gov sends 13,000 soldiers -> Example that you cannot use violence against gov (Does
not want another repeat of Shay’s Rebellion)
Foreign Policy Problems
: Washington and Administration 1784 – 1796
French Revolution
-
(goes throughout Europe) GETS VERY RADICAL
-
Great Britain VS France (Who should we support?
-
1789: French Rev
-
1783: French declares war on G.B, Spain, Holland
-
1793: Citizen Genet
-
1795: Jay Treaty
Washington Neutrality Proclamation _ US RESPONSE TO FRENCH REVOLUTION
-
Jefferson and Madison both agree to STAY OUT of war
-
U.S -> Trade with both sides if Neutral (Neutral trading nation)
-
G.B and France seize American Ships + Ignore U.S neutrality
-
CITIZEN GENET challenges GEORGE WASHINGTON
o
He gets ppl to be pro French -> However, French gov changes
1795_JAY TREATY
-
Washington sends John Jay to G.B
o
British seizing American ships -> Wants G.B to stop -> Wants to avoid War
-
Overall, good treaty
-
House of Representatives wanted GOV to give them all documents pertaining to treaty
-
GEORGE WASHINGTON responds by creating EXECUTIVE PRIVELAGE
PINCKNEY’S TREATY
-
TREATY WITH
Spain
-> SPAIN allowed America right to navigate Mississippi River
(JAY GARDOKI closed off river) -> Spain at war with France -> Spain want’s U.S’s
good side
-
Shows that U.S has strong national Gov
Grenville Treaty_1795
-
Native Americans (Miami Confederacy) We get OHIO
We see Americans divided -> Leads to political parties (FACTIONS)
1794 _ Development of Political Parties
TEA PARTY_More Republican (Democratic Republicans)
-
1) Claimed that they are same as founding fathers
-
2) If it’s not in constitution we don’t like it (RADICAL REPUBLICANS)
-
Ironic because founding father’s never really agree on everything
