Washington Administration: Precedents

Washington Administration: Precedents • First Cabinet – Thomas Jefferson: State – Alexander Hamilton: Treasury – Knox: War

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Serves Only Two Terms Does Not Interfere with Congress Sticks to Foreign Affairs “Regal” Bearing Puts Down Whiskey Rebellion

Foreign Affairs • Remains neutral in conflict between Britain and France • Jay’s Treaty (1794) opens trade with Britain – Also opens up Washington to near hysterical criticism over his “treason” in favor of England – Helps convince him to resign after two terms in office

• Pinckney’s Treaty (1795) with Spain opens Mississippi and gets right of deposit in New Orleans – Opens the West to American settlement

• Farewell Address – No Permanent or entangling alliances – No long-term hatred of another country

Domestic Policies: Alexander Hamilton’s Plans • Report on Manufactures – Protective tariff & federal money spent on roads and harbors. – Not passed by Congress.

• Report on Public Credit – Pay back debts to foreign nations ($12M) – Pay back bonds at full value ($42M) • sells more bonds to pay for old bonds

– Assume states’ debts ($25M) – Excise taxes (whiskey) – Create a National Bank

The National Bank Controversy • National Bank – all federal funds deposited into bank – bank is owned by both private investors (80%) and the federal government (20%) – could become extremely powerful and could put control of the economy in the hands of a small group of wealthy investors; therefore many (especially Jefferson) distrust it. – The conflict over this issue, more than any other, drew the lines between advocates of a powerful central government (Federalists) and states’ rights advocates (Democratic-Republicans).

Constitutional Fight Over Bank • Jefferson Argues: – Bank is unconstitutional – Amendment X says that all rights not delegated to the federal government are reserved to the states. – Bank is not “necessary;” therefore it is unconstitutional. – “Strict Construction” of Constitution.

• Hamilton Argues: – Bank is constitutional – “Elastic Clause” says that Congress can pass any law necessary to carrying out its specific powers. – Bank is “necessary;” therefore it is constitutional. – “Loose Construction” of Constitution.

Development of Parties FEDERALISTS • Hamilton, John Adams, John Jay • Want a powerful federal government • Loose Construction • Led by wealthy merchants & financiers • Strongest in northern cities

DEMOCRATIC-REPUBLICANS • Jefferson & James Madison • Want a weaker federal government and stronger states • Strict Construction • Led by wealthy farmers, especially southern “planters” • Strongest in the South and West

Washington’s Farewell Address • Foreign Affairs – No permanent or entangling alliances. – No long-term hatred of another country.

• Domestic Affairs – Parties are dangerous to the United States because they divide us. – Parties are dangerous because they can allow foreign states to gain influence in a party.