Download Washington and Political Parties

Washington and Political Parties
Chapter 6 Section 1
Objectives
• Describe the steps Washington’s administration
took to build the federal government.
• Analyze Hamilton’s plans for the economy and
the opposition to them.
• Explain how a two-party system emerged in the
new nation.
Washington’s Presidency
• Quickly established
precedents for
running the
government.
Challenges Faced
• The nation was
$52 million in debt.
• There was no navy and
the army had only 400
men.
• Spain closed the
Mississippi River in New
Orleans to American
trade.
• British troops occupied
American land along the
Great Lakes.
Washington’s Cabinet
• Secretary of State
Thomas Jefferson
• Secretary of War
Henry Knox
• Secretary of Treasury
Alexander Hamilton
• Attorney General
Edmund Randolph
Court System
• The Judiciary Act of 1789
created district and circuit
courts and a six-member
Supreme Court.
• John Jay was appointed as
first Chief Justice of the
Supreme Court.
Debt is a Huge Problem
Hamilton’s Solution:
The federal government would assume state debts.
Bonds for the total would be sold to wealthy investors.
The investors would receive annual dividends and have
a stake in helping the government succeed.
Hamilton’s Solution:
•
Create a Bank of the
United States to regulate
state banks and insure
business support.
•
replace the nation’s
agriculturally based
economy with commerce
and manufacturing.
•
tariff or tax on imported
goods
Hamilton saw three advantages to his
financial plan
1
The plan would establish the nation’s
financial credibility.
2
The plan would gain political support
from the wealthiest Americans.
3
The plan would enrich
investors who would reinvest
and thus create more wealth.
Objections
• Wealth would be
redistributed from farmers
to merchants
• Investors who purchased
the bonds would make
huge profits at everyone
else’s expense.
• The costs would fall on
farmers who would have to
pay higher tariffs
Jefferson opposed Hamilton’s plan.
Most southern states
had already paid off
their war debts. He
asked why they
should bail out
northern states that
still had debts.
Jefferson believed the
plan gave more power
to the government
than the Constitution
permits.
Strict Construction
• Congress should be
limited to the powers
specifically granted
by the Constitution.
• The Constitution does
not give Congress
power to charter a
national bank, so it
could not establish
one.
Loose Construction
• Congress has implied
powers, and can take
any actions not
specifically forbidden.
• The Constitution
allows Congress to act
for the general welfare
so it could charter a
bank.
Hamilton’s Plan is Accepted
– The national debt was
funded, outstanding state
debts were assumed,
excise taxes and tariffs
were levied, and the bank
was authorized.
– In return, a new national
capital was created. The
capital, Washington, D.C.,
would be in the South, on
the banks of the Potomac
River.
Whiskey Rebellion
• To increase their
profits, western
Pennsylvania farmers
made whiskey from
their grain.
• The whiskey tax
reminded farmers of
British taxes.
• In 1794, some farmers
resisted payment.
They harassed and
intimidated tax
collectors.
• Twelve thousand
Hamilton
persuaded
Washington to
suppress the
Whiskey
Rebellion.
militiamen were sent
to deal with the
rebellion, but they
found no organized
insurrection.
• Then Jefferson
criticized Hamilton for
the use of federal
force to repress
legitimate criticism.
Emergence of 2
Political Parties
Federalists
(led by Hamilton)
This party was
strongest among
Northerners,
merchants, and
the wealthy.
Democratic
Republicans
(led by Jefferson)
This party was
strongest among
Southerners and
farmers.
Federalists
Democratic
Republicans
Favored strong________
government
Thought________should
have more power
Favored __________
construction of
Constitution.
Favored
__________construction of
Constitution
Wanted economy based
on___________________
and_____________.
Wanted economy based
on____________.
Were pro-__________.
Were pro-__________.