Overview of Class on 10/12/06

We're in the year 1789, George Washington is now in office as President and he elects Hamilton as his Department of the Treasury. One of the very first problems the new nation ran into was debts to Foreign countries, American citizens, and states' debts. The obvious solution for Hamilton was to start taxing the citizens. Hamilton's Plan was to buy back the war bonds sold during the Revolutionary War and to re-issue bonds because he wanted to promote investments. The problem with this idea of bonds was that it only benefitted the northern states because they were made up of merchants who had the money/ currency. Hamilton's first priority is to pay back the Foreign debt. The states debts were taken by the National government. The other idea Hamilton had was to make a National bank which would be chartered by the federal government. This idea causes Thomas Jefferson to flip his wig. Jefferson said the plan resembled Britain's bank. Jefferson is in favor of states rights and state banks. The constitutional agruement then begins, Jefferson says that Congress doesn't have the power to charter the bank and it doesn't say anything about that being allowed in the Constitution. Hamilton retorts with the arguement that the Constitution never said that someone couldn't charter the bank, he also backed that arguement up with the necessity to pay off the nation's debts. In the end Hamilton uses the last power in Article 1 section 8 to his advantage, it says,"To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof." When using this section of the Constitution you are using loose construction to prove your point. Hamilton won in the disagreement against Jefferson. Hamilton issued chartered banks and excise tax, which taxed Americans for wines, coffee, tea, and spirits. The tax on spirits was the hardest one for the Americans to cope with. The tax hurt the whiskey business so badly that peole resorted to a Whiskey Rebellion. The rebellion was very physical and Washington sends the federal milita to put a stop to the rebellion. The Americans then realized that the Constitution was a lot stronger.



Genet,was sent by France as a Minister to the United States. Genet was sent to enlist aid for the French. He commissioned Americans to harass British shipping and enlist Americans in intrigues against the Spanish outpost of New Orleans. Genet then opened France's Caribbean colonies to American shipping, provided Americans made a choice between French free trade and British mercantilism. Genet's mission ended in 1793 when the Girondists fell from power and he couldn't go home for fear of death so he lived out his life in America.

Next, Washington sends John Jay to Britain to negociate disagreements. John Jay comes back with only empty promises from the British where they say they will pull troops from Great Lakes area ( sound familiar?) Washington ratifys treaty.

The Spanish try to anticipate the British and Americans reuniting and gives Spanish Florida and unlimited navigation of the Mississippi River to America.

FINALLY- Washington's farewell address main points-
Avoid long lasting alliances with other countries.
Avoid political parties.
Two term limit on the Presidency.