9. National Debt
• Alexander Hamilton designed a four part plan
to pay the national debt:
1. Impose taxes
– A tax on whiskey was one of them
– Whiskey Rebellion erupted when farmers refused
to pay the tax
– Washington led 13,000 troops to Pennsylvania to
put it down
– Showed the governments power to back up its
laws
13. 3. Assume state debts (Assumption Act of 1790)
– The South didn’t want this because they had paid
off their war debts
– The compromise – The North got their debts
paid off and the capital of the United States was
placed in the South
4. Establish a national bank
14. Trouble with France
• France began a revolution (like the US)
– At first the US supported them as they did for us
• France and Britain were at war
– Washington issued a Neutrality Proclamation (we
would be impartial toward all foreign foes)
– Citizen Genet (Frenchman) came to US to find
support for the war. Washington asks France to
come and get him!
17. Trouble with Britain
• Britain seized 250 American ships, cargo and
crew.
• Practiced impressment – seizure of American
sailors and forcing them to serve the British
18.
19. Jay Treaty
• Washington sent John Jay to Britain to keep us
out of war.
• Americans were unhappy with the treaty, but
it kept us out of war
20.
21.
22. Trouble with Spain
• Pinckney Treaty (by Thomas Pinckney) was
drawn up between Spain and the US
– Gave the US right of deposit at New Orleans
– Set southern boundary of the US
• Very popular!
Editor's Notes
What to call the new president? His Excellency…his highness…his majesty
Washington’s annual salary -- $25,000 (he agreed to be paid only for expenses) The president earns a $400,000 annual salary, along with a $50,000 annual expense account, a $100,000 nontaxable travel account and $19,000 for entertainmentMember of house and senate -- $6.00 per daySpeaker of the house -- $12.00 a dayCabinet members -- $3500 annually6-9 cents per gallon
Tried to hire George Rogers Clark to fight…wanted to use American privateers to fight the British navyGenet was going to be beheaded, so Washington lets him stay
The British navy was bad food and harsh discipline and many jumped ship and joined American ships
Called Jay an arch traitor worse than Benedict Arnold…could have found his way across America by night using the light from the many burning effigies of himselfUS agreed to limit trade with France and pay British citizens what we owed themBritain agreed to abandon their forts in the Northwest, to pay the US for ships seized and open some ports in British West Indies to American trade
Right of deposit – ability to store things with out paying at the docks until the ships arrived to take them
