George Washington

Birth-Death: (1732 - 1799 ) Term: (1789-1797 )

As the first President of the United States, Washington needed to ensure that the new government would work correctly. One of the major contributions by Washington was the establishment of Presidential precedents, practices that subsequent presidents would follow.

Domestic Events of George Washington

    George Washington was unanimously elected the first president and was inaugurated on April 30, 1789. During his 8-year presidency, he constructed the foundations for the newborn nation and established numerous political traditions. His insightful Farewell Address warned of permanent alliances and political parties, the two things that would play a great role in the history of the United States.

    George Washington had been a de facto president between the Declaration of Independednce and the establishment of the Articles of Confederation, so when he took office in 1789 he knew what lay ahead of him. Although acting as an independent nation, the country was not united when Washington was elected. The federal government was weak and inefficient and failed to unite the thirteen states. People still referred to themselves as a "Virginian from America" and not an "American from Virginia."

    The Constitution gave the Federal government more power, and Washington used it to increase the United States' status in the world community while stabilizing the economy at home. The Judiciary Act of 1789 established the Court system of the United States. Laws were now regulated and reviewed by this higher authority.

    The biggest problem, however, was the money supply. During the war for independence, the United States was loaned a great deal of money from foreign powers, especially France. At the same time, the US owed more than $45,000,000 to its own people. Washington looked to his advisors, and especially Hamilton for an answer.

    Hamilton had a three-way plan of attacking the problem. First, he established a revenue tariff and increased the sale of public lands for an immediate solution. He then proposed the creation of a Bank of the United States. This bank would have the power to collect taxes, borrow money, pay the public debt, and regulate commerce. A great constitutional debate erupted over the charter. The constitutionality of the bank was questioned. The Constitution states that "Congress shall have the power to create all laws which shall be necessary and proper for carrying into execution by foregoing powers. . . ." The Federalists argued that the bank was necessary for the United States, while the Anti-Federalists, led by Thomas Jefferson argued that "necessary" meant absolutely necessary and thus the bank was unconstitutional. This debate over "loose" or "strict" constriction of the constitution would surface once again in 1803 with the purchase of the Louisiana territories. The bank passed through Congress and the bill was signed by Washington. The First Bank of the United States began operations in 1791.

    The last part of Hamilton's attack on debts was the assumption by the Federal government of all state debts and the repayment of all foreign debts. The latter had no opposition, but the former sparked a huge debate in Congress. Under the new plan the debts of all states would be evenly divided. However, the Southern states had already paid off their debts, and if this plan was passed they would be paying off Northern Debts. The two factions compromised so that the federal assumption of debts would pass, but the capital was moved to the South, and a new city would be constructed on the Potomac river.

    Hamilton tried one more way to raise revenue. He established an excise tax on whisky. This was extremely unpopular with the corn farmers of the west Alleghenies because they had to transform their corn to whisky in order to sell it on the market. The Whisky Rebellion erupted in 1794 when the farmers protested, but Washington was quick to send an army of 15,000 soldiers and the rebellion ended.

    The presidency of George Washington was filled with establishment of precedents. He established the Supreme Court, the cabinet, the two-term tradition and others. Acting with a mostly cooperative Congress, he put the baby nation on its feet.