Monday, April 23, 2012

The American Presidents: George Washington

George Washington
Biographical Information:
Date of Birth: Feb 22, 1732
Date of Death: Dec 14, 1799
Birthplace: Colonial Beach, VA
Political Party: Federalist

Experience prior to the Presidency:
- British soldier during the French and Indian War
- Became politician for home state of Virginia, serving in its House of Burgesses from 1759 to 1774.
- Unanimously selected as Commander-in-Chief of Continental Forces in 1775 during the Revolutionary War

His Presidency

George Washington took the oath of office on April 30, 1789 in New York City, becoming our nation's first president. His priority as the first executive was to establish an effective executive structure for future presidents. In order to do so, Washington focused on maintaining relations between the New England and Southern states, hoping to avoid sectionalism which had the potential to divide the nation. Despite his success, he could not, however, mend relations between his Secretary of State, Thomas Jefferson, and his Secretary of the Treasury, Alexander Hamilton. This had more to do with politics than personality. Washington supported many of Hamilton's controversial fiscal policies, such as the assumption of state debts, the Bank of the United States, and the excise tax. Because of this support, Jefferson and his Democratic-Republicans often targeted the administration.

To further understand why Hamilton's policies were so controversial, a thorough definition of each will be provided.

Assumption of state debts: After the Revolutionary War, many states had racked up war debts. Some were able to pay, others were not. Alexander Hamilton thought up the plan to help these debt-ridden states by proposing a policy which would shift their debt unto the federal government. The government would then ask the states that already paid to pay again. This was a very unpopular plan, especially for Virginians. However, Hamilton skillfully persuaded them to accept his proposal on the grounds the nation's capital will be relocated from New York to a location near the Potomac River. Hence, the proposal was adopted and signed into law.

My spin: Although this policy was unfair to the states who successfully paid their debts, it was a necessary step to establish a foundation for an American economy. By removing the debts from poorer states, it ensured our nation, in its infancy, would progress towards prosperity.

First Bank of U.S in Philadelphia
The Bank of the United States: In order to build a strong economy and institute sound money, Alexander Hamilton proposed the creation of a national bank in 1791. The constitutionality of such a bank was vehemently debated between the Federalists and the Democratic-Republicans. Thomas Jefferson was perhaps the most vocal opponent of this plan. He believed a national bank significantly expanded the powers of the federal government, something the country had fought to avoid. Among other things, Jefferson claimed a national bank to be unconstitutional, arguing the federal government receives no such authority from the Constitution to form a national bank: "I consider the foundation of the Constitution as laid on this ground: That " all powers not delegated to the United States, by the Constitution, nor prohibited by it to the States, are reserved to the States or to the people.... To take a single step beyond the boundaries thus specially drawn around the powers of Congress, is to take possession of a boundless field of power, no longer susceptible of any definition."
To see more of Jefferson's argument against the Bank of the United States, please visit http://www.constitution.org/mon/tj-bank.htm

Hamilton, on the other hand, believed a central bank was necessary to stabilize and improve the nation's credit. He made a convincing argument, and Congress passed the formation of a the bank for a twenty-year term.

My spin: In my opinion, this is a stain on Washington's administration. A modern-day version of a national bank is the Federal Reserve, which I blame for many of our current economic problems. I agree with Jefferson. Nothing in the Constitution says Congress is authorized to establish a central bank. A national bank is the fastest way to corruption. Like Jefferson mentioned, it also greatly increases the size and scope of the federal government. The Revolutionary War was fought to get away from a tyrant king, yet we create a bank which has the potential to breed a tryannical government.

Excise tax: An excise tax is a tax on the sale of a particular good, item, or activity. Having just fought a war over taxation, the U.S. Congress wanted a reliable source of income that was relatively unobtrusive and easy to collect. Tariffs and excise taxes were authorized by the Constitution and recommended by Alexander Hamilton in 1789 to tax foreign imports and set up low excise taxes to provide the federal government with enough money to pay its operating expenses and to redeem at full value U.S. federal debts and the debts the states had accumulated during the war (Wikipedia). The tax was justified as Hamilton reasoned the country start out on a sound financial basis with good credit.

However, as expected, there were opponents of the tax. In 1791, angry farmers from Pennsylvania launched a series of attacks on tax agents in opposition to the tax placed on their cash crop -- the grains harvested and used for whiskey production. The tax eliminated any form of profit for the farmers. This became known as the Whiskey Rebellion.

The rebellion got out of hand as the farmers would start riots in numerous towns and physically assualt tax collectors in those towns. In 1794, the farmers attacked a federal marshal in Allegheny County, PA while a group of several hundred attacked the home of a regional inspector, burning the house and his barn to the ground.

This prompted President Washington to call in the militia utilizing the Militia Law of 1792, which allowed the use of militia to "execute the laws of the union (and) suppress insurrections". It was the first time the law was used, and a test to establish the power of the federal government over individual states.

The presidents order brought forth an army of approximately 13,000, and he placed them under the command of General Harry Lee, father of famous civil war general, Robert E. Lee. However, Washington himself lead the troops in a show of presidential authority. He squashed the rebellion, and restored order.

My spin: Many may possibly see this as abuse of power. However, since the excise tax was constitutional, a rebellion against it was unjustified. President Washington exhibited exceptional leadership ablity, leading the front of his militia against a violent mob. He also exercised the proper amount of force. However, his upholding of the tax remained extremely unpopular with the general public.

Foreign Policy

Despite the consistent attacks, Washington was easily re-elected in 1792. He had enjoyed a relatively quiet and uneventful presidency so far. That would all change.

The following year, President Washington declared neutrality while a war waged between France and Britain. A conflict ensued inside between his cabinet, primarily and not suprisingly, between Jefferson and Hamilton. Jefferson's party (Democratic-Republicans) sided with the French, while Hamilton's (Federalists) sided with the British. Realizing the need to develop close commercial ties with the British, the president agreed to take make peace with England. This angered the pro-French Jeffersonians. However, Washington had his reasons. He was shocked by the brutatlity of the French Revolution, and enraged by the meddling of French minister to the United States, Edmond Genet, with internal affairs of the American political system. Because of the division within his own cabinet, he felt it necessary to remain neutral and avoid playing favorites.

Jay's Treaty: In 1794, President Washington sent a diplomat by the name of Jonh Jay to offer terms of a peace treaty that would be beneficial to both nations. The issue Washington faced was the British refusing to leave the forts they established in the Northwest Territory -- now known as Michigan, Indiana, Ohio, Illinois, and Wisconsin. Additionally, Britain captured American ships and forced the sailors on board to fight in their war between France. The U.S. responded by passing maritime navigation laws which hurt Britain economically. These laws essentially started a trade war and threatened the progress and prosperity of the American economy.

John Jay returned after successfully negotiating terms of peace and Washington accordingly accepted the terms of the treaty. It eliminated British control of western ports in the Northwest territory; allowed the U.S. to claim any damages regarding the seizure of their ships; and permitted the U.S. a limited amount of trade in the West Indies.

The Democratic-Republicans strongly opposed this treaty, as did the American people. It was viewed as a surrender to British demands, inciting more criticism of Washington and his policies, including the excise tax.

My spin: The treaty establised peace between the two nations, and ended the British military occupation in the Northwest Territory. It aslo terminated the dangerous trade war while authorizing trade, although limited, in the British controlled West Indies. It was a win-win.

Pinckney's Treaty (Treaty of San Lorenzo of 1795): As a young nation, Washington wanted official recognition of the world's superpowers: Britian, Spain, and France. He had accomplished this with England, now he was looking for France and Spain to do the same. France was upset that the U.S. had not yet agreed to the terms of the alliance made in 1778 during the Revolutionary War, so they refused to acknowledge the U.S. Spain, on the other hand, controlled New Orleans. The city was crucial for American farmers in the western territories who would usually transport goods by overland routes, a process which was very time-consuming and expensive. New Orleans would allow them to transport their goods to the east in an economically friendly way.

Washington dispatched Thomas Pinckney to strike a deal with Spain. Realizing America's new friendship with Great Britain -- a key rival -- Spain decided to balance the power and strengthen its own relationship with the U.S by offering the following concessions:

1) They would recognize the U.S. border at the Mississippi River and the 31st parallel -- the northern border of Florida.
2) They granted Americans the right to deposit -- to temporarily store goods for shipment -- in New Orleans. American farmers got what they needed.

My spin: The United States was practically recognized as a legitimate nation (2 out of 3 ain't bad!). Also, the American agricultural industry was given a huge boost when New Orleans was opened and considerably expanded U.S. territory. Also on the plus side, Spain had another international friend.

Conclusion: President Washington presided over the nation's first eight years under the Constitution. Like every leader, there were obstacles and challenges to overcome. Washington declined to run for a third-term. He felt old and decided to retire to his home near Mount Vernon. When he left, the U.S. financial system was stable. Not talked about above, Washington's administration also removed the Indian "threat" east of the Mississippi, and scored major political and diplomatic victories with the Jay and Pinckney treaties. During his tenure, he realized a disturbing trend of partisan politics. In his farewell address to Congress, he urged his fellow countrymen to stay away from such eager party spirit. He also warned of foreign entanglements and permanent alliances. This is the message he left hoping it would be followed for the sake of the country's future. He was succeeded by his Vice-President, John Adams.

Grade: B+


References:
Excise tax: http://en.wikipedia.org/wiki/Excise_tax_in_the_United_States#Historical_Background

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