George Washington Part 3: Policy & Achievement

Economic Stewardship

George Washington inherited a nation on the verge of economic collapse. The federal government faced an $80 million debt, worthless currency, and no established credit, while individual states owed an additional $25 million from the Revolutionary War. His support for Alexander Hamilton's comprehensive financial program transformed America from near-bankruptcy to international creditworthiness, establishing the foundation for capitalist development that enabled the nation's rise to global economic power.

Washington's economic leadership required political courage given the intense opposition to Hamilton's plans. The national bank proposalChartered in 1791 for 20 years, provided stable currency and facilitated government transactions faced fierce resistance from Jefferson and Madison, who argued it exceeded constitutional authority. Washington's decision to support the bank despite constitutional concerns demonstrated his understanding that effective governance sometimes required broad constitutional interpretation to meet national needs.

Hamilton's Financial System

The success of Hamilton's financial program required Washington's consistent support against fierce political opposition. The federal assumption of $79 million in federal and state Revolutionary War debts transformed worthless government securities into valuable investments, establishing American creditworthiness that enabled future borrowing for national development.

Washington's support for the Compromise of 1790Agreement linking federal assumption of state debts to locating the national capital on the Potomac River demonstrated his political skill in building coalitions around difficult economic decisions. By supporting the deal that moved the capital to the Potomac in exchange for Southern support for debt assumption, Washington showed his ability to balance sectional interests while achieving national objectives.

The Tariff of 1789First federal revenue measure, established customs duties as primary source of government income and subsequent revenue measures created the federal government's financial independence from state contributions. This taxation system—combining customs duties, excise taxes, and later land taxes—enabled effective national governance while generating the revenue stream essential for debt service and government operations.

Foreign Policy & National Security

Washington's foreign policy achievements established American neutrality as the cornerstone of national strategy, protecting the young republic from European conflicts while building strength for future international engagement. His understanding that America needed peace to recover economically and politically led to the neutrality doctrine that guided American foreign policy for over a century.

The Great Neutrality Test

When the French Revolutionary Wars erupted in 1793, Washington faced his greatest foreign policy challenge. Pro-French Republicans, led by Jefferson, argued that America owed France support based on the 1778 alliance, while pro-British Federalists, influenced by Hamilton, favored closer ties with Britain. Washington's Proclamation of NeutralityApril 22, 1793 declaration that established American neutrality in European conflicts established the principle that American foreign policy should serve American interests rather than ideological commitments or emotional attachments.

The neutrality policy faced its greatest test during the Citizen Genêt crisisFrench minister who violated American neutrality by arming privateers in American ports. When French Minister Edmond Charles Genêt violated American neutrality by commissioning privateers and recruiting American citizens for French military service, Washington's demand for his recall demonstrated that America would defend its sovereignty against all nations, regardless of previous alliances or popular sentiment.

Treaty Diplomacy and Territorial Gains

Washington's support for the controversial Jay Treaty with Britain (1795)Resolved post-war disputes with Britain, secured western forts, prevented war despite domestic opposition demonstrated his willingness to make unpopular decisions in the national interest. Despite fierce Democratic-Republican opposition and public protests, the treaty prevented war with Britain, secured British withdrawal from western forts, and established arbitration mechanisms for resolving international disputes.

The Pinckney Treaty with Spain (1795)Treaty of San Lorenzo secured free navigation of Mississippi River and established southern boundary represented an unqualified diplomatic success. The Treaty of San Lorenzo secured free navigation of the Mississippi River, duty-free deposit rights at New Orleans, and establishment of the 31st parallel as the southern boundary. This treaty facilitated western expansion while requiring no American concessions, demonstrating the diplomatic advantages of neutrality.

Military Policy and National Defense

Washington established the principle of civilian control over the military while building national defense capabilities. His expansion of the regular army from 700 to over 5,000 men and authorization of naval construction through the Naval Act of 1794Authorized construction of six frigates, including USS Constitution, establishing permanent American navy created the foundation for American military strength.

His approach to Native American relations combined diplomatic negotiation with military force when tribes refused land cessions. The Northwest Indian War1785-1795 conflict that secured Ohio territory for American settlement culminated in the Treaty of Greenville (1795), which secured most of present-day Ohio for American settlement while establishing peaceful relations with northwestern tribes.

Legislative Achievement & Congressional Relations

Washington's legislative record was remarkable, working effectively with Congress to establish the institutional framework of federal governance. The First Congress (1789-1791) achieved unprecedented legislative productivity through careful coordination between executive and legislative branches, passing foundational legislation that created the structure of American government.

Institutional Foundation Building

Washington worked closely with Congress to establish executive departments, create the federal court system, and implement the Bill of Rights. The Judiciary Act of 1789Established three-tiered federal court system with district, circuit, and Supreme Courts created the three-tiered federal court system that continues to operate today, reflecting Washington's understanding that effective governance required strong judicial institutions to interpret and enforce federal law.

The creation of executive departments—State, Treasury, War, and Attorney General—required congressional authorization and presidential implementation. Washington's careful selection of department heads and his management of cabinet relationships established precedents for executive administration that balanced departmental expertise with unified executive direction.

Congressional Relationship Management

Washington established effective patterns of executive-legislative communication through annual addresses to Congress, written messages on specific issues, and consultation on appointments and treaties. His approach balanced executive independence with legislative cooperation, avoiding both executive dominance and legislative interference with executive functions.

His use of the veto power was restrained—only twice in eight years—but established important precedents. His 1792 veto of the congressional apportionment bill on constitutional grounds demonstrated that presidential vetoes could be based on constitutional interpretation, while his 1797 veto of military legislation showed that presidents would also reject bills on policy grounds.

Washington's support for the Bill of RightsFirst ten amendments to Constitution, ratified December 15, 1791 reflected his understanding that constitutional amendments were essential for maintaining public support for the new government. His endorsement of Madison's proposed amendments helped secure ratification of guarantees for individual liberty that fulfilled promises made during constitutional ratification debates.

Economic Legislation and Financial Infrastructure

Washington signed legislation creating the U.S. Mint, establishing copyright protection, and implementing Hamilton's financial program. The Coinage Act of 1792Established the U.S. Mint and defined the dollar as the basic unit of American currency created the institutional foundation for American monetary policy, while the Copyright Act of 1790 protected intellectual property rights essential for cultural and technological development.

His signature on the national bank charter, despite constitutional reservations, established the precedent that presidents could approve legislation based on broad constitutional interpretation when national needs required federal action beyond strictly enumerated powers. This flexible approach to constitutional authority enabled the federal government to adapt to circumstances the founders could not have anticipated.