The government agreed with part of the plan, but they had issued bonds, which means they needed to repay the citizens, so the people began to protest. While people waited to be paid, they sold their bonds for less than their worth.
Then, Hamilton suggested paying bonds off, but this would make speculators rich and the original bond holders poor. The Southern states complained because they had already paid off their debts and didn't want to pay others debts.
Trouble With the Plan
The Southern States were being petty, so Hamilton said if they agreed to pay off nations debt that he would move the capitol down to the Southern States. Washington chose a location and it is now called Washington, District of Columbia in his honor.
Compromises with a Capitol
Alexander Hamilton also proposed having a national bank. However, Thomas Jefferson completely opposed this idea, saying "it would only help the wealthy," which is not true. Madison and Jefferson argued that the Constitution did not give them this power.
Fighting for a National Bank
Hamilton wanted to put protective tariffs, or higher taxes on imports, so that the government could make more money. The Southern States however, did not support this. Neither did Jefferson or Madison because they still believed that this would be too strong of a government run by the wealthy.
Washington faced many challenges while in office. Britain and France were pushing the U.S. to get more involved in their conflicts. Native Americans, helped by the British and Spanish, fought the westward advance of American people.
Trouble in the New Nation
The new government wanted to collect taxes on some products made in the U.S. In 1791, Congress passed a tax on the making and sale of whiskey. Western Pennsylvanian farmers were very upset, and this turned into violence. This alarmed the government.