Hamilton wanted to create national banks, raise government revenues, and pay off all war debts. Jefferson disagreed because the south had already paid off all of their war debt. Hamilton argued that they could only pay off the debt because they have slaves, and Jefferson said that they couldn't tax the south because of the constitution.
Since the government was in need of money, Washington taxed whiskey. This made farmers angry because whiskey was their main source of income. The farmers became fed up, so they decided to protest. In what was named the Whiskey Rebellion, a group of farmers beat a tax collector and coated him with tar and feathers. After this protest, Washington was afraid that if he didn't do anything then people would think that the government was weak. Because of this General Henry Lee led 13,000 soldiers to put down the protests. This showed that Washington was not afraid to enforce laws.
A financial crisis in France in 1789 caused a French rebellion. The French got their ideas from the American Revolution. A few years later, the French Revolution became very violent. All of this stress led to France declaring war on Britain, Holland, and Spain. Americans didn't know whose side to take so America stayed neutral.
Alien and Sedition Acts
After eight years of hard work as president, Washington decided it was time to retire. In his speech letting everyone know he was leaving, he warned about two things. He warned about staying neutral and that differences in political parties could weaken the nation. America focused more on staying neutral, so they ended up breaking into different political parties.
While France was in a war with Britain, France got desperate and started looting American ships. After this, two Americans went to France to try and talk to the minister. Three French agents referred to as X, Y, and Z, told the Americans that they could only talk to the minister by paying a large amount of money. America refused.
The Alien and Sedition Acts targeted immigrants who were not yet citizens. It also extended the time it took to become a citizen to 14 years. Another thing the Alien and Sedition Acts did was let the president arrest the disloyal immigrants who might have said anything bad or false about the government. Jefferson and Madison searched for a way to stop these acts and found that they had states rights, which is rights that the government cannot violate.