The Tariff of 1789

One of the first measures by the United States Congress, apart from codifying the oaths and titles that would be used in the future, was how the Federal Government should raise funds for its own operation and the repayment of debts owed by the Federal Government. One of the first measures proposed, was a tariff on imports, supported primarily by northern industrialists who had sent many letters to the Congress asking for relief from the flood of European made goods. Of course, while the northerners supported a fairly large tariff, the southern interests favored the opposite, wishing for a tariff of the bare minimum, allowing them to import cheap consumer goods while still exporting their own goods. Eventually, a draft was formed in the House of Representatives, however with one major amendment by Representative Madison from Virginia, this was adding a reduced tariff to any country that held a trade treaty with the United States, while applying the full tariff to any country that did not. This was a not so subtle attempt by Rep. Madison to begin shifting American trade away from the United Kingdom, which is currently America's largest trading partner, and toward the French, whom Madison had been vocally in favor of aligning toward. Though this amendment was viewed with caution by many Representatives, with some questioning if France could ever truly take the place of the United Kingdom in American markets, the amendment was nonetheless passed and the measure was sent to the Senate. In the Senate, however, it would seem that more pro-British sentiments lay, and the amendment was dropped while the rest of the Tariff was approved, and then sent to the House to reconfirm, where it passed 31 to 19. Thus, the tariff now levies a 60 cent per ton duty on all foreign registered ships entering American ports, while a 6 cent per ton duty was levied on all American ships, though this was also extended to Rhode Island and North Carolina who had yet to ratify the Constitution and join the Union. Another quirk of the Tariff was excluding all foreign ships from coastal trading in the Republic, helping to secure that for American ships.

Another consequence of this piece of legislature was the break between Rep. Madison, and Mr. Alexander Hamilton, who declined to support Madison's amendment and warned that economic war with the British would backfire and end up not only reducing the money made by the Tariff, but hurt the domestic economy. This break seems to have furthered the divide between these two founding fathers, and pushed Madison further into the Anti-Administration camp.

Formation of the Secretaries of State, Treasury, and War

In order to properly advise the President on pressing matters, Congress saw fit to allow the establishment of two new Executive Agencies, the Secretary of the Treasury, and the Secretary of War, as well as converting the Secretary of Foreign Affairs into the Secretary of State. All three nominations for the first Secretaries of these agencies were approved quickly by the Senate, Alexander Hamilton became Secretary of the Treasury, and quickly began work on what he labels as an ambitious project, the first part of which being the assumption of the debts incurred by the state governments in the Revolutionary War, which has gained heavy criticism from the Anti-Administration group, particularly the Southerners.

The Secretary of the War Department went to the old Secretary of War under the Confederation, Henry Knox, who has quickly begun work on evaluating the militia of the United States, and assessing their war readiness. And as John Jay already made his willingness to stand down from his position known, a new Secretary of State needed to be chosen, when President Washington suggested his fellow Virginian Thomas Jefferson to take the position, the Senate quickly approved his nomination. Jefferson was reportedly put out that he was being forced to leave France during it's Republican movements growth, but agreed, and has set out for his homeland nonetheless.

In addition, the Congress has approved of the creation of an Attorney General, to prosecute and enforce all cases decided upon by the Supreme Court of the United States, which has also been filled out by President Washington, the biggest of note is the Chief Justice which was former Secretary of Foreign Affairs, John Jay, who accepted the nomination without issue.

Jay's Treaty

Upon returning to the United States, and before stepping down from his position as Secretary of Foreign Affairs, John Jay presented the treaty that he had negotiated with Prime Minister Pitt to the Senate and the President. Though many of the Anti-Administration disliked making a treaty with the British upon principle, they nonetheless could not deny it was very favorable to the Republic. The terms of the Treaty are thus:

Two joint boundary Commissions shall be established to delineate the borders between the United States and British Canada, one in the North West and the other in the North East,

The British Royal Navy shall end it's impressment of American Sailors,

International Arbitration shall be established to determine how much financial compensation shall be owed by the United States to the Loyalists who had their property seized, as well as debts owed to Loyalists, as well as how much compensation shall be owed to Southern Slave owners who have had their slaves emancipated by the British Royal Navy during the Revolutionary War

and the British West Indies shall be opened without limitations to American Merchantmen.

The Senate has agreed to pass the treaty 22-8, and many supporters of the Administration have called this a strong start to what shall surely be a glorious Republic in the New World.