General difficulty of setting up a new government and the specific problem of revenueWashington governed under a new Constitution and was the head of a new federal government over people who had just revolted against their long-standing government whose taxation was a major issue. Consequently, levying and collecting federal taxes was a tricky issue. The whiskey rebellion erupted over the new federal tax on whiskey and Washington had to take decisive action to put down the rebellion and establish to power of the federal government to keep order and collect taxes. A related issue was setting up the US treasury and a new monetary system , as well as managing and paying off the war debts incurred by the various colonies and establishing a solid credit rating for the national government. Domestic difficulties Years of warfare had taken its toll on the US economy - the people mostly were facing hard times. The constitution did not receive unanimous support and the separate colonial government were used to controlling their own affairs. The still-existing conflict between states' rights and the power of the federal government was more extreme then than now. There was more fear of a new revolution which produced more restrictions on personal freedom. Two political factions arose even within the members of Washington's cabinet. Foreign Affairs There were also potential problems with France and Great Britain as well as the general problem of gaining respect in Europe for the upstart United States government. The British had not removed their troops from their forts in the US Northwest and, worse, they supplied arms and support to the Indians in their resistance to settlers on the frontier. The French and Spanish controlled Florida and Louisiana and all the land west and south of the US. France, Spain and Britain all made no secret of their desire to further colonize North America .
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