Land Was Wealth, but Not Spending Money
George Washington’s financial problem was a mismatch between what he owned and what he needed. His wealth rested largely in land and working farms. Those assets could be valuable, but they could not be turned into ready cash simply by deciding to travel: selling land took time, and doing so would mean giving up part of the estate that produced his income and status.
A farm also tied money up in its daily work. Labor, supplies, and other obligations had to be met even when income from the property did not arrive at the right moment. In an era when ordinary expenses were paid in cash, a person could therefore be rich on paper yet short of money for an immediate bill.
A Public Journey on Private Credit
Washington needed to make the trip to New York, where the new federal government was to begin and where he would take the presidential oath. Rather than liquidate property, he borrowed. The loan carried high interest, making this a costly way to bridge the gap between long-term wealth and a near-term expense.
The episode shows why the first presidency did not begin with effortless personal spending power. Washington’s land gave him standing and substantial assets, but it did not function like a wallet. To reach the ceremony that marked the start of the new government, he had to rely on credit—the same practical tool that could connect valuable property to an urgent cash need.
