1. Struggles in the New Nation

2. The Cabinet: Secretary of State- THOMAS JEFFERSON Secretary of the Treasury- ALEXANDER HAMILTON Secretary of War-HENRY KNOX

3. Economic Issues The States were in Debt from the Revolutionary War Many American Ships were destroyed The US is not trading with Great Britain The new United States needed – To Raise $ & to establish credit in order to borrow $

4. The Secretary of the Treasury wanted the National Government to take over & pay off all state’s debts= ASSUMPTION This would prove to other nations that the NEW US could & would pay back loans= Establish CREDIT The treasurer wanted to create a NATIONAL BANK to build the nation a strong economy and gain credit for the new nation.

6. The Cabinet disagreed weather it was LEGAL for the National Government to create a Bank, or if that was a right RESERVED to the states. No where in the Constitution was there specific instructions about creating a national level bank. The founding fathers disagreed on how to interpret the US Constitution

7. DO NOW: Read the following portions of the US Constitution and decide : Is it legal for Congress to create a National Bank? Support your answer with evidence frn the Constitution.

8. Amendment 10 The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. Constitution of the United States, Article I, Section 8, Clause 18: The Congress shall have power …To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.

9. STRICT Interpretation- CONGRESS COULD ONLY DO WHAT WAS SPECIFICALLY LISTED IN THE CONSTITUTION –word for word

10. LOOSE Interpretation -CONGRESS HAD MORE POWERS THAN THOSE SPECIFICALLY LISTED IN THE CONSTITUTION- implied powers -THE ELASTIC CLAUSE -Washington agreed &the National Bank was created

11. HOW THE GOVERNMENT CAN RAISE $ a) protective tariff --AN IMPORT TAX ON GOODS PRODUCED OUTSIDE OF THE U.S. b). excise tax- -A TAX ON THE MANUFACTURING, SALE OR DISTRIBUTION OF A PRODUCT MADE IN THE U.S. -- TAX U.S. WHISKEY What impact did the Whisky tax have?

12. The Whiskey Rebellion. FARMERS IN WESTERN PENNYSLVANIA, WHO DISTILLED CORN INTO WHISKEY, REBELLED AGAINST THE WHISKEY TAX.

13. 20 Rebelling Farmers were sentenced to death!! President Washington Pardoned, excused the rebel farmers from punishment. Do NOW: Was a Presidential pardon the proper action for the new president? Why or why not?

14. POLITICAL PARTIES FORM DO NOW: Why do people join political parties? What do members of political parties share?