1. President Washington Takes Charge How did Washington further establish the foundation for the US government?

2.  Washington becomes the first president  Elected by the electoral college  ALL 69 electors cast one vote for Washington  Only 10 states voted  Second votes were divided among 11 candidates  John Adams was the runner-up with 34 votes (VP)  Twelfth Amendment changed this process by requiring each elector to cast separate votes Election of 1788

4.  Washington’s Inauguration- April 30, 1789  Federal Hall, Wall Street, NYC

5.  First to do:  Create a bureaucracy  Create a judicial system  Raise money  FIRST ITEM: BILL OF RIGHTS (1791) President Washington Takes Charge

6.  James Madison created the Bill of Rights (1791)  Included  Ninth Amendment stating any rights not specifically stated in the Constitution are still protected  Tenth Amendment stating any powers not given to the national government go to the states Safeguarding Liberty

7.  JUDICIARY ACT OF 1789  Organization of the Supreme Court  1 Chief Justice, 5 Associate Justices  16 Lower Courts  Prosecuting Attorneys  Marshall Service  Office of the Attorney General (Edmund Randolph) Creating a Judiciary System

8.  Executive departments created to deal with most pressing issues  Creation of Executive Cabinet  Secretary of State- Thomas Jefferson  Secretary of War- Henry Knox  Secretary of Treasury- Alexander Hamilton Organizing a Bureaucracy

9.  Secretary of Treasury Alexander Hamilton  Shape fiscal policies to help the wealthier class, who in turn would lend the government money and trickle down to lower classes  Strengthen National Credit by:  Paying off Foreign Debt-$54 million  Assume State Debts-$21.5 million  States with large debt thrilled (MA)  States with small debt reluctant (VA) Economic Policies

10.  VA would agree to assumption of debt, in exchange for National capital set up along the Potomac River (Washington D.C.) Compromise

11.  National debt = “national blessing” to unify the country  Where would nation receive $ to pay interest and keep government running?  Tariff Revenue to pay interest  Tariff of 1789 (8% tax on imports)  Excise Tax in 1791 (whiskey) Customs, Duties, & Excise Taxes

12.  Many backcountry corn farmers were upset about the whiskey excise tax, since it was their main source of income  In 1794, farmers in western Pennsylvania refused to pay the tax  The farmers beat up federal marshals in Pittsburgh and threatened to secede from the union Whiskey Rebellion

13.  Secretary Hamilton & President Washington looked upon the Whiskey Rebellion as an opportunity for the federal government to show that it could enforce the law along the western frontier  13,000 militiamen were called upon to stop the rebellion  The federal troops hiked over the Alleghenies, and scattered the rebels without the loss of a single life Enforcement of Federal Power

15.  Hamilton pushed for the creation of a Bank of the United States  Purpose:  Issue paper money  Establish branches in various cities  Handle all government money  Invest The National Bank

16.  Chartered in 1791 for 20 years in Philadelphia Bank of the United States

17.  South  Make Northerners rich  Strict interpretation of the U.S. Constitution  North  Favored a national bank  Loose interpretation of the U.S. Constitution National Bank- Support and Opposition

18.  Alexander Hamilton v. Political Parties Formed Thomas Jefferson

19.  Personal Feud between Hamilton and Jefferson  Developed into two-party system  Democratic- Republicans: led by Secretary of State Thomas Jefferson  Federalists: led by Secretary of Treasury Alexander Hamilton Political Parties Formed

20.  Main issues dividing the two parties: Democratic- RepublicansFederalists -Strong state gov ’ ts -Strong central gov ’ t -Strict interpretation -Loose interpretation of Constitution -Farming economy -Industrial economy Two Party System Republicans v. Federalists