1. Washington Sworn into office, New York City

2. Important members of President Washington’s Cabinet and Government
John Adams as Vice President
Thomas Jefferson as Sec. of State
Alexander Hamilton as Sec. of Treasury
Henry Knox as Sec. of War

3. Judiciary Act, 1789 Organizes judiciary as follows:
- Supreme Court: Chief Justice plus 5 Associate Justices;
- 3 circuit (appeals) courts,
- 13 district (trial) courts (one in each state).
First Chief Justice of the Supreme Court is John Jay

4. Alexander Hamilton vs. Thomas Jefferson
Thomas Jefferson trusted the people to fix their own problems…
Hamilton wanted a government strong enough to fix America’s problems…

5. Do these people look happy or mad?

6. Now that President Washington is in office…
It’s time to fix the economy
What’s the problem?
Our government had a national debt of $81.5 million dollars!
Amount of $ owed by our country to other people
Foreign countries
Citizens we borrowed money from
What happens if we don’t pay these people back?

7. Debate over settling the debt
Thomas Jefferson
Alexander Hamilton
Wanted to pay back all bonds sold to citizens over time!
Bonds = certificates purchased that can be turned in for more money in the future
Why did Hamilton want to do this?
Government gains credibility with the people
Ok with Hamilton’s ideas, but there is a problem:
Speculators have bought bonds from citizens for less than they are worth!
Now the government is going to buy them from the speculators for full price?
That cheats the original owner out of money!
Who wins?
Hamilton!
1790 Government starts buying bonds back!

8. Debate over Paying off debt owed by States from the American Revolution
Alexander Hamilton
Thomas Jefferson
Argued that government should pay states debt off
Why?
We all fought for freedom.
So, our federal government should pay the bill.
Felt each state should pay back their part of the bill
Why?
Some states owed a lot!
Massachusetts
New York
Some did not owe much at all or paid their debts off…
Virginia
North Carolina
- So who wins?
- Both….sort of.

9. They both get something in the end.
Hamilton
Jefferson
Federal government pays off the states debt.
In exchange for….
The nation’s capital moves from the North to a more Central location….
The birth of Washington, D.C.
Will be built as the new nation’s capital!

10. New York to Washington DC

11. Washington, D.C. 1800

12. Washington 1850

13. Washington DC today

14. Debate over Role of Government
Hamilton
Jefferson
Had little faith in the average citizen
Said they could not be trusted to do the right thing.
Why?
Because the average American does not take education seriously
They take politics even less seriously
So, you need a large government
Job = protect the liberties of all citizens equally
Had a lot of faith in the average citizen
Said they should govern themselves
Said they would educate themselves and do what is right
So, government needs to be small
Job = stay out of the way

15. Debate over how the Economy should grow
Hamilton
Jefferson
Government should give “stimulus” money to American entrepreneurs
Why?
So they could start their own factories and businesses
Hire people
Make products here in USA
Government should pass protective tariffs
Tax on goods from other countries
Government should stay out of the economies way
Why?
America is made up of farmers!
They know how to do it themselves!
Don’t need any help!
Tariffs should remain low
Keep price of goods lower.
Helps citizens be able to afford them

16. Debate over a national bank
Hamilton
Jefferson
Hated the idea of a national bank
Why?
Some states are richer than others
They would lose this power if the federal government owned all of the money
What is the big deal?
The Constitution does not give the government the right to make a bank anyways….
Or does it?
Wanted to start a national bank.
Why?
So that the government can make their own money
No more state money
What is the big deal?
Federal government would own all of the money in America!
Not each individual state

17. What does the Constitution say?
Article I, Section 8
Congress has the right to “make all laws that are necessary and proper”
Hamilton (loose)
Says a bank is necessary for future growth as a nation
Jefferson (strict)
Says a bank is convenient
Not necessary

18. Who wins? Washington agrees with Hamilton…again.
Bank of the United States
Created in 1791
For 20 years
If it works we will keep it longer
If not, we get rid of it.

19. Meanwhile…
While America is trying to build itself into a great country….
A great country is trying to destroy itself….
1789
France decides to have their own Revolution
Replace their monarch with a democracy like America….