1. Washington Becomes President
Forging the New Republic
Chapter 6, Section 1

2. Organizing the Government
February 1789 – Washington becomes president and John Adams becomes vice president

3. Washington Chooses a Cabinet
Washington would set precedents as the first president
Created executive departments which became known as the president’s cabinet
First three departments were: state, secretary, and war

4. Washington’s Cabinet
Secretary of War: Henry Knox, was in charge of weaponry in the Revolutionary War
Secretary of State: Thomas Jefferson
Secretary of the Treasury: Alexander Hamilton
Attorney General: Edmund Randolph was the President’s legal advisor

5. Two Parties Federalists: Jeffersonian Republicans: Led by Hamilton
Strong central government
Prospering cities, business, a role in world affairs
Jeffersonian Republicans:
Led by Jefferson and Madison
More rural than urban
A good deal of power left to the states

6. The First Congress Came up with Judiciary Act of 1789
Structure of federal court system
Six person supreme court
One chief justice and five associates
John Jay first chief justice
Also created district courts and courts of appeal

7. Settling the Nation’s Debts
New government owed money to foreign nations, private lenders, and former soldiers
Hamilton comes up with an economic plan

8. Hamilton’s Economic Plan
Wanted federal government to take on all debt from the Revolutionary War
Raise money to pay the debt
Wanted to establish a national bank
Control credit
Make loans to the government

9. Hamilton’s Economic Plan

10. Imposing New Taxes Constitution gives Congress the power to tax
Hamilton proposes two new taxes:
Tariff of 1789: a tax on imported goods
Excise Tax: a tax on the production or the sale of a certain product
1791 the tax was on liquor, sugar, snuff (fine ground tobacco), and carriages
Very unpopular

11. Plan to Pay Off State Debts
Hamilton’s plan to pay off state debts was controversial
Northern states had greater debts than southern states
If national government takes over all state debts, people in the south would be paying taxes to pay off northern debts

12. Compromise Leads to New Capital
Jefferson, Hamilton, and Madison come up with a compromise
Capital will be moved from Philadelphia (North) to Federal City (South) by 1800
In return, southerners in Congress will allow Hamilton’s debt bill to pass

13. Debating a National Bank
National Bank most controversial part of Hamilton’s plan
Debate between Federalists and Jeffersonian Republicans
How much power should the national government have
Strict Construction v Loose Construction of Constitution

14. Strict v Loose Strict Construction of the Constitution:
Belief that the government should only do what the Constitution specifically states it can do
Loose Construction of the Constitution:
Government can take reasonable actions that are not outlined in the Constitution—as long as those actions are not specifically prohibited

15. Hamilton’s Bank Plan
Uses the “necessary and proper” clause in the Constitution to justify national bank
Allows Congress to pass all laws that are necessary and proper to carry out its assigned powers
Prime example of loose construction of the Constitution

16. Washington Signs the Bank Bill
Madison, Randolph, and Jefferson all opposed the National Bank
Congressed passed the bank bill and sent it to Washington to sign
Washington signed the bill to charter the first Bank of the United States

17. The Whiskey Rebellion
Farmers on the frontier in western Pennsylvania objected to the excise tax on whiskey
Livelihoods depended on turning surplus grain into rye whiskey
Excise tax made the farmers lose money on selling whiskey

18. The Whiskey Rebellion Farmers attacked tax collectors
There was even talk of starting an independent nation
Washington raised a force of over 13,000 men and put down the rebellion
Showed the strength of the federal government

19. Political Parties Develop
Jeffersonian Republicans v. Federalists
On their way to establishing a two party system
Federalists: Under Hamilton established local associations, gave political offices and other favors to their supporters
Jeffersonian Republicans: Set up party organizations, worked together to influence elections (Eventually became Democratic-Republicans

20. Two Party System

21. Review Who was Washington’s Vice President?
What did Hamilton want to establish?
What did the Tariff of 1789 tax?
Why was Hamilton’s Plan controversial?