1. LAUNCHING A NEW REPUBLIC
CHAPTER 9
LAUNCHING A NEW REPUBLIC

2. ESSENTIAL QUESTION
What political traditions and tensions first appeared in the early years of the new republic?

3. WASHINGTON’s PRESIDENCY
CHAPTER 9-1
WASHINGTON’s PRESIDENCY

4. Washington’s New Government
April 14, 1789
Washington given a letter advising him that Congress elected him as 1st President!
April 30, 1789
Washington inaugurated (sworn in) in NYC the nation’s first capital
Runner-up John Adams is VP

5. Congressional Decisions
What to call Washington : “Mr. President”
Supreme Court – many questions
Federal Judiciary Act of 1789
Supreme Court had 6 members (now 9)
Federal courts established – less powerful
John Jay – appointed 1st chief justice of Supreme Court

6. Assembling a Cabinet
Departments in government established – Washington called on them for advice
State – relations w other countries – Thomas Jefferson
War – nation’s defense – Henry Knox
Treasury –nation’s economy – Alexander Hamilton
Justice – Supreme Court – John Jay
Attorney General – Legal – Edmund Randolph
Postal Service – added in 1829

7. THE NATION’S FINANCES WAR DEBTS – foreign & domestic -$52million
Must pay debts to win respect of foreign nations AND US Citizens
Must pay back wealthy investors to win support of new government
Strong central government support industry & nation’s prosperity

8. HAMILTON’S Proposals 1790 Hamilton presented plan to Congress
3 Steps to improve Nation’s Finances
Pay off ALL war debts – national & state
Raise government revenues
Create national bank
Agreed to move nation’s capital from NYC to a Southern location – gain their support of plan

9. ECONOMICS
Banks – - Make loans to individuals and businesses - Receive deposits from indivs & businesses Tarriffs – taxes on imported goods - This put money into national bank - This money could be lent to businesses to create new products, hire more people, those wages used to buy other goods & services HEALTHY ECONOMY = PROSPERITY

10. HAMILTON’s Opponents
“Strict” Interpretation: Federal gov’t has very limited powers
Constitution did not mention national bank
National bank encourage unhealthy relationship between gov’t & wealthy investors
Jefferson
“Loose” Interpretation: favors greater federal powers
Constitution interpreted broadly
Hamilton

11. “ELASTIC CLAUSE” Article 1, Section 8, Number 18
Gives authority to do whatever is “Necessary and Proper” to carry out specific powers
Washington backed Hamilton and the Bank of the Untied States estab. In 1791
Two opposing philosophies – foundation for future American political debates