1. Chapter 10 A Launching the New Nation

2. P ROBLEMS WITH THE “N EW N ATION ” _________________________ Central Authority – __________________ (King George III = Necessary Evil) Population increase Financial Situation - Paper money = worthless Articles of Confederation Weaknesses? (LIST) Lawbreaking citizens/ *rebellions ____________________________________ Outcome: skepticism

3. __________________________ Unanimously elected by the Electoral College (only president to do so) Led a march from Mt. Vernon to New York City (temporary capital) Sworn in on April 30, 1789 on Wall Street 2 Problems as President ■ (1) ________________________________ ■ (2) ________________________________ with the American people “We are in a wilderness without a single footstep to guide us.” - James Madison

4. W ASHINGTON ’ S C ABINET (1) Department of State – foreign affairs (__________________________) (2) Department of War – military affairs ( ___________________________ ) (3) Department of Treasury – manage finances ( ____________________________ ) (4) Attorney General (____________________________ ) These 4 make up the “CABINET” – _____________________________________________________

5. ***__________________*** First legislation passed under Washington Claims the "judicial power of the United States, shall be vested in one Supreme Court," ______________________________________________ S.C. = 1 Chief Justice and 5 Associate Justices Basically created an “effective” federal court system ________________________: VERY FIRST SUPREME COURT CHIEF JUSTICE 1 of the authors of the Federalist Papers Purpose of the Federalist Papers: Outcome: (1) ______________________________________________ (2) ______________________________________________

6. H AMILTON AND J EFFERSON D EBATE / C ONFLICT ■ ALEXANDER HAMILTON Born in the British West Indies Viewpoints - supported a ________________________________ - favored by the ________________________________________ - ____________________ interpretation of the Constitution - American government should be based on the _______________ - Wanted to ________________________________- ■ _________________should, at times, be restricted ■ Desired a “_______________” (agriculture, trade, banking, etc.) ■ Establish a National Banking System ■ Wanted a _____________________________ * Use the National Debt to establish credit (assumption) ■ Strongest in the NORTH

7. H AMILTON AND J EFFERSON D EBATE / C ONFLICT ■ THOMAS JEFFERSON Viewpoints: - supported a ________________________________ - favored by the ________________________________ -*________________ interpretation of the Constitution ■ Preferred a democratic structure of government ■ Wanted to ________________________________ ■ Individual liberties should be protected by laws ■ Agriculture is the backbone of America ■ Against the National Banking System ■ Desires to eliminate the “taxing” system ■ Wanted to pay off the National Debt ■ Strongest in the SOUTH

8. MOST SIGNIFICANT PROBLEM AMERICA FACED = DEBT!!!!!!!!!! ■ _________________________ (1) Paying off all (National / State / Foreign)debts in full. “_______________” Important: Respect from international markets and countries ___________: the Federal Government will “assume” all state debts as well Important: _________________________________________ PROBLEM: Massachusetts had a HUGE debt and liked the idea, but Virginia had a small debt and didn’t like the “assumption process” Why? Outcome: The “ASSUMPTION CLAUSE” was passed and Virginia was promised the NEW National Capital of Washington D.C. on the Potomac River (border of Maryland and Virginia) Hamilton’s view on Debt: good thing ! *Why:___________________ (2) A tariff (tax on imports) _________________ (3) A tax on whiskey ________________ (4) A National Bank

9. P ROTECTIVE T ARIFF VS. E XCISE T AX “PROTECTIVE TARIFF”, _______________produced in other countries – supported American made goods OVERALL GOAL OF A PROTECTIVE TARIFF??? _______________________________________________ *Hamilton (sect. of treasury) passes an “EXCISE TAX” – a tax on product’s manufacturing, sold, or distributed WITHIN the United States! THE SOUTHERN FARMER would consistently oppose an “excise tax” ■ Ex. Tax on corn = Whiskey

11. HAMILTON’S ECONOMIC PLAN ■ - planned to manage the country’s (___________________) debt and set a up a national banking system ■ **BANK OF THE UNITED STATES** / NATIONAL BANK ■ Modeled after the Bank of England ■ - PURPOSE - (a) ________________, (b) __________________, and (c) _______________________________. ______________________________________ ■ - The Constitution said ____________________ about the creation of such a bank & unhealthy alliance between fed. Government and rich Hamilton DEFENDS THE B.O.U.S. = “_______________________________” or Elastic Clause Strong example of the “LOOSE” Interpretation of the Constitution OVERALL OUTCOME: Hamilton wins and the B.O.U.S. is built in 1793 in Philadelphia

12. W HISKEY R EBELLION (1794) ■ 1794 – Farmers refused to pay the excise tax on corn ■ Farmer’s Problems (1) felt they were singled out to help the government pay off debt _________________ (2) *_____________________________” - from Tennessee and Kentucky (not states yet so no one to represent them in Congress) Whiskey rebellion: Occurs in Pennsylvania (1794) Dilemma: Can the government force people to pay a tax?!? Washington’s response to Whiskey Rebellion: 13,000 troops sent to Pennsylvania…the revolt was crushed *Federal government wins! Anti-Federalist (Jeffersonian / States) reaction: Washington acted too harshly – using a sledgehammer to kill a gnat! **The VERY FIRST time the executive branch stepped up ____________________!!!!!**