1. Washington and Congress

2. Dilemma facing Washington Constitutional Convention of 1787 – Constriction is created Plan for how the government will run Washington’s task – Take the ideas of the constitution and use them to create a government

3. Creating a Bureaucracy Bureaucracy is an organization of government systems Washington creates a Cabinet to help him run the state.

4. Cabinet 1789 Heads of States created by Constitution Cabinet is made up of all the heads of states Advisers Washington -Secretary of State – Thomas Jefferson -Secretary of War – General Henry Knox -Secretary of Treasury – Alexander Hamilton -Attorney General – Edmund Randolf

7. Bill of Rights Federalists had promised to add the amendments. James Madison Based on the Virginia Declaration of Rights 12 Constitutional Amendments prepared,10 were approved. First 8 protect individual rights Last 2 limit government.

9. Financing the new government Government needed revenue (source of Income) James Madison and Alexander Hamilton disagreed on how this should happen

10. Madison’s Plan Wanted the government to raise money using tariffs Tariffs are a tax on imports Congress passes Tariff of 1789 Shippers had to pay Tonnage – Angered South

11. Alexander Hamilton’s Plan Supported Tariff of 1789 Believed the Government should be able to borrow money Wanted to redeem revolutionary war bonds at face value. South is worried this will make north more powerful.

12. War bonds compromise If Southern congressmen vote to redeem bonds at face value US capital moves from New York to area in Maryland on Potomac River Area would be called District of Columbia

14. Bank of the United States Hamilton wants a National Bank Southerners opposed to the plan Madison, Jefferson and Randolph says the congress does not have the power to create a national bank

15. Article 1 Sec 8 Hamilton argued Article 1 Sec 8 Implied Powers “to make laws which shall be necessary and proper” ~ Article 1 Sec 8 Washington Agrees signs bill Bank of United States Created with 20 year charter.

16. Whiskey Rebellion 1791 congress imposes a tax on the manufacture of whiskey Farmers in the Western US enraged Rebel 1794 Washington responds by sending 15,000 troops

18. Political Parties Emerge Hamilton’s financial practice divide congress Divisions become the nations first political parties. Madison and Jefferson’s followers become the democratic-republicans (democrats later, republicans today) Hamilton’s followers: Federalists

19. Partisan Politics Madison/Jefferson’s Democrats Strength of the Nation in Farming (Agrarianism) Commerce can lead to division – Rich vs. Poor. Hamilton’s Federalists Strong National Government Democracy dangerous to liberty Manufacturing and trade

20. Vocabulary Words Cabinet Bond Speculator Enumerated Power Implied Power Tariff of 1789 Bank of United States Whiskey Rebellion Democratic-Republican Federalist