Background Info: - Had no desire be President after the Constitution Convention. -His dream was to settle down to his estate. Mount Vernon

1792- EXECUTIVE EXAMPLE ******National Hero****** -set many precedents for future leaders by…… -developed Cabinet - Appointed & divided the Executive Branch, which soon became the president’s advisors - T. Jefferson= Sec. of State - Alex. Hamilton = Sec. of Treasury -defined appointment powers -expanded foreign affairs powers -became legislative leader

1.) Dept. of War 2.) Dept of State – Jefferson 3.) Attorney General 4.) Dept of Treasury – Hamilton 1789 Today Which one is missing? (it was created in 2002)

1 ST CONGRESS -Bill of Rights ratified (Voted in) 10 Amendments -passed Judiciary Act of 1789 Supreme Court= “Supreme law of the Land” -Set up federal court system *had six justices – Washington named John Jay as chief justice

-nation had large war debt = THE US OWED $ (Soldiers, foreign nations, state Gov’ts, private lenders) -Hamilton saw this as a major problem and wanted better financial stability FINANCIAL DEBATE

Hamilton vs. Jefferson Alexander Hamilton, Sec. Of Treasury and Thomas Jefferson, Sec. of State despised one another. Hamilton: Believed in a Strong Central Gov’t, led by the educated elite upper class. *man is bad! Jefferson: 1. Favored strong state and local gov’ts, a society of farmer-citizens. *Man is rational These 2 different views = a contributing factor to the development of political parties.:..  Factions Hamilton Jefferson

political parties.: =..  Factions Hamilton= FEDERALIST Political Party Jefferson= DEMOCRATIC REPUBLICANS

FINANCIAL DEBATE -Alexander Hamilton’s plan 1. tariff (tax on Imports) to stimulate economy – how? -excise taxes – taxes on specific products (like whiskey) 2. pay all debts – Federal gov’t would take on all debts of the states HOW?: Bonds, taxes 3. national bank system -Issue Paper money, handle tax receipts & other Gov’t Funds. – a way to pool the country’s resources

-Hamilton says a National Bank is “necessary and proper” in order to stabilize, and eventually grow, the country’s finances -America’s future = manufacturing, businesses, trade - Others, like Jefferson, say a national bank would create an unhealthy alliance b/t the Federal gov’t and the interests of wealthy business men -America’s future = land owning, yeoman farmers - agriculture **Controversial Debate: does the federal gov’t have the power to make a national bank?** -implied powers?- The Constitution does not mention a National Bank

Don’t write this down.. Please listen. What type of people would vote for Hamilton's plan? Who is not so happy about the plan? Washington & Congress accepted Hamilton’s views & The National Bank was formed. * To win support, Hamilton pleased Southerners with the idea to move the Capital from NY to an area b/w VA and Maryland, called DC.

Whiskey Rebellion Hamilton pushed through Congress a NEW Tax to help get the Gov’t out of Debt. By making whiskey out of corn, farmers could get $$ for their crop long after it would normally spoil Farmer’s rebellion over an excise tax (tax on a product’s manufacture or sale) on whiskey they produced -rebellion crushed by Washington, Hamilton and the army before it begins -proves the strength of the new federal gov’t

POLITICAL AFFAIRS -British harassment of settlers in the west -French Revolution in British and French at war * (neat side note, this is when Napoleon was in power in France) Hamilton wanted to support GB Jefferson & Madison wanted to support the French -U.S. neutrality - G.W. knew war was not in the best interest of the new Nation

POLITICAL AFFAIRS -Jay’s Treaty -trade treaty with Britain -highly unpopular b/c of the French Revolution & GB could continue trading west of the Appalachian Mtns. *but would stop seizing ships -Pinckney’s Treaty -trade treaty with Spain -access to the Mississippi R., & all Lands EAST of Miss R; *US citizens now allowed to use LA port, New Orleans & trade freely on the Mississippi -Treaty of Greenville -Battle of Fallen Timbers -Native Americans vs. Federal Troops -Ohio Valley area - Federal Troops won, did not pay for land BUT gave $20,000 worth of goods for most of the land in Ohio.

WASHINGTON’S WARNING -served two terms but refused another -political fighting had already begun (Federalist vs. Democratic-Republicans) -2 Warnings from Washington’s Farewell Warnings 1.) no political parties * Warns of the division of Factions -no involvement in foreign affairs * ”Steer clear of Permanent Alliances” with other nations

Hamilton I like big Banks and I cannot lie Education is the key to the BEST Government. If you can’t read this, you shouldn’t be operating our Gov’t. Jefferson Support your local Farmer Keep your money local: Support State Banks. Support the masses: Farmers