Washington Heads the New Government Chapter 6, Section 1

George Washington

Judiciary Act of 1789 Created nation’s judicial structure System has remained largely intact Supreme Court Circuit Court – Appeals District Courts – First Level Section 25 – Allows state court decisions to be appealed to federal courts when a constitutional question arises Federal law remains the “supreme law of the land”

Creating the Executive Branch Washington had to build the Executive branch to carry out the laws passed by Congress Congress created 3 executive departments (the Cabinet): Department of State – foreign affairs Thomas Jefferson Department of War – military matters Henry Knox Department of Treasury – financial matters Alexander Hamilton

Hamilton vs. Jefferson

Hamilton vs. Jefferson Economy Federalism Hamilton: Shipping & manufacturing; Feds pay national and state debts; Create national bank Jefferson: Agricultural economy; Feds pay only national debt; National bank unconstitutional Federalism Hamilton: Strong central government led by well-educated elite; Feared mob rule Jefferson: Shared power between state and federal; Feared ruler with absolute power

Hamilton vs. Jefferson Constitution Party members Hamilton: Loose interpretation of Constitution Jefferson: Strict interpretation of Constitution Party members Hamilton: merchants, manufacturers, landowners, investors, lawyers, clergy Jefferson: the “plain” people (farmers, tradespeople)

Hamilton’s Economic Plan: Debts As Treasury Secretary, Hamilton job was to secure the nation’s finances and economy Nation and States are in debt – to foreigners and private citizens Hamilton wanted the federal government to assume states’ debts If they could pay back creditors (those who loaned money), they would support the new government Southern states had already paid off their debts, so they feared their taxes would go up to pay other debts

Hamilton’s Economic Plan: Bank Hamilton proposed establishing a National Bank to issue paper money and handle government funds Bank would be funded by taxes and money from investors Criticisms: Wealthy investors would have undue influence over gov’t Constitution did not grant right to establish bank Strict vs. loose interpretation Elastic Clause – Congress can do whatever is “necessary and proper” to carry out its enumerated powers Hamilton convinced Washington and others to establish the bank

A New Capital In order to gain support for his debt plan, Hamilton proposed the nation’s capital be moved to Washington DC Moving the capital to the south would make the government more responsive to southern interests By 1800s, the capital moved to its current location in Washington DC

Two Parties The split between Hamilton and Jefferson was part of a growing division in national politics This split gave rise to the first two political parties Federalists – strong central government Democratic Republicans – strong state governments Many feared that this political split would divide the nation Despite concerns, the two-party system was well established by the time Washington left office

Whiskey Rebellion New taxes for the new nation Protective tariff – import tax on goods produced in Europe Excise tax on Whiskey – tax on a product’s manufacture, sale, or distribution Whiskey producers were largely small frontier farmers Tax upset farmers, who rebelled in western PA Federal troops were sent in to quell the rebellion – farmers scattered – no lives lost Showed strong power and response of the new government to domestic affairs