The New Government Begins Part 1 Organizing the New Government

Making Careful Decisions The Founding Fathers wanted to make sure they did things correctly. They even spent 3 weeks deciding what to call the President!!!

Setting a Precedent Washington knew the things he did would be watched carefully and would set a precedent.

The President’s Cabinet To help him complete his duties, the president has a cabinet. The original cabinet had 5 executive departments: 1. State 4. The Attorney General 2. Treasury 5. Postmaster General 3. War

The President’s Cabinet

The Judiciary Act The Judiciary Act was passed in 1789 to set up the United States court system.

Repaying the National Debt To help raise money during the Revolution, the government had sold bonds to people. When you buy a bond, the government promises to pay back to you the money you spent, plus interest.

Many southern states had paid off their bond debts, but many northern states and the federal government had not. Alexander Hamilton, the Secretary of the Treasury, said the government should buy up all the old bonds and issue new ones. When the economy improved, the new bonds could be paid off.

Opposition to Hamilton’s Plan People such as James Madison opposed the plan because they thought it rewarded speculators who stood to make a lot of money. Southerners said they didn’t think the plan was fair, because they had already paid off their war debt.

Hamilton’s Compromise Hamilton knew many southerners wanted to move the capital of the United States closer to the South. He told the southerners that if they would support his plan for paying off war debt, he would convince northerners to move the capital toward the South.

An agreement was reached, and it was agreed to build the new capital city on land located between the states of Virginia and Maryland. They wanted the city to be done by 1800. The capital was then temporarily moved from New York to Philadelphia while the new city was being built.

Strengthening the Economy Alexander Hamilton asked Congress to create the Bank of the United States. Tax money was put here and the U.S. started paying off its debts. Money was also lent out to farmers and businesses to try and stimulate the economy.

Tariffs Another way the government tried to help the economy was to create tariffs, which are taxes on foreign goods. Northerners liked the tariffs but southerners did not. Most industries were located in the North. A compromise deal was reached.

The Whiskey Tax Led to the Whiskey Rebellion Farmers were angry about the tax placed on corn whiskey, so they rebelled. The government called out the military to put down the rebellion. This showed that the federal government could, and would use its authority.