Launching the New Government Chapter 9

Washington takes Office Lesson 1

I. Washington’s First Steps Inaugurated in NYC on April 30, 1789. Constitution did not set up how President was supposed to run day-to-day operations of the country. Washington had to set the precedent. Only served 2 terms and did not run for a 3rd. “There is scarcely any part of my conduct which may not hereafter be drawn into precedent.” - President Washington

D. The first Cabinet 1. The Constitution said little about how to organize the Executive Branch. In 1789, the first Congress created 2. Five executive departments. a. State Dept.- Thomas Jefferson b. Treasury Dept.- Alexander Hamilton c. War Dept.- Henry Knox d. Attorney General- Edmond Randolph e. Postmaster General- Ben Franklin (Chose well known leaders to serve)

a. Supreme Court set up:1 Chief Justice; 5 Associate Judges E. The Federal Court System 1. 1789- Congress passed the Judiciary Act. a. Supreme Court set up:1 Chief Justice; 5 Associate Judges b. John Jay was named the 1st Chief Justice of the U.S c. Also set up a system of district courts and circuit courts across the nation. d. Today we have 1 Chief Justice and 8 Associate Judges

II. Reducing the National Debt The big Problem facing the new administration was the National Debt from the Revolutionary War. Both Federal and State governments had borrowed money from foreign countries and individuals. Government borrowed money by issuing bonds. 1. Government would sell citizens and countries bonds for a certain amount of $$ and promised to pay back the bond + interest.

D. Hamilton’s plan Believed that the Federal Govt. should pay off Federal AND state debts. Federal Government would buy back the bonds issued by both before 1789. Would issue new bonds in place of the old ones and pay off the new ones a little at a time as economy improved. E. Debating Hamilton’s plan 1. James Madison argued that this plan would reward speculators. 2. Hamilton realized it was a risk that had to be taken. 3. If all the debt was not paid off, the US would lose investors in the future.

Southerners wanted the Nation’s capital to be built in the South. 3. Most southerners did not like the plan either, but Hamilton used what they wanted to get his plan passed. Southerners wanted the Nation’s capital to be built in the South. Hamilton would support this if they supported him Capital would not be a part of a state, but built on land between Virginia and Maryland. Named: District of Columbia (or D.C.)

III. Building an Economy A. Hamilton asked Congress to create a National Bank. 1. Bank of the United States established in 1791 2. Put money in from taxes 3. Issue paper money to pay bills 4. Loaned farmers and businesses money- encouraged economic growth B. Hamilton wanted a tariff (tax) passed on foreign goods to help manufacturers. 1. High enough to make foreign goods more expensive than domestic goods. 2. Northern states in favor because of their many factories. 3. Southern states didn’t like it because they imported more goods.

IV. The Whiskey Rebellion To raise money for Treasury, Congress placed a tax on all liquor made and sold in the US. B. 1794- farmers rebelled against the tax, testing the strength of the new government. 1. Marched while singing revolutionary songs 2. Tarred and feathered tax collectors C. Washington responded quickly by sending the militia in to stop the rebellion 1. Farmers fled to their homes hearing that 1000 militia were on the way

3. Washington believed that this proved the strength of the Govt. 2. Hamilton wanted the leaders of the rebellion to be executed, but Washington pardoned them. 3. Washington believed that this proved the strength of the Govt. D. The Whiskey Rebellion proved that the government would take a firm stand in times of crisis. E. Americans also learned that if they disagreed with the government, violence would not be tolerated.