The Creation of Political Parties Hamilton v Jefferson The Creation of Political Parties

Washington elected President Washington was unanimously elected as 1st President of the US (only time ever) Inaugurated April 30, 1789 in NYC (Capitol of the US) John Adams was his VP (VP was runner up in elections) Washington knew his every move would set a “precedent” for the presidency

Washington’s new gov’t Presidential Cabinet What would he be called Article 1 Section 9.8 Titles of Nobility No title of Nobility shall be granted by the US Mr. President The Founders left matters up to Congress Federal Judiciary Act of 1789 Created the Supreme Court Washington appointed John Jay 1st Supreme Court Justice

Washington’s new gov’t cont. Washington's Cabinet- advisors to the President Secretary of War- Henry Knox (War hero along side of GW) Secretary of State- Thomas Jefferson (France) Secretary of Treasury- Alexander Hamilton Attorney General- Edmund Randolph

The Nation’s Finances War Debts US borrowed millions from Spain, France and Netherlands during American Revolution Owed Private Citizens Government issued bonds- certificates that promise payment plus interest Why was it important t pay of debt? Win respect of both foreign nations and own citizens Shows that the US is responsible with money If they paid debt, other countries would then do business with the US

Hamilton’s Proposal 3 Step plan to improve the nations finances to strengthen the national government: 1. Pay off all war debt 2. Raise government revenues 3. Create a national bank Also wanted the national government to pay off the states war debts Hamilton asked Jefferson to help to gain Southern support In return the capital was moved to Virginia Present Day Washington DC

Hamilton’s Views Creating a strong national government Favored tariffs- a tax on imports Purpose Raise money for the government Encourage growth of national business Favored the National Bank A safe place for Gov’t to place its money Could make loans to business and government Issue a common currency (paper money)

Hamilton’s opponents Against the National Bank Argued that the bank would encourage an unhealthy relationship between the gov’t and wealthy business interests Argued that since the Constitution does not give powers to create a bank, they can’t do it (Strict Interpretation) Hamilton used the Elastic Clause Congress has the authority to do whatever is “necessary and proper” to carry out its specific duties, such as regulation commerce

Political Parties Emerge Hamilton (Federalists) Jefferson (Democratic-Republicans) Loose Interpretation of the US Constitution Strict Interpretation of the US Constitution Favored Tariffs Against Tariffs Favored Wealthy Business Owners in the North Favored Farmers in the South Favored the National Bank Against the National Bank