Washington Becomes President Forging the New Republic Chapter 6, Section 1

Organizing the Government February 1789 – Washington becomes president and John Adams becomes vice president

Washington Chooses a Cabinet Washington would set precedents as the first president Created executive departments which became known as the president’s cabinet First three departments were: state, secretary, and war

Washington’s Cabinet Secretary of War: Henry Knox, was in charge of weaponry in the Revolutionary War Secretary of State: Thomas Jefferson Secretary of the Treasury: Alexander Hamilton Attorney General: Edmund Randolph was the President’s legal advisor

Two Parties Federalists: Jeffersonian Republicans: Led by Hamilton Strong central government Prospering cities, business, a role in world affairs Jeffersonian Republicans: Led by Jefferson and Madison More rural than urban A good deal of power left to the states

The First Congress Came up with Judiciary Act of 1789 Structure of federal court system Six person supreme court One chief justice and five associates John Jay first chief justice Also created district courts and courts of appeal

Settling the Nation’s Debts New government owed money to foreign nations, private lenders, and former soldiers Hamilton comes up with an economic plan

Hamilton’s Economic Plan Wanted federal government to take on all debt from the Revolutionary War Raise money to pay the debt Wanted to establish a national bank Control credit Make loans to the government

Hamilton’s Economic Plan

Imposing New Taxes Constitution gives Congress the power to tax Hamilton proposes two new taxes: Tariff of 1789: a tax on imported goods Excise Tax: a tax on the production or the sale of a certain product 1791 the tax was on liquor, sugar, snuff (fine ground tobacco), and carriages Very unpopular

Plan to Pay Off State Debts Hamilton’s plan to pay off state debts was controversial Northern states had greater debts than southern states If national government takes over all state debts, people in the south would be paying taxes to pay off northern debts

Compromise Leads to New Capital Jefferson, Hamilton, and Madison come up with a compromise Capital will be moved from Philadelphia (North) to Federal City (South) by 1800 In return, southerners in Congress will allow Hamilton’s debt bill to pass

Debating a National Bank National Bank most controversial part of Hamilton’s plan Debate between Federalists and Jeffersonian Republicans How much power should the national government have Strict Construction v Loose Construction of Constitution

Strict v Loose Strict Construction of the Constitution: Belief that the government should only do what the Constitution specifically states it can do Loose Construction of the Constitution: Government can take reasonable actions that are not outlined in the Constitution—as long as those actions are not specifically prohibited

Hamilton’s Bank Plan Uses the “necessary and proper” clause in the Constitution to justify national bank Allows Congress to pass all laws that are necessary and proper to carry out its assigned powers Prime example of loose construction of the Constitution

Washington Signs the Bank Bill Madison, Randolph, and Jefferson all opposed the National Bank Congressed passed the bank bill and sent it to Washington to sign Washington signed the bill to charter the first Bank of the United States

The Whiskey Rebellion Farmers on the frontier in western Pennsylvania objected to the excise tax on whiskey Livelihoods depended on turning surplus grain into rye whiskey Excise tax made the farmers lose money on selling whiskey

The Whiskey Rebellion Farmers attacked tax collectors There was even talk of starting an independent nation Washington raised a force of over 13,000 men and put down the rebellion Showed the strength of the federal government

Political Parties Develop Jeffersonian Republicans v. Federalists On their way to establishing a two party system Federalists: Under Hamilton established local associations, gave political offices and other favors to their supporters Jeffersonian Republicans: Set up party organizations, worked together to influence elections (Eventually became Democratic-Republicans

Two Party System

Review Who was Washington’s Vice President? What did Hamilton want to establish? What did the Tariff of 1789 tax? Why was Hamilton’s Plan controversial?