“I walk on untrodden ground”

George Washington was inaugurated (or sworn in as) President in April of 1789 His Vice-President was John Adams. New York City would serve as the nation’s first capital under the Constitution. Washington faced a difficult task everything that he did would be watched. His actions as the first president would set precedents (or examples) for all those that followed him.

Articles One and Three of the Constitution allowed Congress To establish the Federal Court System. The first Congress did this through the passage of the Federal Judiciary Act of 1789 Setting up the Courts

Congress established three departments to help President Washington run the country. Washington chose talented people to run these departments. Secretary of State:Thomas Jefferson Secretary of War:Henry Knox Secretary of Treasury:Alexander Hamilton Washington chose Edmund Randolph as his Attorney General to advise him on legal matters.

The United States faced huge financial problems. The national debt from the Revolutionary War and after was more than $52 million dollars. Alexander Hamilton as head of the Treasury Department had to come up with a plan to get the country’s finances in good shape.

U.S. debt from 1790 in today’s dollars, comparing wages of unskilled work force, is equal to: $25,100,000,

Alexander Hamilton’s Financial Plan

Hamilton’s Plan: Alexander Hamilton knew that the new government needed to pay off all debts in order to obtain credit and respect from other countries. He proposed a four point plan: 1.The national government would pay off all foreign and national debt. 2.The national govt. would assume and pay off all state debts. (another 21.5 million in debt) 1.Charge an excise tax on whiskey in order to raise funds. 2.Establish a federally chartered Bank of the United States.

1.Be a deposit for all federal funds 2.Receive tax funds paid by the people (IRS) 3.Loan $ to the government and business aiding in the dev. of the economy 4.Issue paper money backed by hard currency (gold based) A National Bank would:

Jefferson was in favor a “strict interpretation” (construction) of the Constitution. Hamilton was in favor of a “loose interpretation” of the Constitution. “The Elastic Clause”

On page ______ in your ISN, you need to compare and contrast Alexander Hamilton’s plan to aid the economy of the U.S. in 1789 with the federal bailout of 2008/2009. You may write a paper (one page), create a content frame or Venn diagram or any other approved method of comparing two items. This needs to be complete and in your ISN by Monday, January 12 th.

You need to create an illustration of George Washington on page ________ in your ISN. This illustration should point out the problems that he faced as our first president of the United States. You can use thought bubbles or illustrations.