The Federalist Era The New Government Begins!

Where were we… Under the Constitution, the U.S. developed & prospered for the first 35 years. Feelings of nationalism grew as the country built a long-lasting government Nationalism: feelings of loyalty to one’s country Can you think of another word for nationalism?

George Washington 1st President of the U.S. Who was the V.P.?

April 30, 1789 Inauguration: ceremony at which the President officially takes his oath of office. #1

G.W. paves the way As the 1 st president, G.W. knew that he was setting an example for future presidents. A precedent is an act or decision that sets an example for others to follow. #3

Presidential Precedents … G.W. chose not to run for President for a 3 rd term. The 2-term limit stood until 1940 when F.D.R. was elected to 4 terms!  2 22 nd Amendment set 2 term limit #3

Presidential Precedents Congress created 5 executive departments called the Cabinet to advise G.W. in running the country. G.W set the precedent appointing well-known advisors to the Cabinet. Secretary of State: Thomas Jefferson Secretary of Treasury: Alexander Hamilton Secretary of War: Henry Knox Attorney General: Edmund Randolph Postmaster General: Samuel Osgood #4, 5

the Judiciary Act of 1789 the Judiciary Act of 1789 Judiciary Act: the Supreme Court would have 1 Chief Justice & 5 Associate Justices. The Constitution called for a Supreme Court, but Congress created & organized the lower federal court system. #6, 7

still more ~ Presidential Precedents… G.W. named John Jay the 1 st Supreme Court Chief Justice. #8

The National Debt One of the biggest problems facing the new nation was the national debt: the total sum of money a government owes to others. The federal gov’t & the states needed money to pay soldiers & buy supplies. The gov’t borrowed money from foreign nations and individuals by issuing bonds. #9

No! Not that one! Bond: a certificate that promises to repay the money loaned plus interest on a certain date. #10

National Debt By 1789, most Southern states had paid off their debt. Hamilton (G.W.’s Sec. of the ______) insisted that all the other states and the federal government do so as well. After all…. Who would lend money to the US in the future if it couldn’t pay off its old debts?

Hamilton’s plan to pay off the National Debt: Hamilton’s plan to pay off the National Debt: 1) Buy back all old bonds issued before ) The National gov’t will pay off debt owed by the states. Hamilton planned to sell new bonds to pay off the old debt. He thought that when the economy improved, the government would be able to pay off the new bonds. #11

Opposition to Hamilton’s Plan Opposition to Hamilton’s Plan Many people, like bankers and investors, loved Hamilton’s plan. James Madison opposed the plan because: - most southern states had repaid their debt & he thought other states should too. - the plan rewarded speculators. Speculator: someone willing to invest in a risky venture in the hope of making a large profit #12,13

Because people needed cash to survive, they would sell their bonds to speculators at a very low price. When & if the gov’t paid the bonds back in full, the speculators made mega bucks! CHA-CHING! Why all the fuss about speculators?

Hamilton’s Compromise Hamilton knew that many Southerners wanted the nation’s capitol moved from New York to the South. Hamilton convinced Northerners to move the capital to the South to gain their help & get his plan passed! #14

The Capitol was moved from NY to PA to the District of Columbia on the Potomac River between Virginia & Maryland. #15

U.S. Capitol building, drawing and design by William Thornton, 1792 After renovations & the new dome in 1865

Washington City, making anew dome, 1861

The NATIONAL DEBT as of 4/27/11: National debt in 1792 $80 million The estimated population of the United States is 311,244,772 - each citizen's share of this debt is $46,037 per citizen & $128,786 per taxpayer The National Debt has continued to increase an average of $4.05 billion per day since September 28, 2007! 14,330,522,000,000

National Bank Strengthening the Economy: the National Bank Congress passed a bill setting up the Bank of the United States in The gov’t deposited $$ in the bank. The bank issued paper money and gave loans to farmers and businesses, helping them to expand.

Strengthening the Economy: a Protective Tariff Hamilton wanted to give the nation’s industries a boost He wanted a tariff on all imports. TARIFF: tax H ow would tariffs help boost industries? #16

ALEXANDER HAMILTON’S PLAN 1. 1.Buy old bonds/sell new ones 2. 2.Pay state debt 3. 3.Protective tariff 4. 4.Create national bank 1. 1.South already paid off debt 2. 2.Worried that speculators would profit on the poor JAMES MADISON’S COMPLAINTS 1. 1.Move capital to Washington D.C Pay state debts COMPROMISE Name: ________________________

If imported goods were more expensive than the ones at home then people would buy domestic (U.S.) goods!! Because this tariff would protect American industry from foreign competition, it was called a protective tariff. #17

North vs South North agrees with the protective tariff because they had much more factories & manufacturing. South opposes the protective tariff because they import a lot of goods & their products would cost more. #18

The Whiskey Rebellion Congress taxed all liquors made and sold in the United States. This angered backcountry farmers who made whiskey from the corn they grew because it was easier to transport barrels of whiskey to markets east! #19, 20

A critical test for the new government Angry farmers rebelled…. they tar & feather the tax collector! G.W. sent 15,000 troops to break up the rebellion. G.W. showed violence will not be tolerated! The rebellion tested the strength of the new government as G.W. showed it would act firmly in times of crisis! #21