George Washington ’s Presidency 9.1

Washington takes office George Washington becomes the first president in Washington’s actions and decisions would set precedent, or traditions, that would shape the future.

“No slip will pass unnoticed.” ~ George Washington

The Cabinet Established in 1789 to help shape the executive branch. Group of top executive advisors to the President. Congress voted to allow the President to dismiss cabinet without Senate approval. –This established presidential power over the entire executive branch.

Thomas Jefferson - Headed the State Department - Handled relations with other nations.

Alexander Hamilton - Headed the Department of the Treasury. - Managed nations money.

Henry Knox - Secretary of Department of War. - Handled the nation’s defense.

Edmund Randolph - Attorney General - Handled governments legal affairs.

The office of postmaster general was also established.

Court System Judiciary Act of 1789 –Established a federal court system. –States kept their laws and courts but federal courts had power to reverse their decisions. Constitution established the Supreme Court. –“Highest court in the land”

Bill of Rights Individual rights

The New Economy Government borrowed money to pay for the American Revolution. Government owed millions to other countries and American citizens. United States has to improve their finances and strengthen the nation at the same time.

Hamilton’s Plan To be able to borrow money the government had to prove they could pay it back. Hamilton proposed: –Federal government would pay off states’ wartime debts –Federal government would pay off the debt to American citizens.

Opposition Congress agreed to pay debts owed to other countries but not to American citizens. Southern states had built up less debt and most had already paid it back.

Compromise Hamilton compromised with Southern states. Nation would pay state debt in exchange the capital would move to the south. –Congress created a special district between Virginia and Maryland.

National Bank Hamilton asked Congress for a national bank- the Bank of the United States Madison and Jefferson opposed it because they believed it gave the federal government too much power. Also believed the Constitution did not give government the power.

Hamilton argued the Constitution gave the power when it gave the federal government the power to collect taxes and borrow money. Washington sided with Hamilton and the bank was created.

Tariff and Taxes Hamilton proposed high tariffs (taxes on imported goods) Congress agreed to low taxes. National taxes were imposed to pay off national debt. Several taxes were passed including one on whiskey made in the United States.

Opposition Arises Thomas Jefferson and James Madison worry that Alexander Hamilton was building a dangerously powerful government run by the wealthy. Jefferson and Madison began to organize opposition to Hamilton and his policies.