Objectives Discuss Washington’s 3 key domestic challenges and how they were solved. Identify changes in each branch that affect us, today. Why is our capital in Washington, D.C. (District of Columbia)?

I. The Federalist Era We have a Great Plan. It’s time to make it work.

Part A. George Washington … so unwilling am I, … To quit this peaceful abode For an ocean of difficulties Without that competency Of political skills, abilities, and inclination, Which are necessary to manage the helm …

Three Domestic Challenges Challenges 1.Shaping the Government 2.Ratifying Bill of Rights 3.Solving the National Debt

1.1 Shaping the Executive Branch Article II: Executive Departments Cabinet = Presidential Advisors Secretary of: –State –War –Treasury Judiciary Act Attorney General

The Cabinet Departments Secretary of State Thomas Jefferson Secretary of War Henry Knox Secretary of Treasury Alexander Hamilton Attorney General Edmund Randolph

The Cabinet Departments Secretary of State John Kerry Secretary of Defense Ashton Carter Secretary of Treasury Jacob Lew Attorney General Loretta Lynch

1.2 Shaping the Judicial Branch Judiciary Act 1789 Supreme Court –Chief Justice, John Jay –5 Associate Justices Power Over State Courts Lower Federal Courts –3 Circuit and 13 District Level

Today’s Supreme Court

1. 3 Shaping the Legislative Branch March 1789 New York Congressional Leadership –Speaker of the House –Frederick Muhlenberg –President of the Senate –Vice President, John Adams

2. Ratifying the Bill of Rights Sponsor: James Madison 12 Amendments 2/3 vote in September 1789 Only 10 approved by the states! the 27th Amendment

3. National Debt Definition The total amount of money the government owes on money it has borrowed. House price + Interest = $200,000 Deficit = Spending > Income $70,000 in Bills on a $50,000 Salary

War Costs $ + Economic Issues

3.1 National Debt - Then & Now 1789 Debt = $54,124,465 $1,121,080,754

3.2 National Debt: Hamilton Plan Federal Government Pays All Debts (Federal and State) Establish a National Bank Jefferson’s Objections: –Southern States Had Paid Debts –Northern Bond Speculators Effect -> Southern $ Go North

3.3 National Debt: National Bank Manage Federal Money Collect Taxes Print Money Business Loans Opposition No National Bank in the Constitution!

3. 4 National Debt: Compromise Hamilton’s Plan is Accepted –1791 National Bank Bill –Federal Government Pays State Debt Jefferson and Madison get the Capital Located in the South –Washington, “D.C.”

3.5 National Debt: Taxes Excise Placed on goods and services sold and used WITHIN the country. Tariffs Placed on IMPORTED goods. Makes foreign goods more expensive. Helps US manufacturers.

3. 6 National Debt: Tax Rebellion 1794 Whiskey Rebellion Pennsylvania Farmers Washington sent the Militia Outcome 1. Revolt Ended 2. Strengthened The Federal Government