2. Launching a New Republic 1789 through 1800 Washington’s Presidency The President and the Congress begin to set up the new government

3. Objectives 1.To explain how the nation’s court system was established. 2.To describe the President’s first cabinet 3.To analyze Hamilton’s financial plans

4. George Washington’s Presidency April 30, 1789 Washington (Virginia) is inaugurated (sworn in) as President. John Adams (Mass.) becomes the Vice- President.

5. Washington takes office George Washington is inaugurated in New York City the first capital on April 30 1789 Washington was unanimously chosen by the electoral College Washington’s vice president was John Adams Washington knows every action he takes as president will be a precedent set for others Congress agrees to call Washington “Mr. President”

6. George Washington is Inaugurated as 1 st President of the U.S. at Federal Hall, New York on April 30, 1789 George Washington Video

7. Setting up the courts Congress passes the Federal Judiciary Act 1789 This act gave a supreme court six members –1 Chief Justice: John Jay –5 associate justices It also provides for lower federal courts –District courts –Circuit courts John Jay

8. Washington’s cabinet Congress creates three departments to help the president: 1.War Department - oversees the nation’s defense, Secretary of War Henry Knox 2.State Department - oversees diplomatic relations with other nations, Secretary of State Thomas Jefferson 3.Treasury department - manages the U. S. finances, Secretary of Treasury Alexander Hamilton Attorney General - gives legal advice, Edmund Randolph Postmaster general - Samuel Osgood Secretary of State Thomas Jefferson Secretary of War Henry Knox

9. The First Presidential Cabinet 1.Secretary of War (Henry Knox) oversee the nation’s defenses.

10. 2.Secretary of State (Thomas Jefferson) oversee the relations between the U.S. and other countries. The First Presidential Cabinet

11. 3.Secretary of the Treasury (Alexander Hamilton) to manage the government’s money. The First Presidential Cabinet

12. 4.Attorney General (Edmond Randolph) to advise the government on legal matters. The First Presidential Cabinet

13. Economic problems By 1789 the US had a huge national debt of $52 million The US must pay back debt to gain the respect of other countries Alexander Hamilton’s financial plan shows his belief in: –Strong central government –Government encouraging business, industry –Pay debt to nations wealthy, gain their support for government Secretary of Treasury Alexander Hamilton

14. Hamilton’s Financial Plan Bonds-the government borrows from its private citizens and gives them a paper promising to repay the loan at a certain time with interest Speculator-person who bought bonds at a low price from people who thought the government would not pay Alexander Hamilton proposes a three-step financial plan to Congress 1.Pay off all war debt Buy up all the old national bonds issued before 1789 Buy up all the state bonds (together this totals $80 million)

15. Hamilton’s financial plan 2.Raise government revenues Impose tariffs (tax) on imports Raises money for US government Encourage growth of US industry Encourage people to buy American goods

16. Hamilton’s financial plan 3. Create a national bank Safe for government investments Bank makes loans to businesses Bank issue money

17. Opposition to Hamilton’s plan Led by James Madison & Thomas Jefferson Many Southern states had paid off their debt and did not want to pay off northern states debts also Southerners thought that northern speculators would get rich by buying up bonds Southern states did not like a tariff because they had few factories and this meant they would pay higher prices for goods..

18. Compromise If the Southerners voted for Hamilton’s plan he would push for a national capital in the South 1790 Hamilton’s financial plan is approved and the national capital is moved to an area between Maryland and Virginia along the Potomac River called the district of Columbia Financial plan for Southern capital Video Compromise Video

19. IV.Debate on Interpretation of the Constitution STRICT CONSTRUCTION: only what the Constitution clearly states – favored by Jefferson and Madison. LOOSE CONSTRUCTION: the Constitution should be flexible to meet the needs of the country (Elastic Clause) – favored by Hamilton and Adams.  Jefferson and Hamilton argue these points on the creation of the National Bank.

20. Interpreting the Constitution Thomas Jefferson and James Madison argued that the National Bank was unconstitutional They claimed the Constitution does not allow for a national bank Alexander Hamilton had a more flexible interpretation of the Constitution Hamilton claims the elastic clause in the constitution, “necessary and proper”, gave Congress the power Hamilton persuades Washington to approve the National Bank in 1791

21. V.Major Events During Washington’s Presidency B.The Whiskey Rebellion (1794) PA farmers refused to pay the tax until the American army enforces it. This upholds the power of the new federal government.

22. V.Major Events During Washington’s Presidency C.The French Revolution (1789-1793) the French people overthrow the French monarchy by executing King Louis XVI. Neutrality – the U.S. would not side with any European country in wartime.

23. V.Major Events During Washington’s Presidency A.Battle of Fallen Timbers (1794) the American army defeats a confederation of Indians over tension in the Northwest Territory. Treaty of Greenville (1795) 12 tribes cede much of present-day Ohio and Indiana to the U.S. government.

25. V.Major Events During Washington’s Presidency D.Pinckney’s Treaty (1795) Spain gave the Americans the right to freely travel on the Mississippi River and use the port of New Orleans.

26. VI.Washington Retires  Established the precedent of only a two-term presidency, which becomes the 22 nd Amendment in 1951.

27. 1.Explain how the nation’s court system was established? 2.Describe the President’s first cabinet? 3.Describe Hamilton’s financial plan for the nation?