1. Plotting the Course of the New Government:
The Washington Administration

2. The First Congress Convened March 4, 1789 in NYC
Only 8 Sens. & 13 Reps. showed
Took a month before there was a quorum (minimum to conduct business of Congress - a majority)

3. President Washington Unanimous electoral vote
Took office April 30,1789 in NY
John Adams elected as VP
10 states voted (RI & NC had not ratified the Const. yet & NY didn’t have electors selected in time)
Made triumphant 8-day journey to NY from Mount Vernon

4. Washington 57 at time of election 6’2” Wore dentures of varying types
Quiet, dignified
A poor & nervous speaker
Distant relative to Queen Elizabeth II, Robert E. Lee, & Winston Churchill

5. Washington
People universally confident in him
He felt burdened with the job - bore the weight of expectation
“I face an ocean of difficulties, without the competency of political skill, abilities, and inclinations which is necessary to manage the helm.” - Washington

6. Washington Created presidency as he went Each move set a precedent
Stressed symbolic ceremony to bring dignity & respect to the office
Congress created executive departments & GW made cabinet appointments

7. The Departments & Leadership
Department of State
Sec. of State - T. Jefferson
Department of Treasury
Sec. of Treasury - A. Hamilton
War Department
Sec. of War - Henry Knox
Attorney General Edmund Randolph

8. The Cabinet
Secretaries of these departments were the origin of the presidential cabinet
Cabinet an advisory body - not mentioned in the Constitution
Const. did provide for heads of departments
GW relied heavily upon his Cabinet

9. Office of the Vice President
Washington minimized role of VP
Adams played little role in the running of the govt.
Adams referred to his position as “the most insignificant office” ever created

10. Some problems to start with...
No bureaucracy to do the work of government
Foreign office consisted of 3 men
National treasury had little $ and a high debt
Army had only 692 men & no real navy

11. The Courts
Congress created effective courts under the Judiciary Act of 1789
Judiciary Act organized the Supreme Court with a chief justice & 5 associates
Established federal district & circuit courts
Created office of Attorney General

12. 1st Chief Justice John Jay (NY)
Collaborated w/ Madison on Federalist Papers
A seasoned diplomat
Served as CJ until 1795

13. National Revenue Problems
Revenue = the govt’s biggest need
Congress enacted a tariff intended to raise $ and protect domestic manufacturers from foreign competition
Tariffs were to get country on a sound financial basis

14. Hamilton
Washington’s Sec. of Treasury - he seized the initiative to take control of the nation’s finances
Ambitious, quick-witted, energetic, and determined
A born leader - recklessly fearless
Charming but vain & quick- tempered
Reluctant to forgive, impatient with critics & intolerant of error

15. Hamilton Country needed his drive & brains
Submitted series of reports to Congress from 1/ /1791 outlining his programs for finance and economic development
Most of his programs adopted

16. Hamilton’s Financial Program
Payment of the Foreign Debt
To restore credit abroad
Payment of Domestic Debt
Pay off bonds at face value with new govt. securities
Fed. govt. to assume all state debts

17. Hamilton’s Financial Program
Fed govt. would pay domestic debts “at par” = face value + accumulated interest
Many (soldiers, farmers) had sold original bonds for fraction of value to speculators to get quick $
Current holders would make a profit at expense of original holder

18. Criticism of funding the debt
Advocates for original holders argued for reimbursement of loss
Hamilton argued that speculators paid what market allowed at the time, risking their own loss. They should reap the benefit.
Hamilton said plan was necessary to restore govt. credit - Congress passed it

19. Assumption of State Debt
Most states borrowed to finance the war - therefore a national debt
Hamilton thought it would strengthen ties of states to Fed govt.
Would shift attachment of wealthy creditors from states to Fed govt.
Hamilton wanted support of rich

20. Assumption of State Debt
Congress passed the measure with a deal
Southern states opposed the plan because they had already paid debts - called others irresponsible
Congress agreed to locate the new federal capitol in the South in return for passage of the plan

21. Establishment of a National Bank
Bank would hold govt. funds
Circulate uniform natl. currency
Lend $ to the govt.
To be privately owned & managed
U.S. would have 20% ownership
Wealthy biz interests - 80%
Proposal caused huge debate

22. Bank of the U.S. Jefferson opposed the bank
Not authorized in the Constitution
Powers not granted to Federal govt reserved for states (soon-to-be 10th Amendment)
States should charter banks
A strict interpretation of the Constitution

23. Bank of the U.S.
Hamilton invoked “necessary & proper” clause which allowed Fed to pass laws necessary for running govt. (Article 1, Sec. 8, par. 18)
A loose interpretation
GW accepted H’s argument and signed the measure into law
Becomes a sectional rift - N vs. S
Hamilton’s financial programs contributed to creation of political parties

24. Taxes Congress approved the proposal of an excise tax on whiskey
An internal tax on production & consumption
Falls hardest on Western PA farmers - distilled grain easier & cheaper to ship - brought in better $
Leads to a rebellion by PA farmers

25. Whiskey Rebellion
Tax viewed as an undue burden & would benefit the wealthy
Farmers refused to pay & threatened collectors
8/7/ GW ordered the “rebels” to disperse & later ordered troops to PA

26. Whiskey Rebellion
Organized rebellion evaporated with federal show of force - bloodless
Several leaders arrested but pardoned to mend fences
Demonstrated federal authority & defense of law
Politically costly - Westerners throw support to Jeffersonian opposition

27. Effects of Hamilton’s Policies
Nation’s credit firmly established
Government revenue needs met
Commerce & industry stimulated
Govt. won support of influential businessmen & respect of the people
Growing sectionalism
Growing political division
Federalists vs. Jeffersonian Repubs.