1. Washington’s First Term 1789-1793
The New Republic
Washington’s First Term

2. The First Election
Elections held in Nov for 1st Congress & POTUS
George Washington ( ) unanimously elected
John Adams elected VP
Gov. begins on Mar. 4, 1789 in New York City

3. The First Congress First Congress meets in 1789 Tariff Act of 1789
Frederick Muhlenberg elected as Speaker of the House
65 House members
26 Senators
Tariff Act of 1789
to pay for government
Main source of government revenue until 1913

4. Establishing the Courts
Judiciary Act of 1789
Created the Federal Court System
Set the number of Supreme Court Justices at 6
John Jay was appointed as the first Chief Justice
Created the office of Attorney General
Edmund Randolph

5. Protecting our Liberty
Passed the Bill of Rights
First 10 Amendments to the Constitution
Promised to Anti-Federalists
Written by James Madison

6. The Executive Departments
Congress created three Executive Departments
Purpose to aid the President do the largest jobs of the executive branch
Headed by a Secretary

7. The President’s Cabinet
Department of State
Foreign relations
Thomas Jefferson as Sec. of State
Department of Treasury
Collects taxes & pays nations’ bills
Alexander Hamilton as Sec. of Treasury
Department of War
Small military (1,000 men)
Henry Knox as Sec. of War
Washington held regular meetings with the three Secretaries and A.G. Edmund Randolph to seek advice
Became his Cabinet
Most trusted advisors
Established a Precedent that Washington’s successors followed

8. Hamilton Takes the Lead
Hamilton feels the U.S. must become stronger economically
Like England
Developed Hamilton’s Financial Plan to build the American Economy
Improve public credit
Establish a national banking system

9. America’s Credit Necessary to fix the credit of the United States
U.S. was deeply in debt
Possessed the world’s worst credit rating
Hamilton saw as the highest priority

10. Hamilton’s Debt Plan Called the Report on the Public Credit (1790)
Pay off the national debt at “par” or full value
Would exchange government backed bonds for old debt
Bonds bought by investors
$54 million
Debt Assumption
the national government assumes the debts of the states
Another $25 million

11. A “National Blessing”
Hamilton believed this would strengthen the U.S. by gaining support for the gov. from the upper class
Wealthy would buy the bonds and own the national debt
“would tie the wealthy and the government together”

12. “A National Curse”
opposed by James Madison & other southern Congressmen
Would make the national government too strong
Give too much power to the wealthy
Unfair because southern states had paid off most debt

13. The Compromise Jefferson arranged the Compromise of 1790
allows the plan to pass Congress
Madison/Southerners agreed to accept debt assumption
Hamilton agreed to support moving the national capital to the a southern city by 1800
U.S. has the world’s highest credit rating by 1810

14. The Bank of the United States
In 1791 Hamilton releases his Report on Manufactures
Wants the U.S. to be an industrial nation like England
Proposes the creation of the Bank of the United States to stimulate economic development

15. Why a Bank?
Do for the U.S. what the Bank of England did for the British
Would hold tax money
Print paper money backed by deposits
Make commerce easier
Loan money to start businesses

16. The Opposition Opposed by Jefferson and Madison
The Bank was unconstitutional
Made the government too powerful

17. Washington’s Decision
Hamilton argued that the bank was Constitutional because of the necessary & proper clause (elastic clause)
Washington signs the law created the bank with a 20 year charter ( )
Jefferson resigns in protest
Major step in the development of political parties
U.S. economy starts to boom