1. Washington Heads the New Government
Chapter 6, Section 1

2. George Washington

3. Judiciary Act of 1789 Created nation’s judicial structure
System has remained largely intact
Supreme Court
Circuit Court – Appeals
District Courts – First Level
Section 25 – Allows state court decisions to be appealed to federal courts when a constitutional question arises
Federal law remains the “supreme law of the land”

4. Creating the Executive Branch
Washington had to build the Executive branch to carry out the laws passed by Congress
Congress created 3 executive departments (the Cabinet):
Department of State – foreign affairs
Thomas Jefferson
Department of War – military matters
Henry Knox
Department of Treasury – financial matters
Alexander Hamilton

5. Hamilton vs. Jefferson

6. Hamilton vs. Jefferson Economy Federalism
Hamilton: Shipping & manufacturing; Feds pay national and state debts; Create national bank
Jefferson: Agricultural economy; Feds pay only national debt; National bank unconstitutional
Federalism
Hamilton: Strong central government led by well-educated elite; Feared mob rule
Jefferson: Shared power between state and federal; Feared ruler with absolute power

7. Hamilton vs. Jefferson Constitution Party members
Hamilton: Loose interpretation of Constitution
Jefferson: Strict interpretation of Constitution
Party members
Hamilton: merchants, manufacturers, landowners, investors, lawyers, clergy
Jefferson: the “plain” people (farmers, tradespeople)

8. Hamilton’s Economic Plan: Debts
As Treasury Secretary, Hamilton job was to secure the nation’s finances and economy
Nation and States are in debt – to foreigners and private citizens
Hamilton wanted the federal government to assume states’ debts
If they could pay back creditors (those who loaned money), they would support the new government
Southern states had already paid off their debts, so they feared their taxes would go up to pay other debts

9. Hamilton’s Economic Plan: Bank
Hamilton proposed establishing a National Bank to issue paper money and handle government funds
Bank would be funded by taxes and money from investors
Criticisms:
Wealthy investors would have undue influence over gov’t
Constitution did not grant right to establish bank
Strict vs. loose interpretation
Elastic Clause – Congress can do whatever is “necessary and proper” to carry out its enumerated powers
Hamilton convinced Washington and others to establish the bank

10. A New Capital
In order to gain support for his debt plan, Hamilton proposed the nation’s capital be moved to Washington DC
Moving the capital to the south would make the government more responsive to southern interests
By 1800s, the capital moved to its current location in Washington DC

11. Two Parties
The split between Hamilton and Jefferson was part of a growing division in national politics
This split gave rise to the first two political parties
Federalists – strong central government
Democratic Republicans – strong state governments
Many feared that this political split would divide the nation
Despite concerns, the two-party system was well established by the time Washington left office

12. Whiskey Rebellion New taxes for the new nation
Protective tariff – import tax on goods produced in Europe
Excise tax on Whiskey – tax on a product’s manufacture, sale, or distribution
Whiskey producers were largely small frontier farmers
Tax upset farmers, who rebelled in western PA
Federal troops were sent in to quell the rebellion – farmers scattered – no lives lost
Showed strong power and response of the new government to domestic affairs