1. George Washington
Domestic Policy

2. Cabinet First Secretary Now State = Thomas Jefferson
Treasury = Alexander
Hamilton
War = Henry Knox
AG = Edmund Randolph
Hillary Rodham
Clinton
Timothy F. Geithner
Leon E. Panetta
Eric H. Holder, Jr.

3. Financial Troubles
Problem
Solution
Opposition
Resolution
Debt. The US is in tremendous debt from the Rev War. We owe 11.5 to foreign nations and 40 million to US citizens
Alexander Hamilton financial Plan US gov’t takes on debt and pays it back in full to gain confidence of citizens and foreign nations
James Madison and Thomas Jefferson – North bought most of the bonds when everyone thought was worthless, Money not going back to original purchaser.
Move Capital - From NY to DC closer to South to help offset Northerners strength in Congress

4. Problem
Solution
Opposition
Resolution
Form a bank of the US – need something to manage debts, control coining of money, salaries
The Bank of the US
There is no authority to manage such a large debt and collect debts (not Enumerated)
James Madison and Thomas Jefferson – they claim it is unconstitutional because no where in the Constitution does it say that the president has the authority to create such a thing
Implied Powers –says it falls under the Elastic Clause. Creating the Bank is a necessary for them to carry out the major functions of the federal gov’t – paying debts, raising armies, etc

5. Problem
Solution
Opposition
Resolution
Whiskey Rebellion
Federal gov’t needed to establish it right to impose taxes. Place tax on Whiskey in Upset Western farmers who used whiskey in bartering since they did not have access to banks. Revolt begins in the summer of 1794
Do not mess with the president the act show the American people that rebelling against the government will be dealt with And the rule of law will be upheld
Show of Force
Hamilton urges to show authority of the federal gov’t sends 15,000 troops to crush rebellion
Many begin to worry about a gov’t that would use troops against its own people