1. The First Administration
First federal administration was in office by the spring of 1789
First federal capital was located in New York City
The first years under the new federal Constitution were especially important
It shaped the structure of the America in ways that would be enormously significant for later generations

2. The First President 1788, Elected unanimously; John Adams VP
69 electors cast 2 votes each
GW got one from every elector
Adams got 34 of the second votes (Jay 9, Hancock 4)
Inaugurated April 30, 1789 – New York
Crowds thronged the roads from VA to NY
Feels the burden of the responsibility of being first
Stressed dignity/respectability of office
“Washington was less brilliant than Hamilton or Jefferson, but he was wiser….he understood POWER.”
Election of 1788
69 electors cast 2 votes each
GW got one from every elector
Adams got 34 of the second votes (Jay 9, Hancock 4)
By 1789, enough congressmen elected and in NY to commence operation under Constitution.
Trip to NY for inauguration: crowds everywhere
1st pic - First in Peace, Representing the Arrival of General George Washington at the Battery, New York, April 23, 1789, Engraved by John C. McRae, 1876.
2nd pic – inauguration at Federal Hall, NY

3. Presidential Power according to Washington:
Strong belief in separation of powers – would not tread on Congress
Veto should be used only if P believes the bill is unconstitutional
Established a cabinet for advice
sets a precedent
Exists today despite no constitutional authority

4. The Cabinet Sec. Of Treasury Sec. Of State Sec. Of War
Hamilton
Sec. Of State
Jefferson
Sec. Of War
Henry Knox
Attorney General
Edmund Randolph

5. The Federal Court System
The only federal court mentioned in the Constitution was the Supreme Court
Congress given the power to create other federal courts w/lesser powers, as well as determine the number of SC justices
Judiciary Act of 1789
One of Congress’ 1st laws passed
1 SC Chief Justice & 5 Assoc. Justices
SC empowered to rule on the constitutionality of decisions made by state courts (judicial review)
Provided a system of 13 district courts & 3 circuit courts of appeals
John Jay becomes first Chief Justice

6. Hamilton’s Financial Program
One of the most pressing problems facing the country was the debt it incurred during the Revolution
Sec. of Treasury Hamilton proposed the following remedies:
Pay off the nat’l debt & have the fed. gov’t assume war debts of the states
Protect the nation’s industries & collect revenues by imposing high tariffs on imported goods
Create a nat’l bank for depositing gov’t funds
Support came mainly from northerners
Anti-Federalists typically opposed the program
Feared that the states would lose power to the extent that the central gov’t gained it
Sec. of State, Thomas Jefferson, believed that it only benefited the rich at the expense of the indebted farmers

7. CONTROL OF GOVERNMENT HAMILTON jEFFERSON Strong Central Government
Controlled by the wealthy – “the rich, well-born, & able”
Distrusted commoners – “unruly mob”
Strong states’ rights & individual rights
Controlled by common people; common people are decent & reasonable
CONTROL OF GOVERNMENT

8. View of Constitution HAMILTON jEFFERSON Loose Constructionist
Believes national government can and should stretch its powers
Believes in heavy use of implied powers
Strict Constructionist
Can only use implied powers when absolutely necessary
Strict, literal interpretation
View of Constitution

9. Assumption of States’ debt
HAMILTON
jEFFERSON
Felt nat’l gov’t should assume (cancel out) the debts of the states
Reasoned that all the states had fought for the entire nation & nat’l gov’t should assume their debts
Objected since most of the Southern states had already paid their debts to the nat’l govt’
Reasoned that Northern states also have to pay their obligations
Assumption of States’ debt

10. The Compromise Southern states would approve the assumption bill
US capital would then move from north to south
Move from NY to Philadelphia for 10 years
Then move to new federal city being built in S between VA & MD

11. The National Bank HAMILTON JEFFERSON (loose) favors
Believes implied powers of elastic cause gave Congress the right to create one
(strict) greatly opposed
Feels it is unconstitutional since no power to do so was specifically given to Congress in the Constitution

12. Hamilton’s Report on Manufactures
Called for high protective tariffs, subsidies and awards to stimulate American manufacturing
Doesn’t pass
Many of the tariffs will be passed later though in 1792.
But points out early Federalist focus on industry

13. Hamilton’s Financial Programs
After much bargaining, Congress agreed on the following:
DEBT – Agreed to pay off the nat’l debt & assume payment of the war debts of the states
Compromise on this aspect: Jefferson agreed to support this if Hamilton would show support for moving the capital to the Potomac River
TARIFFS/TAXES – set tariff rates lower than what Hamilton had asked for
To make up for the revenue, Hamilton asked Congress to place excise taxes on particular items – Whiskey
NATIONAL BANK - The Bank of the United States
Owned privately
Not specifically in the Constitution – necessary & proper clause