1. In a separate part of your note book write a few sentences.
Do you fear, mistrust, love, hate, embrace, or not care about your government?
In a separate part of your note book write a few sentences.
May be collected later

2. George Washington and Creating the American Economy

3. Vocab Speculation Bonds Creditors Oligarchy
Gambling on the value of something
Bonds
A form of loan that lasts for a given period of time
Creditors
One who lends money to others
Oligarchy
A small group of people having control of a country

4. George Washington as President
Established the Cabinet
Secretary of War
Knox
Secretary of the Treasury
Hamilton
Secretary of State
Jefferson
Signed the Bill of Rights
Began paying off the Revolution’s debt
Defeated the Whiskey Rebellion

5. Problems Facing the Nation
Massive Debt
Total Debt in $75.6 million
Unclear Constitution
Beginning Sectionalism (division)
North East verses South and West
Federalists verses Anti-Federalists

6. Sectionalism

7. Pass the Bill of Rights Will be covered better in your Govt. class
Proposed by James Madison
Proposed 19 Bills
Narrowed to 12
Only 10 ratified

8. The Missing Two?
Make sure that there were plenty members of the House of Representatives
Would allow more representatives
Smaller constituencies
Less oligarchy
Would not let congress give themselves a raise until after the term they are serving
Was eventually passed as the 27th Amendment in 1992

9. Massive Debt Had to pay for the Revolution
Bonds issued to citizens and foreign nations
During Revolution
Some poorer people sold bonds to speculators
Some argued that we should wipe the slate clean
Hamilton fought for paying the debt off
Thought it would give the new nation credibility
We have paid every debt we have ever accumulated

10. Getting Started Paying the Debt
Tariff of 1789
Put a tax on imported goods
Raised the cost of imported goods
Effected southern agricultural states negatively
Angered Europeans who raised tariffs as well

11. Should the government follow the Constitution’s instructions perfectly, or loosely?

12. Hamilton’s Financial Program
Value of bonds issued during the Revolution had fallen to 10% of their initial value
Many poorer people sold their bonds for a loss to speculators
Most bond owners were northerners
Wanted to create faith in the US govt. to pay off debts

13. Hamilton’s Reform Passes
Southerners were opposed to it because the north held the majority of the debt
Passed through compromise
Moved the capitol to Washington DC in the south
Succeeded and earned big investments in the new nation from foreigners

14. Next Step Establish a national bank
Modeled after the Bank of England
Would issue paper money
Would allow people to use their money across state lines
Give people a stake in their government
Help collect taxes, regulate trade, raise money for defense
Be a bank for banks
Hamilton saw as an implied power in the constitution

15. Bill Passes Congress Signed by George Washington in 1791
Called the “Bank of the United States”
Was successful in paying the debt and stimulating the economy
Given a 20 year charter
Not reinstated in 1811

16. What does the Constitution let you do?
Enumerated Powers
Implied Powers
Specific powers spelled out in the constitution
Raise taxes, pay debts, maintain defense
A limited view towards the constitution
Conservative, pass fewer laws, more personal freedom
In the constitution,
“to make all laws which shall be necessary and proper.”
Not spelled out, but may need to be done
An expansive view towards the constitution
Liberal, pass more laws, more government “protection”

17. The Whiskey Rebellion
To help pay for debts after the Revolution, the US used a “Sin Tax” on whiskey
Whiskey was the cheapest way to get grain to market
Jars of liquor or bales of raw product
Farmers in West Pennsylvania retaliate
Attack tax collectors, stop courts, robbed the mail

18. Washington is Furious Goes with an army of 15,000 to crush rebellion
Rebels scatter with out fight
Public is worried about possible tyrannical government
2 convicted of treason but pardoned by Washington
Could have been the beginning of a slippery slope

19. Hamilton & the Federalists
Hamilton wanted a strong Govt.
Did not trust democracy
“The people are turbulent and changing; they seldom judge or determine right.”
Alexander Hamilton
Strong support in North East

20. Jefferson & the Republicans
Strength in farmers over commerce
Land ownership would lead to people who will fight to save the Republic
Yeoman Farmers
Strong support in South and West

21. Homework
Write one paragraph (5 sentences) stating your opinion on the enumerated and implied powers of the Constitution.
Do you think Congress should step beyond the Constitution or not?
Write another paragraph in response to Hamilton’s quote about “the people.”
Do you think people can vote constructively, or need to be governed?