1. Launching the New Government, 1789–1800
The American Nation
Chapter 9
Launching the New Government, 1789–1800

2. Chapter 9: Launching the New Government, 1789–1800
The American Nation
Chapter 9: Launching the New Government, 1789–1800
Section 1: Washington Takes Office
Section 2: Creating a Foreign Policy
Section 3: Political Parties Emerge
Section 4: The Second President

3. Washington Takes Office
Chapter 9, Section 1
What steps did Washington take to make the new government work?

4. Washington Takes Office
Chapter 9, Section 1
What was Hamilton’s plan to reduce the nation’s debt and build the economy?

5. The Nation’s Debt
Chapter 9, Section 1

6. Hamilton’s Plan for the Economy
Chapter 9, Section 1
The problem
The United States had a huge national debt—the total amount of money that a government owes to others. The national government and state governments had borrowed by issuing bonds—certificates that promise to repay the money loaned, plus interest, on a certain date.
The debate
Hamilton—the federal government must repay both federal and state debts by buying up the old bonds and issuing new ones. The United States must repay all debts so it won’t lose the trust of investors.
Madison—Hamilton’s plan would reward speculators—people who invest in a risky venture in hopes of a large profit. They shouldn’t make a big profit on the war. Besides, most southern states have already paid their debts. Other states should do the same.

7. The compromise
Hamilton promised to support putting the nation’s capital in the South if southerners agreed to his plan for repaying state debts.
Chapter 9, Section 1

8. Bank of the United States to encourage economic growth
The government deposited money from taxes in the Bank.
The Bank issued paper money to pay the government’s bills and make loans to farmers and businesses.
Tariff, or tax, on foreign goods
to make imported goods more expensive than American-made goods
Hamilton and many northerners wanted a high tariff to protect American goods from foreign competition. Southern farmers opposed a high tariff. Congress passed a tariff, but it was lower than the tariff Hamilton wanted.
Chapter 9, Section 1

9. Washington Takes Office
Chapter 9, Section 1
What were the causes and results of the Whiskey Rebellion?

10. Causes and Results of the Whiskey Rebellion
Chapter 9, Section 1
Causes
To raise money for the Treasury, Congress approved a tax on all liquor made and sold in the United States.
Backcountry farmers grew corn. It was easier to get their product to market if they turned their corn into whiskey first. They hated the tax on whiskey. They rebelled, marching in protest and tarring and feathering tax collectors.
Results
Washington called up the militia and sent them to put down the rebellion. The rebels fled back to their farms. The national government had shown that it would act firmly in times of crisis. It also showed that violence would not be tolerated.

11. Section 1 Assessment
Chapter 9, Section 1
To help President Washington carry out his duties, the first Congress
a) passed the Judiciary Act.
b) created the Bank of the United States.
c) created five departments whose heads made up the Cabinet of advisors.
d) agreed to place the nation’s capital near his home along the Potomac.
Hamilton thought the national government should pay off both national and state war debts because
a) it showed the government would act firmly in a time of crisis.
b) if it didn’t, it would lose the trust of future investors.
c) it was not fair for speculators to make a profit on the war.
d) it would protect local industry from foreign competition.

12. Section 1 Assessment
Chapter 9, Section 1
To help President Washington carry out his duties, the first Congress
a) passed the Judiciary Act.
b) created the Bank of the United States.
c) created five departments whose heads made up the Cabinet of advisors.
d) agreed to place the nation’s capital near his home along the Potomac.
Hamilton thought the national government should pay off both national and state war debts because
a) it showed the government would act firmly in a time of crisis.
b) if it didn’t, it would lose the trust of future investors.
c) it was not fair for speculators to make a profit on the war.
d) it would protect local industry from foreign competition.