1. Section 1: The First President
1789 Washington took the oath of office as the first president of the united states.
John Adams became vice president.
Washington knew he would shape the future of the united States by setting precedents, or traditions.

2. Congress Sets Up Departments
Set up three departments in the executive branch of government.
State Department – to handle relations with other nations.
The Treasury Department – to deal with financial matters
War Department – to provide for the nation’s defense.

3. Congress also created
Office of attorney general – to handle the government’s legal affairs.
Office of postmaster general – to direct the postal service.

4. Heads of Departments Secretary of State – Thomas Jefferson
Secretary of Treasury – Alexander Hamilton
Secretary of War – Henry knox
Attorney General – Edmund Randolph
These four people became known as the cabinet.

5. Judiciary Act of 1789
Congress established a federal court system with 13 district courts and three circuit courts to serve the nation.
Federal courts would have power to reverse state decisions.
Supreme court would be final authority.
John Jay was first chief justice. He was chosen by the president and approved by senate.

6. Hamilton faces the national debt
Hamilton’s Plan – U.S. owed money to other countries, the states, and individual American citizens. Hamilton thought the debt should be paid back.
Congress agreed to pay back other countries, but didn’t want to pay back individuals.
Southern states did not like Hamilton’s plan because they did not owe as much money as northern states. They would be responsible for an unfair portion of debt.

7. Compromise
Hamilton agreed to locate the new capital in the South, between Virginia and Maryland, in Washington D.C.
In return the South agreed to repay debt.

8. Hamilton Proposes a Bank of the U.S.
Madison and Jefferson opposed a national bank because they thought is benefited the wealthy and was unconstitutional because it was not mentioned in the Constitution.
Hamilton said that the bank was not forbidden in the Constitution. Hamilton won and Washington signed the bill creating a national bank.

9. Tariffs and Taxes
Hamilton proposed a tariff – a tax on imports- to encourage people to buy American and to raise money.
Imposed taxes on goods, including whiskey.
Hamilton’s economics split Congress and the nation. Some thought that the national government was too strong and dominated by the weathly.

10. Section 2 – Early Challenges
The Whiskey Rebellion
Farmers upset over tax on whiskey. In 1794 a mob of people with weapons attacked tax collectors and burned buildings.
Washington sent an army and sent a message, “change the law through the constitution.”

11. Native Americans Lose More Land
Battle of Fallen Timbers – Ohio. Anthony Wayne’s U.S. army defeated over 1,000 Native Americans.
Treaty of Greenville – Native Americans surrendered present-day Ohio to the U.S.

12. Problems With Europe England and France were at war.
Washington issued a Proclamation of Neutrality. This prohibited American citizens from fighting in the war.
Jay’s Treaty – Treaty with Britain. British agreed to withdraw from American soil, pay for damages, and pay for debts from before 1776.
Pickney’s Treaty – Treaty with Spain. This gave the U.S. the right to trade at New Orleans and to navigate the Mississippi.

13. Section 3 – The First Political Parties
Congress was divided. They either supported Hamilton or Jefferson.
Two political parties took shape. The Federalist party and the Democratic-Republican party.

14. Federalist Party Hamilton’s party Supported strong federal government.
Sided with Britain and distrusted France.
Favored banking and shipping interests.
Comprised of the wealthy
Thought government had implied powers that were not expressly forbidden in the constitution.
Elected officials speak for the people

15. Democratic-Republican Party
Madison’s and Jefferson’s party
Wanted limited government power
Supported the French
Supporters included small farmers and urban worker.
Believed in strict interpretation of the constitution.
The people should be in control of government. Not just a few.

16. Second President – John Adams
Vice President Thomas Jefferson
XYZ affair caused an undeclared war with France.
This threat of war with France made americans suspicious of aliens. Would the aliens remain loyal if U.S. went to war with France?
Alien and Sedition Acts – Strict laws to protect national security against noncitizens living in the U.S.
The Virginia and Kentucky Resolutions claims these Acts were unconstitutional.