CHAPTER 12--LAUNCHING A NEW GOVERNMENT The First President of the United States Commander and Chief

CHAPTER 12--LAUNCHING A NEW GOVERNMENT

The First President of the United States

Commander and Chief


Washington is Inaugurated!

• April 30, 1789April 30, 1789• Vice President--John Adams of Mass.Vice President--John Adams of Mass.• Selected a cabinetSelected a cabinet• Secretary of State-Thomas Jefferson of VirginiaSecretary of State-Thomas Jefferson of Virginia• Secretary of War Department--Henry Knox of Secretary of War Department--Henry Knox of

Mass.Mass.• Secretary of Treasury-Alexander Hamilton of Secretary of Treasury-Alexander Hamilton of

New YorkNew York• Attorney General--Edmund Randolph of VirginiaAttorney General--Edmund Randolph of Virginia


Washington’s first cabinet!

Hamilton, Jefferson, Knox, Adams, Washington


Congress fills in the blanks left by the constitution.

• Congress passed the Federal Judiciary Act 1789Congress passed the Federal Judiciary Act 1789• Set up the Supreme Court made up of five Set up the Supreme Court made up of five

Associate Justices (judges) and one Chief JusticeAssociate Justices (judges) and one Chief Justice• President Washington appointed John Jay as the President Washington appointed John Jay as the

first Chief Justice.first Chief Justice.• The Judiciary Act set up a system of district The Judiciary Act set up a system of district

courts and circuit courts to hear courts and circuit courts to hear cases across the nation.cases across the nation.


THE GOVERNMENT TAKES SHAPE

President President Washington and his Washington and his Treasury Secretary,Treasury Secretary,

Alexander Hamilton, Alexander Hamilton, designed financial designed financial policies that would policies that would

strengthen the strengthen the credit and authority credit and authority of the government.of the government.


Financial Problems

• Owed--France, Netherlands, Spain, and Owed--France, Netherlands, Spain, and private citizensprivate citizens

• Public Debt-- Money owed by the Public Debt-- Money owed by the governmentgovernment

• Bonds--paper promising repayment plus Bonds--paper promising repayment plus interestinterest

• Interest--extra payment for use of moneyInterest--extra payment for use of money• U.S. Public Debt = $52 Million U.S. Public Debt = $52 Million

governmentgovernment + $25 Million State debt = + $25 Million State debt = $77 Million$77 Million


A View of the Financial Problems


Alexander Hamilton a Federalist becomes head of the Treasury

Department• Believed in a strong central governmentBelieved in a strong central government• Encouraged business and industryEncouraged business and industry• Thought the government should be run by the Thought the government should be run by the

rich merchants and manufacturersrich merchants and manufacturers• Influenced by Adam Smith-Scottish economistInfluenced by Adam Smith-Scottish economist

•Capitalism--Privately owned and Capitalism--Privately owned and operated businesses operated businesses

•Based on competition and free marketBased on competition and free market• Wanted to combine all state and government Wanted to combine all state and government

debts and issue new bonds and pay for them debts and issue new bonds and pay for them with taxeswith taxes


Hamilton’s Plan for the Economy

• Bank of the United StatesBank of the United Stateso To encourage economic growth the To encourage economic growth the

government deposited money from government deposited money from taxes in the Banktaxes in the Bank

o The Bank issued paper money to pay The Bank issued paper money to pay the government’s bills and make the government’s bills and make loans to farmers and businessesloans to farmers and businesses


Hamilton’s Plan for the Economy

• Tariff, or tax, on foreign goodsTariff, or tax, on foreign goodso To make imported goods more To make imported goods more

expensive than American-made goodsexpensive than American-made goodso Hamilton and many northerners wanted Hamilton and many northerners wanted

a high tariff to protect American goods a high tariff to protect American goods from foreign competition.from foreign competition.

o Southern farmers opposed a high tariff. Southern farmers opposed a high tariff. Congress passed a tariff, but it was lower Congress passed a tariff, but it was lower than the tariff Hamilton wanted.than the tariff Hamilton wanted.


Thomas Jefferson an Anti-federalist becomes head of the

State Department• Opposed HamiltonOpposed Hamilton• Worried the North would grow Worried the North would grow

too rich at the expense of the Southtoo rich at the expense of the South• Some states had already paid off Some states had already paid off

their debts and didn’t want to pay their debts and didn’t want to pay other states debts--not fairother states debts--not fair

• Felt wealth came from land--he dreamed of a Felt wealth came from land--he dreamed of a country made up of small, independent farmerscountry made up of small, independent farmers

• Thought people who get rich from buying and Thought people who get rich from buying and selling bonds threatened the country’s liberty.selling bonds threatened the country’s liberty.


The Compromise

• HamiltonHamiltono Hamilton wanted Hamilton wanted

the bank bill to the bank bill to pass more than pass more than anythinganything

o Hamilton promised Hamilton promised to back the capitol to back the capitol being moved if being moved if Jefferson Jefferson supported the supported the bank bill.bank bill.

• JeffersonJeffersono Jefferson wanted Jefferson wanted

the Capitol of the the Capitol of the U.S. moved to the U.S. moved to the SouthSouth

o Jefferson promised Jefferson promised to back the bank to back the bank bill if Hamilton bill if Hamilton supported moving supported moving the Capitol the Capitol


Benjamin Banneker

• Free black tobacco Free black tobacco farmer farmer who educated himself who educated himself

• Brilliant astronomer, Brilliant astronomer, mathematician, and mathematician, and surveyor.surveyor.

• Self taughtSelf taught• Wrote 6 almanacs which Wrote 6 almanacs which

he sent to Jeffersonhe sent to Jefferson• Chosen to help lay out Chosen to help lay out

the nation’s new capitalthe nation’s new capital

Clip


Causes of the Whiskey Rebellion

• CausesCauseso To Raise money for the To Raise money for the

Treasury, Congress approved a Treasury, Congress approved a tax on liquor.tax on liquor.

o Backcountry farmers hated the Backcountry farmers hated the Whiskey Tax so they rebelled, Whiskey Tax so they rebelled, marched in protest and tarred marched in protest and tarred and feathered tax collectors.and feathered tax collectors.

• ResultsResultso Washington called Washington called

up the militia and up the militia and sent them to put sent them to put down the rebelliondown the rebellion

o He showed that He showed that the national the national government would government would act firmly in times act firmly in times of crisis and that of crisis and that violence would not violence would not be tolerated.be tolerated.


Bank Dispute and the Constitution

• Strict constructionStrict construction• Lead by JeffersonLead by Jefferson• Government has only Government has only

the powers the the powers the Constitution specifically Constitution specifically gives itgives it

• No bank No bank • Jefferson and Madison Jefferson and Madison

felt the government had felt the government had no right to establish oneno right to establish one

• Loose constructionLoose construction• Lead by HamiltonLead by Hamilton• Government can do Government can do

anything the anything the Constitution does not Constitution does not say it cannot dosay it cannot do

• Supports banksSupports banks• Hamilton believed the Hamilton believed the

elastic clause would elastic clause would allow banks because allow banks because they are “necessary they are “necessary and proper” for the US.and proper” for the US.


Washington makes a decision.

• Washington Sided with HamiltonWashington Sided with Hamilton• 1791-first Bank of the United States was 1791-first Bank of the United States was

establishedestablished• Congress passed a tariff-a tax on imported Congress passed a tariff-a tax on imported

goodsgoods• Made money for the bankMade money for the bank• Made foreign goods more expensive than U.S. Made foreign goods more expensive than U.S.

goods so it encouraged buying at homegoods so it encouraged buying at home• South ‘s economy was hit hard-caused major South ‘s economy was hit hard-caused major

disagreements between the north and southdisagreements between the north and south


French Revolution

• July 14July 14thth, 1789 an angry mob in Paris , 1789 an angry mob in Paris France destroyed the Bastille, an ancient France destroyed the Bastille, an ancient fort that was used as a prison.fort that was used as a prison.

• At first the French fought for liberty and At first the French fought for liberty and equality against their king, Louis XVI .equality against their king, Louis XVI .

• Soon it grew more violent and deepened Soon it grew more violent and deepened political divisions within the U.S.political divisions within the U.S.

• French wanted a constitution to limit the French wanted a constitution to limit the king’s power and protect their basic king’s power and protect their basic rights.rights.


The U.S. Remains Neutral

• The violence in France divided AmericansThe violence in France divided Americans • Thomas Jefferson and his followers supported Thomas Jefferson and his followers supported

France.France.• Alexander Hamilton and his followers strongly Alexander Hamilton and his followers strongly

disagreeddisagreed• Washington had to decide whether to support one Washington had to decide whether to support one

or the other. He decided to remain neutral in the or the other. He decided to remain neutral in the European conflict European conflict

• He issued the Neutrality Proclamation in April He issued the Neutrality Proclamation in April 1793. This caused Jefferson to leave the cabinet.1793. This caused Jefferson to leave the cabinet.


Jay’s Treaty

• Declaring neutrality was easier than enforcing Declaring neutrality was easier than enforcing it.it.

• Britain and France were warring nations and Britain and France were warring nations and each of them seized American cargoes each of them seized American cargoes headed for each other’s port.headed for each other’s port.

• Chief Justice John Jay went to Britain to Chief Justice John Jay went to Britain to negotiate a treaty. negotiate a treaty.

• Jay’s treaty was approved after a furious Jay’s treaty was approved after a furious debate. Said that British would pay back debate. Said that British would pay back damages and leave forts in the Ohio Valley.damages and leave forts in the Ohio Valley.


Washington’s Farewell Address

• Advises Americans against becoming Advises Americans against becoming involved in European affairs involved in European affairs

• ““Tis our true policy to steer clear of Tis our true policy to steer clear of permanent Alliances, with any portion permanent Alliances, with any portion of the foreign World…The Great rule of the foreign World…The Great rule of conduct for us, in regard to foreign of conduct for us, in regard to foreign Nations is… to have with them as little Nations is… to have with them as little political connection as possible”political connection as possible”


Distrust of Political Parties

• Most Americans leaders disliked the idea Most Americans leaders disliked the idea of political parties.of political parties.

• Eventually, political disagreements Eventually, political disagreements divided Americans.divided Americans.

• Before Washington left office two rival Before Washington left office two rival political parties had emerged to political parties had emerged to compete for power.compete for power.


Documents

CHAPTER 12--LAUNCHING A NEW GOVERNMENT The First President of the United States Commander and Chief