Government and Party PoliticsChapter 2, Section 1

Building the Federal Gov. • The one benefit that the new government had was extraordinary

leaders. • George Washington was chosen to be the first president, and John

Adams would become his first vice president. • As the first president, Washington established several

precedents, or actions that would be followed by later leaders. These included:• Established the first Cabinet• Served two terms• Used the phrase ‘so help me God’ in his Inaugural Address• Appointed the first Supreme Court justices

Building the Federal Gov. • As Speaker of the House, James Madison would pass through

Congress the Judiciary Act of 1789, which established a federal system of courts and created the position of Attorney General.

• Illustrate the system below:

1 Supreme Court

3 circuit courts to hear appeals

13 federal district courts– one for each

state

Building the Federal Gov. • Washington’s establishment of a Cabinet, or group of federal

leaders who headed major executive branch departments and advised the president.

• Who were the members of the first Cabinet?• Secretary of State= Thomas Jefferson• Secretary of the Treasury= Alexander Hamilton• Secretary of War= Henry Knox• Attorney General= Edmund Randolph

Hamilton’s Plan Stirs Debate• After the American Revolution, the United States was left with a

debt of $52 million to pay off. • As Secretary of the Treasury, this job was tasked to pay off this

debt. • Hamilton created a debt plan based around his Federalist ideals.

What were the four components of his plan?• Pay off foreign debt and interest in full• Federal government would assume state debts• Impose whiskey tax and tariffs• Create national bank and national currency

Hamilton’s Plan Stirs Debate• While his plan would ultimately increase the nation’s debt,

Hamilton saw potential long-term benefits. • It would establish financial credibility—other countries view the U.S.

favorably. • Gain political support from wealthy Americans. • Investors would benefit, which would then grow industries and

commerce in the United States.

Opposing Hamilton• Southerners, who had paid off a large portion of their share of

the debt, did not support Hamilton’s Plan. • Ultimately, Congress approved the first three parts of Hamilton’s

Plan. However, in order to have the state’s approval of the last part, Hamilton had to come up with a compromise. What was it? • In ten years’ time, the national capital would be moved to

between Maryland and Virginia. • Rural Pennsylvania farmers were unhappy with the excise

whiskey tax, a main revenue source. They attacked those sent to collect the taxes. • This event became known as the Whiskey Rebellion. Washington

and Hamilton saw this as an opportunity to demonstrate the enforcement power of the federal government. • Hamilton and 12,000 militiamen were sent to suppress the rebellion—

which had since dissipated.

A Two-Party System Emerges• The American public was divided over the Whiskey Rebellion. Two

groups emerged on opposite sides of the political spectrum—the Federalists and the Democratic Republicans. Though the writers of the Constitution had warned against the formation of political parties, differences could soon not be ignored.

A Two-Party System Emerges Federalists Democratic-Republicans

1) Key Leaders:

2) Type of Gov:

3) Economy:

4) Interpretation of Constitution:

- Alexander Hamilton - John Adams

(pro-British)

- Strong, central government

- Based on industry and trade

- Loose interpretation= broad interpretation of the Constitution.

- Thomas Jefferson - James Madison

(pro-French)

- States’ rights

- Based on farming

- Strict interpretation= Constitution should be read as is, no interpretation.