What were two main obstacles George Washington

faced as the Nation’s first President

Do Now: Do you think you have enough knowledge to run a country?

Why/Why not?

Setting the Scene:

• 1789 – congress meets to debate what to call the new President by.

• "His Highness the President of the United States and Protector of the Rights of the Same.”

• Washington wanted to be simply called “President of the United States.

Washington’s First Steps

• April 20th, 1780 in New York City the inauguration (ceremony in which the President officially takes the oath of office).

• Why might Washington be sad to take the office of President?

• What does precedent mean: an act or a decision that sets an example for others to follow.

The First Cabinet

• President needed help understanding everything.

• In 1789, the first Congress created five executive departments.1. State2. Treasury3. War4. Attorney General5. Postmaster General

The five heads of these departments made up the Members of the Cabinet

The Cabinet

• Members of the Cabinet gave Washington Advice and were responsible for directing their departments.

• In his Cabinet he had:-Secretary of State - Thomas Jefferson-Secretary of the Treasury - Alexander Hamilton

The Federal Court System

• The Constitution called for a supreme Court. Congress however, had to set up the federal court system.

• In 1789, Congress passed the Judiciary Act. It called for the Supreme court to consist of one Chief Justice and 5 Associate Justices* (Today, the Supreme Court has a Chief Justice and 8 Associate Justices.)

What is the Highest Court in the land?

• The Supreme Court

Reducing the National Debt

• How Much was the Debt? $81,497,00• How much income did the US Receive?

$4,419,000• Why was America in Debt?• They had just fought a war.• What is the National Debt? • The total amount of money that a government

owes to others.• What is a bond?• Certificate that promises to repay the money

loaned, plus interest, on certain date.

Hamilton’s Plan

• Hamilton called for the government to repay both federal and state debates. He wanted the government to buy up all the bonds issued by both the national and state governments before 1789.

• He then planned to issue new bonds to pay off the old debts. As the economy improved, the government would then be able to pay off the new bonds.

Debating Hamilton’s Plan

• James Madison Led the opposition. Madison argued that Hamilton's plan would reward Speculators. A Speculator is someone who invests in a risky venture in the hope of making a large profit.

• During the revolution people could buy a bond for 10 or 15 cents. If the government paid off the old bonds in full, speculators stood to make fortunes. Madison thought that speculators did not deserve to make such profits.

Hamilton’s response

• Hamilton replied that the US must repay its debts in full or risk losing the trust of investors. The support of investors, he argued was crucial to building the new nation's economy.

• Congress approved full repayment of the national debt

Hamilton’s Compromise:

• He moves the nation’s capital further south. If Southerners agreed to his plan to repay state debts.

• Madison an others accepted.• In 1790, congress voted to repay state debts

and to build a new capital city.• Today Washington D.C.

Plans to Build the Economy• In 1791, Congress created the Bank of the United States. • The Government deposited money from taxes in the Bank.

In turn, the Bank issued paper money to pay the government's bills and to make loans to farmers and businesses. Through these loans, the Bank encouraged economic growth.

• To help American manufacturers, Hamilton asked Congress to pass a Tariff, or tax, on foreign goods.

• The North had factories, and could buy American goods but the South relied on imported goods.

• In the end, Congress did pass a tariff, but it was much lower than the protective tariff Hamilton wanted.

The Whiskey Rebellion

• To raise money for the Treasury, Congress approved a tax on all liquor made and sold in the U.S.

• The new tax sparked a rebellion that tested the strength of the new government.

A Hated Tax

• Many farmers grew corn and converted their corn into whiskey. Barrels of whiskey could be shipped more easily to markets in the East.

• Many farmers refused to pay tax. They compared it to the taxes Britain had forced on the colonies.

• 1794, when tax collectors tried to carry out their duties they were tarred and feathered.

• Thousands protest through the streets of Pittsburgh

A Show of Strength• Washington responded quickly. • Militia called back to arms• Dispatched to Pennsylvania• Thousands of troops• News gets out rebellion scatters• Hamilton wanted the leaders executed,

Washington believed that the government should show mercy