Chapter 7- Launching the Nation The First President Looking forward to retirement (again) Elected unanimously by the electors from 11 states (?) The role of the First Lady and Republican Motherhood The First President George Washington was the first president under the new Constitution. No other office under the new government created as much suspicion with the people but people trusted George Washington. Washington was aware of the many problems he faced. The First President Washington knew that the precedents, or traditions, that he established would shape the nations future. 1.What to call him (His Highness the President of the United States?) 2.How should the executive department be set up Setting Up the Executive Department Three Departments 1.State Dept.- handles relations with foreign countries (Thomas Jefferson) 2.Treasury Dept.- dealt with the countrys financial matters (Alexander Hamilton) 3.War Dept.- provided for the nations defense. (Henry Knox) Attorney General- handled the governments legal affairs (Edmund Randolph) Together these 4 people were known as The Cabinet Setting up the Executive Branch Congress created the departments but how much power should the president have over them? Should he be able to fire them without the approval of Congress? Congress vote on this matter ended in a tie. John Adams (VP and president of the Senate) broke the tie in favor of the president Judiciary Act of 1789 (Setting up the nations court system) Disagreements arose between a uniform, national court system and those favoring state courts. Compromised was reach with the Judiciary Act of Established a federal court system with 13 district and 3 circuit courts (appeals) and one Supreme Court. Judiciary Act of 1789 (Setting up the nations court system) State courts would remain but the federal courts would have the power to reverse rulings of state courts. The Supreme Court would be the final say on many issues. John Jay was nominated to lead (Chief Justice) the Supreme Court. Expectations for the Nation High expectations.improved trade free from restrictions; protection; stable economy 4 million people most were farmers (fair tax laws, right to settle western lands, little govt) Craftsmen, laborers, merchants (govt to help their business, simpler trade laws, protection from foreign competition) U.S in 1790 Population 4 million Two largest cities Philadelphia and New York City (only 2 with population over 25,000) NYC first capital of the U.S. End Ch. 7, Section 1 Ch. 7 : Launching a Nation Section 2- Hamilton and National Finances Financial Problems The new nation faced serious financial problems. Hamilton had to find a way to improve the nations financial reputation while strengthening the nation at the same time. Financial Problems- Hamiltons Plan In 1790, Hamilton proposed the new nation pay off the millions of dollars owed by the old Confederation government to other countries ($11.7 M) and to American citizens ($40.4 M). He also argued that the federal government should pay off the states debts. This would give the states a strong interest in the success of the new government. Financial Problems- Opposition to Hamiltons Plan Congress agreed to pay off debts to foreign nations but Hamiltons plan to pay off debts to American citizen unleashed a storm of protests. Bonds and Speculators Southern states also protest Hamiltons plan. They argued that the Northern states had accumulated much more debt than the Southern states. Financial Problems- Compromise on Hamiltons Plan To win support for his plan from the Southern states Hamilton compromised. He agreed to a proposal from Southern leaders to place the nations new capital in the South. A special district would be laid out between Maryland and Virginia (Washington, DC) New York..Philadelphia..Washington DC Building a Strong National Economy- Hamiltons plan for a National Bank Hamilton asked Congress to create a National Bank. Both private investors and the national government would own the banks stock. 8 states had their own banks. Madison and Jefferson opposed the idea of a national bank believing that it would only benefit the wealthy and that it was unconstitutional. Building a Strong National Economy- Hamiltons plan for a National Bank In the end, Washington sided with Hamilton and signed the bill which created the National Bank. Building a Strong National Economy- Tariffs and taxes Hamilton thought that the development of manufacturing would make Americas economy stronger. He proposed a tarifftax on imported goods to encourage people to buy American products. The South had little industry and opposed these tariffs. Building a Strong National Economy- Tariffs and taxes Hamilton did win some support in Congress for some low tariffs (to raise money rather to protect industry) By the 1790s revenue from tariffs provided 90% of the national governments income Building a Strong National Economy- Tariffs and taxes The government needed additional funds to operate and make interest payments on the national debt. At Hamiltons request, Congress approved a variety of taxes including one on whiskey distilled in the U.S. Hamiltons plans gave the national government new financial powers. However, his proposals split the Congress and the nation. The opponentsincluding Jefferson and Madisonfeared a national government with strong economic powers dominated by a wealthy class. They had a different vision of America.