lesson 9.1: washington’s presidency
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Lesson 9.1: Washington’s Presidency. Today we will discuss the political conflicts that arose over Alexander Hamilton’s financial plan. (HSS 8.3.4). Vocabulary. discuss – talk about or talk over political – having to do with government conflicts – disagreements - PowerPoint PPT PresentationTRANSCRIPT
Lesson 9.1: Washington’s Presidency
Today we will discuss the political conflicts that arose over Alexander Hamilton’s financial plan.
(HSS 8.3.4)
Vocabulary• discuss – talk about or talk over• political – having to do with government• conflicts – disagreements• precedent – an example that would
become standard practice• financial – having to do with money and
budget
Check for Understanding• What are we going to do today?• What is one political leader you can name?• What conflict have you had with a family
member recently?• What precedent is there for scheduling a trip
to Knott’s Berry farm at the end of this school year?
• Why do adults sometimes worry about financial concerns?
What We Already Know
In the new Constitution, the government was divided into
legislative, executive, and judicial branches.
What We Already Know
As the head of the executive branch, the new President would have much more power than any other American ever had, so electing the
right man was very important.
What We Already Know
Like fellow Virginians Patrick Henry and
George Mason, Thomas Jefferson
always saw a government with too much strength as a
threat to the rights of the people.
Read aloud with me:
• In 1788, the first presidential election was held.
• George Washington was elected president and the runner-up, John Adams, was became vice-president.
B tell A
• Who became the nation’s first vice-president?
• Be sure to re-state the question in your response!
Read aloud with me!
A. As the first president, Washington faced a difficult task.
B. He knew that all eyes would be on him, and that his every action as president would set a precedent.
A tell B
• What is a precedent?• Be sure to re-state the question
in your response!
Congress established the federal court system.
• The Constitution created a Supreme Court but Congress argued about how much power the Supreme Court should have.
• Since the states already had their own courts, how would authority be divided between the state and federal courts?
To create a court system, Congress passed the Judiciary Act of 1789.
• John Jay, was appointed by President Washington as chief justice.
Congress created three departments to help the president lead the nation.
• Washington appointed talented people to head these departments.
• These men, who are referred to as his cabinet, helped the president with the many issues and problems he has to face.
A ask B
• What was the purpose of Washington’s cabinet?
• Be sure to re-state the question in your response!
The purpose of Washington’s cabinet was to help the president with the many
issues and problems he faced.
Read aloud with me!
For Secretary of War, Washington
picked Henry Knox, a trusted general
during the Revolution, to
oversee the nation’s defenses.
For Secretary of State, Washington chose Thomas Jefferson, former
ambassador to France.
• The State Department oversaw relations between the United States and other countries.
• These relations are usually referred to as foreign policy.
The brilliant Alexander Hamilton was made Secretary of the Treasury.
• As Treasury Secretary, Hamilton would manage the government’s money.
B ask A
• What departments made up Washington’s cabinet?
• Be sure to re-state the question in your response!
Washington’s cabinet was made up of the War Department, the Treasury
Department, and the State Department.
The new country faced several
economic problems.
The United States needed to establish
itself with other countries as a nation that was responsible
about money.
The nation needed to establish a stable, growing economy.
The nation owed millions of dollars in war debts that needed to be repaid, so
that it would have good credit.
Get your whiteboards and markers ready!
1. What economic problems did the new government face?
A. The government owed millions in war debts.B. The government needed to find a way to raise
revenue.C. The size of the army needed to be increased
in order to defend the frontier against Indians.D. Congress needed to create a financial plan to
handle the debt. E. The money supply of the new nation was too
small.
Choose all that are true!
Hamilton’s Five-stepFinancial Plan
It’s two purposes:1. Create a stable economy2. Build good credit
Two necessary steps:
Pay debts Raiserevenue
What is revenue?Revenue is money earned by the government
through taxes, tariffs, or land sales.
Two necessary steps:
Pay debts Raiserevenue
- pass a protective tariff
- pay off the national debt
- pay off the states’ debts
- levy an excise tax- create a national
bank
How could the nation accomplish these two steps?
Check for Understanding• What were Hamilton’s two purposes for
his financial plan?• What would the country have to do to
create a stable economy and build good credit?
• What kind of debts had to be paid?• What were three ways Hamilton
suggested to raise revenue?
During the war, many Americans bought bonds, which were
loans to the Continental government.
Paying Off the National Debt
Hamilton argued that these brave bond-holders should be re-paid by the
government, or the nation’s credit rating
would fall.
Hamilton knew that the country would need to borrow money at some
time in the future.
A ask B• What is a bond?• Be sure to re-state the question in your
response!
A bond is a loan made to the government.
Objections to Hamilton’s Plan
James Madison
“Bond speculators will benefit, not the original
purchasers of the bonds!”
During the difficult economic times of the Confederation
period, many of the original bond
purchasers had been persuaded to sell their bonds by crafty speculators.
• A speculator is someone who buys bonds, land, etc., in the hope that it will be much more valuable later.
• Many desperate patriots had sold their bonds for a fraction of their value, out of fear that the government would never redeem them.
Objections to Hamilton’s Plan
Madison objected to Hamilton’s plan to redeem the Revolutionary War bonds.
James Madison
“Bond speculators will benefit, not the patriots who were the original
purchasers of the bonds!”
“The benefits outweigh the
injustice!”
Paynational
debts
• Why was it important to Hamilton that the national debt be paid down?
• What is a bond?• Why did Madison object to redeeming
the Revolutionary War bonds?• Did Congress approve Hamilton’s plan
to redeem the bonds?
Check for Understanding
Paying Off the States’ Debts
• Hamilton wanted the national government to assume (‘take over’) all remaining state debts, and pay them off for the states.
• “As long as any state is in debt, all the United States will be looked upon as poor credit risks.”
B tell A• What does it mean to assume a debt?• Be sure to re-state the question in your
response!
To assume a debt is to take it over and pay it off as if you owed the debt.
V i r g i n i a
Paying Off the States’ Debts• But most Southern and Mid-
Atlantic states had already paid off their Revolutionary War debts.
• Hamilton’s plan would force all the states to bail out the New England states.
“To pay the debts of northern states would
be unfair to those citizens in the South who have worked so hard to pay off their
own debts!”
Objections to Hamilton’s Plan
A tell B• Why did Southern states object to debt
assumption by the federal government?• Be sure to re-state the question in your
response!
Southern states object to debt assumption by the federal government because they’d already
paid off their debts.
Hamilton offered a compromise.
• “If you Southern states will support me, I will see to it that the new national capital will be built in the South.”
• Madison, Jefferson, and other Southern leaders agreed, and the District of Columbia was created to be home of the capital city.
Paystates’debts
• Why was it important to Hamilton that the states’ debts be paid down?
• Why did Madison object to the national government’s assumption of the states’ debts?
• How did Hamilton get the South to support his plan to assume the states’ debts?
Check for Understanding
What’s an excise tax?
To raise the revenue needed to pay off the debts, Hamilton suggested an
excise tax.
An excise tax is a tax levied against a specific
manufactured item.
The money generated by an excise tax could be used to redeem the war
bonds and repay loans.
He asked Congress to levy an excise tax against the manufacture of whiskey.
Although whiskey was made in every state, this excise tax would be especially hard on
Westerners.
For many Westerners, making whiskey was their only source of cash.
“Keep your hands offmy whiskey, or I ’ll
rebel!”
Hamilton’s call for an excise tax outraged Westerners.
Frontier farmers refused to pay the tax, and began to attack the tax collectors.
Their rebellion spread swiftly throughout the western counties of Pennsylvania.
In Section 9.2, you will read about how Washington brought a quick end to this
‘Whiskey Rebellion.’
Levy anexcise tax
• Why did Hamilton want Congress to levy an excise tax?
• What item did Hamilton want taxed?• Who objected most to this part of
Hamilton’s financial plan?• How was the Whiskey Rebellion
ended?
Check for Understanding
Hamilton wanted Congress to create a
national bank.• “A national bank could
raise revenue by lending money at interest.”
• “By controlling the amount of money available for loans, the national bank could have a stabilizing effect on the economy.”
Jefferson objected to
Hamilton’s call for a national
bank.
“The Constitution does not give Congress the authority to create a
national bank.”
Hamilton argued that such a bank was
constitutional.
“The Constitution does not prohibit Congress
from creating a national bank. To the contrary, the elastic
clause does give us the authority to do so.”
Jefferson believed in strict
construction: Congress may only do those
things specifically authorized by the
Constitution.
Create anational
bank
Hamilton believed in loose construction: Congress may do
anything not specifically
prohibited by the Constitution.
• Why did Hamilton want Congress to create a national bank?
• Why did Jefferson object to this part of Hamilton’s financial plan?
• What is the elastic clause?• What is the difference between strict
and loose construction?
Check for Understanding
Hamilton asked Congress to set up a series of protective tariffs.
“These tariffs will bring in revenue we need to
pay our debts!”
What’s a tariff?
A tariff is a tax on imported
goods.
Protective tariffs raise the cost of buying imported manufactured goods.
• If foreign imports are more expensive, shoppers will be more likely to buy American products.
• This protects Ameri-can manufacturers from foreign competition.
Only New England had an economy based on manufacturing and trade.
• Protective tariffs would be of benefit only to the northeastern states.
• The rest of the nation’s citizens would have to pay higher prices for all manufactured goods.
Set up aprotective
tariff
Hamilton’s Financial Plan
For what TWO reasons did Hamilton support tariffs?
A. They increased his political power.
B. They raised money for the government.
C. They encouraged the growth of American industry.
D. They made the Southern states richer.
Why did states outside the Northeast object to the protective tariffs?
A. They wouldn’t bring any real revenue to the country.
B. Other states were jealous of the profits northeastern states were already making on cotton.
C. Only the Northeastern states would benefit from the tariffs.
D. Citizens from the other states would have to pay higher prices for manufactured goods.
Choose all that are true!