FORGING THE NEW REPUBLICCHAPTER 6 , SECTION 1

Washington Becomes President

Organizing the Government

February 1789 – Washington becomes president and John Adams becomes vice president

Washington Chooses a Cabinet

Washington would set precedents as the first president

Created executive departments which became known as the president’s cabinet

First three departments were: state, secretary, and war

Washington’s Cabinet

Secretary of War: Henry Knox, was in charge of weaponry in the Revolutionary War

Secretary of State: Thomas Jefferson

Secretary of the Treasury: Alexander Hamilton

Attorney General: Edmund Randolph was the President’s legal advisor

Two Parties

Federalists: Led by Hamilton Strong central government Prospering cities, business, a role in world affairs

Jeffersonian Republicans: Led by Jefferson and Madison More rural than urban A good deal of power left to the states

The First Congress

Came up with Judiciary Act of 1789 Structure of federal court system Six person supreme court One chief justice and five associates John Jay first chief justice

Also created district courts and courts of appeal

Settling the Nation’s Debts

New government owed money to foreign nations, private lenders, and former soldiers

Hamilton comes up with an economic plan

Hamilton’s Economic Plan

Wanted federal government to take on all debt from the Revolutionary War

Raise money to pay the debtWanted to establish a national bank

Control credit Make loans to the government

Hamilton’s Economic Plan

Imposing New Taxes

Constitution gives Congress the power to taxHamilton proposes two new taxes:

Tariff of 1789: a tax on imported goods Excise Tax: a tax on the production or the sale of a

certain product 1791 the tax was on liquor, sugar, snuff (fine ground

tobacco), and carriages Very unpopular

Plan to Pay Off State Debts

Hamilton’s plan to pay off state debts was controversial Northern states had greater debts than southern

states If national government takes over all state debts,

people in the south would be paying taxes to pay off northern debts

Compromise Leads to New Capital

Jefferson, Hamilton, and Madison come up with a compromise Capital will be moved

from Philadelphia (North) to Federal City (South) by 1800

In return, southerners in Congress will allow Hamilton’s debt bill to pass

Debating a National Bank

National Bank most controversial part of Hamilton’s plan Debate between Federalists and Jeffersonian

Republicans How much power should the national government

have Strict Construction v Loose Construction of

Constitution

Strict v Loose

Strict Construction of the Constitution: Belief that the government should only do what the

Constitution specifically states it can doLoose Construction of the Constitution:

Government can take reasonable actions that are not outlined in the Constitution—as long as those actions are not specifically prohibited

Hamilton’s Bank Plan

Uses the “necessary and proper” clause in the Constitution to justify national bank Allows Congress to pass all laws that are

necessary and proper to carry out its assigned powers

Prime example of loose construction of the Constitution

Washington Signs the Bank Bill

Madison, Randolph, and Jefferson all opposed the National Bank

Congressed passed the bank bill and sent it to Washington to sign

Washington signed the bill to charter the first Bank of the United States

The Whiskey Rebellion

Farmers on the frontier in western Pennsylvania objected to the excise tax on whiskey Livelihoods depended on turning surplus grain

into rye whiskey Excise tax made the farmers lose money on

selling whiskey

The Whiskey Rebellion

Farmers attacked tax collectors

There was even talk of starting an independent nation

Washington raised a force of over 13,000 men and put down the rebellion Showed the strength of

the federal government

Political Parties Develop

Jeffersonian Republicans v. FederalistsOn their way to establishing a two party

system Federalists: Under Hamilton established local

associations, gave political offices and other favors to their supporters

Jeffersonian Republicans: Set up party organizations, worked together to influence elections (Eventually became Democratic-Republicans

Two Party System

Review

Who was Washington’s Vice President?What did Hamilton want to establish?What did the Tariff of 1789 tax?Why was Hamilton’s Plan controversial?