Post on 25-Dec-2015
transcript
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
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