EQ: What challenges did Washington face as President?

 On April 30 th, 1789 George Washington became the first President of the United States. (John Adams was his Vice President)  One of Washington’s first jobs was to create a cabinet and a federal court system.

Thomas JeffersonAlexander Hamilton Henry Knox Secretary of State Secretary of Treasury Secretary of War Deals with foreign Handles the nation’s Deals with military Relationsfinances Matters

 The Judiciary Act of 1789 established a federal court system. The states kept their laws and courts, but the federal courts had the power to reverse state decisions.  Washington chose John Jay to become the first Chief Justice of the Supreme Court.

 As Secretary of the Treasury, Alexander Hamilton wanted to create a strong economy; however, many of the state governments still owed money from the Revolution.  The House of Representatives asked Hamilton to make a plan for the “adequate support of the public credit.”

 Hamilton proposed that the federal government take over all state debts.  He argued that paying off the debt as a nation would build national credit and make it easier for the nation to borrow money.  The southern states protested because many had already paid off their wartime debts.  A compromise was reached when Congress agreed to move the capital to the south (Washington D.C)

 Hamilton also asked Congressed to create a National Bank- the Bank of the United States.  The Bank of the United States would hold government funds and make debt payments. It would also issue a single form of currency for the entire nation.  After protest from Thomas Jefferson and James Madison (who believed it would only benefit the wealthy), Congress created the national bank.