On April 30, 1789, on a balcony overlooking Wall Street in New York City, George Washington was sworn in as the first president and John Adams was sworn in as vice- president Washington knew that he would set an example as the first president. “There is scarcely any part of my conduct which may not hereafter be drawn into precedent.” A precedent is an act or decision that sets an example for others to follow. Precedents

Washington’s Precedent’s 1. Created a Cabinet Thomas Jefferson as the first Secretary of State. Alexander Hamilton to be the first Secretary of the Treasury Henry Knox as the first Secretary of War 2.President would only serve two terms (8 years total) 3.President will be called “Mr. President” 4.President will give a “FAREWELL SPEECH”

ECONOMIC PROBLEMS: NO money! He asked the Secretary of the Treasury for help. Alexander Hamilton’s Financial Plan 1. Pay off all war debts 2.Establish a National Bank. (make loans for businesses) 3.Raise money through taxes and protective tariffs (tax) Hamilton’s ideas help merchants but hurt farmers. South refused to support the plan Economic Problems

In order to win support for his financial plan from Congressional Southerners, Alexander Hamilton agreed to a compromise by locating the nation’s new capital in the South. A special district was created near the Potomac River near Virginia and Maryland and became known as Washington D.C

Farmers in the Appalachians often turned extra grain into whiskey to sell. The new whiskey tax caused riots and anger towards the government Washington sent 13,000 troops (including himself) to crush the rebellion Washington demonstrated the power of the federal government to enforce its laws.

Washington gave his final advice to the American people in his Farewell Address The Danger of Political Parties He believed parties would weaken and divide the government. Too often people will worry about their own personal interest instead of what is best for the nation. The Policy of Neutrality and Isolationism Stay out of European conflicts and alliances He advised Americans to expand their influence in the Western Hemisphere (North, South America)

XYZ Affair : Tensions rose between France and the U.S. because of the lack of U.S. support for the French Revolution. Adams sent three U.S. diplomats to France to ease the tension. Three French agents (X Y and Z) asked for $10 million dollars and $250,000 as a bribe for the minister. “NO, NO, not a sixpence!” “Millions for Defense, Not a cent for tribute” Congress canceled all treaties with France and set aside money to expand its army and navy

1.Made immigrants wait to become citizens from 5 to 14 years. (kept immigrants from voting for Democratic- Republicans) 2.Gave the president power to arrest disloyal aliens and throw them out of the country 3.Outlawed sedition, saying or writing anything false or harmful about the government. Federalist used these acts to clamp down on freedom of speech and press: Adams threw a Vermont congressmen in jail for saying “Adams belongs in a Mad House”

Kentucky and Virginia Resolutions Created in response to the Alien and Sedition Acts…..said they violated the Constitution and the Bill of Rights Resolutions created the theory of States Rights…States had rights that the federal government could not take away Proposed the idea of nullification…states could nullify a federal law within its own state Kentucky and Virginia were the only two states to pass the resolutions..…however the ideas of states rights and nullification remained