George Washington took the oath of office to become the first President of the United States on April 30, 1789. Here he is on the balcony of the Wall Street Building in New York City, the capitol for the new government under the Constitution of the United States.

The Cabinet

The Conflict Begins!

Hamilton’s Economic Plan The Problems The Solutions As the Secretary of the Treasury, Hamilton believed he should bring “order” to our nation’s finances. The Federal Government owed money both home and abroad. Some states still owed debts from the Revolutionary War Soldiers had been issued government bonds which needed to be repaid We needed to repay foreign debts as soon as possible to secure a good credit rating in the world! Hamilton issued a report on the nation’s finances to the President and Congress Pay off foreign debt first – and issue new bonds to cover the old ones. He wanted to take over all state debts from the Revolutionary War, as all America had benefitted and we needed good credit with foreign nations. Proposed to sell bonds as a way to get wealthy individuals invested in the success of the government AND to repay foreign debts with cash at face value. Create a National Bank to help manage the nation’s finances.

The Southern Response to Hamilton’s Economic Plan Opposed assumption of state debts, as most of their debts had already been repaid; why should Virginia pay off its own debt and then be forced to assist New England with theirs? Opposed the idea of a National Bank – it offered little benefit to the South and seemed a means to assist the wealthy businesses in the North.

A New Capitol Solves The Economic Crisis!

Political Parties Develop

Behind his back, they called President Adams, “His Rotundity”.

The X Y Z Affair

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