How did the new Government react to early challenges? Do Now: Open to the class website. Download the powerpoint entitled: Whiskey Rebellion and National Bank.ppt. Complete the Do Now activity on the second slide. Answer all Questions!!!

Do Now “To raise revenue [income] to help repay both the foreign and domestic debt that Congress incurred during the Revolution and confederation period, a tax was placed on whiskey. Resentment to the tax on whiskey came to a head during the summer of 1794 with the ‘Whiskey Rebellion.’ President Washington called out 13,000 militiamen to put down the uprising, demonstrating that the new government possessed the power to enforce its authority – a power that had been absent under the Articles of Confederation.” ~ U.S. History and Government What did the U.S. Congress to do help raise revenue to pay the foreign and domestic debt that Congress incurred during the Revolution? What was the “Whiskey Rebellion”? How did President Washington address the rebellion? What did Washington’s actions reveal about the new government? How did this action differ from the power of the government under the Articles of Confederation?

Essential Questions What were the major problems with the early United States? How did Washington try to solve these? How are Shay’s rebellion and the Whiskey’s rebellion similar and different? What is the role of the Federal Govt. Is a National Bank Constitutional

George Washington takes office April 30 George Washington inaugurated Inauguration: ceremony in which president officially takes the oath of office Precedent: an act or a decision that sets an example for others to follow 4

George Washington takes office Forms a cabinet Cabinet: heads of departments 5 created: State, Treasury War, Attorney General, & Postmaster Advice the president Secretary of State: Thomas Jefferson Secretary of Treasury: Alexander Hamilton 5

George Washington takes office Federal Court System set up Judiciary Act: Start of Supreme Court 1789 John Jay: 1st Chief Justice of the United States 6

Problems with new nation Huge national debts! National Debt: amount of money the government owes to other During war the US borrowed lots of $$$$

Hamilton’s Plan bond: certificate that promises to repay money loaned, plus interest on a certain date. Hamilton wanted the government to repay federal and state debts and buy up bonds He then wanted to issue new bonds for debt He wanted a National Bank to give more crediability Alexander Hamilton on a National Bank 8

Hamilton’s Compromise James Madison hated Hamilton’s plan He thought this would lead to speculations Speculator: someone who invest in a risky venture in the hope of making a large profit 9

Hamilton’s Compromise Agreed to build capital city in South States agreed to repay state debts Start of a national bank: Bank of the United States Washington DC was built! 10

Rebuilding the Economy 11

Whiskey Rebellion To help pay off the war debt, Washington started to tax whiskey Whiskey is an alcoholic beverage The farmers who grew the grain to make the whiskey were angry. 12

Why whiskey? Farmers had a hard time getting their grain to market, so they turned their grain into whiskey, which was easier to transport. They got more money for the whiskey anyway. Farmers traded the whiskey for salt, sugar, and other goods. Farmers used whiskey as money to get whatever supplies they needed. Farmers did not have the money to pay for the tax.

The Rebellion In the summer of 1794, a group of farmers in Western Pennsylvania rebelled against the whiskey tax and staged the Whiskey Rebellion. One group beat up a tax collector and coated him with tar and feathers.

Why do you think tax collectors were tarred and feathered?

The Government Responds Alexander Hamilton wanted the government to look strong. He encouraged President Washington to stop the revolt. Federal troops marched to Western Pennsylvania and put down the revolt. Washington had proved that the government would deal with people not obeying the law.

Why do you think Washington chose to lead the troops himself?

Current issues: Does the US have debt? U.S. Debt Too Big for National Debt Clock How are we handling our debt issues? Why is China buying more U.S. debt?

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