G.W. and a New Government
Taking Shape 1st time a nation tried to base a government on Enlightenment ideals (republic beliefs and individual rights) Many political decisions had to be made How to raise revenue How to provide for defense “We are in a wilderness without a single footstep to guide us”
Judiciary Act of 1789 Creation of a Judicial system Supreme court heads federal court system Provided for a Supreme Court consisting of a chief justice and 5 other justices Section 25: stated that state court decisions could be appealed to a federal court when constitutional issues were raised “supreme law of the land”
Executive Branch To help make policies and carry out laws passed by Congress At 1st consisted of Pres. and V.P. Created 3 departments (cabinet) Department of state (foreign affairs) Thomas Jefferson Department of war (military matters) Henry Knox Department of treasury (manage finances) Alexander Hamilton
Hamilton/Jefferson Debate Hamilton – belief in a strong central government led by a prosperous, educated elite upper-class (supported in North) Commerce and industry key to strong nation Jefferson – favored strong state and local government (supported in South and West) Farmer – citizen society
Hamilton’s Economic Plan Set nation’s finances and get strong economic base Plan to manage country’s debt and create national banking system Report on the Public Credit Debt was in the millions (why?) National government was responsible for 2/3 Owed $ to other countries as well as for bonds Proposed to pay foreign debt and issue new bonds Nation to take over state debt (why?) South was upset -> already paid most of their state debts
National Bank Funded by federal government and wealthy private investors Bank of the United States would issue paper money and handle tax receipts James Madison argues unhealthy alliance between the government and wealthy business interests Plus constitution did outline plan for National bank Began controversy of “strict” vs. “loose” interpretation Article 1, Section 8, Clause 18 = elastic clause
District of Columbia Hamilton suggests moving capitol from NYC to more southern city (why?) Madison/Jefferson liked idea Believed it would help government be more responsive to Southern interests Capitol moved to District of Columbia between Virginia and Maryland