I. George Washington as President (1789-1797) New Government is Launched Battling the National Debt Building up the Economy The Whiskey Rebellion Foreign Policy Precedents (examples) set by Washington

New Government is Launched - Washington’s inauguration (ceremony at which the President officially takes the oath of office) was on 4/30/1789 in NYC In 1789, Congress created the first Cabinet (officials who head government departments and advise the President) because Washington needed help carrying out his duties President Obama’s Cabinet: http://usgovinfo.about.com/od/thepresidentandcabinet/a/prescabinet.htm In 1789, Congress passed the Judiciary Act, the law that organized the federal court system. John Jay was named Chief Justice of the Supreme Court (highest court in the land)

Cabinet: group of advisors to the President Washington's Cabinet was made up of the best minds of the time John Adams served as Vice President Thomas Jefferson as Secretary of State Edmund Randolph as Attorney General Alexander Hamilton as Secretary of the Treasury Henry Knox as Secretary of War Left to right: President Washington, Secretary of War Henry Knox, Secretary of the Treasury Alexander Hamilton, Secretary of State Thomas Jefferson, and Attorney General Edmund Randolph

Time to Review Why was a Cabinet created? Indentify three men, and the positions they held, in Washington’s Cabinet. Identify three current members (and the positions they hold) of President Obama’s Cabinet.

B. Battling the National Debt The U.S. borrowed $ from foreign countries and individuals to pay for soldiers and supplies during the Revolutionary War Alexander Hamilton planned to pay off this debt by borrowing money in order to buy up all of the old war bonds, and so the national government pay off state debts A bond is a certificate that promises to pay the holder the money loaned plus interest by a certain date

Some people opposed Hamilton’s plan to buy up all of the old war bonds because they felt it rewarded speculators (someone willing to invest in a risky venture in hopes of making a great profit) Madison

This became the District of Columbia, the city of Washington D.C. How did Hamilton win Southern support for his plan of assuming all state debts? Southern states opposed Hamilton’s plan because they had already paid their debts and felt northern states should do the same. To win Southern support for his plan of paying off all state debts, Hamilton proposed that the new nation’s capital city be located in the South. In July 1790, Congress voted to repay state debts and move the capital to a strip of land between Virginia and Maryland. This became the District of Columbia, the city of Washington D.C.

C. Building up the Economy Congress set up the Bank of the United States in 1791. Tax money could be deposited into the bank and then the bank could issue loans to farmers and businesses In February 1791, the First Bank of the U.S. received a national charter for 20 years.

Building up the Economy Continued Hamilton proposed a tariff to help fix the economy What is a tariff? Price of steel imported from Great Britain: $100 Tariff of $20 placed on imported steel from Great Britain, making the price $120 Price of steel made in USA: $110 Which steel would you buy? Who does a tariff benefit?

C. Building up the Economy Continued Hamilton proposed a tariff, or tax, be placed on imported goods. This tax would be a protective tariff, because it would protect American industries from foreign competition Northerners supported tariffs because new factories were being built there; southerners opposed tariffs because they did not want to pay more for foreign goods Congress did eventually passed a tariff but it was MUCH lower then what Hamilton had proposed

Time to Review Why did Hamilton want to repay the national and state debts? How did Hamilton plan to strengthen the economy? Why did many southerners oppose protective tariffs?

D. The Whiskey Rebellion Congress passed a bill that taxed all liquor in the U.S in order to raise $ for the government Farmers were angered by this because they often converted their corn into Whiskey because it was easier to ship to markets in the East Farmers in Pennsylvania rebelled against the tax Washington called up the militia and put down the rebellion This proved that the new government could respond quickly in times of crisis

E. Foreign Policy The French Revolution began in France in 1789 and became VERY violent by the 1790s http://www.brainpop.com/socialstudies/worldhistory/frenchrevolution/ European countries (like Britain) tried to help put down the Revolution Some Americans felt the U.S. should support the revolution while others felt that it was too violent and doomed to fail Washington issued the neutrality proclamation, which stated that the U.S. would not support either side of the war in Europe Britain and France ignored the Neutrality proclamation and seized American ships that were heading to their enemy’s port In 1793, British ships captured American ships trading with the French; some Americans wanted war War was avoided when Congress approved Jay’s Treaty, which required Britain to pay damages for ships seized in 1793, and give up remaining forts in Ohio River Valley. Americans had to pay off old debts to British merchants

F. Precedents A Precedent is an act or decision that sets an example for others to follow Precedents set by Washington: appointed a Cabinet of advisors, remained neutral, chose the simple title of “President”, and did not seek a third term as President In Washington’s Farewell Address, he urged the U.S to remain neutral in foreign affairs, and to avoid political parties

Time to Review Why did Washington issue the Neutrality Proclamation? How did Britain and France respond to the Neutrality Proclamation? How did Congress avoid war with Britain in 1793? What were two pieces of advice Washington gave in his Farewell Address?

Issue #2: Should the United States remain neutral in foreign affairs? Directions: Choose one of the issues listed below. Write a one paragraph response in which you state and defend your position. Issue #1: Should the government have the right to tax its citizens on the goods they buy? Issue #2: Should the United States remain neutral in foreign affairs? Issue #3: Should a President be allowed to serve more than 2 terms?