Washington’s Presidency Ch. 9-1 p. 293-297 Washington’s Presidency

Washington Takes Office Washington was president with John Adams as vice-president April 30 at Federal Hall in NYC (capital) Washington was inaugurated! He was going to set the precedent (future expectations) for all future presidents

Setting Up the Courts Constitution created a Supreme Court, but left it to Congress to decide number of justices. States already had own courts, so how much power should Supreme Court have? Federal Judiciary Act of 1789 – 6 justices. (a chief justice and five associates) John Jay was appointed as chief justice Now have 9 justices!

Washington’s Cabinet Constitution said NOTHING of a cabinet Congress had power to set departments to help the president President got to choose the head of each department Congress created 3 departments Secretary of War – Henry Knox Secretary of State – Thomas Jefferson Secretary of Treasury – Alexander Hamilton Edmund Randolph – attorney general Washington set model of calling together this group for advice

Economic Problems We needed to pay over $52 million in war debts (borrowed millions from France, Netherlands, and Spain as well as own citizens) We needed to assure everyone that we were respectable and responsible with money Hamilton had strong beliefs in powerful central government, business, and industry. Wanted support of merchants and manufacturers (Thought he could get it by paying them back.)

Hamilton’s Financial Plan Three step plan 1. pay off ALL war debts 2. raise government revenues 3. create a national bank Hamilton wanted federal government to pay war debts of states but southern states did not want to help the North pay debts Compromise – south helped pay if the capital got moved to the south. Chose the Potomac River between Virginia and Maryland Tariff – tax on imported goods. (Hamilton favored these!) Raise money for the government and increase American industry

Hamilton’s Financial Plan continued Highest tariffs on shoes and textiles Created national bank Gave government a safe place to keep money Made loans to businesses and government Issued bank notes (paper money that could be used as currency) Hamilton’s plan strengthened the central government, but worried Jefferson and Madison

Interpreting the Constitution Jefferson and Madison believed the Constitution discouraged strong power of federal government Debate over Hamilton’s plan exposed differences in how to interpret the Constitution. Madison and Jefferson said it did not give the government the power to start a bank Believed in strict construction – narrow or strict interpretation. Only what it says; nothing more, nothing less Hamilton favored loose construction – broad or flexible interpretation. Since it did not say no, he claimed a bank was “necessary and proper” to carry out government’s duties Hamilton won debate with Jefferson to Washington and set up the Bank of the United States in 1791