5.1 Washington’s Presidency A. Washington’s First Steps 1. Washington was inaugurated in New York City on April 30, 1789. a) A presidential inauguration is a ceremony in which the President officially takes the oath of office. 2. As the 1st President, Washington was setting an example for future generations. a) The Constitution did not explain how the President should work day to day.m b) A precedent is an act or a decision that sets an example for others to follow.

5.1 Washington’s Presidency 2. Washington decided not to run for a third term in 1796. 3. In 1789, Congress created 5 executive departments: State, Treasury, War (Defense), Attorney General (Justice), and Postmaster General. a) The heads of these departments made up the President’s Cabinet. b) Cabinet members gave the President advice. 4. Washington set a precedent by choosing well-known leaders to serve in his Cabinet. a) The two most influential cabinet members were Thomas Jefferson (State) and Alexander Hamilton (Treasury).

5.1 Washington’s Presidency 5. Congress passed the Judiciary Act of 1789. a) It called for the Supreme Court to consist of a Chief Justice (John Jay) and 5 Associate Justices (today there are 8). 6. The Judiciary Act also set up a system of district courts and circuit courts across the nation. a) Decisions in these courts could be appealed to the Supreme Court. B. Reducing the Nation’s Debt 1. Among Hamilton’s problems in the new Dept. of the Treasury was the large national debt.

5.1 Washington’s Presidency a) The national debt is the total amount of money that a government owes to others. 2. During the Revolution, both the national government and individual states had desperately needed money. a) Then, as now, governments borrowed money by issuing bonds. b) A bond is a certificate that promises to repay the money loaned, plus interest, on a certain date. 3. Hamilton called for the government to repay both federal and state debts. a) He wanted the government to buy up all the bonds issued by both the national and state governments before 1789. b) He then planned to issue new bonds to pay off the old debt.

5.1 Washington’s Presidency 4. James Madison led the opposition against Hamilton. a) Madison argued that Hamilton’s plan would reward speculators. b) Speculators are people who invest in a risky venture in the hope of making a large profit. 5. During the Revolution, the government had issued bonds to soldiers and citizens who supplied goods. a) Many of these bond holders sold their bonds to speculators for cash. 6. Hamilton thought that the nation must repay its debts in full. a) Congress agreed to pay the nation’s debt in full.

5.1 Washington’s Presidency 7. As a southerner, Madison also led the fight against the repaying of state debts. a) As of 1789, most southern states have paid off its debt. b) Southern states bitterly oppose the Hamilton plan. C. Plans to Build the Economy 1. Hamilton called on Congress to set up a national bank. a) In 1791, Congress created the Bank of the United States. b) Tax money went into the bank.

5.1 Washington’s Presidency c) In turn, the bank issued paper money to pay the government’s bills and to make loans to farmers and businesses. d) This encouraged economic growth. 2. Hamilton asked Congress to pass a high tariff, or tax, on imported goods to protect American made goods. a) The North supported the tariff, while the South was against it. b) In the end, Congress did pass a tariff, but it was much lower than Hamilton wanted. D. The Whiskey Rebellion

5.1 Washington’s Presidency 1. Congress passed a tax on all liquor made and sold in the United States. 2. Backcountry farmers grew corn. a) Corn was bulky and hard to transport over rough roads. b) Farmers converted their corn to whiskey for easier travel. 3. Backcountry farmers hated the tax on whiskey. 4. In 1794, when officials in western Pennsylvania tried to collect the tax, farmers rebelled.

5.1 Washington’s Presidency a) The rebels marched through the streets of Pittsburgh. 5. Washington responded quickly. a) The militia was sent to PA. b) Rebels fled back to their farms. 6. The Whiskey Rebellion tested the will of the new government.

5.1 Washington’s Presidency E. Responses to the French Revolution 1. The French had many reasons to rebel against their king, Louis XVI. a) Middle class and peasants paid heavy taxes. b) Rich paid none. c) The French liked the idea of Revolution. 2. At first the Americans liked and supported the French in their revolution. a) Then, in 1793, the French Revolution turned violent. b) During the “Reign of Terror”, the king and queen were beheaded

5.1 Washington’s Presidency 3. The violence in France divided Americans. a) Thomas Jefferson continued to support the French. b) Alexander Hamilton and John Adams strongly disagreed and rejected the violence. F. The United States Remains Neutral 1. The French Revolution frightened most European rulers and nobles 2. President Washington had to decide on a foreign policy, which refers to the actions that a nation takes in relation to other nations. a) Washington wanted to remain neutral, which means not taking sides in a war.

5.1 Washington’s Presidency 3. The issue of the treaty deepened the divisions within Washington’s cabinet. a) Hamilton argued that the treaty was with the dead king and that it was no longer valid. b) Jefferson urged strict acceptance of the treaty. 4. Washington issued the Neutrality Proclamation in April 1793. a) It forbade any Americans from helping the British or the French. 5. This defeat and other defeats of Jefferson eventually led to him leaving the cabinet.

5.1 Washington’s Presidency G. Struggling to Remain Neutral 1. In 1793, the British captured more than 250 American ships trading in the French West Indies. a) Some Americans called for war. b) Washington knew that the nation was too weak for war, so he sent Chief Justice John Jay to Britain for peace talks. c) Britain would pay damages and gave up their forts in the American West, while the Americans had to pay debts to British merchants. 2. Jay’s Treaty didn’t do anything to protect American shipping.

5.1 Washington’s Presidency a) The Senate approved the treaty in 1795. 3. Before retiring in 1796, George Washington published his Farewell Address. a) He advised that the United States not get involved with European affairs.