7X 2-25-2015 Objectives: Describe the economic challenges of the new nation and how Hamilton developed a financial plan for the country. Agenda: Do Now: Copy main ideas and big idea from 7.2, copy and define key terms and people. Discuss homework. Read, take notes, and discuss 7.2 Homework: page 242 #1A

Washington’s Decisions: Created a cabinet – heads of departments and advised Washington on national policy, brought together the brightest minds for his cabinet, set a two term precedent, thought judiciary system should be independent and as perfect as possible, he set the precedent that the President is in charge of foreign policy – decided that they wouldn’t get involved with war between France and England – Neutrality Proclamation, nominated candidates for federal judgeships, never approached Congress after being denied – set the relationship between Congress and President, stopped Whiskey Rebellion by display of army – no violence. Acts of Congress: Judiciary Act of 1789 – set up the different levels of federal courts and established their relationship with state courts, created departments in executive branch, denied Washington his request – established checks and balances, elected electoral college, helped create the first bank of the United States. First U.S. Government: Strong Executive Branch, Capital moves to Washington, D.C. – as a compromise -> A government of compromise, A strong and efficient judicial branch, president 2 terms, President no longer approaches Congress, people don’t pick actual president, Presidency has been well defined by Washington

Hamilton and National Finances Hamilton’s Economic Plan (3 points) – Domestic debt= 40.4 mill, State debt= 25 mill, Foreign debt=11.7 million =77.1 million dollars total 1. Deal with debt – issue new bonds(which helps the gov’t get money), pay the state debts 2. Gain Revenue – Bring in money by taxing foreign companies who want to sell in America 3. Stabilize the banking system – created a national bank, national mint- create paper money

Loose construction: liberal/broad interpretation of the Constitution – we can do things that the Constitution does not forbid. IF it says you can’t do it, then it’s okay to do. Strict construction: narrow/limited interpretation of the Constitution. If it’s not in the Constitution, we can’t do it. Elastic clause: The government can do whatever is necessary to carry out its duties.

Hamilton and National Finances Economic Problems Solutions