In a separate part of your note book write a few sentences. Do you fear, mistrust, love, hate, embrace, or not care about your government? In a separate part of your note book write a few sentences. May be collected later

George Washington and Creating the American Economy

Vocab Speculation Bonds Creditors Oligarchy Gambling on the value of something Bonds A form of loan that lasts for a given period of time Creditors One who lends money to others Oligarchy A small group of people having control of a country

George Washington as President Established the Cabinet Secretary of War Knox Secretary of the Treasury Hamilton Secretary of State Jefferson Signed the Bill of Rights Began paying off the Revolution’s debt Defeated the Whiskey Rebellion

Problems Facing the Nation Massive Debt Total Debt in 1792 -$75.6 million Unclear Constitution Beginning Sectionalism (division) North East verses South and West Federalists verses Anti-Federalists

Sectionalism

Pass the Bill of Rights Will be covered better in your Govt. class Proposed by James Madison Proposed 19 Bills Narrowed to 12 Only 10 ratified

The Missing Two? Make sure that there were plenty members of the House of Representatives Would allow more representatives Smaller constituencies Less oligarchy Would not let congress give themselves a raise until after the term they are serving Was eventually passed as the 27th Amendment in 1992

Massive Debt Had to pay for the Revolution Bonds issued to citizens and foreign nations During Revolution Some poorer people sold bonds to speculators Some argued that we should wipe the slate clean Hamilton fought for paying the debt off Thought it would give the new nation credibility We have paid every debt we have ever accumulated

Getting Started Paying the Debt Tariff of 1789 Put a tax on imported goods Raised the cost of imported goods Effected southern agricultural states negatively Angered Europeans who raised tariffs as well

Should the government follow the Constitution’s instructions perfectly, or loosely?

Hamilton’s Financial Program Value of bonds issued during the Revolution had fallen to 10% of their initial value Many poorer people sold their bonds for a loss to speculators Most bond owners were northerners Wanted to create faith in the US govt. to pay off debts

Hamilton’s Reform Passes Southerners were opposed to it because the north held the majority of the debt Passed through compromise Moved the capitol to Washington DC in the south Succeeded and earned big investments in the new nation from foreigners

Next Step Establish a national bank Modeled after the Bank of England Would issue paper money Would allow people to use their money across state lines Give people a stake in their government Help collect taxes, regulate trade, raise money for defense Be a bank for banks Hamilton saw as an implied power in the constitution

Bill Passes Congress Signed by George Washington in 1791 Called the “Bank of the United States” Was successful in paying the debt and stimulating the economy Given a 20 year charter Not reinstated in 1811

What does the Constitution let you do? Enumerated Powers Implied Powers Specific powers spelled out in the constitution Raise taxes, pay debts, maintain defense A limited view towards the constitution Conservative, pass fewer laws, more personal freedom In the constitution, “to make all laws which shall be necessary and proper.” Not spelled out, but may need to be done An expansive view towards the constitution Liberal, pass more laws, more government “protection”

The Whiskey Rebellion To help pay for debts after the Revolution, the US used a “Sin Tax” on whiskey Whiskey was the cheapest way to get grain to market Jars of liquor or bales of raw product Farmers in West Pennsylvania retaliate Attack tax collectors, stop courts, robbed the mail

Washington is Furious Goes with an army of 15,000 to crush rebellion Rebels scatter with out fight Public is worried about possible tyrannical government 2 convicted of treason but pardoned by Washington Could have been the beginning of a slippery slope

Hamilton & the Federalists Hamilton wanted a strong Govt. Did not trust democracy “The people are turbulent and changing; they seldom judge or determine right.” Alexander Hamilton Strong support in North East

Jefferson & the Republicans Strength in farmers over commerce Land ownership would lead to people who will fight to save the Republic Yeoman Farmers Strong support in South and West

Homework Write one paragraph (5 sentences) stating your opinion on the enumerated and implied powers of the Constitution. Do you think Congress should step beyond the Constitution or not? Write another paragraph in response to Hamilton’s quote about “the people.” Do you think people can vote constructively, or need to be governed?