Washington Takes Office

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Presentation transcript:

Washington Takes Office Chapter 8 Section 1

Why It Matters In 1789, The American people had a new Constitution, a new Congress, and their first President. The U.S. was one-fourth the size it is today. All thirteen states were in the east. The nation’s western border followed the Mississippi River. In the North, the Great Lakes formed much of the border separating the United States from British-controlled Canada. In the South, the United States bordered on Spanish-controlled Florida and Louisiana.

The First President In April of 1789, George Washington traveled from Virginia to the nation’s capital, New York City, to begin his term as the first President if the United States. Washington’s inauguration, a ceremony in which the President takes the oath of office, was held in April as well. Washington said himself he was anxious. The country was divided on many issues. Washington understood how much the new nation depended on him. His actions would set a precedent, an example to be followed by others in the future.

The Executive Branch The Constitution provided only a general outline for organizing the government. When the President took office, the entire federal government was made up of little more than 75 post offices, a few clerks, and a tiny army of 672 soldiers. The first job of the President and the Congress, therefore, was to put a working government in place.

The Executive Branch First, Congress passes laws to set up three departments for the executive branch. They are; Treasury, State, and War. Each department was to be headed by a secretary nominated by the President. The President would also appoint an attorney general to advise him on legal matters.

The Executive Branch Washington appointed Alexander Hamilton to be secretary of treasury. He was considered an expert on economic affairs. Thomas Jefferson was chosen for secretary of state. His task was to manage relations with foreign countries. Henry Knox, a former general, was Washington’s choice for secretary of war. Edmund Randolph, who played an important role at the Constitutional Convention, became attorney general. Washington began meeting with this group of leaders and became known as the Cabinet.

Establishing the Judiciary The Constitution called for a judiciary, or court system. The Judiciary Act of 1789 provided for a Supreme Court of 6 justices. Under the Supreme Court were 3 circuit courts and 13 district courts. The main job of the federal courts was to hear appeals from the state courts. Washington appointed John Jay of New York as the first Chief Justice of the Supreme Court.

The Nation’s First Economic Crisis The American Revolution had left the nation deeply in debt. The federal government owed $52 Million. The debt was mainly in the form of bonds. A bond is a certificate issued by a government for an amount of money that the government promises to pay back with interest. Both Americans and foreigners have invested in bonds to help the war effort.

The Nation’s First Economic Crisis The issue was complicated because most people who had originally bought the bonds had sold them for less than they were worth. The buyers were speculators, people who invest in a risky venture in the hope of making a large profit. It seemed unfair to many Americans that speculators would make a profit after the original bondholders have lost money. Also in dispute was whether or not the federal government should pay back state debts. The government had very little money, Washington had to borrow money for moving expenses to New York.

Hamilton’s Financial Plan Alexander Hamilton was responsible for fixing the countries financial problems since he was secretary of treasury. Hamilton’s program had three parts: (1) The U.S. government would fully assume, or agree, to pay, all federal and state debts. (2) The U.S. government would charter a national bank for depositing government funds. (3) The government would impose a high tax on goods imported into the country.

Paying the Debt Hamilton wanted to prove to the American people, as well as people abroad, that the United States would honor its debt in full. Then people would be willing to invest again in the future. Many southerners opposed the deal to repay state debts. Several southern states had paid off their wartime debts on their own. They felt other states should do the same. Congress debated Hamilton’s plan for 6 months. In the end southern states would support Hamilton’s plan, and in return the government would build its new capital city in the south.

A National Bank The second part of Hamilton’s plan called for the creation of a privately owned bank of the United States. It provide a safe place to deposit government funds. The bank would be able to issue paper money that would serve as a national currency. The debate over the bank of the United States went beyond the bank itself and focused on powers of the government had under the Constitution.

A National Bank Opponents of the bank, like Thomas Jefferson, insisted that the law establishing the bank was unconstitutional, contrary to what is permitted by the Constitution. Jefferson argued that nowhere in the Constitution was there a provision allowing Congress to set up a national bank.

A National Bank Jefferson’s view, that the Constitution permits only what it specifically says, is called a “strict” interpretation of the Constitution. Hamilton argued for a “loose” interpretation of the Constitution. He pointed out that Article 1, Section 8 of the Constitution gave Congress the power to make laws “necessary and proper” for fulfilling its responsibilities. This suggested that there were things not directly permitted by the Constitution that Congress could do. In 1791, Congress did pass the law allowing the national bank, and the President signed it.

A High Tariff The final part of Hamilton’s plan called for a high tariff, a tax on imported goods. It would raise money for the federal government. It would also protect U.S. manufacturers from foreign competition by making imported goods more expensive. The tariff was the only part of Hamilton’s plan that Congress did not pass, and that was because the southerners opposed it. They argued that a high tariff would help the North, where most industries are located, while making southerners pay more for the goods they bought.

The Whisky Rebellion - In 1791, Congress imposed a tax on all whisky made and sold in the U.S. Hamilton hoped this tax would raise funds for the Treasury. Instead, it lead to a revolt that tested the strength of the new government. - Many backcountry farmers made extra money by turning corn they grew into whisky. Therefore, they bitterly resented the new whisky tax. - Farmers compared it to the hated taxes imposed by the British before the Revolution. Many farmers organized protests and refused to pay the tax.

The Whisky Rebellion In 1794, officials tried to collect the tax in western Pennsylvania. Farmers rebelled, burning down the home of the tax collector. A large angry mob was marching through Pittsburgh. The violent protests became known to be the Whisky Rebellion. Washington responded quickly by sending in the militia. When the rebels heard that American troops were marching against them, they quickly scattered. The Whisky Rebellion tested the will of the new government. Washington’s forceful response showed Americans that armed rebellions was not acceptable in a new republic.