George Washington Inauguration Creating a Government George Washington Inauguration

Judiciary Act of 1789 Created a Supreme Court Federal Court and District Court System Allowed appeals to higher courts ONLY if constitutional issues were raised John Jay was chosen by President Washington to be the first Chief Justice

The First Cabinet Sec. of War – Henry Knox, Sec. of Treasury – Alexander Hamilton, Sec. of State - Thomas Jefferson, Attorney General – Edmund Randolph

Opposites Attract? Alexander Hamilton: Favored a strong central gov’t led by wealthy, educated, upper class Felt strongly that commerce and industry were the keys to a healthy nation Supported by wealthy Northerners, particularly from New England Wanted close economic ties with Great Britain

Favored strong state and local gov’ts with popular participation Thomas Jefferson: Favored strong state and local gov’ts with popular participation Wanted an economy based on agriculture – farmer-citizens Supported by petty farmers in South and West Wanted close political relationship with France *Washington specifically chose these two for their cabinet posts BECAUSE of their polar opposite views, not in spite of them

Hamilton’s Economic Plan *The gov’t was deeply in debt to local investors and foreign powers Hamilton suggested: Issue new bonds to pay off the old bonds Federal gov’t would assume ALL the remaining debt of each individual state Create a National Bank funded partly by the gov’t and partly by private citizens OPPOSITION: Is this legal??? New taxes! Some States already repaid their loans Unhealthy relationship b/n gov’t and the rich would develop

Another Compromise! After much debate, Hamilton got his bank- the Bank of the United States

BUT- To gain Southern support… …the new capital city was placed in the South, on land “donated” from Virginia and Maryland

First Crisis New tax on Whiskey – Western Pennsylvania farmers’ main source of income was whiskey (corn was too expensive to carry to East coast markets). Reminded of British taxes, the refused to pay the tax, and intimidated the tax collectors… The Whiskey Rebellion was ordered put down by President Washington with Federal troops

Conflict in Ohio Clashes in Ohio over land were losses for US as LITTLE TURTLE won battles until… BATTLE OF FALLEN TIMBERS and TREATY OF GRENVILLE – US crushed Indian forces and ended any future resistance in Ohio Ohio is ceded to US by Natives and settlers push into the area

French Revolution July, 1789 – French Revolution breaks out and Americans are divided (even politicians split into Federalists and Democratic Republicans) as to what to do

Remember- US had an alliance with France since 1778 Jefferson wanted to honor it Hamilton wanted to ignore it Washington issues a proclamation of neutrality as Britain and France go to war

As the Revolution turned more radical… Edmund Genet came to US to woo American support Jefferson continued to support France, was labeled a radical, and resigned his post Washington sticks to neutrality

Meanwhile… Pickney’s Treaty is negotiated: US wanted to secure land claims West of the Appalachain Mountains and use the Mississippi River for trade (Spain was giving us problems) Spain allows us use of MS River, makes the 31st parallel the official border b/n Georgia and Spanish Florida, US gave up any claims to Louisiana Territory Treaty is important b/c it paved the way for huge settlement of the area

Jay’s Treaty Officially made US the controller of Northwest Territory. GBR had to abandon their forts. PROBLEMS: Allowed GBR to continue fur trade on US side of Canadian border B/c US took neutral stance in GBR/FRA war, GBR had been attacking US ships and impressing US citizens into Royal Navy – this issue was never addressed

Election of 1796 Angered with party politics, Washington decides not to run for a 3rd term and retires to Mount Vernon Election results were BAD- Adams wins, runner-up was Jefferson (new Amendment will have to be drawn up b/c of the unforeseen rise of political parties) SECTIONALISM – people were voting for candidates based on regional concerns, not based on merit