 Washington elected President February 1789  John Adams became Vice President  Inauguration Day – April 30, 1789  Washington took the Oath of Office in New York City  Suit made of American broadcloth to encourage American business

 Washington gave a short speech and fireworks followed  Washington & Congress went to a church service in Saint Paul’s Church  WASHINGTON CHOOSES A CABINET  1789-Congress creates the first 3 executive departments  1) State—domestic and foreign affairs  2) Treasury—money and banking  3) War—military  These departments became known as the President’s Cabinet

 Washington chose men he trusted  Secretary of War—Henry Knox  Secretary of State—Thomas Jefferson  Secretary of the Treasury—Alexander Hamilton  Attorney General—Edmund Randolph (President’s legal advisor)  Washington & Adams were old opponents  They avoided working closely with each other.

 The new government received pressure from Federalists and Anti-Federalists  Federalists led by Hamilton  Anti-Federalists led by Madison and Jefferson (This group became known as Jeffersonian Republicans)

 THE FIRST CONGRESS  Only 10 states had joined the government— the first Congress was small  Judiciary Act of 1789—Set up the Supreme Court  1 Chief Justice—John Jay  5 Associate Justices  District Courts and Courts of Appeal were also created

 HAMILTON’S ECONOMIC PLAN  1) Federal Government would take on all Revolutionary War debt-both state and national  Bonds had been sold to pay for the war  People sold bonds to Speculators at less than face value because they needed money  Government would pay face value for the bonds

 Speculators would make a profit  Some people thought that was unfair  IMPOSING NEW TAXES  Constitution gave Congress the power to tax  Tariff Act of 1789—tax on imported goods  Excise Tax (1791)—liquor, sugar, snuff, carriages  Very unpopular

 Hamilton’s plan to pay off war debt was controversial.  The North had more debt than the South  Southern states didn’t want to pay off Northern debt  Congress rejected this policy several times

 COMPROMISE LEADS TO A NEW CAPITAL  Hamilton tries to change Jefferson’s and Madison’s minds  Over dinner, they crafted a compromise  1790-US Capitol moved from New York to Philadelphia  By 1800-Capitol would move to a new federal city in the South  Southern congressman would pass Hamilton’s economic plan

 New city on Potomac River between VA and MD  March 1791—Washington chose French engineer, Pierre Charles L’Enfant to plan the layout of the new capitol  Mathematician Benjamin Banneker, an African-American, was appointed to the planning commission at Jefferson’s request.

 Washington like L’Enfant’s plan but Jefferson thought it should be simpler  L’Enfant was eventually dismissed from the project but his plan was followed

 strict construction vs. loose construction  HAMILTON’S BANK PLAN  Article I, Section 8 listed a number of specific, or expressed powers  Hamilton’s bank was example of loose construction (any law necessary or proper)

 JEFFERSON OPPOSES THE BANK  He wanted smaller central government  WASHINGTON SIGNS THE BANK BILL  Madison, Jefferson, and Randolph oppose  Washington “greatly perplexed” but didn’t want to veto bank bill  Bank of the United States created February 1791

 THE WHISKEY REBELLION  1794-Farmers in western PA violently opposed Hamilton’s excise tax on whiskey  Rebel farmers rebelled—tax collectors attacked, barns of tattle-tails burned  A crowd of >2,000 threatened Pittsburgh  There was talk of an independent nation

 Washington took control  Rebellion would not be tolerated  Militia from VA, MD, NJ—13,000 men  Washington and Hamilton rode out to lead the troops  Surprised farmers scattered. Militia caught and arrested them  2 were convicted of treason but Washington pardoned them

 POLITICAL PARTIES DEVELOP  Most framers thought parties were dangerous  1790s—Americans became politically divided  Two sides—Jeffersonian Republicans vs. Federalists (Hamilton)  Two-Party System was beginning  Jeffersonian Republicans became known as the Democratic-Republicans