The First President Chapter 8, Section 1 Key Terms: PrecedentCabinet National DebtBond SpeculatorUnconstitutional Tariff

President Washington 57-year-old George Washington looked for quiet retirement, but citizens elected him 1 st ever President. 57-year-old George Washington looked for quiet retirement, but citizens elected him 1 st ever President. Took Oath of Office April 30, 1789 in ______. Took Oath of Office April 30, 1789 in ______.  ___________________ was Vice-President. Many Americans feared President would try to become king (trusted Washington). Many Americans feared President would try to become king (trusted Washington). Washington knew of difficulties he faced. Washington knew of difficulties he faced. –Precedents he established would shape future of U.S. –Precedent—___________________________. Washington & new Congress made decisions about structure of govt. Washington & new Congress made decisions about structure of govt.

President Washington and First Congress Const. gave Congress power to create executive depts., but didn’t state if dept. heads reported to Congress or Pres. Const. gave Congress power to create executive depts., but didn’t state if dept. heads reported to Congress or Pres. 1789—Congress set up 3 departments: 1789—Congress set up 3 departments:  State Dept.--________________________________________________. –Thomas Jefferson  Treasury Dept.--_____________________________________________. –Alexander Hamilton  War Dept.--_________________________________________________. –Henry Knox Also created Attorney General Office and Postmaster General Also created Attorney General Office and Postmaster General  Attorney General—handle govt.’s legal affairs (Edmund Randolph).  Post. General—direct the postal service. Met regularly with 3 dept. heads & attorney general. Met regularly with 3 dept. heads & attorney general. –Became known as the cabinet =_____________________________.

Congress & the Judiciary Act Congress divided about how much power president should have over them. Congress divided about how much power president should have over them. –Ex.—should pres. be able to replace official that he appointed and Senate confirmed? –VP Adams broke tie by voting to allow Pres. authority to remove cabinet officers w/o Senate approval. –Created greater separation between leg. & exec. branches. Judiciary Act: Congress established federal court system w/_____ district courts and ____circuit courts. Congress established federal court system w/_____ district courts and ____circuit courts. –State laws remained, but federal courts had power to reverse state decisions. –Washington nominated _____________ to lead Supreme Court.

Bill of Rights People insisted guarantees of personal liberties needed to be included in Constitution. People insisted guarantees of personal liberties needed to be included in Constitution. ________________ introduced set of amendments during first session of Congress. ________________ introduced set of amendments during first session of Congress. Congress passed 12 amendments, but states only ratified ______ of them. Congress passed 12 amendments, but states only ratified ______ of them. Became known as the _______________________. Became known as the _______________________.

Financial Problems President focused on foreign relations & military matters. President focused on foreign relations & military matters. Left economic policy up to Sec. of Tres. = ___________. Left economic policy up to Sec. of Tres. = ___________. National Debt was growing. National Debt was growing. Wanted to improve govt.’s financial Wanted to improve govt.’s financial reputation and strengthen nation at same time. Hamilton’s Plan: Hamilton’s Plan:  New govt. pay off millions in debts owed by Confederation govt. to other countries and individual American citizens.  States fought for independence, therefore, natl. govt. should pay for their help.  Also thought federal help for their debts would give states strong interest in helping out new national government.

Hamilton’s Plan--Opposition Congress agreed to pay amount owed to other nations, but Congress agreed to pay amount owed to other nations, but Paying off American citizens set off storm of protest!!! Paying off American citizens set off storm of protest!!! When govt. borrowed money during Rev. War, it issued bonds. When govt. borrowed money during Rev. War, it issued bonds.  Bonds—___________________________________________________. –While waiting for payment, many bond owners sold them for less than face value. –They were purchased by ________________ = people who risk money in order to make a larger profit.  Hamilton proposed that these bonds be paid off at original value.  Opponents felt his plan would make speculators rich.  Original bond owners felt betrayed b/c they lost money by selling bonds, while new bond owners profited. –Southern states accumulated more debt than Northern states & complained they would pay more than their share under his plan.

Compromise!!! Hamilton agreed to locate nation’s capital in the South. Hamilton agreed to locate nation’s capital in the South. –Special district would be laid out between _____________ and _________________, along the Potomac River. –District became known as ____________________________. In return, Southerners supported his plan to pay off debts. In return, Southerners supported his plan to pay off debts.

Building the Economy 1792—only 8 banks in nation (all established by state govts.). 1792—only 8 banks in nation (all established by state govts.). Hamilton wanted a national bank. Hamilton wanted a national bank. –Madison and Jefferson did not! (said it would benefit the wealthy).  Said it was ________________________. –Hamilton said even though Const. did not say Congress could create a bank, they still had power to do so.  President agreed! Hamilton proposed _________ = ________________________. Hamilton proposed _________ = ________________________.  Thought it would encourage people to buy American. Hamilton wanted to create national __________. Hamilton wanted to create national __________.  Would provide additional funds to operate and make payments on national debt.  Approved variety of taxes, including: whiskey distilled in U.S. His economic programs split Congress & nation. His economic programs split Congress & nation.  Gave national govt. new financial powers.  Jefferson & Madison had different vision of what America should become.

Major Financial Political Adversaries