Washington Heads the New Government Chapter 6 Section 1 Washington Heads the New Government

The New Government Takes Shape Constitution set up a Supreme Court Judiciary Act of 1789 Provided a Supreme Court consisting of a chief justice and five associate justices 3 federal circuit courts 13 federal district courts Section 25 of Judiciary Act allowed state court decisions to be appealed to federal court Article 6 of the Constitution says that federal laws remain “Supreme law of the land”

Washington Shapes the Executive Branch 1789- 2 officials in executive branch; President and Vice President Three executive departments created to help: Department of State ( Thomas Jefferson) Department of War (Henry Knox) Department of the Treasury (Alexander Hamilton) Edmund Randolph as Attorney General, Chief lawyer of federal government Secretaries and Attorney General became known as President’s chief advisors, or Cabinet

Hamilton and Jefferson Debate

Hamilton’s Economic Plan Plan to establish nat’l banking system Report on the Public Credit 1790s- millions in debt National gov’t responsible for 2/3 of debt Proposed to pay off foreign debt & issue new bonds to cover domestic debt Federal gov’t should take over state debts Would give creditors incentive to support new federal gov’t

Plan for a National Bank Funded by federal government and wealthy private investors The Bank of the United States – issue paper money and handle tax receipts James Madison – bank would create an alliance between gov’t and wealthy business interests Constitution doesn’t say anything about a bank, no authority to make it Arguments about strict and loose interpretation of the Constitution Strict – federal government has limited power Loose- greater federal powers Hamilton convinces Washington, and a National Bank is made

District of Columbia Hamilton suggests moving capital from NYC to somewhere South to win support Southerners liked this because it would make the government more responsive to their interestes 1790 – debt bill passed, along with the OK for a new capital to be built between Virginia and Maryland Pierre L’Enfant originally hired, but then fired Andrew Ellicott took over with Benjamin Banneker and the capital was moved by 1800

First Political Parties and Rebellion Split in cabinet due to political views Hamilton’s supporters – Federalists Jefferson’s supporters – originally Republicans, later changed to Democratic-Republicans (more like today’s Democratic party) Washington Warned against political parties and how they would destroy the country “ It serves always to distract the public councils and enfeeble the public administration. It agitates the community with ill-founded jealousies and false alarms; kindles the animosity of one part against another; foments [incites] occasionally riot and insurrection. It opens the door to foreign influence and corruption. . . .”

Whiskey Rebellion 1789- protective tariff – import tax on goods produced in Europe Encouraged American production Excise tax – on product’s manufacture, sale, distribution were levied on whiskey Farmers used corn to make whiskey which was easier to transport and sell Excise tax infuriated them 1794 – refused to pay tax, beat up marshals in Pittsburgh, and threatened to secede from the union 15,000 militiamen called and stopped the rebellion without killing anyone.