The New Republic Begins

The New Government George Washington was inaugurated on April 30, 1789 Only President to be elected unanimously

George Washington Sets Precedents Constitution does not detail the powers or responsibilities of the President. As first President, he had to set a precedent- an example to be followed by others in the future. Was even a struggle over what to call him – They settled on “Mr. President”

1.Setting up the Courts Constitution left many matters for Congress to decide. Ex. Supreme Court Federal Judiciary Act: Created a court system – gave the Supreme Court six members: Chief justice and 5 associate justices

2.Washington’s Cabinet Constitution gave Congress the job of creating departments to assist the President Congress created 5 departments – President had the power to appoint the heads to these departments. Washington set precedent – he chose well-known leaders

3.Terms of Office 1796 Washington decides not to run for a third term Became tradition to run serve for only two terms as President

Precedents: an example to be followed by others in the future 1) Setting up Courts – Federal Judiciary Act 2) Washington’s Cabinet- 5 departments 3) Terms Office- 2 terms 4) Farwell Address:

4) Washington’s Farewell Address Washington warns Americans: 1. Political Divisions at home 2. No Alliances 3. Stay Isolated / Neutral 4. Sectionalism- division between North and South

Economic Problems of New Nation Alexander Hamilton – Secretary of Treasury faced the nations economic problems Main focus was to repay war debts – National debt was more than $52 million Alexander Hamilton

Economic Problems Hamilton's Views: Believed in Strong Central Government Supported industry and growth – Nation depended on manufacturers and the wealthy Must pay back debt in order to borrow in the future Alexander Hamilton

Hamilton’s Economic Problems Hamilton's Plan: Pay off all war debts Raising government revenues (money through taxes) Create a national bank Alexander Hamilton

Opposition to Plan James Madison disliked Hamilton’s plan Madison called the plan unfair James Madison

Compromise Hamilton’s Compromise: 1. Moved the nation’s capital to the District of Colombia (D.C.)

2. National Bank: the Bank of the United States – used to deposit taxes and issue paper money Protect American Industry: Passed a Tariff – Tax on all foreign goods A.K.A. - Protective Tariff – Protect American goods from foreign

Whiskey Rebellion Cause: Congress passed the Whiskey Tax to raise money for the new government Taxed all liquor made in U.S.

Farmers hated tax – Compared it to the hated British taxes Pennsylvania farmers protested and rebelled Washington acted quickly and proved new government could respond in times of crisis

Establishing Stability Preserving Neutrality French Revolution: Inspired by Declaration of Independence / American Revolution Reign of Terror- Fr. Revolutionaries executed 17,000 people – including the King and Queen

American Opinion Federalists – denounced the violence Jefferson stated people were fighting for their freedom

Neutrality Proclamation 1793: Fr. + Br. were at War Washington: wanted to stay neutral Neutral- not favor either side in a dispute U.S. still wanted to trade w/ both

Jay’s Treaty Impressment- seizing the sailors and forcing them to serve in the Br. navy Hamilton stated: U.S. need to stay friendly with Br. (75% of trade) John Jay sent to repair relations Jay’s Treaty: 1. w/draw Br. troops in NW territory 2. stop impressment