Chapter 10-1 Establishing the New Government The inauguration of George Washington as the first President of the United States at Federal Hall, New York, April 30, First President of the United States. George Washington and his Cabinet. Left to right: Henry Knox, Thomas Jefferson, Edmund Randolph, Alexander Hamilton, and Washington. The tarring and feathering of a tax collector at Pigeon Creek, Washington County, Pennsylvania, during the Whiskey Rebellion in 1794:

2 A Reluctant President George Washington became the first President in As president, Washington faced difficult tasks both home and abroad. “…so unwilling am I, … to quit a peaceful abode for an ocean of difficulties”

3 Organizing the New Government President George Washington took the oath of office as President on April 30, Americans looked at Washington to make the new government work. Washington had to set an example for future generations. Washington had to show precedent as the new President. A precedent is an act or decision that sets an example for others to follow. During his two terms in office Washington set many precedents. In 1796, he decided not to run for a third term. His refusal to seek a third term set a precedent others followed until 1940.

The Constitution said little of how the executive branch of government should be organized. When the first Congress met in (1) New York City in 1789, it passed the (2) Bill of Rights which were added to the Constitution as the first 10 (3) Amendments. Congress Passes the Bill of Rights Federal Hall

Congress created the state, war, treasury, and attorney general departments of the (4) executive branch of government. First President of the United States. President Washington and his cabinet. President’s (5) cabinet give advice and are responsible for directing their departments Congress Passes the Bill of Rights First President of the United States. George Washington and his Cabinet. Left to right: Henry Knox, Thomas Jefferson, Edmund Randolph, Alexander Hamilton, and Washington.

6 Two most influential: Thomas Jefferson as the Secretary of (6) State and Alexander Hamilton as the Secretary of the (7) Treasury. Thomas JeffersonAlexander Hamilton Washington Selects well known leaders for departments

Congress had to organize the federal court system. In 1789, Congress passed the (8) Judiciary Act. It called for the Supreme Court to have one Chief Justice and five Associate Justices. The Act also set up courts throughout the country. Constitution called for a Supreme Court John Jay - Chief Justice of the U.S. Supreme Court ( )

Secretary of the Treasury Alexander Hamilton was in charge of the country’s treasury (or money.) He ran into many problems. The most important problem was the large government debt. Hamilton and the National Debt

9 The U.S. was in debt because the new government borrowed money to pay for the (9) Revolutionary War, which it had borrowed from (10) foreign governments and individuals. The total sum of the money a government owes is called the national debt. The debt was in the from of (11) bonds. The (12) State governments also had large debts.

10 He wanted to buy up all the old bonds issued before Then he planned to sell new bonds to pay off the old debts. When the economy improved, he would pay off the bonds. Many people opposed his plan, including bankers and investors. James Madison was against Hamilton’s plan. Because many southern states had paid off their debts from the Revolution and thought the other states should do the same. Hamilton’s plan to repay debts.

He agreed to move the capital to New York to the South, if the southerners supported full payment of the bonds. In 1790, the delegates accepted this compromise and moved the capital in between Maryland and Virginia. They called the new capital, The (13) District of Colombia. Today the capital is called Washington, D.C. Hamilton’s compromise to settle the nation’s debt. President Washington laying the cornerstone of the Capitol in 1793.

12 Hamilton called upon Congress to set up a national (14) bank. In 1791, congress set up the Bank of the United States. The government deposited the money it collected on taxes in the bank. In turn, they printed up paper money pay bills and make loans. The bank made loans to farmers and business’s to help them expand. Hamilton wanted to discourage foreign goods being brought into the country so he placed a tax, or (15) tariff on all goods brought into the United States. The First Bank of the United States, in Third Street, Philadelphia. After solving the national debt, Hamilton took steps to build the nation’s economy.

U.S. NATIONAL DEBT CLOCK The Outstanding Public Debt as of 14 Jan at 03:07:02 PM GMT is: The estimated population of the United States is 317,439,512 so each citizen's share of this debt is $54, The National Debt has continued to increase an average of $2.6 billion per day since September 30, 2012! Concerned? Then tell Congress and the White House!

The Whiskey Tax In 1791, Congress placed an (16) excise tax on all liquor made in the United States. Backcountry farmers that grew corn to sell to the liquor makers became very angry. These farmers converted corn to whiskey to ship it easier. If the farmers refused to pay the Whiskey tax, they had to appear in court and forced to pay the taxes or be placed in jail. The tarring and feathering of a tax collector at Pigeon Creek, Washington County, Pennsylvania, during the Whiskey Rebellion in 1794:

Mobs of people got together and marched against the Whiskey Tax. This became known as the (17) Whiskey Rebellion. The President’s quick military response proved to Americans that the new government would act firmly in a time of crisis. People rebelled against the government for the Whiskey Tax President Washington sending troops to put down the Whiskey Rebellion, 1794.