1. Ch. 8, Section 1: The First President Main Idea: President Washington tackled the work of establishing a new government. Key Terms: –Precedent –Cabinet –National Debt –Bond –Speculator –Unconstitutional –Tariff

2. Chapter 8, Section 1 President Washington –Was elected the first president of the United States under the federal Constitution (there had been several presidents under the Articles of Confederation). –On April 30, 1789, he took the oath of office. John Adams became vice president.

3. George Washington Washington was aware of the difficulties and decisions he had to face. He would establish precedents that would shape the future of the United States. He would make many decisions especially about the structure of the government

4. President Washington cont. Congress set up a cabinet with three departments: –1. the State Department to handle relations with other nations, headed by Thomas Jefferson. –2. the Treasury Department to deal with financial matters, headed up by Alexander Hamilton. –3. the War Department to provide for the national defense, headed by Henry Knox.

6. President Washington Congress created the office of attorney general to handle the government’s legal affairs. Edmund Randolph was the first attorney general. Congress also established the office of postmaster general to direct the postal service.

7. Cabinet Washington met regularly with the three department heads, or secretaries, and the attorney general, which together became known as the cabinet.

8. President Washington Congress was divided as to how much power the president should hold over the executive departments. The president appointed the department heads with the Senate’s approval. Congress gave the president authority over hiring and firing cabinet officers so that he did not need the Senate’s approval to dismiss someone. This strengthened the president’s position and created a major separation between the legislature and the executive branches.

9. President Washington The Judiciary Act of 1789 was actually a compromise act. –One group in Congress favored a national legal system, a second favored state courts. –The act established a federal court system with 13 district courts and 3 circuit courts. –State laws would remain, but federal courts would have the power to reverse state decisions.

10. Supreme Court The Supreme Court was to be the highest court with final authority. John Jay was appointed chief justice.

11. Bill of Rights Many people felt the Constitution needed a guarantee of personal liberties. In fact, some states supported the Constitution because a bill of rights was to be added to it. 1. James Madison presented a list of amendments to Congress. 2. Congress passed 12 amendments. 3. The states ratified 10 of them. 4. These 10 amendments became known as the Bill of Rights and were added to the Constitution in December 1791.

12. Financial Problems Hamilton, as secretary of the treasury, tried to find a way to strengthen the country’s financial problems. Hamilton Plan-The new government should pay off the millions of dollars of debts owed by the Confederate government to other countries and to individual citizens. –1. The nation should pay for the cost of their help. –2. Further, by the federal government assuming the states’ debts, this would give the states a strong interest in the success of the new government.

13. II. Financial Problems cont. B. There was opposition to Hamilton’s plan. Congress agreed to pay money to other nations, but they could not agree to pay off the debt to American citizens.

14. C. When the government borrowed money during the war, it issued bonds, or paper notes, promising to repay the money in a given period of time. Speculators bought many of the original bonds for less than their value. Hamilton’s plan proposed paying off these bonds at their original value, and opponents said this would make the speculators rich.

15. II. Financial Problems cont. D. The original bond owners were also opposed because they had lost money on their bonds and the new bond owners had made money, only to make more if Hamilton’s plan was enacted. E. The Southern states also presented opposition because their state debt was less than the Northern states, and they would have to pay more than their share under Hamilton’s plan. F. Hamilton proposed a compromise plan. He agreed to a proposal by Southern leaders to move the nation’s capital from New York City to a special district in the South between Virginia and Maryland. This became Washington, D.C. The Southerners then agreed to support his plan to pay off the state debts.

16. III. Building the Economy A. Hamilton also proposed the creation of a national bank, the Bank of the United States; a tariff, or tax, on imports; and national taxes to help the nation’s economy. B. Before the bill to create a national bank was proposed, only state banks existed. Madison and Jefferson opposed the idea of a national bank, saying that it would benefit the wealthy and was unconstitutional. Hamilton said that Congress had the power to create a bank even though the Constitution had no provision. The president signed the bill, creating the Bank of the United States. C. Hamilton proposed a protective tariff on imports. He hoped this would protect American industry from foreign competition and encourage people to buy American goods. –1. The South opposed this tax because they had little industry to protect. –2. Hamilton did win support in Congress for some low tariffs to raise money.

17. III. Building the Economy D. Hamilton’s economic program also called for creating national taxes. The government could have additional funds to operate and use to make interest payments on the national debt. Congress approved a variety of taxes, including one on American whiskey. E. Hamilton’s economic program gave the country new financial powers, but it split Congress and the nation. His opponents, including Madison and Jefferson, feared a national government with strong economic powers to protect the wealthy.