1. Launching a New Nation

2. Washington Heads New Gov’t

3. Judiciary Act of 1789 Washington and Congress needs to create a judicial system. Washington and Congress needs to create a judicial system. JA of 1789 – provided for a Supreme Court consisting of a chief justice and five associate judges (number has increased over time) JA of 1789 – provided for a Supreme Court consisting of a chief justice and five associate judges (number has increased over time) Also set up three federal circuit courts Also set up three federal circuit courts Set up 13 federal district courts throughout the country Set up 13 federal district courts throughout the country Allows state court decisions to be appealed to a federal court when constitutional issues were raised Allows state court decisions to be appealed to a federal court when constitutional issues were raised Guarantees federal laws remain “Supreme Law of the Land” Guarantees federal laws remain “Supreme Law of the Land”

4. The Executive Branch Department of State – deals with foreign affairs (Thomas Jefferson) Department of State – deals with foreign affairs (Thomas Jefferson) Department of War – handle military matters (Henry Knox) Department of War – handle military matters (Henry Knox) Department of Treasury – manage finances (Alexander Hamilton) Department of Treasury – manage finances (Alexander Hamilton) Attorney General – chief lawyer of federal gov’t (Edmund Randolph) Attorney General – chief lawyer of federal gov’t (Edmund Randolph)

5. Hamilton vs Jefferson HamiltonJefferson Concentrating power in federal gov’t Sharing power with state and local gov’t; limited national gov’t Fear of mob rule Fear of absolute power or ruler Republic led by well-educated elite Democracy of virtuous farmers and trades people Loose interpretation of Constitution Strict interpretation of Constitution National Bank constitutional National Bank unconstitutional Economy based on shipping and manufacturing Economy based on farming Payment of national and state debts Payment of only the national debt Supporters: merchants, manufacturers, landowners, investors, lawyers, clergy Supporters: the “plain” people (farmers, trades people)

6. Bank of the United States Hamilton wanted the bank to issue paper money and handle tax receipts and other gov’t funds. Hamilton wanted the bank to issue paper money and handle tax receipts and other gov’t funds. Controversial – thought a national bank would forge unhealthy alliances between gov’t and wealthy business interests. Controversial – thought a national bank would forge unhealthy alliances between gov’t and wealthy business interests. Constitution has no provision to Congress had no right to authorize it Constitution has no provision to Congress had no right to authorize it In the end – Hamilton was able to convince Washington and a majority in congress to establish the Bank of the United States In the end – Hamilton was able to convince Washington and a majority in congress to establish the Bank of the United States

7. District of Columbia Hamilton suggested moving the nation’s capital from New York City to a new city in the south or on the banks of the Potomac River Hamilton suggested moving the nation’s capital from New York City to a new city in the south or on the banks of the Potomac River Idea pleased southerners namely Virginians who believed that a southern site would make the gov’t more responsive to their interests. Idea pleased southerners namely Virginians who believed that a southern site would make the gov’t more responsive to their interests. In 1790 – Congress authorized the construction of a new national capital in the District of Columbia – located between Maryland and Virginia. In 1790 – Congress authorized the construction of a new national capital in the District of Columbia – located between Maryland and Virginia. By 1800, the capital is moved. By 1800, the capital is moved.

9. First Political Parties Due to split in Washington’s cabinet, the first political parties will arise. Due to split in Washington’s cabinet, the first political parties will arise. Federalists – those who shared Hamilton’s vision of strong central gov’t Federalists – those who shared Hamilton’s vision of strong central gov’t Democratic-Republicans – those that supported Jefferson’s vision of strong state gov’t (ancestors of Democrat party of today) Democratic-Republicans – those that supported Jefferson’s vision of strong state gov’t (ancestors of Democrat party of today) Two – party system is developed Two – party system is developed

10. Whiskey Rebellion Congress passed the protective tariff – an import tax on good produced in Europe. Congress passed the protective tariff – an import tax on good produced in Europe. Tax was meant to encourage American production and bring in revenue Tax was meant to encourage American production and bring in revenue Hamilton wanted more – he pushed through a excise tax – a tax on a product’s manufacture, sale or distribution – to be levied on the manufacture of whiskey. Hamilton wanted more – he pushed through a excise tax – a tax on a product’s manufacture, sale or distribution – to be levied on the manufacture of whiskey.

11. Most whiskey producers were small frontier farmers Most whiskey producers were small frontier farmers Major crop was corn Major crop was corn Corn was too bulky to carry across the Appalachian Mts. Corn was too bulky to carry across the Appalachian Mts. Farmers distilled the corn into whiskey which could be more easily sent to market on back of mules Farmers distilled the corn into whiskey which could be more easily sent to market on back of mules Hamilton knew the tax would make farmers furious. Hamilton knew the tax would make farmers furious. It did! (Duh!) It did! (Duh!)

12. In 1794 farmers refused to pay the tax In 1794 farmers refused to pay the tax They beat up federal marshals and even threatened to succeed from the union They beat up federal marshals and even threatened to succeed from the union Hamilton looked at rebellion as opportunity for federal gov’t to show it could enforce the law along the western frontier Hamilton looked at rebellion as opportunity for federal gov’t to show it could enforce the law along the western frontier 15,000 militia were called up to scatter the rebels without a loss of life 15,000 militia were called up to scatter the rebels without a loss of life Milestone – showed federal power in domestic affairs Milestone – showed federal power in domestic affairs