1. Washington as President

2. Growing national debt Disagreed about the power of government How should the constitution be interpreted?

3. #1: Pay off all war debt Combine federal & state debts into a single national debt Combine federal & state debts into a single national debt = $77 million 3 step program to improve finances Hamilton presented a 3 step program to improve finances Year Gross Domestic Product (Output) Total Population National Debt Debt/Population ($ per person) 1790$240,000,0003,930,000$75,463,476.52$19.20 1791S250,000,0004,050,000$77,227,924.66$19.07 1792$270,000,0004,170,000$80,358,634.04$19.27 1793$300,000,0004,300,000$ 78,427,404.77$18.24 1794$350,000,0004,430,000$80,747,587.39$18.23 1795$420,000,0004,560,000$83,762,172.07$18.37 1796$470,000,0004,700,000$82,064,479.33$17.46 1797$450,000,0004,840,000$79,228,529.12$16.37

4. Propose a tariff to encourage American industry & make economy strongerPropose a tariff to encourage American industry (manufacturing) & make economy stronger New taxesNew taxes strengthen federal financial power –New tax on whiskey proposed Taxes ensure a steady flow of income to the government #2: Raise Government Revenue

5. #3:Congress Creates a National Bank #3: Congress Creates a National Bank a safe place to keep money Give government a safe place to keep money Businesses would be helped through loans Single form of currency Single form of currency for the nation

6. strengthen the federal governmentPlan would strengthen the federal government Hamilton believed in a loose interpretationHamilton believed in a loose interpretation of the Constitution A very broad & flexible view of power Doing what is “necessary and proper”

7. Thomas Jefferson & James Madison felt it gave too much federal powerThomas Jefferson & James Madison felt it gave too much federal power Called the plan unconstitutional a strict interpretationArgued for a strict interpretation of the Constitution Believed Hamilton was building a government run by the wealthy Constitution does not mention a bank so government cannot create one

8. Hamilton’s financial plan Use Hamilton’s financial plan new Southern capital called City of Washington, District of Columbia Create a new Southern capital called City of Washington, District of Columbia

10. Light Reflection On the notecard- Write something you learned, have a question about, or did not understand