1. Sections 1-2

2. (April 30, 1789) Precedent- traditions (“Mr. President”) Two terms

3. 1. State Department – Handles relations with other nations (Thomas Jefferson) 2. War Department- National defense (Henry Knox) 3. Treasury Department- Finances (Alexander Hamilton)

4. Federal court (Supreme Court) 13 District courts 3 circuit courts State laws remain same Federal Courts can reverse state decisions (John Jay is chief justice for Supreme Court)

5. National debt- amount national government owed

6. Alexander Hamilton Plan New Government pay off debt Help out wealthy people who bought bonds Bonds- Paper note promising to repay back money later on.

7. Alexander Hamilton Plan (Problem) Thomas Jefferson saw it unfair Wasn’t going to benefit farmers, shopkeepers, etc.

8. Alexander Hamilton Plan (Compromise) Southerners support plan only if Capital was moved New Capital= Washington D.C.

9. Alexander Hamilton Plan Private Investors and National Government can own Bank’s stocks Credit System.

10. Alexander Hamilton Plan Thomas Jefferson called it unconstitutional. Unconstitutional: Inconsistent with the Constitution Washington approved the Bill regardless.

11. Alexander Hamilton Plan Tariff- tax on imports Protect American industry from foreign competition Congress can pass national taxes (including Whiskey)

12. Taxes on Whiskey angered Farmers (Farmers usually bartered) Crushed by Washington

13. American Settlers fought Natives allied with Britain & Spain Battle of Fallen Timbers Crushed Natives’ hope to keep land Treaty of Greenville Natives surrender present-day Ohio

14. French Revolution France & British War (1793) Pro-British: Hamilton; industry workers Pro-France: Jefferson; Southerners Neutrality- Not take sides with conflict Washington

15. Proclamation of Neutrality Prohibited Americans from fighting in war Prevented French & British ships entering American ports

16. Impressment British attacked American merchant ships Forced American crews to join British navy Jay’s Treaty British withdraw from American land Pay damages for American ships Pinckney’s Treaty Spanish allow Americans go through Mississippi River

17. Left on second term (September 1796)