2. On April 30, 1789, on a balcony overlooking Wall Street in New York City, George Washington was sworn in as the first president and John Adams was sworn in as vice- president Washington knew that he would set an example as the first president. “There is scarcely any part of my conduct which may not hereafter be drawn into precedent.” A precedent is an act or decision that sets an example for others to follow.

3. Washington’s Precedent’s 1. Created a Cabinet (advisors) Thomas Jefferson as the first Secretary of State. Alexander Hamilton to be the first Secretary of the Treasury Henry Knox as the first Secretary of War 2.President would only serve two terms (8 years total) 3.President will be called “Mr. President” 4.President will give a “FAREWELL SPEECH” *Needed to create a federal court system: Judiciary Act of 1789 created the Supreme Court and the Federal court system.

4. Federal Court System Needed And be it further enacted, That the United States shall be, and they hereby are divided into thirteen districts…And be it further enacted, That there be a court called a District Court, in each of the afore mentioned districts, to consist of one judge…And be it further enacted, That the before mentioned districts, except those of Maine and Kentucky, shall be divided into three circuits…. and that there shall be held annually in each district of said circuits, two courts, which shall be called Circuit Courts, and shall consist of any two justices of the Supreme Court, and the district judge of such districts…. Judiciary Act of 1789 Definition: 1789 law that created the Judicial Branch of the federal government. Among the things provided for in the Act: –the number of members of the Supreme Court (6) –the number of lower district courts (13) –the idea that the Supreme Court can settle disputes between states –the idea that a decision by the Supreme Court is final.

5. ECONOMIC PROBLEMS ECONOMIC PROBLEMS: NO money! Asked the Secretary of the Treasury for help. Alexander Hamilton’s Financial Plan 1. Pay off all war debts from Revolutionary War 2.Establish a National Bank. (make loans for businesses) 3.Raise money through taxes and protective tariffs (tax) 4.Needed a stable currancy A. Hamilton’s ideas help business but hurt farmers. B. Northerners liked plan and higher tariffs: Raised revenue Protected manufacturers from British competition with a tariff. C. Southerners refused to support the plan Start of political parties due to disagreement over national bank and tariff’s

6. In order to win support for his financial plan from Congressional Southerners, Alexander Hamilton agreed to a compromise by locating the nation’s new capital in the South. A special district was created near the Potomac River near Virginia and Maryland and became known as Washington D.C

7. Farmers in the Appalachians in Western Pennsylvania often turned extra grain into whiskey to sell. The new whiskey tax caused riots and anger towards the government Washington sent 13,000 troops (including himself) to crush the rebellion *Washington demonstrated the power of the federal government to enforce its laws.

8. Battle of Fallen Timbers-- Northwest Territory—Jay’s Treaty –Pinckney’s Treaty One of Washington’s problems was people wanting to move into Northwest territory (Ohio) and the conflicts with the natives. Entered into several treaties. Battle of Fallen Timbers: The U.S. forces used their superior numbers and arms to advantage, forcing a disorganized retreat on the Native Americans. (John) Jay’s Treaty – settle issues between U.S. and England. (Thomas) Pinckney’s Treaty – Solved territory issues between US and Spain.

9. The French Revolution led to war between Britain and France in 1793. Men in the U.S. government were divided on which side to support. Washington pushed for staying neutral.

10. Washington gave his final advice to the American people in his Farewell Address The Danger of Political Parties He believed parties would weaken and divide the government. Too often people will worry about their own personal interest instead of what is best for the nation. Political parties began with creation of National bank and tariffs. The Policy of Neutrality and Isolationism Stay out of European conflicts and alliances He advised Americans to expand their influence in the Western Hemisphere (North, South America)

11. Farewell Address on Neutrality “The great rule of conduct for us, in regard to foreign nations, is, in extending our commercial relations, to have with them as little political connexion as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop.” ”It is our true policy to steer clear of permanent alliances with any portion of the foreign world; so far, I mean, as we are now at liberty to do it; for let me not be understood as capable of patronizing infidelity to existing engagements. I hold the maxim no less applicable to public than to private affairs, that honesty is always the best policy. I repeat it, therefore, let those engagements be observed in their genuine sense. But, in my opinion, it is unnecessary and would be unwise to extend them.”

12. Key Vocabulary George Washington – 1 st President, guided new government under Constitution, created stable economic system, gave direction and guidance in foreign affairs, several treaties with tribes, established important precedents for future presidents. Alexander Hamilton’s Economic (Financial) Plan – pay off debts to soldiers and bondholders (people who loaned U.S. money), create tariffs (taxes) to protect U.S. manufacturers from British competition, create a stable currancy Precedents – setting an example as president. Created a cabinet, only served 2 terms (8 yrs), Mr. President, Farewell Speech Cabinet – set of advisors to the President. Example: Secretary of Treasury Alexander Hamilton Farewell Address – warned against political parties – thought they would show people’s jealousies and they would only be interested in themselves. Also warned US should stay neutral – stay out of European affairs. Policy of Neutrality – Washington believed we should stay out of foreign affairs – stay neutral in European issues. Whiskey Rebellion – small farmers in Western Pennsylvania made whiskey to sell from leftover grain. Were being taxed on it and refused to pay. Washington himself took the army to put down the rebellion. Shows the strength of the new government.