1. Washington Takes Office
Chapter 8 Section 1

2. In 1789, Americans had a new Constitution, a new Congress, and their first president. Now what? It was up to President Washington to set the course for the new nation.

3. The First President
On April 30, 1789 Washington was inaugurated (took the oath of office)
Establish a precedent.
Precedent – an action or decision that serves as an example for later generations
George Washington established:
His cabinet/ executive branch
National Bank
Judiciary Act of 1789
Created Federal court system with 3 levels

4. Establishing the Government
1st job - create a working govt, but the Constitution only provided an outline
Set up 3 departments: Treasury (Hamilton), State (Jefferson), & War (Knox).
These leaders met to advise Washington & became known as the Cabinet
The Judiciary Act of 1789 set up a federal court system with a Supreme Court. John Jay was appointed as the first Chief Justice.

5. First Economic Crisis
Owed $52 million because of the American Revolution.
Americans had bought bonds to help the war effort. A bond is a certificate that represents $. The govt sells them, promising to pay it back with interest.
People who bought bonds sold them to speculators (people who invest in a risky venture, hoping to make a profit).

6. Hamilton’s Financial Plan
Paying the debt
Southerners opposed - many had already paid their debts. They agreed to support the plan in exchange for moving the capital to a city in the South.
National Bank to provide a safe place to deposit the govt’s money
A high tariff to raise money for the govt
Southerners opposed – tariff protected manufacturers (North)

7. Debate Over The Bank
Opponents of the bank, like Jefferson, said the bank was unconstitutional.
Strict Construction (Jefferson): a view that the Constitution only allows what it specifically says.
Loose Construction (Hamilton): a view that Congress could do some things not directly allowed by the Constitution
Article 1, Section 8: Congress can make all laws “necessary and proper” to fulfill its job.

8. The Whiskey Rebellion 1794 – tax on all whiskey, hurt farmers
Farmers compared this to the British taxes and those in Pennsylvania rebelled in a violent protest.
Washington responded by sending the militia to PA. This showed the strength of the national govt to enforce the laws.

9. Whiskey Rebellion
Shays’s Rebellion