1. Washington’s Presidency
Ch. 9-1 p
Washington’s Presidency

2. Washington Takes Office
Washington was president with John Adams as vice-president
April 30 at Federal Hall in NYC (capital) Washington was inaugurated!
He was going to set the precedent (future expectations) for all future presidents

3. Setting Up the Courts
Constitution created a Supreme Court, but left it to Congress to decide number of justices.
States already had own courts, so how much power should Supreme Court have?
Federal Judiciary Act of 1789 – 6 justices. (a chief justice and five associates)
John Jay was appointed as chief justice
Now have 9 justices!

4. Washington’s Cabinet Constitution said NOTHING of a cabinet
Congress had power to set departments to help the president
President got to choose the head of each department
Congress created 3 departments
Secretary of War – Henry Knox
Secretary of State – Thomas Jefferson
Secretary of Treasury – Alexander Hamilton
Edmund Randolph – attorney general
Washington set model of calling together this group for advice

5. Economic Problems
We needed to pay over $52 million in war debts (borrowed millions from France, Netherlands, and Spain as well as own citizens)
We needed to assure everyone that we were respectable and responsible with money
Hamilton had strong beliefs in powerful central government, business, and industry.
Wanted support of merchants and manufacturers (Thought he could get it by paying them back.)

6. Hamilton’s Financial Plan
Three step plan
1. pay off ALL war debts
2. raise government revenues
3. create a national bank
Hamilton wanted federal government to pay war debts of states but southern states did not want to help the North pay debts
Compromise – south helped pay if the capital got moved to the south. Chose the Potomac River between Virginia and Maryland
Tariff – tax on imported goods. (Hamilton favored these!)
Raise money for the government and increase American industry

7. Hamilton’s Financial Plan continued
Highest tariffs on shoes and textiles
Created national bank
Gave government a safe place to keep money
Made loans to businesses and government
Issued bank notes (paper money that could be used as currency)
Hamilton’s plan strengthened the central government, but worried Jefferson and Madison

8. Interpreting the Constitution
Jefferson and Madison believed the Constitution discouraged strong power of federal government
Debate over Hamilton’s plan exposed differences in how to interpret the Constitution.
Madison and Jefferson said it did not give the government the power to start a bank
Believed in strict construction – narrow or strict interpretation. Only what it says; nothing more, nothing less
Hamilton favored loose construction – broad or flexible interpretation. Since it did not say no, he claimed a bank was “necessary and proper” to carry out government’s duties
Hamilton won debate with Jefferson to Washington and set up the Bank of the United States in 1791