1. Launching the New Ship of State

2. A Shaky Start? Political instability—Revolution, Articles
Suspicion of central authority
Weak economy—debt, too much paper money

3. A Growing Population Doubling every 25 years!
Mostly rural, living West of Appalachians
Question of whether people in Western territories would stay loyal and become part of union.

4. Washington and the Cabinet
First important action while in office.
Three cabinet members including Secretary of State Jefferson and Secretary of Treasury Hamilton.

5. Bill of Rights
Drafted after ratification of Constitution out of promise to antifederalists.
Drafted by Madison, ratified by state Congresses.
Safeguard individual rights.
Tenth—reserved powers, for people and for states.

6. Creating the Judiciary
Judiciary Act of 1789
Created Supreme Court and federal courts.
John Jay—first chief justice

7. Hamilton’s Financial Plan
Played a dominant role in cabinet.
Goals:
Wanted to ensure economic stability.
Benefit wealthy who would support government with money and support.
Wealth to “trickle down”

8. Using Credit to Strengthen Government
Government to assume all state debts
Would pay off all debts at face value plus interest.
WHY ASSUMPTION?
To force the states to be more loyal to federal government. Those who lent money would be attached to federal government, not states.
Basically, to get support of wealthy away from states to federal government.
Got VA to agree by moving capital to Potomac.

9. Where did Hamilton get all this money to fund the debt?
TARIFFS!!!
To raise revenue
To protect infant American industries.
Passed excise taxes on goods as well—particularly whiskey—FARMERS IN BACKCOUNTRY UPSET.

10. Hamilton’s National Bank
Most major part of Hamilton’s economic program.
Powerful private institution—would keep government money, print money.
Jefferson and many others argued it was unconstitutional—Constitution didn’t give the government that power.

11. Strict Constructionists vs. Loose Constructionists
Strict Constructionists—Jefferson and others
Pointed to amendment 10—reserved powers
Constitution should be interpreted literally or strictly.
Loose Constructionists—Hamilton and others
What the Constitution did not forbid, it permitted
Pointed to elastic clause—Congress may pass laws “necessary and proper” to carry out its powers.
Washington sided with Hamilton—bank created in 1791.

12. The Whiskey Rebellion
Pennsylvania, 1794—backcountry farmers protested excise tax—turned into riots.
Washington raised army of 13,000—by the time they got there, had pretty much died down.
Not a huge insurrection, but SHOWED POWER AND COMMAND OF WASHINGTON’S GOVERNMENT!

13. Multiple Choice Practice
The Ninth and Tenth Amendments partly reversed the federalist momentum of the Constitution by declaring that
A. a. the federal government had no power to restrict the action of local governments. B. b. the powers of the presidency did not extend to foreign policy. C. c. all rights not mentioned in the federal Constitution were retained by the states or by the people themselves. D. d. the Supreme Court had no power to rule in cases affecting property rights Hamilton's first financial policies were intended
A. a. to finance the new government through the sale of western lands. B. b. to fund the national debt and to have the federal government assume the debts owed by the states. C. c. to repudiate the debts accumulated by the government of the Articles of Confederation. D. d. to create a sound federal currency backed by gold.

14. Multiple Choice Practice ctnd.
The essential disagreement between Hamilton and Jefferson over the proposed Bank of the United States was
A. a. whether or not the Constitution could be constructed to permit the federal government to establish such a bank. B. b. whether or not it would be economically wise to create a single national currency. C. c. whether the bank should be under the control of the federal government or the states. D. d. whether or not such a bank would plunge the federal government into excessive debt. The Whiskey Rebellion was most significant because
A. a. it showed that American citizens would rise up against unfair taxation. B. b. it showed that the new federal government would use force if necessary to uphold its authority. C. c. it demonstrated the efficiency of the American military. D. d. it showed the strength of continuing antifederalist hostility to the new constitutional government.