1. Washington takes office
Section 1 Chapter 9: Launching the New Government.

2. Setting the Scene... 1789 The New Congress meets for the 1st Time.
How should people address George Washington?

3. Washington’s 1st steps G.W. Inaugurated Inauguration: Constitution
New York City
April 30, 1789
Inauguration:
Ceremony in which the President officially takes the OATH of OFFICE.
Constitution
Provided a framework for the Government.
Did not explain how the Pres. should govern day to day.
Washington set a precedent for future leaders.
Precedent:
An act or a decision that sets and example for others to follow.

4. The 1st cabinet Congress created 5 Executive Departments.
State: Thomas Jefferson
Treasury: Alexander Hamilton
War: Henry Knox
Attorney General: Edmond Randolph
Known as the President's CABINET.
Gave advice to Washington and responsible for directing their departments.

5. The federal court system
1789: Judiciary Act was passed.
1) Supreme Court:
1 Chief Justice.
5 Associate Justices.
1st Chief Justice: John Jay
2) District Courts and Circuit Courts.
Decisions made in the lower courts could be appealed to the Supreme Court.

6. Reducing the nation’s debt
Sec of Treasury: Alexander Hamilton.
National Debt: Largest Problem.
The total amount of money that a government owes to others.
Borrowed money by issuing Bonds.
Certificate that promises to repay the money loaned, plus interest, on a certain date.

7. Hamilton’s plan
Called for the Govt. to repay both the Federal & State Debts.
Pay off all bonds issued before 1789.
Issue New bonds to pay off old debts.
Bankers and Investors were for it.
Others attacked him for it.

8. Debating the plan James Madison against it.
Said his plan would reward speculators.
Someone who invests in a risky venture in the hope of making a large profit.
Madison felt speculators did not deserve to make huge profits.
Hamilton said would lost the trust of investors if they did not pay back the debt in full.
Congress approved full repayment of the National Debt.

9. States debts James Madison: Southern . By 1789:
Most Southern States paid off their debts.
Felt if they could pay it off other states should as well.

10. Hamilton’s compromise
July 1790:
Congress voted to repay State Debts.
Build New Capital City.
Capital City:
Built along the Potomac River.
Between Virginia and Maryland.
Called "District of Columbia".
Today: Washington D.C.

11. Plans to build the economy
1791: Bank of the U.S.
Government deposited money from taxes into the bank.
Bank issued paper money to pay the government’s bills & make loans to farmers and businesses.
American Manufactures:
Tariff: or Tax issued.
Foreign goods bought into country.
Protective Tariff:
Meant to protect local industry from foreign competition.
North liked it.
South was against it.
Was passed but much lower than wanted.

12. The whiskey rebellion To raise money for the Treasury. Congress:
Tax on all liquor made and sold in the U.S.
What was designed for good, sparked a rebellion that tested the strength of the new Government.

13. A hated tax Backcountry Farmers: Refused to pay the taxes. 1794:
Grew corn.
Made whiskey.
Easier to transport.
Refused to pay the taxes.
1794:
PA officials tried to collect the tax.
1,000s protested, marching through Pittsburgh.
Tarred and Feathered tax collects.

14. A show of strength Washington Responds: Militia was dispatched to PA.
Farmers quickly retuned home.
Hamilton wanted the leaders executed.
Washington pardoned them.
Felt the government showed its strength to all.

15. Checking for understanding…
New York City.
Set up the Federal Court System. Creating the supreme court with 1 chief justice and 5 associate justices.
Called for the Government to repay both the federal and state debts.
Showed the strength of the new government, and that violence would not be tolerated.
Where was President Washington inaugurated?
What was the Judiciary Act?
What was Hamilton’s Plan?
What good came out of the Whiskey Rebellion?