1. George Washington Inauguration
Creating a Government
George Washington Inauguration

2. Judiciary Act of 1789 Created a Supreme Court
Federal Court and District Court System
Allowed appeals to higher courts ONLY if constitutional issues were raised
John Jay was chosen by President Washington to be the first Chief Justice

3. The First Cabinet
Sec. of War – Henry Knox, Sec. of Treasury – Alexander Hamilton, Sec. of State - Thomas Jefferson, Attorney General – Edmund Randolph

4. Opposites Attract? Alexander Hamilton:
Favored a strong central gov’t led by wealthy, educated, upper class
Felt strongly that commerce and industry were the keys to a healthy nation
Supported by wealthy Northerners, particularly from New England
Wanted close economic ties with Great Britain

5. Favored strong state and local gov’ts with popular participation
Thomas Jefferson:
Favored strong state and local gov’ts with popular participation
Wanted an economy based on agriculture – farmer-citizens
Supported by petty farmers in South and West
Wanted close political relationship with France
*Washington specifically chose these two for their cabinet posts BECAUSE of their polar opposite views, not in spite of them

6. Hamilton’s Economic Plan
*The gov’t was deeply in debt to local investors and foreign powers
Hamilton suggested:
Issue new bonds to pay off the old bonds
Federal gov’t would assume ALL the remaining debt of each individual state
Create a National Bank funded partly by the gov’t and partly by private citizens
OPPOSITION:
Is this legal???
New taxes!
Some States already repaid their loans
Unhealthy relationship b/n gov’t and the rich would develop

7. Another Compromise!
After much debate, Hamilton got his bank- the Bank of the United States

8. BUT- To gain Southern support…
…the new capital city was placed in the South, on land “donated” from Virginia and Maryland

9. First Crisis
New tax on Whiskey – Western Pennsylvania farmers’ main source of income was whiskey (corn was too expensive to carry to East coast markets). Reminded of British taxes, the refused to pay the tax, and intimidated the tax collectors…
The Whiskey Rebellion was ordered put down by President Washington with Federal troops

10. Conflict in Ohio
Clashes in Ohio over land were losses for US as LITTLE TURTLE won battles until…
BATTLE OF FALLEN TIMBERS and TREATY OF GRENVILLE – US crushed Indian forces and ended any future resistance in Ohio
Ohio is ceded to US by Natives and settlers push into the area

12. French Revolution
July, 1789 – French Revolution breaks out and Americans are divided (even politicians split into Federalists and Democratic Republicans) as to what to do

13. Remember- US had an alliance with France since 1778
Jefferson wanted to honor it
Hamilton wanted to ignore it
Washington issues a proclamation of neutrality as Britain and France go to war

14. As the Revolution turned more radical…
Edmund Genet came to US to woo American support
Jefferson continued to support France, was labeled a radical, and resigned his post
Washington sticks to neutrality

15. Meanwhile… Pickney’s Treaty is negotiated:
US wanted to secure land claims West of the Appalachain Mountains and use the Mississippi River for trade (Spain was giving us problems)
Spain allows us use of MS River, makes the 31st parallel the official border b/n Georgia and Spanish Florida, US gave up any claims to Louisiana Territory
Treaty is important b/c it paved the way for huge settlement of the area

16. Jay’s Treaty
Officially made US the controller of Northwest Territory. GBR had to abandon their forts.
PROBLEMS:
Allowed GBR to continue fur trade on US side of Canadian border
B/c US took neutral stance in GBR/FRA war, GBR had been attacking US ships and impressing US citizens into Royal Navy – this issue was never addressed

17. Election of 1796
Angered with party politics, Washington decides not to run for a 3rd term and retires to Mount Vernon
Election results were BAD-
Adams wins, runner-up was Jefferson (new Amendment will have to be drawn up b/c of the unforeseen rise of political parties)
SECTIONALISM – people were voting for candidates based on regional concerns, not based on merit