1. Should Washington’s cabinet have as much power? What steps did he take to make the new government work? Was he successful?

2. Washington’s First Steps  His inauguration ceremony took place on April 30, 1789 in NYC  Washington was full of doubt, he looked “grave, almost to sadness”  As first President, he was setting up future generations – set precedents, or an act/decision that sets an example for others to follow

3. Washington’s First Steps The First Cabinet  Washington realized he needed talented people to help carry out his duties  Congress created five offices/departments 1. Dept. of War 2. Dept. of State 3. Attorney General 4. Dept. of Treasury  Postmaster General (not pictured)

4. Washington’s First Steps Federal Court System  Congress had to set up a federal court system  Passed the Judiciary Act in 1789 to create the Supreme Court first  One (1) Chief Justice (John Jay  appointed by Washington)  And five (5) Associate Justices  ALSO established a system of district courts and circuit courts of appeal across the nation  Decisions made in lower courts could be appealed to the SUPREME COURT, highest in the land

5. Reducing the Nation’s Debt  Sect. of Treasury, Alexander Hamilton, had to deal with the national debt, total amount of money the government owed to others  During the REVOLUTION, the states borrowed money and supplies from foreign powers  Able to borrow by using bonds, or a certificate that promises to repay the money loaned, plus interest, on a certain date

6. Reducing the Nation’s Debt  Wanted to buy up old bonds from ALL the states  consolidate the federal and state debts  Hamilton decided to issue new bonds to pay off old debts  bankers/investors were fans of this!  James Madison disliked Hamilton’s plan, saying it would reward speculators  Speculator is someone who invests in a risky venture in the hope of making a large profit  Southern states had largely paid off debts on their own  so should everyone else

7. Reducing the Nation’s Debt  Hamilton’s Compromise  Southerners wanted US Capital in South  He agreed if they’d honor his repayment plan  July 1790, D.C. was planned to be ready by 1800 ...meanwhile Capital moved NYC  Philadelphia

8. Plans to Build the Economy  Hamilton wanted to strengthen agriculture and Industry  Asked Congress to setup a national bank  In 1791, Bank of the United States created  gov’t deposited money from taxes into the bank  Bank issued paper money to pay gov’t bills  Made loans to farmers & businesses  growth

9. Plans to Build the Economy  To help manufacturers, Congress created a tariff, or tax, on foreign goods brought into the USA  Meant to protect local industry from foreign competition  protective tariff  Northerners appreciated the help, Southerners saw as annoying.... Imports= $$ expensive

10. Whiskey Rebellion  Hamilton wanted to raise $$ for Treasury  made a tax on luxury items such as liquor  Backcountry farmers who grew corn and wheat did not haul bulky loads to the East Coast  Made whiskey instead  were taxed (excise tax)  1794, farmers in western Pennsylvania rebelled, tarred & feathered tax collectors

11. Whiskey Rebellion  Washington & Hamilton were shocked  quickly dispatched 13,000 militia to respond  Farmers’ resistance easily melted, they were forgiven by the President  Whiskey Rebellion was a test of America’s will and its strength  proof that gov’t would be firm in times of a crisis & violence not tolerated