1. Washington Heads the New Government
Chapter 6 Section 1
Washington Heads the New Government

2. The New Government Takes Shape
Constitution set up a Supreme Court
Judiciary Act of 1789
Provided a Supreme Court consisting of a chief justice and five associate justices
3 federal circuit courts
13 federal district courts
Section 25 of Judiciary Act allowed state court decisions to be appealed to federal court
Article 6 of the Constitution says that federal laws remain “Supreme law of the land”

3. Washington Shapes the Executive Branch
officials in executive branch; President and Vice President
Three executive departments created to help:
Department of State ( Thomas Jefferson)
Department of War (Henry Knox)
Department of the Treasury (Alexander Hamilton)
Edmund Randolph as Attorney General, Chief lawyer of federal government
Secretaries and Attorney General became known as President’s chief advisors, or Cabinet

4. Hamilton and Jefferson Debate

5. Hamilton’s Economic Plan
Plan to establish nat’l banking system
Report on the Public Credit
1790s- millions in debt
National gov’t responsible for 2/3 of debt
Proposed to pay off foreign debt & issue new bonds to cover domestic debt
Federal gov’t should take over state debts
Would give creditors incentive to support new federal gov’t

6. Plan for a National Bank
Funded by federal government and wealthy private investors
The Bank of the United States – issue paper money and handle tax receipts
James Madison – bank would create an alliance between gov’t and wealthy business interests
Constitution doesn’t say anything about a bank, no authority to make it
Arguments about strict and loose interpretation of the Constitution
Strict – federal government has limited power
Loose- greater federal powers
Hamilton convinces Washington, and a National Bank is made

7. District of Columbia
Hamilton suggests moving capital from NYC to somewhere South to win support
Southerners liked this because it would make the government more responsive to their interestes
1790 – debt bill passed, along with the OK for a new capital to be built between Virginia and Maryland
Pierre L’Enfant originally hired, but then fired
Andrew Ellicott took over with Benjamin Banneker and the capital was moved by 1800

8. First Political Parties and Rebellion
Split in cabinet due to political views
Hamilton’s supporters – Federalists
Jefferson’s supporters – originally Republicans, later changed to Democratic-Republicans (more like today’s Democratic party)
Washington Warned against political parties and how they would destroy the country
“ It serves always to distract the public councils and enfeeble the public administration. It agitates the community with ill-founded jealousies and false alarms; kindles the animosity of one part against another; foments [incites] occasionally riot and insurrection. It opens the door to foreign influence and corruption ”

9. Whiskey Rebellion
1789- protective tariff – import tax on goods produced in Europe
Encouraged American production
Excise tax – on product’s manufacture, sale, distribution were levied on whiskey
Farmers used corn to make whiskey which was easier to transport and sell
Excise tax infuriated them
1794 – refused to pay tax, beat up marshals in Pittsburgh, and threatened to secede from the union
15,000 militiamen called and stopped the rebellion without killing anyone.