1. Washington and Congress

2. 4/30/1789 An exercise in simplicity “Ocean of difficulties” Washington is about the “safest” maybe not the best (although you could make a case for that) president we have ever had. We knew exactly what we were getting

3. Create Bureaucracy: the misunderstood branch of Government…is it a branch, lacks a check/balance relationship? Judiciary Raise $$$$$ Bill of Rights issue Start governance for this nation Steady foreign relations

4. The New Government Takes Shape Judiciary Act of 1789 Judiciary Act of 1789 creates Supreme, 3 circuit, and 13 district courts State court decisions may be appealed to federal courts Washington Heads the New Government Washington Shapes the Executive Branch Washington elected first president of U.S. in 1789 - executive branch is president, vice president Congress creates State, War, Treasury Departments Alexander Hamilton becomes secretary of treasury Washington adds attorney general; these Department heads are Cabinet

5. Henry Knox Secretary of War Alexander Hamilton Secretary of Treasury Thomas Jefferson Secretary of State George Washington President Edmund Randolph Attorney General

7. First substantive legislation passed by the first Congress To lay and collect Taxes, Duties, Imports and Excises" and "to regulate Commerce with foreign Nations." Established the first schedule of import duties and created an additional duty of 10 percent on imports carried on vessels "not of the United States."

8. 1 st Conservative Debt Assumption: Bonds Demonstrates the supremacy of the National Government Laid ground work for Civil War? Establishment of a National Bank? https://www.youtube.com/watch?v=hX9gK S7uMZY

9. Plan for a National Bank Hamilton proposes Bank of the United States: - funded by government, private investors - issue paper money, handle taxes Disagreement over Congressional authority to establish bank Debate begins over strict and loose interpretation of Constitution The District of Columbia To win Southern support for his debt plan, Hamilton suggests: - moving nation’s capital from NYC to South Washington, D.C. planned on grand scale; government seat by 1800

10. Will serve to add to the problems of sectionalism and will be an issue for the next 100 years! Case for a national bank: series of papers authored by Hamilton…summary Currency Investment Upper class Government finance and taxes

11. Problem…will become the foundation for modern politics! James Madison Argued that Congress could not establish a bank because it was not among the federal governments Enumerated Powers Political language, political interpretation and a reading of the Constitution. Hamilton Argued establishing the bank fell under the federal governments Implied Powers Washington agreed and signed the bill establishing the Bank of the United States in 1791 to a 20 year charter

13. The first true “test” of the Constitutions power and authority. 1791 Congress imposed a tax on the manufacture of whiskey as well as other manufactured goods Erupted in 1794 in Western Pennsylvania Farmers terrorized tax collectors, stopped court proceedings and robbed the mail Washington sent in 15,000 troops to squash the rebellion. First time Federal government shows it can enforce laws

15. Hamilton’s financial programs divided congress into factions based on their views of what the federal governments role should be Birth: arising from the difference of opinion between Jefferson and Hamilton Jeffersonians: Republicans (modern Democrats) Hamiltonians: Federalists (modern Republicans)

16. Federalists and Democratic-Republicans Split in Washington’s cabinet leads to first U.S. political parties: - Jefferson’s allies: Democratic-Republicans - Hamilton’s allies: Federalists Two-party system established as two major parties compete for power

17. https://www.youtube.com/watch?v=oLfUMpwteWw

18. Hamilton: Elitist Strong Central Gov’t Balanced economy with National Bank Ally of Britain Model our nation after Britain Supporters: Merchants, Manufacturers, Landowners, Investors, Lawyers, Clergy Jefferson: Common man Distrusted privilege Weak central government Democratic gov’t Agrarian economy Support France Supporters: The “Plane People”, Farmers, Tradespeople

19. Political Party Supporters Issues Supported