1. Ch. 7, Sec. 1 Washington Leads a New Nation -Electoral College was formed to elect Washington as 1 st President in 1789. (Made up of Representatives and Senators) -11 States represented for 1 st election. -Precedents-actions or decisions that serves as an example later. 1. Cabinet-Executive Departments. -Sec. of State-Thomas Jefferson, Sec. of Treasury-Alexander Hamilton, Sec. of War-Henry Knox, Attorney General-Edmund Randolph. 2.Judiciary Act of 1789-Set up Judicial Branch with 3 levels of courts: Supreme Court, Federal District Courts, and Circuit Courts of Appeals. 3. Left office instead of becoming a King. -Rural vs Urban(4 Million people in U.S. in 1790) -95% of U.S. was Rural in 1790 vs 5% Urban American Expectation of Government: 1. Monitor economy and pay off debt 2. Pass fair tax laws to help small business 3. Help settle western lands 4. Do NOT interfere in daily life

2. Ch. 7, Sec. 2 Hamilton’s Economic Plan -Biggest U.S. challenge was paying off the national debt. Money owed by the U.S. -$11.7 million to foreign countries & $40.4 million to U.S citizens. -Hamilton’s plan--get rid of debt from Revolutionary War by buying up old war bonds and issuing new ones to make money, Pass tariffs to raise money and help American businesses, and create a national bank. Alexander Hamilton vs. Thomas Jefferson Loose or flexible constitution Government & wealthy power For bonds to pay state debt Move capital to Philadelphia New growth like manufacturing Pass high tariffs (protective) National bank, elastic clause (necessary and proper) can change constitution Strict constitution Right of people to rule country Against bonds to pay state debt Move capital to Philadelphia Agriculture main economy Lower tariffs kept prices low No National bank, not in constitution

3. 1 st National Bank 1791 Philadelphia, Pennsylvania Alexander HamiltonThomas Jefferson