1. Washington Leads the Nation

2. Judiciary Act of 1789 Established the federal court system Established the federal court system Allowed appeal of certain state court decisions to the federal courts Allowed appeal of certain state court decisions to the federal courts

3. Washington’s Cabinet Washington appointed department heads to be his advisors, or cabinet Washington appointed department heads to be his advisors, or cabinet

4. Department of State Led by Thomas Jefferson, it handled foreign affairs Led by Thomas Jefferson, it handled foreign affairs

5. Department of War Led by Henry Knox, it handled military matters Led by Henry Knox, it handled military matters

6. Department of Treasury Led by Alexander Hamilton, it managed finances Led by Alexander Hamilton, it managed finances

7. Alexander Hamilton Hamilton believed in a strong central government Hamilton believed in a strong central government Favored “loose interpretation” of the Constitution Favored “loose interpretation” of the Constitution

8. Alexander Hamilton Felt that government should be led by prosperous and educated elite Felt that government should be led by prosperous and educated elite Believed that trade and industry were key to a strong nation Believed that trade and industry were key to a strong nation Views found support in the North Views found support in the North

9. Thomas Jefferson Distrusted a strong central government Distrusted a strong central government Favored strong state and local government Favored strong state and local government Favored a society of farmer-citizens Favored a society of farmer-citizens Views found support in the South Views found support in the South Favored a “strict” interpretation of the Constitution Favored a “strict” interpretation of the Constitution

10. Hamilton’s Economic Plan Wanted to consolidate debt from the war Wanted to consolidate debt from the war Wanted to create a Bank of the United States Wanted to create a Bank of the United States Raise tariffs Raise tariffs Excise tax on whiskey Excise tax on whiskey

11. Hamilton’s Economic Plan Southern Opposition: Southern Opposition: Many Southern states had paid their war debt Many Southern states had paid their war debt Felt the rich would have too much influence Felt the rich would have too much influence Did not think the BUS was constitutional Did not think the BUS was constitutional

12. Hamilton’s Economic Plan Passed after compromise with Southern leaders to move the Capital to present day Washington D.C. Passed after compromise with Southern leaders to move the Capital to present day Washington D.C.

13. Federalists v. Republicans Federalists shared Hamilton’s idea of a strong central government Federalists shared Hamilton’s idea of a strong central government Democratic-Republicans shared Jefferson’s idea of strong state and local government Democratic-Republicans shared Jefferson’s idea of strong state and local government This brought forth the two-party system This brought forth the two-party system

14. Whiskey Rebellion Farmers in western Pennsylvania were angry over excise tax on whiskey Farmers in western Pennsylvania were angry over excise tax on whiskey They refused to pay tax and rebelled They refused to pay tax and rebelled Federal troops sent in to stop rebellion Federal troops sent in to stop rebellion

16. Whiskey Rebellion Important because it showed the federal governments ability to exercise power Important because it showed the federal governments ability to exercise power