1. The New Republic Begins

2. The New Government
George Washington was inaugurated on April 30, 1789
Only President to be elected unanimously

3. George Washington Sets Precedents
Constitution does not detail the powers or responsibilities of the President.
As first President, he had to set a precedent- an example to be followed by others in the future.
Was even a struggle over what to call him – They settled on “Mr. President”

4. 1.Setting up the Courts
Constitution left many matters for Congress to decide. Ex. Supreme Court
Federal Judiciary Act: Created a court system – gave the Supreme Court six members: Chief justice and 5 associate justices

5. 2.Washington’s Cabinet
Constitution gave Congress the job of creating departments to assist the President
Congress created 5 departments – President had the power to appoint the heads to these departments.
Washington set precedent – he chose well-known leaders

6. 3.Terms of Office 1796 Washington decides not to run for a third term
Became tradition to run serve for only two terms as President

7. Precedents: an example to be followed by others in the future
1) Setting up Courts – Federal Judiciary Act
2) Washington’s Cabinet- 5 departments
3) Terms Office- 2 terms
4) Farwell Address:

8. 4) Washington’s Farewell Address
Washington warns Americans:
1. Political Divisions at home
2. No Alliances
3. Stay Isolated / Neutral
4. Sectionalism- division between North and South

9. Economic Problems of New Nation
Alexander Hamilton – Secretary of Treasury faced the nations economic problems
Main focus was to repay war debts – National debt was more than $52 million
Alexander Hamilton

10. Economic Problems Hamilton's Views:
Believed in Strong Central Government
Supported industry and growth – Nation depended on manufacturers and the wealthy
Must pay back debt in order to borrow in the future
Alexander Hamilton

11. Hamilton’s Economic Problems
Hamilton's Plan:
Pay off all war debts
Raising government revenues (money through taxes)
Create a national bank
Alexander Hamilton

12. Opposition to Plan James Madison disliked Hamilton’s plan
Madison called the plan unfair
James Madison

13. Compromise Hamilton’s Compromise:
1. Moved the nation’s capital to the District of Colombia (D.C.)

14. 2. National Bank: the Bank of the United States – used to deposit taxes and issue paper money
Protect American Industry:
Passed a Tariff – Tax on all foreign goods
A.K.A. - Protective Tariff – Protect American goods from foreign

15. Whiskey Rebellion
Cause: Congress passed the Whiskey Tax to raise money for the new government
Taxed all liquor made in U.S.

16. Farmers hated tax – Compared it to the hated British taxes
Pennsylvania farmers protested and rebelled
Washington acted quickly and proved new government could respond in times of crisis

18. Establishing Stability Preserving Neutrality
French Revolution:
Inspired by Declaration of Independence / American Revolution
Reign of Terror- Fr. Revolutionaries executed 17,000 people – including the King and Queen

19. American Opinion Federalists – denounced the violence
Jefferson stated people were fighting for their freedom

20. Neutrality Proclamation
1793: Fr. + Br. were at War
Washington: wanted to stay neutral
Neutral- not favor either side in a dispute
U.S. still wanted to trade w/ both

21. Jay’s Treaty
Impressment- seizing the sailors and forcing them to serve in the Br. navy
Hamilton stated: U.S. need to stay friendly with Br. (75% of trade)
John Jay sent to repair relations
Jay’s Treaty: 1. w/draw Br. troops in NW territory 2. stop impressment