The American Pageant Chapter 10 Launching the New Ship of State, 1789-1800.
Launching a New Republic 1789-1800
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{ Launching a New Republic 1789-1800 Washington’s Presidency Hamilton and the Banks
description
Launching a New Republic 1789-1800. Washington’s Presidency Hamilton and the Banks. Goals. 1. To explain how the nation’s court system was established. 2. To describe the President’s first cabinet 3. To analyze Hamilton’s financial plans. - PowerPoint PPT Presentation
Transcript of Launching a New Republic 1789-1800
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Launching a New Republic 1789-1800
Washington’s PresidencyHamilton and the Banks
{1. To explain how the nation’s court systemwas established.2. To describe the President’s first cabinet3. To analyze Hamilton’s financial plans
Goals
George Washington is inaugurated in New York City the first capital on April 30 1789
• Washington was unanimously chosen by the electoral College• Washington’s vice president was John Adams• Washington knows every action he takes as president will be a precedent set for others• Congress agrees to call Washington “Mr. President”Washington Takes
Office
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Needs to fill in the blanks that the Constitution left
What are they?
Congress passes the Federal Judiciary Act 1789
•This act gave a supreme court six members
Chief Justice: John Jay 5 associate justices
It also provides for lower federal courts
District courts Circuit courts
Creating the Judiciary
Washington’s Cabinet
Congress creates three departments to help the president:
1. War Department - oversees the nation’s defense, Secretary of War Henry Knox
2. State Department – oversees diplomatic relations with other nations, Secretary of StateThomas Jefferson
3. Treasury department – manages the U. S. finances, Secretary of Treasury Alexander Hamilton
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What do you think is the biggest problem the new republic faces?
By 1789 the US had a huge national debt of $52 million
• The US must pay back debt to gain the respect of other
• countries• Alexander Hamilton’s financial plan shows
his belief in:• Strong central government• Government encouraging business, industry• Pay debt to nation’s wealthiest citizens, gain
their support for governmentHamilton’s Financial Plan
Bonds-the government borrows from its private citizens and gives them a paper promising to repay the loan at a certain time with interest
Speculator-person who bought bonds at a low price from people who thought the government would not pay
Alexander Hamilton proposes a three-step financial plan to Congress
Pay off all war debt Buy up all the old national bonds issued before
1789 Buy up all the state bonds (together this totals
$80 million)The Finacial Plan Details
Raise government revenues Impose tariffs (tax) on imports Raises money fo US government Encourage growth ofUS industry Encourage people to buy American
goods
Revenue Element
Create a national bank Safe for government investments Bank makes loans to businesses Bank issue money
A National Bank
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Who will oppose this plan?
Led by James Madison & Thomas Jefferson
Many Southern states had paid off their debt and did not want to pay off northern states debts also
Southerners thought that northern speculators would get rich by buying up bonds
Southern states did not like a tariff because they had few factories and this meant they would pay higher prices for goods.
Opposition
If the Southerners voted for Hamilton’s plan he would push for a national capital in the South
Washington DC becomes the Capitol of the United States
The Compromise
{http://www.youtube.com/watch?v=r161cLYzuDI&list=PL8dPuuaLjXtMwmepBjTSG593eG7ObzO7s&index=9
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