Launching a New Republic 1789 through 1800

Chapter 9 Section 1Washington’s Presidency

The President and the Congress begin to set up the new government

Section 1 Objectives

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

Washington takes office• 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”

George Washington is Inaugurated as 1st

President of the U.S. at Federal Hall, New York on April 30, 1789

George Washington Video

Setting up the courts

• Congress passes the Federal Judiciary Act 1789

• This act gave a supreme court six members– 1 Chief Justice: John

Jay

– 5 associate justices

• It also provides for lower federal courts– District courts

– Circuit courts

John Jay

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 State Thomas Jefferson

3. Treasury department - manages the U. S. finances, Secretary of Treasury Alexander Hamilton

• Attorney General - gives legal advice, Edmund Randolph

• Postmaster general - Samuel Osgood

Secretary of State Thomas Jefferson

Secretary of War Henry Knox

Economic problems• 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 nations wealthy, gain their support for government

Secretary of Treasury

Alexander Hamilton

Hamilton’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

1. 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)

Hamilton’s financial plan

2. Raise government revenues

• Impose tariffs (tax) on imports

• Raises money for US government

• Encourage growth of US industry

• Encourage people to buy American goods

Hamilton’s financial plan

3. Create a national bank

• Safe for government investments

• Bank makes loans to businesses

• Bank issue money

Opposition to Hamilton’s 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..

Compromise• If the Southerners voted

for Hamilton’s plan he would push for a national capital in the South

• 1790 Hamilton’s financial plan is approved and the national capital is moved to an area between Maryland and Virginia along the Potomac River called the district of Columbia

Financial plan for Southern capital Video

Compromise Video

Interpreting the Constitution

• Thomas Jefferson and James Madison argued that the National Bank was unconstitutional

• They claimed the Constitution does not allow for a national bank

• Alexander Hamilton had a more flexible interpretation of the Constitution

• Hamilton claims the elastic clause in the constitution, “necessary and proper”, gave Congress the power

• Hamilton persuades Washington to approve the National Bank in 1791

1. Explain how the nation’s court system was established?

2. Describe the President’s first cabinet?

3. Describe Hamilton’s financial plan for the nation?