Transcript Washington and the New Government

Washington and the New Government
In April of 1789, George Washington took the oath of office in New York
City, as the first president of the United States of America. Washington
fully understood that he was undertaking a great responsibility in this great
new experiment.
Establishes a
Cabinet: 4
Judiciary Act of
positions, Secr of
1789: Created the
federal circuit court
system & set the
number of supreme
court justices.
Washington’s
First Years
State, Treasury,
War, and an
attorney general
Debate Begins: Hamilton & Jefferson were political opposites.
Hamilton favored a strong central gov’t. Jefferson supported state &
local gov’ts.
Washington’s First Years - Economics
The nation is in deep debt, most from the Revolutionary War. States are in
debt also, however many southern states have paid off most of their debt.
Hamilton as Secretary of Treasury: Came up with a bold plan to issue new bonds to
replace old ones, give wealthy individuals a stake in the success of the new
government, & create a national bank. Southerners hated the plan, as they thought
they would be taxed to pay northern debt.
Bank of the United States: funded by both federal gov’t and private investors.
Would issue money, handle tax receipts, & other funds. Many disliked the idea,
however Hamilton felt Congress had the authority of the “necessary & proper”
statement of the elastic clause.
Compromise: To win support of the southern states for Hamilton’s debt plan, the
nation’s capital was moved to an area between Maryland and Virginia. A new
district created called the District of Columbia, & the debt plan was put in place.
Despite compromises, arguments continued between Jefferson & Hamilton.
Washington’s First Years – Political Parties
Continued conflict between Hamilton & Jefferson divided the cabinet, and
national politics as well. The parties formed around a key issue in american
politics… power & size of federal gov’t, as compared to the state & local
gov’ts.
FEDERALISTS: Hamilton’s
party, Strong central
gov’t, loose construction
of constitution
DEMOCRAT-REP:
Jefferson’s party, support
strong state gov’ts, strict
construction of
constitution.
This two-party system was established by the time Washington’s presidency
was over, despite Washington’s own criticism of the idea of political parties.
Washington’s First Years - Rebellion
Issue: Tariffs and excise taxes. Western Farmers rebelled after an
excise tax was passed on whiskey. The Federal Gov’t stepped in.
1789 – Congress passed a
tariff on goods produced in
Europe. This brought in
good revenue. To gain more
revenue, Hamilton decided
to pass an excise tax on
whiskey.
Whiskey was main source of
income for some frontier
farmers…they refused to pay
the tax & assaulted some
federal marshals.
Washington
An important event
– showed the gov’t
consolidated power
and could enforce
its laws
called out the
militia &
scattered the
rebels. No militia
men were killed.