Transcript THE GOVERNMENT TAKES SHAPE

Commander and Chief
The First President of the United States
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Washington is Inaugurated!
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April 30, 1789
Vice President--John Adams of Mass.
Selected a cabinet
Secretary of State-Thomas Jefferson of Virginia
Secretary of War Department--Henry Knox of Mass.
Secretary of Treasury-Alexander Hamilton of New
York
• Attorney General--Edmund Randolph of Virginia
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Washington’s first cabinet!
Hamilton,
Jefferson,
Knox,
Adams,
Washington
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Congress fills in the blanks
left by the constitution.
• Congress passed the Federal Judiciary Act 1789
• Set up the Supreme Court made up of five Associate
Justices (judges) and one Chief Justice
• President Washington appointed John Jay as the first
Chief Justice.
• The Judiciary Act set up a system of district courts
and circuit courts to hear
cases across the nation.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
THE GOVERNMENT TAKES
SHAPE
President Washington
and his Treasury
Secretary,
Alexander Hamilton,
designed financial
policies that would
strengthen the credit
and authority of the
government.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Financial Problems
• Owed--France, Netherlands, Spain, and
private citizens
• Public Debt-- Money owed by the
government
• Bonds--paper promising repayment plus
interest
• Interest--extra payment for use of money
• U.S. Public Debt = $52 Million government +
$25 Million State debt = $77 Million
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
A View of the Financial
Problems
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Alexander Hamilton a Federalist becomes
head of the Treasury Department
• Believed in a strong central government
• Encouraged business and industry
• Thought the government should be run by the rich
merchants and manufacturers
• Influenced by Adam Smith-Scottish economist
•Capitalism--Privately owned and operated
businesses
•Based on competition and free market
• Wanted to combine all state and government debts
and issue new bonds and pay for them with taxes
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Hamilton’s Plan for the
Economy
• Bank of the United States
o To encourage economic growth the
government deposited money from taxes
in the Bank
o The Bank issued paper money to pay the
government’s bills and make loans to
farmers and businesses
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Hamilton’s Plan for the
Economy
• Tariff, or tax, on foreign goods
o To make imported goods more expensive
than American-made goods
o Hamilton and many northerners wanted a
high tariff to protect American goods from
foreign competition.
o Southern farmers opposed a high tariff.
Congress passed a tariff, but it was lower
than the tariff Hamilton wanted.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Thomas Jefferson an Anti-federalist
becomes head of the State Department
• Opposed Hamilton
• Worried the North would grow
too rich at the expense of the South
• Some states had already paid off
their debts and didn’t want to pay
other states debts--not fair
• Felt wealth came from land--he dreamed of a country
made up of small, independent farmers
• Thought people who get rich from buying and selling
bonds threatened the country’s liberty.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
The Compromise
• Hamilton
o Hamilton wanted
the bank bill to pass
more than anything
o Hamilton promised
to back the capitol
being moved if
Jefferson supported
the bank bill.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
• Jefferson
o Jefferson wanted the
Capitol of the U.S.
moved to the South
o Jefferson promised
to back the bank bill
if Hamilton
supported moving
the Capitol
Benjamin Banneker
Clip
• Free black tobacco farmer
who educated himself
• Brilliant astronomer,
mathematician, and
surveyor.
• Self taught
• Wrote 6 almanacs which he
sent to Jefferson
• Chosen to help lay out the
nation’s new capital
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Causes of the Whiskey
Rebellion
• Causes
• Results
o To Raise money for the
o Washington called
Treasury, Congress approved a
up the militia and
tax on liquor.
sent them to put
o Backcountry farmers hated the
down the rebellion
Whiskey Tax so they rebelled,
marched in protest and tarred
o He showed that the
and feathered tax collectors.
national government
would act firmly in
times of crisis and
that violence would
not be tolerated.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Bank Dispute and the
Constitution
• Strict construction
• Lead by Jefferson
• Government has only the
powers the Constitution
specifically gives it
• No bank
• Jefferson and Madison felt
the government had no
right to establish one
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
• Loose construction
• Lead by Hamilton
• Government can do
anything the
Constitution does not
say it cannot do
• Supports banks
• Hamilton believed the
elastic clause would
allow banks because
they are “necessary and
proper” for the US.
Washington makes a decision.
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Washington Sided with Hamilton
1791-first Bank of the United States was established
Congress passed a tariff-a tax on imported goods
Made money for the bank
Made foreign goods more expensive than U.S. goods
so it encouraged buying at home
• South ‘s economy was hit hard-caused major
disagreements between the north and south
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
French Revolution
• July 14th, 1789 an angry mob in Paris France
destroyed the Bastille, an ancient fort that
was used as a prison.
• At first the French fought for liberty and
equality against their king, Louis XVI .
• Soon it grew more violent and deepened
political divisions within the U.S.
• French wanted a constitution to limit the
king’s power and protect their basic
rights.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
The U.S. Remains Neutral
• The violence in France divided Americans
• Thomas Jefferson and his followers supported
France.
• Alexander Hamilton and his followers strongly
disagreed
• Washington had to decide whether to support
one or the other. He decided to remain neutral
in the European conflict
• He issued the Neutrality Proclamation in April
1793. This caused Jefferson to leave the
cabinet.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Jay’s Treaty
• Declaring neutrality was easier than enforcing it.
• Britain and France were warring nations and each of
them seized American cargoes headed for each
other’s port.
• Chief Justice John Jay went to Britain to negotiate a
treaty.
• Jay’s treaty was approved after a furious debate.
Said that British would pay back damages and leave
forts in the Ohio Valley.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Washington’s Farewell
Address
• Advises Americans against becoming
involved in European affairs
• “Tis our true policy to steer clear of
permanent Alliances, with any portion
of the foreign World…The Great rule of
conduct for us, in regard to foreign
Nations is… to have with them as little
political connection as possible”
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
Distrust of Political Parties
• Most Americans leaders disliked the idea of
political parties.
• Eventually, political disagreements divided
Americans.
• Before Washington left office two rival
political parties had emerged to compete for
power.
CHAPTER 12--LAUNCHING A NEW GOVERNMENT
CHAPTER 12--LAUNCHING A NEW GOVERNMENT