Creating a New GovernmentCongressional Duties

Pay back war debts

Owed French government, Dutch bankers, and private American citizens

Provide a national defense Deal with the Indian tribes in the West Take a census every decade

To determine the seats in the House of Representatives

Creating a New GovernmentCongressional Duties

Organize territories Establish federal courts Regulate trade Diplomatically deal with England, France, and Spain Set up executive departments

Create the cabinet departments

Creating a New Government

House of Representatives

Task #1- create the Bill of Rights

Senate

Task #1- create a federal court system The Judiciary Act (1789) established the Supreme Court, three circuit courts, and thirteen district courts

John Jay was appointed first Chief Justice of the Supreme Court

Task #2- create the position of Attorney General

The First President

1789- George Washington won the first election Basically ran unopposed and was elected unanimously by the Electoral College John Adams was elected as the Vice President

The First President

April 30, 1789Washington took the oath of office on a balcony overlooking Wall Street in New York City (the temporary capital city of the United States)

The First Cabinet

Department of State

Thomas Jefferson Alexander Hamilton Henry Knox Edmund Randolph

Department of the Treasury

Department of War

Attorney General

Alexander Hamiltons Financial Plans

Task #1- how to pay back national and states war debt Hamiltons plan was to have the Congress pay the national debt ($54 million) and that of the states ($21.5 million)

The idea was to draw the states in more tightly to the federal government

Alexander Hamiltons Financial Plans

Massachusetts welcomed the idea as they were still burdened by heavy debt Virginia opposed the idea because they had already substantially reduced their war debt Hamilton strikes a deal with Thomas Jefferson

Jefferson was to persuade Congress to take on the responsibility of the national and state debts in exchange for the relocation of the capital city (District of Columbia) along the Potomac River

Hamiltons National Bank

The Bank of the US would serve as the governments financial agent- its duties would include:

Collecting taxes Providing a safe place for federal deposits Lending the government money Providing paper money to supplement specie (gold or silver coins)

Hamiltons National Bank

Thomas Jefferson vehemently opposed the creation of a National Bank based upon the argument that it was unconstitutional

Jefferson said that the states were about to be granted that power under the tenth amendment

Hamilton argued that the Constitution stipulated that Congress may pass any laws necessary and proper to carry out the powers of the federal government

Hamiltons National Bank

The Bank of the United States was created by Congress and passed into law by George Washington in 1791

Charter- Twenty years (1811) Location- Philadelphia Its stock was available for public sale, which was completely oversubscribed within two hours of its announcement

Two Interpretations of the Constitution

Hamiltons and Jeffersons argument over the creation of the National Bank brought about a split among their followers Those who sided with Hamilton became known as loose constructionists Those who sided with Jefferson became known as strict constructionists

Loose Construction

Promoted by Alexander Hamilton Stated that the government had a right to create the National Bank because the Constitution did not specifically say they couldnt Believed that what the Constitution did not forbid it permitted

The federal government could expand beyond the powers given to them by the Constitution

Strict Construction

Promoted by Thomas Jefferson Stated that the federal government had no right to create a National Bank because it was not listed as a power in the Constitution Belief that the federal government had no right to do anything that was not listed in the Constitution

Alexander Hamiltons Financial Plans- The Tariff

The Tariff (a tax on imports)

Purpose- to earn revenue based upon vigorous foreign trade and the development and protection of American industry and manufacturing Sectional Issue- southerners were angered because they believed the federal government favored the North where most of the new industry lay as they continued to be heavily influenced by agriculture and commerce

Alexander Hamiltons Financial Plans- Excise Taxes

Excise Tax (a tax on goods produced, consumed, and sold within the US)

Purpose- additional internal revenue Most notable good to have an excise taxwhiskey

Resulted in the Whiskey Rebellion

The Whiskey Rebellion- 1794

Location- Southwestern Pennsylvania Purpose- to protest the excise tax on whiskey

Homespun pioneer farmers regarded their good as an economic necessity and a medium of exchange- not a frivolous luxury Initiated the cry Liberty and No Excise Tarred and feathered revenue officers that brought collections to a halt

The Whiskey Rebellion- 1794

Government Reaction- President Washington called for a militia to put down the insurrection

13,000 troops were raised and then marched into Pennsylvania The Whiskey Boys were overwhelmed, dispersed, or captured (three of them were killed)

Results- newfound respect for the federal government who were now enforcing federal law

Development of Political Parties

Developed because of differing views or opinions of political issues

Such as the national bank and the tariff

Alexander Hamiltons partyFederalists Thomas Jeffersons partyRepublicans

Federalists vs. DemocraticRepublicans

Leader- Hamilton Favored strong, central government Favored regulation of foreign trade Favored a National Bank Promoted industry and manufacturing Loose Construction

Leader- Jefferson Favored limited central government Supported States Rights Encouraged western expansion Emphasized an agricultural society Strict Construction

Political Parties

Washington seemingly was a Federalist

He sided with Hamiltons views on government

Reality was Washington hated the idea of political parties

Believed them to be divisive and the ruin of the American government

Washington wanted to go home after his first term as he was tired of the way things were developing