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Chapter 6 Section 1. Washington and Congress. Creating a New Government. A new Constitution had been created, now it was Washington’s task to create an effect gov’t for the U.S. Institution of Powers 1 st task provide the pres. with a bureaucracy to handle different responsibilities

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creating a new government
Creating a New Government
  • A new Constitution had been created, now it was Washington’s task to create an effect gov’t for the U.S.
  • Institution of Powers
    • 1st task provide the pres. with a bureaucracy to handle different responsibilities
      • 1789=created Dept. of State, Treasury, and War, and Office of Attorney General
    • To manage these Washington wanted people who were “disposed to measure matters on a Continental Scale”
creating a new government1
Creating a New Government
    • Secretary of State= Thomas Jefferson
    • Treasury Department=Alexander Hamilton
    • Secretary of War=Gen. Henry Knox
    • Attorney General=Edmund Randolph
      • Became known as the president’s cabinet
  • Congress also created the Judicial Branch
    • Judiciary Act of 1789=13 district courts, 3 courts of appeal, and the Supreme Court
      • Washington chose the federal judges w/ Senate’s consent
        • John Jay=1st chief justice of U.S.
slide4

Alexander Hamilton

Henry Knox

Thomas Jefferson

Edmund Randolph

creating a new government2
Creating a New Government
  • Bill of Rights
    • One of most important acts of Congress was the introduction of the Bill of Rights
      • Drafting of Bill of Rights= took from Virginia Declaration of Rights (George Mason) and the Virginia Statute of Religious Freedom (Thomas Jefferson)
    • In late Sept. 1789, Congress agreed on 12 amendments
      • Only 10 were approved=by states ratification
bill of rights
Bill of Rights

George Mason

Thomas Jefferson

financing the government
Financing the Government
  • By the end of 1789, new federal gov’t was running
    • Gov’t now needed a source of revenue
      • James Madison and Alexander Hamilton both provided plans for financing gov’t
  • The Tariff of 1789
    • James Madison suggested raising money by taxing imports from other countries
      • Congress passed Tariff of 1789
        • Importers had to pay % of the value of their cargo
        • Shippers also had to pay tonnage=tax based on how much their ships carried
the tariff of 1789
The Tariff of 1789

James Madison

financing the government1
Financing the Government
          • Upset southerners=high tonnage rates on rice and tobacco
            • Suspected the new gov’t opposed their regions interests
  • Hamilton’s Financial Program
    • Believed gov’t needed the ability to borrow money
      • 1790- asked Congress to accept full debt of the Continental Congress
        • Owed $40 million to American citizens=purchased through bonds
        • Owed $11.7 million to France, Spain, and the Netherlands
financing the government2
Financing the Government
      • Hamilton believed if U.S. accepted debts in full value then wealthy creditors, bankers, and merchants who owned bonds would have a stake in the new gov’ts success
        • They would loan them money in the future
  • Opposition to Hamilton’s Plan
    • Led by Madison
      • Madison felt it was unfair to original purchasers of bonds
        • Sold for discounted rates to speculators
        • Some paid as little as $10 for $100 bond
          • They would receive full price from gov’t
financing the government3
Financing the Government
    • Was also opposed by Southerner b/c most Northerners owned most of the bonds
      • Most of tax used to pay for bonds would come from the South
    • Madison also worried creditors would dominate American society and endanger liberty
  • In July 1790, Hamilton, Madison, and Jefferson struck a deal
    • Madison and Jefferson influenced Southerners to vote for Hamilton’s Plan
    • In return, the capital was moved to a section of land off the Potomac, District of Columbia
      • Placed capital in the south=pleased Southerners
financing the government4
Financing the Government
  • The Bank of the United States
    • Hamilton asked Congress to created a national bank
      • Arguments for the bank:
        • Gov’t needed it to manage its debt and interest payments
        • Needed to issue paper money=national currency
          • Would promote trade, encourage investment, and stimulate economic growth
    • Southerners opposed the plan
      • Place the stock in hands of Northern merchants
      • Madison stated Congress couldn\'t establish a bank
        • Wasn’t a enumerated power of the gov’t
financing the government5
Financing the Government
  • Congress passed the bank bill
    • Att. Gen. Randolph and Sec. of State Jefferson argued that Constitution didn’t give the gov’t power to create a bank
      • Put Washington in a tough spot
    • Hamilton disagreed, pointed out Article 1 Section 8= “necessary and proper” clause
      • Created implied powers
  • In 1791, the Bank of the United States was established
financing the government6
Financing the Government
  • Whiskey Rebellion
    • In 1791, Congress imposed a tax on whiskey
      • Urged on by Alexander Hamilton
      • Whiskey was used a medium for exchange in western regions of U.S.
    • In summer of 1794, rebellion erupted in PA
      • Farmers terrorized tax collectors, stopped court proceedings, robbed the mail, and destroyed the whiskey-making stills of those who paid the tax
        • In August 1794, George Washington sent nearly 15,000 troops to crush the Whiskey Rebellion
the rise of political parties
The Rise of Political Parties

Federalists

Democratic-Republicans

Hamilton’s opponents, led by James Madison and Thomas Jefferson

Believed strength of the U.S. was its independent farmers (agrarianism)

Feared too much emphasis on commerce= a divide in society=rich vs. poor

Believed wealthy would corrupt gov’t

Supported agriculture over commerce and trade

  • Supporters of Alexander Hamilton and his financial program
  • Favored strong federal gov’t
  • Believed manufacturing and trade were basis of national power and wealth
  • Supporters: artisans, merchants, manufacturers, bankers, urban workers, and Eastern farmers who benefitted from trade
the rise of political parties1
The Rise of Political Parties
  • Development of 1st two political parties divided the country
    • Rural south and west=Republicans
    • Urban northeast=Federalists
      • Problems in Europe would cause more problems between the two and create new crises for the U.S.
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