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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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Chapter 6 section 1

Chapter 6 Section 1

Washington and Congress


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.


  • 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



    First national bank u s1
    First National Bank U.S.


    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



    Democratic republicans
    Democratic-Republicans


    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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