Section 1: Washington’s Presidency Chapter 9: Launching a New Republic 1789-1800
*Main Idea: The president and the Congress began to set up the new government. *Why It Matters Now: The strength of the U.S. today is due to the decisions of the Founders about how to organize the government.
Washington Takes Office *George Washington was inaugurated, or sworn in, as the 1st U.S. president in 1789. *John Adams was elected vice-president. *Congress debated for a month over what to call Washington – they agreed with “Mr. President”
G. Washington J. Adams
Setting Up the Courts *To create a court system, Congress passed the Federal Judiciary Act (1789). *Gave the Supreme Court six members: 1 chief justice or judge & 5 associate judges *Over time, that number has grown to 9 Supreme Court Justices.
Washington’s Cabinet *Congress created departments to help the pres. lead the nation. *Congress created three departments: • War Dept. 2. State Dept. • Treasury Depart. *These heads of departments became his cabinet.
Secretary of State, Thomas Jefferson, oversaw relations between U.S. and other countries (foreign affairs).
Secretary of Treasury, Alexander Hamilton, managed the government’s money.
Attorney General, Edmund Randolph, advised the government on legal matters.
Economic Problems *1789 - $52 million in debt! Yikes! *U.S. had borrowed money from foreign countries, merchants, and private citizens. *Leaders agreed that the nation must repay its debts earn respect.
Hamilton’s Financial Plan *Hamilton believed that government should encourage business and industry. *Alexander Hamilton proposed a 3-step plan to Congress in 1790. • Pay off all war debts • Raise government revenues (tariffs) • Create a national bank
Hamilton’s Financial Plan • Pay off all war debts: • Southern states already repaid war debts. • In exchange for moving the new nations capital in the South (between Virginia and Maryland), they agreed to help the Northern states pay off debt.
Hamilton’s Financial Plan 2. Raise government revenues: • Hamilton supported tariffs (taxes on imported goods) because: 1. raised money for U.S. government 2. Encouraged growth of the U.S. industry 3. Encouraged people to buy American goods
Hamilton’s Financial Plan 3. Create a national bank: -It would give the government a safe place to keep money. • It would make loans to • businesses. • It would issue bank notes – paper money that would be used as currency. *His plan would strengthen the CENTRAL government.
Interpreting the Constitution *James Madison and Jefferson believed the Const. discouraged the concentration of power in the federal government. *Argued the Constitution did not give the government the power to set up a bank. *They believed in a strict interpretation of the Constitution. EX: If the constitution did not state it, we cannot do it.
Interpreting the Constitution *Hamilton disagreed and favored a more flexible interpretation of the Constitution. *Setting up a bank was “necessary and proper” *Hamilton won the argument and the Bank of the United States was set up in 1791.