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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.

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



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.