Chapter 6: The United States BeginsSection 2: George Washington Sets the Course

I. A Strong Executive

A. President Washington was dignified

B. Set precedents as a leader

II. Creating a New Government

A. U.S. faced many challenges1. War debt2. National defense 3. Census to determine

representation in Congress4. Organize new territories5. Draft the Bill of Rights

B. Senate passed the Judiciary Act of 1789, setting up the federal courts

C. Congress created executive departments

D. Divisions existed between the executive and legislative branches

III. Alexander Hamilton’s Financial PlansA. Secretary of the TreasuryB. Presented proposals for collecting

revenue1. Report on public credit

a. Government bonds were sold during the Revolutionary War

b. Hamilton proposed paying all war debts in full to restore national credit

c. Many opposed Hamilton’s pland. Compromise was reached; a new national capital would be created (the future Washington D.C.)

2. Report on the National Banka. Hamilton proposed the establishment of a National Bankb. Owned by the federal government and private investorsc. Bank would collect taxes, accept deposits of government cash, and loan moneyd. Bank issued paper currency

3. Interpretation of the Constitutiona. Jefferson, Madison opposed Hamilton’s plan for a national bank – strict interpretationb. Hamilton justified the establishment of a national bank using the necessary and proper clause – broad interpretationc. Washington signed the bill into law creating the National Bank in 1791

4. Report on Manufacturesa. Hamilton requested Congress impose protective tariffs on foreign importsb. Tariff opposed by many, including merchants, planters, and farmersc. A lower tariff was passed by Congress to raise money, not to promote manufacturing at home

IV. Political Parties Develop

A. Economic policies divided the country 1. Federalists – Hamilton’s supporters2. Republicans – Jefferson’s and Madison’s supporters

B. Washington was convinced to serve another term as President