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Ch 9

Launching a New Republic

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Section 1Washington’s PresidencyObjectives

You will be able to describe the decisions made by Washington and Congress that established precedents for later years.

Summarize Hamilton’s plan to address the nation’s economic and financial issues

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Washington Elected PresidentVideo clipFirst presidential election held in 1789George Washington PresidentJohn Adams Vice PresidentInaugurated on April 30, 1789

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Washington’s New GovernmentHow did Washington’s presidency shape new

political traditions?Washington is the first president, so there are

no traditions in place.

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Congressional DecisionsThe Constitution created the Supreme Court

but left it to Congress to decide the details.Federal Judiciary Act of 1789

Gave the Supreme Court 6 members A chief justice ( judge) Five associate justices

(The present day Supreme Court now consists of nine judges)

Created less powerful federal courts John Jay first Supreme Court Justice

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Assembling a CabinetThe Constitution also gave Congress the task

of creating departments to help the president lead the nation

The president would appoint the heads of the cabinets

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Assembling a CabinetDepartments

State Department Dealt with relations of other countries

The War Department In charge of the nation’s defense

Treasury Department In charge of the nation’s economy

Department of Justice Enforces the laws

Postal Service

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Assembling a CabinetThe president’s cabinet consists of the heads

of these departmentsSecretary of StateSecretary of WarSecretary of the TreasuryAttorney General

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Discuss with your neighborWhat departments did Congress create to help

the President?

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The Nation’s Finances

What financial problems faced the new nations?

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The Nation’s FinanceAlexander Hamilton

Secretary of Treasury Washington gave Hamilton the task of straightening

out the nation’s finances. Main issue was the government’s war debts

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War DebtsThe United States owed money to Spain,

France, and the Netherlands.Owed money to private citizens

Soldiers Received bonds-certificates that promised payment

plus interest

Foreign and Domestic Debt totaled $52 million

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Hamilton’s Political ViewsBelieved in a strong central government

National government should be stronger than the states

Government should encourage business and industry

The nation’s prosperity depended on the support of the nation’s wealthy merchants and manufacturersSince the government owed these men money,

he believed paying them back would win their support for the new government

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Hamilton’s PlanHamilton Proposed 3 steps to improve the

nation’s prosperity and to strengthen the national government1) Pay off all war debts2) Raising government revenues3)Creating a national bank

He also wanted the federal government to pay off the states’ war debts

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Building a Strong GovernmentHamilton favored tariffs to raise revenue

Tariffs raise money for the governmentEncourage the growth of national business

Tariffs kept income flowing to the government Also encouraged people to buy American goods

Hamilton also wanted to create a national bankWould provide a safe place to keep money

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Hamilton also wanted to create a national bankWould provide a safe place to keep moneyWould make loans to business and

governmentsIssue bank notes-paper that could be used as

money

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Hamilton’s Opponents

Jefferson and Madison opposed a national bankBelieved it would encourage an unhealthy

partnership between the government and wealthy business interests

Jefferson believed a national bank should not be created since the constitution did not mention it

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Hamilton’s OpponentsHamilton vs. Jefferson

Hamilton believed in a “loose” interpretation of the Constitution Favors greater federal powers Argued his case using the “Elastic Clause” if the

Constitution Congress could do whatever is “necessary and

proper” to carry out its specific powersJefferson believed in a “strict” interpretation of

the Constitution Federal government has limited powers

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The National BankWashington sided with HamiltonThe Bank of the United States was

established in 1791

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Tell your neighborWhat were the three steps Hamilton proposed

to improve the nation’s finances?