A Federal Government is Established

1. A Federal Government is Established Chapter 6.1 pp. 190-196

2. Main Idea • President Washington and other leaders tried to solve the new nation’s economic problems. This led to the rise of political parties. • Reading Focus • What steps did Congress and the president take to organize the new government? • What was Alexander Hamilton’s plan to settle the nation’s debts? • What was the debate over the national bank? • How did the first political parties form?

3. Organizing the Government • February 1789—Washington was elected president; John Adams became vice president. • Congress created the first executive “departments”: State, Treasury, and War. The department leaders became known as the president’s Cabinet. • http://www.youtube.com/watch?v=JgCQDZdlMdc • Secretary of State: Thomas Jefferson • Secretary of Treasury: Alexander Hamilton • Secretary of War: Henry Knox • Federalists: led by Hamilton, wanted a strong central government • Jeffersonian Republicans: led by Jefferson and Madison, wanted a smaller central government, more rural than urban, with powerful states

5. Organizing the Government The first Congress • Only 10 states had joined the government; presided over by Vice President Adams • Sent proposed amendments to the states (Bill of Rights) • The Judiciary Act of 1789 organized the judicial branch. It had a six-person Supreme Court with one chief justice and five associates. • John Jay named as first chief justice http://www.youtube.com/watch?v=Vy7FJJ_ud84

6. Hamilton Federal Government A strong federal govt. would allow us to become a stronger nation and would fix the problems that existed under the AoC Jefferson State & Local Gov’ts. This gave the citizens more power and would prevent the federal govt. from becoming too powerful like the govt. in GB Where should power be concentrated?

7. Hamilton Yes This would help us become a better nation and improve our economy Jefferson No A strong federal govt. would abuse its power and not act in the best interests of the people Should the national govt. be strong?

8. Settling the Nation’s Debts • Hamilton’s Plan to Pay Debt • Federal government should take on all the debt from the war • Find ways to bring revenue to government • Establish national bank to control credit and make loans to government • New taxes • Tariff of 1789 taxed imported goods • Excise tax, 1791, taxed the production or sale of liquor, sugar, snuff, and carriages • Location of the new American capitol • Hamilton compromised with Jefferson and James Madison, who led the opposition to his economic plan. • The capital would be moved to the South by 1800. In return, the southerners would allow Hamilton’s debt bill to pass. • Washington chose the area; Pierre L’Enfant planned the city.

9. Debating a National Bank • Most controversial part of Hamilton’s plan was the national bank • Two views of the Constitution: • Strict construction: the government should do only what the Constitution specifically states it can do • Loose construction: the government can take reasonable actions that are not outlined in the Constitution—as long as those actions are not specifically prohibited. • Hamilton pointed to the “necessary and proper” clause of the Constitution when he proposed a national bank. • That was a prime example of loose construction.

10. Debating a National Bank • Jefferson was only lukewarm to the Constitution in its final form. • He favored a smaller national government. • A strict constructionist, he felt that Hamilton’s interpretation of the “necessary and proper” clause was going beyond the powers that the Constitution specifically allowed. • Jefferson opposed a national bank. • Congress passed the bill, and Washington signed it to charter the first Bank of the United States in February 1791.

11. First Political Parties Form • The excise tax led to a violent clash between supporters and opponents of strong government. • Settlers in the western frontier felt their interests were ignored by the government. • In 1794 farmers on the western Pennsylvania frontier objected to the excise tax on whiskey. Their livelihoods depended on turning surplus grain into rye whiskey. • Uprising known as the Whiskey Rebellion • Farmers attacked tax collectors and burned barns of people who gave away the locations of their whiskey stills. • A crowd of more than 2,000 angry farmers threatened Pittsburgh. • There was talk of setting up an independent nation.

12. http://www.whitehouse.gov/photos-and-video/video/lin-manuel-miranda-performs-white-house-poetry-jam-8-8?v=accessibilityhttp://www.whitehouse.gov/photos-and-video/video/lin-manuel-miranda-performs-white-house-poetry-jam-8-8?v=accessibility

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