October 6, 2011

On this day in 1973, the Yom Kippur war began. This war was fought between the _____________ and the _______________.

I. The Young Government under the ConstitutionA. George Washington became President in 1789 and set up a cabinet that consisted of the Department of: state, war, treasury, and attorney general.

1. The creation of a Presidential Cabinet was an unwritten rule of the Constitution.

Among those in his cabinet were Thomas Jefferson and Alexander Hamilton

B. Judiciary Act of 1789-Established the Federal Court System.

C. Alexander Hamilton’s Financial Plan

1. Take on debta) Bond-Paper note promising to repay money after certain length of time.

Secretary of Treasury at the time

b) The United States used bonds to fund the Revolutionary War. Hamilton felt that the U.S. should accept these debts at full value to ensure further loans.

October 10, 2011On this day in 1986, Reagan and Gorbachev met in Iceland to discuss diminishing their nuclear arsenals.

A national debt if it is not excessive will be to us a national blessing; it will be a powerful cement of our union. IT will also create a necessity for keeping up

taxation…which without being oppressive, will be a spur to industry

Debt as of October 6:

14.8 Trillion Dollars

NOT THAT HIGH!

2. Impose Tax on Whiskey-Hamilton imposed an excise tax on whiskey that enraged farmers in Western Pennsylvania. In August 1794, Washington sent 15,000 troops to crush the Whiskey Rebellion.

3. Hamilton asked Congress to create a national bank. Argued that this would help the government manage debts and establish a national currency.

D. Two Opposing Arguments to Hamilton’s Plan

1. Southerners, led by James Madison, argued that the bank was not part of the enumerated powers.

2. Northerners, led by Alexander Hamilton, argued that this was part of the implied powers, or the necessary and proper clause.

a) Compromise Reached-To convince Southern States to go along with plan, Hamilton, Jefferson, and Madison agreed to move capital from NYC to Washington D.C.

b) Washington would sign the Bank of the United States bill. It was created with a 20 year charter.

Assessment:

What did Washington establish that was an unwritten rule to the Constitution?

What were the three parts to Hamilton’s Financial Plan?

What were the two opposing arguments to Hamilton’s Plan? Be specific.

http://www.cnbc.com/id/30308959/The_World_s_Biggest_Debtor_Nations?slide=21