washington sworn into office, new york city. important members of president washington’s cabinet...
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Washington Sworn into office, New York City
Important members of President Washington’s Cabinet and Government
John Adams as Vice President Thomas Jefferson as Sec. of State
Alexander Hamilton as Sec. of Treasury Henry Knox as Sec. of War
Judiciary Act, 1789Organizes judiciary as follows:
- Supreme Court: Chief Justice plus 5 Associate Justices;
- 3 circuit (appeals) courts, - 13 district (trial) courts (one in each state).
• First Chief Justice of the Supreme Court is John Jay
Alexander Hamilton vs. Thomas Jefferson
Hamilton wanted a government strong enough to fix America’s problems…
Thomas Jefferson trusted the people to fix their own problems…
Do these people look happy or mad?
Now that President Washington is in office…
• It’s time to fix the economy
• What’s the problem?– Our government had a national debt of $81.5
million dollars!• Amount of $ owed by our country to other people
– Foreign countries– Citizens we borrowed money from
– What happens if we don’t pay these people back?
Debate over settling the debtAlexander Hamilton
• Wanted to pay back all bonds sold to citizens over time!– Bonds = certificates purchased
that can be turned in for more money in the future
– Why did Hamilton want to do this?
• Government gains credibility with the people
Thomas Jefferson
• Ok with Hamilton’s ideas, but there is a problem:– Speculators have bought bonds
from citizens for less than they are worth!
• Now the government is going to buy them from the speculators for full price?
– That cheats the original owner out of money!
• Who wins? – Hamilton!
• 1790 Government starts buying bonds back!
Debate over Paying off debt owed by States from the American Revolution
Alexander Hamilton• Argued that government
should pay states debt off
• Why? – We all fought for freedom.
• So, our federal government should pay the bill.
Thomas Jefferson• Felt each state should pay
back their part of the bill
• Why? – Some states owed a lot!
• Massachusetts• New York
– Some did not owe much at all or paid their debts off…
• Virginia• North Carolina
- So who wins?
- Both….sort of.
They both get something in the end.
Hamilton• Federal government pays
off the states debt.
• In exchange for….
Jefferson • The nation’s capital moves
from the North to a more Central location….
– The birth of Washington, D.C. • Will be built as the new
nation’s capital!
New York to Washington DC
Washington, D.C. 1800
Washington 1850
Washington DC today
Debate over Role of GovernmentHamilton
• Had little faith in the average citizen– Said they could not be trusted
to do the right thing.
– Why? • Because the average American
does not take education seriously
– They take politics even less seriously
• So, you need a large government– Job = protect the liberties of all
citizens equally
Jefferson• Had a lot of faith in the
average citizen– Said they should govern
themselves
– Said they would educate themselves and do what is right
• So, government needs to be small– Job = stay out of the way
Debate over how the Economy should grow
Hamilton • Government should give
“stimulus” money to American entrepreneurs – Why?
• So they could start their own factories and businesses
– Hire people– Make products here in USA
• Government should pass protective tariffs– Tax on goods from other
countries
Jefferson• Government should stay out
of the economies way– Why?
• America is made up of farmers!– They know how to do it
themselves! » Don’t need any help!
• Tariffs should remain low– Why?
• Keep price of goods lower. – Helps citizens be able to
afford them
Debate over a national bankHamilton
• Wanted to start a national bank.– Why?
• So that the government can make their own money
– No more state money
• What is the big deal? – Federal government would
own all of the money in America!
– Not each individual state
Jefferson• Hated the idea of a national
bank– Why?
• Some states are richer than others
– They would lose this power if the federal government owned all of the money
• What is the big deal? – The Constitution does not give
the government the right to make a bank anyways….
• Or does it?
What does the Constitution say?
• Article I, Section 8– Congress has the right to
“make all laws that are necessary and proper”
• Hamilton (loose)– Says a bank is necessary for
future growth as a nation
• Jefferson (strict)– Says a bank is convenient
• Not necessary
Who wins?
• Washington agrees with Hamilton…again.
• Bank of the United States– Created in 1791
• For 20 years– If it works we will keep
it longer» If not, we get rid of
it.
Meanwhile…
• While America is trying to build itself into a great country….– A great country is trying
to destroy itself….
• 1789– France decides to have
their own Revolution• Replace their monarch with
a democracy like America….
The Whiskey Rebellion
March 1791 – Liquor Excise Tax
Congress passed an excise tax on domestically distilled spirits (liquor) system of local inspectors and collectors
Western Frontier Region Angered
Tax angers frontier region where liquor was often for personal use, not for sale
Also, other farmers it was their main source of income
Rebellion - July 1794
Unsuccessfully petition against the excise tax,
Beat up Federal Marshalls, burned homes of tax collectors, harassed citizens sympathetic to the gov.
Threatened to secede from the UnionA tax collector is tarred and feathered during
the Whiskey Rebellion
What Should be done? And who has the power to do it?
August 2, 1794
• Supreme Court rules that circumstances in W. PA cannot be controlled by civil authorities and warrant a military response.
• GW calls for a militia Flag used in some protests of the Whiskey Rebellion
August 7, 1794
• Militia in PA, NJ, MD, and VA to assemble a force of nearly 13,000 men
• G.W. offers amnesty to all insurgents who "disperse and retire peaceably to their respective abodes" by September 1.
September 25, 1794
Washington issues a proclamation ordering the militia to march against the insurgents
As troops hike the region, rebels scatter
No loss of life, rebellion is squashed.
Results of the Whiskey Rebellion
• Showed the power of the Federal Government
• Armed Rebellion would not be tolerated in the new Country.