The Federalist Era

1. The Federalist Era Putting the Constitution into Effect

2. Starting Fresh • The Constitution was put into effect with the beginning of George Washington’s presidency in 1789 • This first administration needed to do many things • Create a good financial footing for the country • Set up a stable political system • Establish foreign policies to insure national security

3. Establishing a Working Government • How the government ended up functioning at first did not come directly from the Constitution • The first leaders developed an “unwritten constitution” that adapted to changes in the country and what was needed for the government to function correctly • This “unwritten constitution” came about for various reasons • Executive interpretations and actions • Congressional interpretations and actions • Court decisions, especially judicial review • Customs and traditions • Actions of political parties

4. Executive Decision Making • With Washington being the first president he had the unique opportunity to establish many traditions and customs • These are known as PRECEDENTS • When making policy, Washington wanted advice from people with expertise and certain areas • So he sought the advice of the heads of various executive departments • This group of advisors became known as the President’s cabinet • The president appoints cabinet members with Senate approval but can fire them without approval • The cabinet is an important part of the unwritten Constitution that still exists today • Washington also consulted with leaders in Congress when developing policy • These “advise and consent” interactions also became part of the unwritten constitution

5. Hamilton’s Financial Plan • Alexander Hamilton was Washington’s secretary of the treasury (cabinet member) • His job was to get the country on good economic footing and he developed a 4 part plan to do it • Assumption • Wanted the federal gov’t to pay off the Revolutionary War debts of both the Continental Congress and the states • Hoped that assuming these debts would establish good credit for the country • National Bank – chartered in 1791 • Wanted Congress to create a national bank hoping that it would get businesses to support the government • It would also help the government with its financial dealings

6. Part 3: Protective Tariff • Hamilton wanted a protective tariff to help shield the country’s new businesses from competition from foreign businesses • A tariff is a tax on goods brought into a country which are called imports • By putting a tax on foreign goods it drives up the price • With higher prices on foreign products, Americans will be more likely to buy American goods, which the tariff won’t apply to and therefore should be cheaper • This allows American businesses to make more money and do better • Hamilton’s proposed protective tariff was not passed by Congress • They did pass other tariffs to raise money for the government

7. Part 4: The Excise Tax (and Whiskey Rebellion) • Hamilton proposed that the government raise money through an excise tax on whiskey • An excise tax is a tax on the production, transportation, sale, or consumption of a good • However, in 1794, farmers in Western Pennsylvania protested this tax and refused to pay it • They made whiskey from extra grain they grew • Washington called out the state militias and quickly put down this “rebellion” • Washington’s quick actions showed that the new government (and Constitution) would not hesitate to enforce federal law