9-1 Notes: Washington ’ s Presidency

1. 9-1 Notes: Washington’s Presidency

3. Washington Takes Office • Washington wins first national presidential election, Adams gets 2nd most votes • Washington becomes President, Adams becomes the Vice President • April 30th, 1789 – Washington inaugurated at Federal Hall in New York City, the nation’s first capital • Washington was aware that each first action as President would set a precedent, or an example to follow • After debating what the President should be called, “Mr. President” was agreed upon

4. Setting Up the Courts • The Constitution did not set everything for the court system • Congress had to decide how many justices would serve on the Supreme Court • Congress argued over how much power the judicial branch should have and how they should share their power with state courts • Congress passed the Federal Judiciary Act of 1789 • Act gave the Supreme Court 6 members: a chief justice, or judge, and five associate justices • That number has become 9 now • Act provided for lower, less powerful courts • John Jay, a prominent New York lawyer, was appointed to be chief justice by Washington

5. Washington’s Cabinet • The Constitution gave Congress the task of creating departments to help the President lead the nation • The President was in charge of appointing the heads of the department, who would assist the President with issues • The heads of the departments became his cabinet • Washington began the practice of calling his department heads together to advise him

6. Department Heads • Secretary of War – Henry Knox • Trusted general during the Revolutionary War • Oversaw the nation’s defenses • Secretary of State – Thomas Jefferson • Had served as minister to France • Oversaw relations between the states and other countries • Secretary of the Treasury – Alexander Hamilton • Served as one of Washington’s aides during the War of Independence • Over the federal government’s finances • Attorney General – Edmund Randolph • Advised the government on legal matters

7. Economic Problems • Hamilton had to straighten out the nation’s finances • US had to pay back millions to France, the Netherlands, and Spain as well as other merchants and private citizens in the US • State governments had to pay back debts too • 1789 – National debt = $52 million • Government leaders thought the US must repay it’s debt in order to win respect, credit with people and other nations • Not paying back debts would lead to a poor credit rating, making it difficult to borrow money in the future • Hamilton came up with a financial plan that would strengthen the government • Thought that by paying back money to the nation’s wealthy merchants and manufacturers, he would win their support and build a prosperous nation

8. Hamilton’s Financial Plan • 1790 – Hamilton proposed a plan to Congress • Pay off all war debts • Raise national government revenues • Create a national bank • Hamilton wanted the federal government to pay off state debts • Sectional differences arose – Southern states had paid off their debt and didn’t like being asked to pay off the debt of Northern states • Hamilton (NY) tried to get Jefferson (VA) to help him win the support of Southern states • Jefferson and the Southerners agreed to support the plan in exchange for moving the capital to the South (chose a location on the Potomac River between Maryland and Virginia)

9. https://www.google.com/maps/place/Washington,+DC/@38.8992651,-77.1546507,11z/data=!4m2!3m1!1s0x89b7c6de5af6e45b:0xc2524522d4885d2ahttps://www.google.com/maps/place/Washington,+DC/@38.8992651,-77.1546507,11z/data=!4m2!3m1!1s0x89b7c6de5af6e45b:0xc2524522d4885d2a

10. Tariffs • Hamilton favored tariffs, taxes on imported goods, to raise money and also encourage the growth of American industry • The government placed the highest tariffs on imported goods that Americans bought in great quantities, such as shoes and textiles • Ensured a steady flow of money to the US government • Tariffs made foreign goods more expensive and encouraged people to buy American goods

11. National Bank • Hamilton called for the creation of a National Bank • It would give the government a safe place to keep it’s money • Bank could make loans to businesses and governments • Most importantly it would issue bank notes – paper money that could be used as currency • The creation of a national bank would strengthen the federal government considerably, which worried Jefferson and Madison

12. Interpreting the Constitution • Jefferson and Madison believed that the Constitution discouraged the concentration of power • The Constitution’s ambiguous and general language led to many disagreements • Jefferson and Madison believed in strict construction (narrow interpretation of the Constitution) • They didn’t believe the Constitution gave Hamilton the power to make a bank because it didn’t specifically say so • Hamilton favored loose construction (flexible interpretation of the Constitution) • Hamilton used the “elastic clause” of the Constitution to argue that the creation of a bank was necessary and proper to carry out the government’s duties • Hamilton and Jefferson argued their positions to Washington, who allowed Hamilton to create the bank in 1791