Chapter 8-1

1. Chapter 8-1

2. First President • President Washington • Elected President 4/30/1789 • John Adams appointed Vice President • “No slip will pass unnoticed” • Responsible for setting precedents or traditions

3. The Cabinet • The First Congress • 1789 congress set up 3 departments in the Executive Branch • State Dept. – handles foreign relations • Treasury Dept. – financial matters • War Dept. – nation’s defense • Attorney General – handle’s the nation’s legal affairs

4. The Cabinet • Secretary of State – Thomas Jefferson • Secretary of Treasury – Alexander Hamilton • Secretary of War – Henry Knox • Attorney General – Edmund Randolph • Dept. heads and Att. General became known as the cabinet and regularly met with Washington • Congress created the cabinets but issues arose over how much power the President had over the depts. • Adams’s vote breaks the tie in the Senate and allows the President to dismiss cabinet members the Senate approves • Does this help give the President more control of the executive branch?

5. Judicial Branch • Judiciary Act • Judiciary Act of 1789 – Congress established 13 district courts and 3 circuit courts • Federal courts would have the right to reverse state decisions • Supreme Court becomes final authority on many issues • Washington’s nomination of John Jay as Chief Justice was approved by the Senate

6. Bill of Rights • Bill of Rights • Guarantees personal liberties • Proposed by Madison during the first session of Congress • Passed 12 amendments and the States ratified 10 • Bill of Rights limits the power of the government • Protects the rights of individuals • Protects the rights of the states (Madison included this to use the states as a way to keep the national gov. from becoming too powerful)

7. Financial Problems • Financial Problems • Washington left financial issues to Hamilton • National debt – the amount the nation’s gov. owed • Hamilton wanted to repay the states and individuals • Congress had plans to pay off other nations • Many bond owners sold their bonds for less than they paid for them to speculators • Hamilton felt the state would begin to trust and support the new national gov.

8. Financial Problems • Hamilton’s plan contd’ • Hamilton’s plan called for repayment of bonds at full face value • This angered the original bond owners • Hamilton’s plan also angered southern states because their share of the debt was much less than the Northern states, and under Hamilton’s plan they would have to pay much more

9. Financial Problems. • Hamilton’s Compromise – • In order to make Southern leaders happy Hamilton’s plan moved the nation’s capitol from New York city to a district between Virginia and Maryland. Washington D.C. Southerners then agreed to pay off state debts

10. Economy and The National Bank • Hamilton’s plan to boost the economy included the creation of a national bank, a tariff, and national taxes. • Madison and Jefferson opposed the bankfeeling that it was unconstitutional • Hamilton’s protective tariff would protect American industry from foreign competition • Southern states had little industry to protect so they opposed the tariff

11. Economy and The National Bank • New taxes were introduced and passed to give the gov. additional funds to operate including a tax on whiskey • Hamilton’s plan gave the country new financial powers, but split the nation and congress over issues. Opponents including Madison and Jefferson feared a strong national gov. that favored the wealthy