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The F irst President of the USA. George W ashington. First steps. Five executive departments were created. Department of… State Treasury War Attorney General Postmaster General. Judiciary Act. Date: 1789 Positions (who):
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The First President of the USA George Washington
First steps • Five executive departments were created. • Department of… • State • Treasury • War • Attorney General • Postmaster General
Judiciary Act • Date: • 1789 • Positions (who): • Supreme Court would have 1 chief justice and 5 associate justices. • Purpose: • to set up a system of circuit and district courts throughout the USA. • The first chief justice was John Jay.
Reducing national debt • Head of the Treasury: • Alexander Hamilton • National debt : • The total amount of money the government owes to others. • How did the young nation get into so much debt? • They borrowed money during the American Revolution from France and ordinary citizens.
Hamilton’s Plan to reduce the debt • Hamilton’s Plan: • The government was to buy up old bonds issued before 1789. • They would issue new ones to pay off old debt. • As the economy improved the government would be able to pay off the new bonds.
Hamilton’s Plan to reduce the debt • Hamilton’s opposition: • Many feared it would reward speculators. • The states did not want to share the debt of other states. Many felt that each state was responsible for their own debt. (southern states had paid off their debt.) • COMPROMISE: • If the states would agree to pay off ALL debt, the nation’s capitol would be in the South.
Plans to build the economy • The Bank of the USA was set up in 1791. • To help economic growth: • The government would deposit tax dollars in the bank. The bank would issue paper money to the government to pay bills, and the bank would also make loans to businessmen and farmers.
Plans to build the economy • Tariff- A tax. • The tariff was going to help the economy by making foreign goods more expensive. • Americans would then buy American made goods, protecting local industries and boosting the nation’s economy.
Plans to build the economy • The Tariff: Opposing Views • North’s opinion- They supported the tariff because they had an industrial economy built by manufacturing. • South’s opinion- They were against the tariff because they bought many imported goods.
Whiskey Rebellion • Who: • Back country corn farmers from Pennsylvania. • Details: • Whiskey was taxed. • This was unpopular with corn farmers due to the fact corn is used to make whiskey. (this cut into their profit.) • Farmer’s reaction: • Rebellion and protests in Pittsburghand they tarred and feathered the tax collectors. • Compared themselves to the colonists being taxed by the British.
Whiskey Rebellion • Response- • Washington sent the militia to halt the rebellion. • This proved the strength of the government and the power of the President. • Both would act firmly in times of crisis.
Neutrality • A difficult decision and divisions: • USA had signed a treaty with France. • France wanted the USA as an ally against Britain. • Washington wanted to remain neutral, not helping the French or the British. • Divisions occurred in the President’s cabinet, Hamilton and Madison vs. Jefferson.
Neutrality • The Neutrality Proclamation- • April 1793 • The USA would remain neutral in European Conflicts. • Jay’s Treaty- • British capture US ships. • To stop this from occurring, John Jay issues a treaty. • Points of the Treaty- • Britain would pay for damages to US ships and give up forts in the West. • The USA would pay off old debts owed to Britain.