Discuss how the new government was organized during Washington’s presidency.

1. Objectives • Discuss how the new government was organized during Washington’s presidency. • Explain why the new nation faced an economic crisis. • Identify the three parts of Hamilton’s financial plan. • Describe how Washington responded to the Whiskey Rebellion.

2. Terms and People • inauguration– a ceremony in which the President takes the oath of office • precedent– an example to be followed by others in the future • bond– a certificate issued by a government for an amount of money that the government promises to pay back with interest • speculator– a person who invests in a risky venture in the hope of making a large profit

3. Terms and People (continued) • unconstitutional – contrary to what is permitted by the Constitution • tariff – a tax on imported goods

4. Set Question: Under the heading The Nation’s First Economic Crisis what is one issue the United States had back then that we have now? (page 284) What was the reason for most of their debt? What is the reason for most of our debt?

5. How did President Washington set the course for the new nation? President Washington set precedents for the nation by choosing top advisors to form his Cabinet and by establishing the court system.

6. In April of 1789, George Washington began his term as the first President of the United States. His inauguration was held on April 30, 1789.

7. Washington had several reasons to feel anxious as he started his term as President. The country was divided on many issues. His actions would set a precedent. The new nation depended on him.

8. The first job of the President and the Congress was to put a working government in place. Congress passed laws to set up the three departments of the executive branch. Treasury State War

9. Washington appointed four well-known men as his top advisors. This group later became known as the Cabinet.

10. Washington also established a judiciary, or court system. Supreme Court Circuit Courts District Courts

11. Washington also faced the challenge of America’s significant debt. The American colonies needed money for the war. The new government owed money to its investors. Americans and foreigners bought bonds to help the war effort.

12. National Debt (the amount of money our federal government owes) Under Washington the debt was around $77,000,000.00 ($77 million) Anyone has a guess as to what the current national debt is today?

13. National Debt The estimated population of the United States is 314,205,612 so each citizen's share of this debt is $52,318.97. The National Debt has continued to increase an average of $3.94 billion per day since September 28, 2007!

15. The nation’s economic crisis was complicated by the issue of speculators. Speculators had bought bonds from the original buyers for less than they were worth. If the government paid its debt, speculators would make a profit. Many Americans thought this was unfair.

17. The new government was not collecting enough money to repay its debt. It needed new sources of income.

18. Secretary of the Treasury Alexander Hamilton developed a plan to solve the financial crisis. Pay all federal and state debts Hamilton’s Financial Plan: Create a national bank Impose a high tax on imported goods

19. Making Connections Some people today want the federal government to put a tariff on goods coming in from what country? • What are some of the reasons why China can produce things cheaper then we can? • Quality • Labor Costs • Environmental Restrictions

24. Many Southerners opposed Hamilton’s plan for the government to repay state debts. Hamilton believed his plan would encourage future investors. Southerners thought each state should repay its own debts. Southerners supported Hamilton after Congress agreed to build the new capital city in the South.

25. In 1791, Congress created the National Bank. Americans disagreed over whether the Constitution gave government this power. Supporters pointed out that the Constitution gave Congress the power to make all laws “necessary and proper” for fulfilling its duties. Opponents believed a national bank was unconstitutional, because it was not specifically addressed in the Constitution.

26. Congress did not pass Hamilton’s tariff plan. In 1791, it imposed a tax on all U.S. whiskey. This led to a farmer’s revolt known as the Whiskey Rebellion. Washington sent troops to end the revolt.

27. Section Review Questions: 1. What was Hamilton’s role in the federal government? 2. What were the 3 things he wanted to do to solve the nation’s economic problems? 3. Do you think placing a tariff on all imported goods today would help our economy? Explain. 4. What 3 other offices (besides Secretary of the Treasury) did Washington set up, what was their purpose and who was the first person to occupy each office? ex. Department of the Treasury – dealt with economic affairs of the nation, Alexander Hamilton 5. What is the main job for the Federal Courts? (top of page 284)

28. Section Review QuickTake Quiz Know It, Show It Quiz