George Washington was inaugurated on April 30, 1789

Only President to be elected unanimously

George Washington Sets PrecedentsConstitution does not detail

the powers or responsibilities of the President.

As first President, he had to set a precedent- an example to be followed by others in the future.

Was even a struggle over what to call him – They settled on “Mr. President”

1.Setting up the Courts

• Constitution left many matters for Congress to decide. Ex. Supreme Court

•Federal Judiciary Act: Created a court system – gave the Supreme Court six members: Chief justice and 5 associate justices

2.Washington’s Cabinet• Constitution gave Congress

the job of creating departments to assist the President

• Congress created 5 departments – President had the power to appoint the heads to these departments.

• Washington set precedent – he chose well-known leaders

3.Terms of Office

•1796 Washington decides not to run for a third term

•Became tradition to run serve for only two terms as President

• Precedents: an example to be followed by others in the future

• 1) Setting up Courts – Federal Judiciary Act

• 2) Washington’s Cabinet- 5 departments

• 3) Terms Office- 2 terms

• 4) Farwell Address:

4) Washington’s Farewell Address

• Washington warns Americans:

• 1. Political Divisions at home

• 2. No Alliances

• 3. Stay Isolated / Neutral

• 4. Sectionalism- division between North and South

Alexander Hamilton

Economic Problems of New Nation

Alexander Hamilton – Secretary of Treasury faced the nations economic problems

Main focus was to repay war debts – National debt was more than $52 million

Alexander Hamilton

Economic Problems

Hamilton's Views:

Believed in Strong Central Government

Supported industry and growth – Nation depended on manufacturers and the wealthy

Must pay back debt in order to borrow in the future

Alexander Hamilton

Hamilton’s Economic Problems

Hamilton's Plan:

1.Pay off all war debts

2.Raising government revenues (money through taxes)

3.Create a national bank

James Madison

James Madison disliked Hamilton’s plan

Madison called the plan unfair

Opposition to Plan

Compromise

Hamilton’s Compromise:

1. Moved the nation’s capital to the District of Colombia (D.C.)

2. National Bank: the Bank of the United States – used to deposit taxes and issue paper money

3.Protect American Industry: Passed a Tariff – Tax on all foreign

goodsA.K.A. - Protective Tariff – Protect

American goods from foreign

Whiskey Rebellion

Cause: Congress passed the Whiskey Tax to raise money for the new government

Taxed all liquor made in U.S.

• Farmers hated tax – Compared it to the hated British taxes

• Pennsylvania farmers protested and rebelled

• Washington acted quickly and proved new government could respond in times of crisis

Establishing StabilityPreserving Neutrality

• French Revolution:

• Inspired by Declaration of Independence / American Revolution

• Reign of Terror- Fr. Revolutionaries executed 17,000 people – including the King and Queen

American Opinion

• Federalists – denounced the violence

• Jefferson stated people were fighting for their freedom

Neutrality Proclamation

• 1793: Fr. + Br. were at War

• Washington: wanted to stay neutral

• Neutral- not favor either side in a dispute

• U.S. still wanted to trade w/ both

Jay’s Treaty

• Impressment- seizing the sailors and forcing them to serve in the Br. navy

• Hamilton stated: U.S. need to stay friendly with Br. (75% of trade)

• John Jay sent to repair relations

• Jay’s Treaty: 1. w/draw Br. troops in NW territory 2. stop impressment