Bellwork

• What is the Bill of Rights? Who does it protect?

• Write down at least one Amendment in the Bill of Rights and write down what it does.

American History

Section 8, Unit 1Establishment of the Federal

Government

Objectives• Describe how George Washington set a

precedent for the Executive Branch (i.e. future presidents)

• Explain and describe some of the legislature that the First Congress passed

• Read and analyze the Bill of Rights– including the original Bill

• Describe the impact of Alexander Hamilton on the U.S. Banking system.

The First President

• In 1789, the state legislatures unanimously voted for George Washington as President.

• His popularity soared since the victory at Yorktown.

• Several states who had been unwilling to adopt the Constitution changed their mind when they realized Washington would serve as president

Washington’s reaction

• Washington, however, was reluctant to accept the honor. He doubted his own abilities and feared that people would think that he wanted to be a king.

• However, Washington accepted, and he and many other newly elected officials of the new government got to work.

• They knew they could make no mistakes, as that every step they took would set a precedent for future leaders.

The First Congress

• Although Washington was in the spotlight, the task of molding a new government belonged to the First Congress.

• The people’s representatives faced a crowded agenda. The building where the First

Congress met.

Bill of Rights

• The first order of business was to add a protection of individual liberties to the Constitution– a promise that the supporters of the Constitution promised during the struggle for ratification.

• From the 210 proposed Amendments, 12 were recommended by Congress for adoption; of these, only 10 were ratified in 1791.– These 10 became known as the Bill of Rights.

Question: Which group- the federalists or anti-federalists- wanted these protections in the Constitution?

Bill of Rights

• Please take one of the small Constitution handbooks from the back and please read the first 10 Amendments.

• You will have 5 minutes to read them.

Bill of Rights-- Amendments• 1st- freedom of

expression• 2nd- right to bear arms• 3rd- prohibits quartering of

soldiers• 4th- prohibits unlawful

search and seizure• 5th- grants various legal

rights: double jeopardy, right of the accused to not incriminate themselves, and due process of law

• 6th- grants further legal rights: right to a speedy trial, public trial, trial by jury

• 7th- guarantees trial in civil cases

• 8th- prohibits excessive punishments or fines

• 9th- protects rights not expressed in the constitution

• 10th- grants the states powers that are not expressly given to the federal government

Judiciary Act of 1789

• Congress also created the federal court system. • They passed the Judiciary Act of 1789, which:

1. Established a federal district court in each state and three circuit courts of appeals

2. Provided for a chief justice and five associate justices of the supreme court to be nominated by the president and approved by the Senate

3. Defined the federal courts powers and the relationship between the federal courts and the state courts.

President’s Cabinet

• During this time, the First Congress also created three departments to assist the president: the State department to handle foreign affairs, the War Department to manage military affairs, and the Treasury Department to oversee the nations finances.

• The president was given the power to appoint the heads of each department and serve as his advisers, who would in time become part of his cabinet.

Cabinet

• Washington’s first cabinet would be made up of:– Thomas Jefferson as secretary of state– Henry Knox as secretary of war– Alexander Hamilton as secretary of the treasury

• Washington also appointed an attorney general, Edmund Randolph, to advise him on legal matters.

Solving the financial issues

• Congress was next tasked to handle the nations finances, for the government inherited serious problems after the war.– They were unable to pay the war debts– Had too little money to run the country

• Law makers turned to the secretary of the treasury, Alexander Hamilton, to help. Although Congress could pass laws regarding finances, they knew they needed help from the executive branch.

Alexander Hamilton• Alexander Hamilton,

the nations new secretary of the treasury, believed that America’s future depended on a strong national government.

• His strong sense of federalism shaped his economic plans.

Alexander Hamilton

• He believed that one of the best ways to strengthen the government, both financially and politically, was to establish economic policies that helped business and industry. – If business people believed the federal

government was helping them, they would support the government, Hamilton believed.

QuestionWho was the enlightenment thinker we talked about that is regarded as the “Father of Economics”?

Adam Smith– who wrote the “Wealth of Nations”

Influences

• Hamilton was greatly inspired by the Enlightenment economic thinker, Adam Smith.

• Smith stated that industry and commerce– not farming– were the most important sources of wealth.

• Smith advocated capitalism– an economic principle based on the free market and private ownership.– However, Smith also believed that government was

necessary to help fix problems that would arise in a free market.

National Debt problem

• As a first step toward winning over the merchant class, Hamilton advised congress to strengthen the nations credit by paying off the national debt– the money the government owned.

• Hamilton knew that if the nation did not pay off it’s debt, they would have additional problems raising money in the future. – At the time, the debt was about $77 million– a large

number at the time.

Paying off the debt

• Congress moved quickly to pay off the $12 million owed to foreign nations under treaties– however, Hamilton’s proposal to pay off domestic debt was met with resistance.

• The Continental Congress had borrowed from American citizens about $40 million to fund the Revolutionary war– mostly by selling government bonds (certificates issued by the government in exchange for money). – The promise of the bond is future repayment, with interest.

Bond issues

• However, because the government’s credit was low, the bonds became worthless.

• Many original bondholders had panicked and sold their bonds to financial speculators for almost a fraction of what they were worth.

• Hamilton, however, proposed to pay off the bonds in full.

Bond issues (cont.)

• Hamilton’s proposal was met with resistance. His opponents charged that the speculators stood to make a fortune at the expense of the ordinary citizens who sold their bonds.

• However, Congress folded to Hamilton’s demands and honored the bonds, knowing that in doing so, it would raise the nations credit and trust in the government.

Pause: Does anyone have any questions so far?

State debt• Hamilton’s next proposal– to take on the $21.5 million

of $25 million in state debt– met with extreme opposition.

• All southern states, except South Carolina, had paid their debts and saw no reason why they should help pay for the debts of other states.

• Only a last minute compromise saved the plan. In return for southern support, Hamilton pledged that the nations capital would be moved south into Virginia. – This capital– later known as Washington D.C.- made Virginians

believe they would have greater influence on the federal government.

National Bank

• Establishing good credit was Hamilton’s first goal, but was not the only solution to the nation’s money problems.

• The government also lacked the means to manage the money supply.

• In this, Hamilton proposed to Congress to create a Bank of the United states– a national bank consisting of a central bank with branches in major U.S. cities.

National Bank• Hamilton believed that the national bank

would provide:1. A safe place to deposit government funds2. A sound, uniform currency, issued in the form of

bank notes– paper money3. Source for loans to assist the government in

times of emergency and to fuel commercial expansion.

Arguments

• Hamilton argued that the nation had much to gain from a national bank.

• However, southerners– who had little access to money– feared the money would be controlled by northern statesmen

• As well, Thomas Jefferson even believed the bank to be illegal. He said that the Constitution did not give the government power to establish a bank. – Jefferson believed that nothing should be done by the

government that is not strictly stated within the Constitution.

National Bank Issue Resolved• Hamilton disagreed with Jefferson, saying that the

government could do anything that the Constitution does not forbid.– He argued that the Constitution gives Congress the

right to “make all laws” for the running of the country.– Jefferson quickly disagreed.

• However, in the end, Washington sided with Hamilton and Congress chartered the Bank of the United States in 1791. The charter granted the bank the right to operate for 20 years, which it would again be subject to Congressional approval.

Taxes

• Hamilton’s next task was to raise the money to pay off the national debt.

• At the time, the government did not have the ability to directly tax citizens.

• Instead, it has to tax goods. Hamilton asked Congress to tax whiskey, which Congress accepted.

• Once again, the issues of “taxation without representation” were heard--- this time aimed at the U.S. government.

Whiskey Tax

• The new tax hit western farmers the hardest. Many of them produced corn and turned it into whiskey.

• With the new tax came lower profits. • Because of this, in the summer of 1794, farmers in

western Pennsylvania rose in rebellion.• When ordered to pay the tax, they attacked federal

marshals, tarring and feathering some. • A group of about 500 farmers burned the home of the

head revenue agent, while others talked of starting a new country.

Whiskey Rebellion

• The Whiskey Rebellion– as it was called– challenged federal authority. Hamilton urged the President to take action.

• Calling out the militias from neighboring states, Washington assembled a force of 13,000, almost as large as during the Revolutionary War. A federal agent being tarred

and feathered

End of the Rebellion• With Washington’s new forces, the Whiskey

Rebellion forces hid away in the forests rather than confront an army.

• In response to the rebellion, the federal government had demonstrated effectiveness in it’s power, even on the frontier.

• However, such a show of force did adversely affect the farmers in the west, who began to believe that their interests were being ignored.

Consider this: do you think the farmers are right? Since they live in such a remote distance, are they getting fair representation in a Congress that is made up mostly of wealthy, upper class citizens?

Hamilton’s Legacy

• Question: What did Alexander Hamilton do as secretary of treasury?– Created a stronger government– Formed a more stable economy– Created a favorable environment of business and

trade

Hamilton’s Legacy

• In large, Hamilton’s programs were highly successful.– Paying off the debt increased the national credit– Taxes brought in needed revenue– A single currency united the once separate states–

each of whom had their own individual currencies

Hamilton’s Legacy

• Not everyone benefited from Hamilton’s programs, however. – Hamilton’s programs favored the rich, as his

opponents argued. – His desire to win the loyalty of the commerce class

often made him act against the small farmers, who he believed would not increase the wealth of the nation as well as the merchants.

Hamilton's Legacy

• Nevertheless, Hamilton’s federalist outlook and programs allowed businesses– and therefore the nation– to expand while laying the foundation for a new national prosperity.

Questions

• If you have any questions, please ask now.

Review1. What actions did Congress take to better establish a

federal government? 2. Why did Alexander Hamilton offer to move the location of

Washington D.C. to Virginia? 3. How did Hamilton solve many of the nations’ financial

problems? Why was there some backlash to his programs?4. How did Hamilton and Jefferson differ in their

interpretation of the Constitution? If you had to choose, which person do you think is right and why?

5. Choose three (3) Amendments from the Bill of Rights and briefly explain what each one does.

6. Why did Congress ultimately pass a Bill of Rights? Who urged them to do it?

Next Lesson

• In the next lesson, we are going to discuss issues concerning westward expansion in the U.S.