Launching the New Ship of State

Chapter Ten

George Washington & his Cabinet

George Washington

• John Adams—Vice President

• Thomas Jefferson—Sec. of State

• Alexander Hamilton—Sec. of the Treasury

• Henry Knox—Sec. of War

• Edmund Randolph—Attorney General

First Job of the New Government:

• To add a Bill of Rights to the Constitution 2/3 vote by Congress & ratified by ¾ of states Used George Mason’s bill of rights in VA as a

guide Key: provided safeguards for some of America’s

core principles

• Judiciary Act of 1789 Organized the Supreme Court with a Chief

Justice (John Jay) and originally 5 associates KEY COURT CASE: Marbury v. Madison, 1803

Hamilton’s Financial Plan:• BE FAT (yes, an acronym)

• B—the creation of the Bank of the United States (BUS)

• E—Excise Tax on whiskey

• F—Funding at Par (key: increase national credit)

• A—Assumption of State Debts; Hamilton wanted the states to be more obligated to the federal government

• T—Tariffs (custom duties) passed to help new industries growing in the U.S.

Strict vs. Loose Constructionists

• Issue of the BUS: Strict constitution: strict interpretation of the

Constitution (Jefferson) Loose constitution: broad interpretation of the

Constitution (Hamilton) Jefferson opposed BUS b/c felt it was not

stipulated in the Constitution Hamilton argued the Constitution allowed for a

BUS b/c of “elastic clause” of Constitution• Bank necessary to store tax revenue and regulate

trade

Whiskey Rebellion (1794)

• Who: sw PA backcountry folks hit hard by excise tax

• What: challenged the new national gov; Washington sent a militia to stop rebellion

• Significance: Federal government showed it could ensure domestic tranquility

• Hamilton’s financial plan became a cornerstone of America’s financial system

Birth of Political Parties

• Constitution never mentioned party system

• 2 well-defined groups emerged: Hamilton Federalists Jeffersonian Republicans

• 2 political party system started over a clash b/t Hamilton and Jefferson

Hamilton’s Federalists

• Believed in gov by upper class

• Distrusted the common people

• Supported a strong central gov

• Gov to encourage business & not interfere with it

• Pro-British in foreign policy

Jeffersonian Republicans

• Advocated the rule of the people; gov FOR the people

• Biggest appeal was to the middle class & poor

• Democratic-Republicans believed the best gov was one that governed least

• National debt was a curse to future generations

• Jeffersonians were primarily agrarians

• Believed in freedom of speech to expose tyranny

• Pro-French in foreign policy