Johnathan Kim 8.1 Notes 1.

President Washington - 1st president under constitution, John Adams as Vice president - People trusted Washington, so no fear of the abuse of power. - Precedents-traditions, Washington had to establish for the future nation, name called as Mr. President. 1. The First Congress -Thomas Jefferson-secretary of state, Alexander Hamilton-secretary of the treasury, Henry Knox as secretary of war, Edmund Randolph as attorney general. -Washington met regularly with the three department heads and attorney general, together known as the cabinet. -President able to dismiss cabinet officers without the Senates approval. 2. Judiciary Act -Debate of the court system: uniform, national legal system vs. state courts. -Compromised(Judiciary Act of 1789) federal court w/13 district courts and 3 circuit courts serving the nation -Supreme court is final authority on many issues. John Jay leads 3. The Bill of Rights -Madison introduced a set of amendments in 1st session of Congress, 12 amendments passed, states ratified 10 of them, then amendments now known as the Bill of Rights. -Limits powers of government, such as individual liberty, freedom of speech, rights of persons accused of crimes, trial by jury. 2. Financial Problems -Washington rarely proposed laws, almost always approved Congresss bills. -Washington focused on foreign affairs, military matters, and left the governments economic policies to his dynamic secretary of the treasure, Hamilton -National Debt- amount the nations government owed, was growing.

1. Hamiltons Plan -New government should pay off the debts of the different countries and to individual American citizens because of the help for their independence. -If pays states their debt, it will give the states a strong interest in the success of the national government. 2. Opposition to the Plan -Congress agreed to paying the debts to other countries, but to the citizens was protested because of bonds-paper notes promising to repay the money in a certain length of time. Many sold their bonds to others (speculators) for less than the worth, and if paid back, other would get rich and the real owners would complain and the south, which has less debt, would have to pay more. 3. Compromise Results in a Capital -To win his plan, compromises: aggress to proposal from southern leaders to locate the capital in the south after moving to Philadelphia while workmen prepared the new city for the federal government. -Special district would be laid out between Virginia and Maryland along the banks of the Potomac River (Washington D.C). Then the southerners support the plan to pay off the state debts. 3. Building the Economy -Hamilton asked for a national bank (The Bank of the United States). Both private investors and the national government would own the Banks stock. 1. The Fight over the Bank -In 1792, only 8 other banks in the nation from the state government. Madison and Jefferson opposed the idea of a national bank because it might benefit the wealthy. Also, they said it was unconstitutional-inconsistent w/ the Constitution. -In the end, president agreed. 2. Tariffs and Taxes -Most Americans then made a living by farming. Hamilton thought manufacturing would help the economy. -Proposed a tariff-tax on imports, to encourage people to buy American products. Would also protect American industry from foreign competition. -South opposed since having little industry to protect. Did win some support form Congress because of raising money rather than protecting industries. ---

-By 1790s, revenue from tariffs provided 90% of the national governments income. -Final portion of economic program was the creation of national taxes. Government needed additional funds to operate and to make interest payments on the national debt. Congress approved a variety of taxes. -Hamiltons economic program gave the national government new financial power, but his proposals split Congress and the nation, fearing a national government with strong economic powers dominated by the wealthy2 class.