Precedents
George Washington inaugurated as first U.S. President
April 30, 1789
Cabinet
Washington appoints key advisors:
Thomas Jefferson (Secretary of State),
Alexander Hamilton (Secretary of the Treasury)
Henry Knox (Secretary of War)
Edmund Randolph (Attorney General)
Judiciary Act of 1789
Establishes the federal court system
“Supreme law of the land”
Constitution establishes federal authority over states
Census Act of 1790
First national census conducted - detailed survey of nations population
Why the census matters
Determines in Congress and taxation
Assumption of state debts
Federal government assumes state Revolutionary War debts - (key part of Hamilton’s financial plan)
Funding at par
Government pays full face value for war bonds/debt
Hamilton Plan / Bank of the United States (B.U.S.)
Proposal for a national bank
Funding at par
National Bank
Submitted to Congress in 1790, chartered in 1791 to stabilize finances after Rev war debt by issuing currency, etc.
“Loose” vs. “strict” interpretation
Debate over Constitutionality of the Bank
Loose = Bank is constitutional to manage taxes and currency. Favored by Alexander Hamilton
Strict = Bank is not directly mentioned in the Constitution, making it unconstitutional. Favored by Thomas Jefferson
Federalists
Favor strong central government, loose interpretation
Democratic-Republicans
Favor states’ rights, strict interpretation
Tariff
“Protective” tariff – Tax on imported goods to protect U.S. industry
District of Columbia
Compromise – Location agreed upon as the nation’s capital
Excise tax
Tax on whiskey and other domestic goods - help pay for debt
Whiskey Rebellion
1791–1794; resistance to excise tax in western Pennsylvania
British & French issues
Conflicts over neutrality and trade
Declaration of Neutrality
Proclaims U.S. neutral in European conflicts
Edmund Genet
French diplomat trying to involve U.S. in war “Genet Affair”
Whiskey Rebellion (suppression)
Washington sends militia to enforce tax
Jay’s Treaty
Treaty with Britain to resolve trade and frontier issues
Chief Little Turtle & General “Mad Anthony” Wayne
Lead forces in Northwest Indian War