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New Government, Big Problems
As the new government began to take form, it inherited some very serious problems, such as a national debt of $52 million from the Confederacy. To add onto the problems, The United States had no Navy and an Army of about 400 men. Because of these problems, America was not respected by other countries. -
A President Is Elected
George WashingtonAlthough the new government was heavily burdened, it did have some amazing leaders. In 1789, the electoral college elected George Washington as President of The United States. Washington was very respected and very popular. John Adams was elected Vice President. Washington's administration was actually quite small, consisting of himself, Adams, and a few clerks. There were also very few rules set, so Washington began setting some of his own. -
Building The Court System
James Madison James Madison, who was elected to the House of Representatives in the first Congress, helped pass the Judiciary Act of 1789. This act essentially established a system of courts. -
Creating the Presidential Cabinet
CabinetOne of the most impacting precedents set by Washington was the Cabinet. The Cabinet consisted of four executive departments,- Secretary of War - Henry Knox
- Secretary of Treasury - Alexander Hamilton
- Secretary of State - Thomas Jefferson
- Attorney General - Edmund Randolph
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Hamilton To The Rescue
HamiltonHamilton had the enourmous job of orginazing the new nations painful debt. As he began to get his "grand plan" together, he faced some heavy oppositon from anitfederalists. This was essentially the seed of two very different views emerging in the new nation. -
Hamilton's Grand Plan
Hamilton's PlanHamilton basically wanted to form a strong economy that could support a large federal government, with a strong backbone of military. He opposed farming economy as backwards. He didn't want to use cash reserves, instead, he wanted to use government bonds and high tarrifs. -
Three Benefits of Hamilton's Plan
1.Establishing the first financial credibilty, making it easier to borrow in the future.
2. Political support from wealthier Americans, (which Hamilton strongly believed in)
3. Inrichment of investors, who can buld ships, (for the Navy perhaps), storehouses, warehoues etc.. -
Opposition of the South
Hamilton's Plan grew quickly in the Southern States. Most of the crtiticism was directed on the broad interpretation of "genreal welfare". Two notable people that also opposed Hamilton were Jefferson and Madison. -
Jefferson and Madison's Opinion
Jerfferson and Madison favored a strict construction, or a federal government that is restricted to the powers granted by the Constitution. These two were more about State Rights and people's freedoms. They feared a national bank would help the North while killing the South. -
Two Sides Begin To Form
Eventually, the American people had to decide to side with Hamilton, or Jefferson and Madison. By a close vote, Congress gave Hamilton full funding of national debt, abd the creation of a national bank. In order to get the Southerners on board, Hamilton had to make a hefty promise that in 10 years, the national Capital would be moved southward. -
Whiskey Rebellion
Rural farmers in Pennsylvania hated the exercise of the tax on Whiskey, which gave them an all too familiar feeling of when the British taxed them and lead them into the Revolution. They resisted the taxation by intimidating and attacking tax collectors. -
Political Division
The Whiskey Rebellion signified the increasingly growing divsion in American Politics. It was then very clear that there was a big divide in the American people. All the rebellion did was fuel the heated arguments. Because of all of the commotion, it ultimately lead to the creation of two political parties. The Federalists, and the Democratic Republicans.
