CHAPTER 9 LAUNCHING A NEW REPUBLIC ESSENTIAL QUESTION

CHAPTER 9 LAUNCHING A NEW REPUBLIC

ESSENTIAL QUESTION What political traditions and tensions first appeared in the early years of the new republic?

CHAPTER 9 -1 WASHINGTON’ s PRESIDENCY

Washington’s New Government April 14, 1789 Washington given a letter advising him that Congress elected him as 1 st President! April 30, 1789 Washington inaugurated (sworn in) in NYC the nation’s first capital Runner-up John Adams is VP

Congressional Decisions What to call Washington : “Mr. President” Supreme Federal Court – many questions Judiciary Act of 1789 Supreme Court had 6 members (now 9) Federal courts established – less powerful John Jay – appointed 1 st chief justice of Supreme Court

Assembling a Cabinet Departments in government established – Washington called on them for advice State – relations w other countries – Thomas Jefferson War – nation’s defense – Henry Knox Treasury –nation’s economy – Alexander Hamilton Justice – Supreme Court – John Jay Attorney Postal General – Legal – Edmund Randolph Service – added in 1829

THE NATION’S FINANCES WAR DEBTS – foreign & domestic -$52 million Must pay debts to win respect of foreign nations AND US Citizens Must pay back wealthy investors to win support of new government Strong central government support industry & nation’s prosperity

HAMILTON’S Proposals 1790 3 Hamilton presented plan to Congress Steps to improve Nation’s Finances Pay off ALL war debts – national & state Raise government revenues Create national bank Agreed to move nation’s capital from NYC to a Southern location – gain their support of plan

ECONOMICS Banks – - Make loans to individuals and businesses - Receive deposits from indivs & businesses Tarriffs – taxes on imported goods - This put money into national bank - This money could be lent to businesses to create new products, hire more people, those wages used to buy other goods & services HEALTHY ECONOMY = PROSPERITY

HAMILTON’s Opponents “Strict” Interpretation: Federal gov’t has very limited powers Constitution did not mention national bank National bank encourage unhealthy relationship between gov’t & wealthy investors Jefferson “Loose” powers Interpretation: favors greater federal Constitution interpreted broadly Hamilton

“ELASTIC CLAUSE” Article 1, Section 8, Number 18 Gives authority to do whatever is “Necessary and Proper” to carry out specific powers Washington backed Hamilton and the Bank of the Untied States estab. In 1791 Two opposing philosophies – foundation for future American political debates