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Chapter
8 Section 1
Objectives
• Discuss how the new government was organized
during Washington’s presidency.
• Explain why the new nation faced an economic
crisis.
• Identify the three parts of Hamilton’s financial
plan.
Washington Takes Office
Chapter
8 Section 1
Terms and People
• inauguration– a ceremony in which the
President takes the oath of office
• precedent– an example to be followed by
others in the future
• bond – a certificate issued by a government for
an amount of money that the government
promises to pay back with interest
• speculator– a person who invests in a risky
venture in the hope of making a large profit
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Chapter
8 Section 1
Terms and People (continued)
• unconstitutional – contrary to what is
permitted by the Constitution
• tariff – a tax on imported goods
• Federal Judiciary Act – it helped create a
court system and gave the Supreme Court six
members
• Cabinet – a group of department heads who
serve as the president’s chief advisors
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Chapter
8 Section 1
How did President Washington set the
course for the new nation?
President Washington set precedents for
the nation by choosing top advisors to
form his Cabinet and by establishing the
court system.
Washington Takes Office
Chapter
8 Section 1
In April of 1789,
George Washington
began his term as
the first President of
the United States.
His inauguration
was held on April 30,
1789.
Washington Takes Office
Chapter
8 Section 1
Washington had several reasons to feel anxious as
he started his term as President.
The country
was divided
on many
issues.
His actions
would set a
precedent.
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The new
nation
depended on
him.
Chapter
8 Section 1
Setting Up the Courts
What was the purpose of the Federal Judiciary
Act of 1789?
Gave the Supreme Court six members
• A chief justice
• John Jay appointed by Washington
• Five associate judges
• Today there are 9
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Chapter
8 Section 1
Washington established a judiciary, or court
system.
Supreme Court
Circuit Courts
District Courts
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Chapter
8 Section 1
The first job of the President and the
Congress was to put a working government
in place.
Congress passed laws to set up the three
departments of the executive branch.
Treasury
State
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War
Chapter
8 Section 1
Washington appointed four well-known men as his
top advisors. This group later became known as
the Cabinet.
Alexander Hamilton
Secretary of the Treasury
Thomas Jefferson
Secretary of State
Henry Knox
Secretary of War
Edmund Randolph
Attorney General
Washington Takes Office
Chapter
8 Section 1
Alexander Hamilton faced the challenge of
America’s significant debt.
The American
colonies
needed money
for the war.
The new
government owed
money to its
investors.
Americans and
foreigners bought
bonds to help the
war effort.
Washington Takes Office
Chapter
8 Section 1
The nation’s economic crisis was complicated by
the issue of speculators.
Speculators had
bought bonds
from the original
buyers for less
than they were
worth.
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If the government
paid its debt,
speculators
would make a
profit. Many
Americans
thought this was
unfair.
Chapter
8 Section 1
The new
government was
not collecting
enough money
to repay its
debt. It needed
new sources of
income.
Washington Takes Office
Chapter
8 Section 1
Secretary of the Treasury Alexander Hamilton
developed a plan to solve the financial crisis.
Pay all federal and
state debts
The
government
would:
Create a national
bank
Impose a high tax
on imported goods
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Chapter
8 Section 1
Many Southerners opposed Hamilton’s plan for the
government to repay state debts.
Hamilton
believed his
plan would
encourage
future investors.
Southerners
thought each
state should
repay its own
debts.
Southerners supported Hamilton after Congress
agreed to build the new capital city in the South.
Washington Takes Office
Chapter
8 Section 1
In 1791, Congress created the National
Bank. Americans disagreed over whether the
Constitution gave government this power.
Supporters, such as
Hamilton, pointed
out that the
Constitution gave
Congress the power
to make all laws
“necessary and
proper” for fulfilling
its duties…a “loose
construction.”
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Opponents, like
Madison and
Jefferson, believed a
national bank was
unconstitutional,
because it was not
specifically
addressed in the
Constitution. They
favored “strict
construction.”
Chapter
8 Section 1
Jefferson and Hamilton argued their points to
Washington.
Hamilton won, and the Bank of the United States
was set up in 1791.
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Chapter
8 Section 1
Washington Takes Office
Chapter
8 Section 1
Congress did not pass Hamilton’s tariff plan. In
1791, it imposed a tax on all U.S. whiskey.
This led to a
farmer’s revolt
known as the
Whiskey Rebellion.
Washington sent
troops to end the
revolt.
Washington Takes Office
Chapter
8 Section 1
Section Review
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