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President Washington Takes Charge How did Washington further establish the foundation for the US government? Election of 1788 Washington becomes the first president Elected by the electoral college ALL 69 electors cast one vote for Washington Only 10 states voted Second votes were divided among 11 candidates John Adams was the runner-up with 34 votes (VP) Twelfth Amendment changed this process by requiring each elector to cast separate votes Washington’s Inauguration- April 30, 1789 Federal Hall, Wall Street, NYC President Washington Takes Charge First to do: Create a bureaucracy Create a judicial system Raise money FIRST ITEM: BILL OF RIGHTS (1791) Safeguarding Liberty James Madison created the Bill of Rights (1791) Included Ninth Amendment stating any rights not specifically stated in the Constitution are still protected Tenth Amendment stating any powers not given to the national government go to the states Creating a Judiciary System JUDICIARY ACT OF 1789 Organization of the Supreme Court 1 Chief Justice, 5 Associate Justices 16 Lower Courts Prosecuting Attorneys Marshall Service Office of the Attorney General (Edmund Randolph) Organizing a Bureaucracy Executive departments created to deal with most pressing issues Creation of Executive Cabinet Secretary of State- Thomas Jefferson Secretary of War- Henry Knox Secretary of Treasury- Alexander Hamilton Economic Policies Secretary of Treasury Alexander Hamilton Shape fiscal policies to help the wealthier class, who in turn would lend the government money and trickle down to lower classes Strengthen National Credit by: Paying off Foreign Debt-$54 million Assume State Debts-$21.5 million States with large debt thrilled (MA) States with small debt reluctant (VA) Compromise VA would agree to assumption of debt, in exchange for National capital set up along the Potomac River (Washington D.C.) Customs, Duties, & Excise Taxes National debt = “national blessing” to unify the country Where would nation receive $ to pay interest and keep government running? Tariff Revenue to pay interest Tariff of 1789 (8% tax on imports) Excise Tax in 1791 (whiskey) Whiskey Rebellion Many backcountry corn farmers were upset about the whiskey excise tax, since it was their main source of income In 1794, farmers in western Pennsylvania refused to pay the tax The farmers beat up federal marshals in Pittsburgh and threatened to secede from the union Enforcement of Federal Power Secretary Hamilton & President Washington looked upon the Whiskey Rebellion as an opportunity for the federal government to show that it could enforce the law along the western frontier 13,000 militiamen were called upon to stop the rebellion The federal troops hiked over the Alleghenies, and scattered the rebels without the loss of a single life The National Bank Hamilton pushed for the creation of a Bank of the United States Purpose: Issue paper money Establish branches in various cities Handle all government money Invest Bank of the United States Chartered in 1791 for 20 years in Philadelphia National BankSupport and Opposition South Make Northerners rich Strict interpretation of the U.S. Constitution North Favored a national bank Loose interpretation of the U.S. Constitution Political Parties Formed Alexander Hamilton v. Thomas Jefferson Political Parties Formed Personal Feud between Hamilton and Jefferson Developed into two-party system Democratic- Republicans: led by Secretary of State Thomas Jefferson Federalists: led by Secretary of Treasury Alexander Hamilton Two Party System Republicans v. Federalists Main issues dividing the two parties: Democratic- Republicans Federalists -Strong state gov’ts -Strong central gov’t -Strict interpretation -Loose interpretation of Constitution of Constitution -Farming economy -Industrial economy