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The American Nation
Chapter 9
Launching the New
Government, 1789–1800
The American Nation
Chapter 9: Launching the New Government, 1789–1800
Section 1:
Washington Takes Office
Section 2:
Creating a Foreign Policy
Section 3:
Political Parties Emerge
Section 4:
The Second President
Washington Takes Office
Chapter 9, Section 1
•What steps did
Washington take to
make the new
government work?
Washington Takes Office
Chapter 9, Section 1
•What was Hamilton’s
plan to reduce the
nation’s debt and build
the economy?
The Nation’s Debt
Chapter 9, Section 1
Hamilton’s Plan for the Economy
Chapter 9, Section 1
The problem
• The United States had a
huge national debt—the
total amount of money
that a government owes
to others. The national
government and state
governments had
borrowed by issuing
bonds—certificates that
promise to repay the
money loaned, plus
interest, on a certain
date.
The debate
Hamilton—the federal
government must repay both
federal and state debts by buying
up the old bonds and issuing new
ones. The United States must
repay all debts so it won’t lose
the trust of investors.
Madison—Hamilton’s plan would
reward speculators—people who
invest in a risky venture in hopes
of a large profit. They shouldn’t
make a big profit on the war.
Besides, most southern states
have already paid their debts.
Other states should do the same.
The compromise
• Hamilton promised to
support putting the nation’s
capital in the South if
southerners agreed to his
plan for repaying state
debts.
Chapter 9, Section 1
Bank of the
United States
to encourage
economic growth
• The government deposited money
from taxes in the Bank.
• The Bank issued paper money to pay
the government’s bills and make
loans to farmers and businesses.
to make imported
goods more
expensive than
American-made
goods
Hamilton and many northerners wanted
a high tariff to protect American goods
from foreign competition. Southern
farmers opposed a high tariff. Congress
passed a tariff, but it was lower than the
tariff Hamilton wanted.
Chapter 9, Section 1
Tariff, or tax, on
foreign goods
Washington Takes Office
Chapter 9, Section 1
• What were the causes
and results of the
Whiskey Rebellion?
Causes and Results of the Whiskey Rebellion
Chapter 9, Section 1
Causes
• To raise money for the
Treasury, Congress
approved a tax on all liquor
made and sold in the
United States.
• Backcountry farmers grew
corn. It was easier to get
their product to market if
they turned their corn into
whiskey first. They hated
the tax on whiskey. They
rebelled, marching in
protest and tarring and
feathering tax collectors.
Results
• Washington called up
the militia and sent them
to put down the
rebellion. The rebels
fled back to their farms.
The national
government had shown
that it would act firmly in
times of crisis. It also
showed that violence
would not be tolerated.
Chapter 9, Section 1
Section 1 Assessment
To help President Washington carry out his duties, the first Congress
a)
b)
c)
d)
passed the Judiciary Act.
created the Bank of the United States.
created five departments whose heads made up the Cabinet of advisors.
agreed to place the nation’s capital near his home along the Potomac.
Hamilton thought the national government should pay off both national and
state war debts because
a)
b)
c)
d)
it showed the government would act firmly in a time of crisis.
if it didn’t, it would lose the trust of future investors.
it was not fair for speculators to make a profit on the war.
it would protect local industry from foreign competition.
Chapter 9, Section 1
Section 1 Assessment
To help President Washington carry out his duties, the first Congress
a)
b)
c)
d)
passed the Judiciary Act.
created the Bank of the United States.
created five departments whose heads made up the Cabinet of advisors.
agreed to place the nation’s capital near his home along the Potomac.
Hamilton thought the national government should pay off both national and
state war debts because
a)
b)
c)
d)
it showed the government would act firmly in a time of crisis.
if it didn’t, it would lose the trust of future investors.
it was not fair for speculators to make a profit on the war.
it would protect local industry from foreign competition.