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1 First Congress, April 1789 Four immediate tasks: Raising Revenue to support new government Addressing Bill of Rights Setting up Executive departments Organizing Federal Judiciary James Madison becomes an influential member Lecture notes, Chapter 8 1 George Washington First President Watched his P s and Q s Set precedents for future presidents Never commented on legislation or anything considered controversial His advisors became what we know today as the President s Cabinet Lecture notes, Chapter 8 2 Alexander Hamilton Secretary of Treasury Brilliant with Economic Policy Arrogant and stubborn Felt he was part of better sort of people Often in conflict with Thomas Jefferson Henry Knox, Secretary of War Washington s war time friend and companion Lecture notes, Chapter 8 3 1

2 Thomas Jefferson, Secretary of State Often at odds with Hamilton Led Washington s foreign policy in his first administration Tended to be Pro-French His loyalty would be tested during French Revolution and Citizen Edmund Genet s visit to United States. Lecture notes, Chapter 8 4 Washington first and only President to not be affiliated with Political Party Not mentioned in Constitution Formulation of two parties was on horizon Federalists Alexander Hamilton, John Adams Democratic Republicans Thomas Jefferson Election of 1800 would be first in which political party differences would be obvious Lecture notes, Chapter 8 5 Problems with Debts Hamilton saw that debts fell into three categories: Debt owed by National Gov to foreign investors Approx 11 million Debt owed by National Gov to merchants, soldiers, etc; Approx 27 million Debt owed by state governments Approx 25 million Lecture notes, Chapter 8 6 2

3 Hamilton urged assumption of all debt by the National government Earn the loyalty of states Make the National government strong enough to survive it s fledgling years Congress approves Agreement that a capital be set up on Southern area just north of Virginia Partisanship already showing North vs. South Lecture notes, Chapter 8 7 First Bank of the United States 20 year charter Govt would be 1/5 of board members National currency could more easily flow through states as the currency This spurned first debate on expressed vs. implied powers Broad vs. Strict constructionists Lecture notes, Chapter 8 8 Article I, Section 8 of Constitution Where does it say Bank? Madison led opposition Hamilton replies with Implied powers interpretation It s implied that Congress has the authority to do what it needs to do in order to function as per the Constitution Important debate especially early on in the republic s life. Lecture notes, Chapter 8 9 3

4 Hamilton s Report on Manufactures Urged High, Protective Tariff Would be opposed in future by Southerners Tax on Whiskey Western Pennsylvania Farmers revolted in 1794 Whiskey Rebellion 7,000 rebels in all were headed for Pittsburgh Washington and the Army met them with force This was important as in Shay s rebellion Lecture notes, Chapter 8 10 French Revolution 1789 At first, welcomed by Americans Democracy spreading to continental Europe But as time goes on, excesses of revolution horrify Americans Guillotines up to 2,000 per day Factions rise to power and fall as blood letting continued Citizen Edmund Genet travels to U.S. Lecture notes, Chapter 8 11 French Revolution, con t Citizen Genet toured U.S. drumming up support for the revolution Angered Washington Hamilton/Jefferson in agreement that U.S. should NOT recognize Genet as representative of France While Genet there, a new faction takes power and he is now enemy Lecture notes, Chapter

5 Jay Treaty Washington had dispatched John Jay, first Chief Justice, to England Four unresolved issues: Establish principle of freedom of seas Britain had not evacuated settlements after 1783 Americans hoped for a new commercial treaty Americans hoped to be compensated for slaves who sided with British during Revolutionary War. Lecture notes, Chapter 8 13 Election of 1796 John Adams vs. Thomas Jefferson Rules of that time were: Winner of most votes Pres Runner-up Vice Pres Little thought given to opposition Lecture notes, Chapter 8 14 John Adams and Thomas Jefferson at odds Politically Would have a falling out Would reconcile shortly before each died Adams Federalists in power Alien and Sedition Acts Mean to suppress opposition Lecture notes, Chapter

6 Election of 1800 Thomas Jefferson elected John Adams makes his famous midnight appointees to federal judicial posts John Marshall given Chief Justice post Would ensure federalist influence in future Peaceful transition of power on inauguration day No bloodshed the young republic survives it s first test of peaceful transfer of power. Lecture notes, Chapter

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