George Washington & National Debt

Chapter 6 – Section 1 &2

By Mr. Linder

George Washington – 1st President G.W. – Very popular with the people Electors from 11 states that passed

Constitution met in 1789 to vote on President.

Electoral College formed – a body of electors who represent the people’s vote to elect the President

G.W. Elected / John Adams Vice President

George Washington Takes Oath of Office!

Federal Building – N.Y. City

The New President Set examples for Executive Branch Created 1st Cabinet Alexander Hamilton – Department of

Treasury Thomas Jefferson – Secretary of State Judicial Branch Established

The New United States 4 Million People in 1790

Mostly farmers – wanted fair tax laws & to settle western lands

1st Capital – New York City – 33,000 People

Alexander Hamilton Has Issues: Needs to pay off National Debt U.S. owed 11.7 Million to Foreign Countries 40.4 Million owed to U.S. Citizens Pay foreign Debt 1st – then Citizens Jefferson opposed Plan

Jefferson’s Views Protect State’s Power

Right of people to rule country

Supported Agriculture and Farmers

Lower Tariffs to keep costs low on products that farmers buy.

National Bank – The Plan! National Bank is needed to Safely Deposit $$

Make loans to government and businesses

States’ right opponents didn’t like plan (Jefferson)

Limited bank to a 20 year charter

Opponents to the Bank Jefferson and Madison opposed idea

Constitution did not grant power to the federal government to create a national bank

Strict interpretation of Constitution – Can only do what the Constitution says

Supporters of the Bank Hamilton – Loose Interpretation of

Constitution

Government can do what Constitution does not forbid (Necessary & Proper Clause)

Washington and Congress approved National bank in 1791