Chapter 9 Notes 8th Grade

Launching the New Government
1789-1800
Chapter 9

Washington Takes Office
April 30th, 1789 Washington takes office
Inauguration- ceremony in which the President officially takes office
Precedent- act or decision that sets an example for others to follow
Washington’s Cabinet
5 departments to Washington’s cabinet
Departments of: State, Treasury, War, Attorney General, and Postmaster General

John Adams- Vice President
Alexander Hamilton- Secretary of the Treasury
Thomas Jefferson- Secretary of State

Judiciary Act of 1789- called for the creation of the Supreme Court. 1 Chief Justice (John Jay) and 5 Associate Judges. It also set up the framework for district and circuit courts across the nation

Reducing the Nation’s Debt
National Debt- total amount a government owes to others
Bond- certificate that promises to repay the money loaned, plus interest, on a certain date
Hamilton’s Plan
Hamilton wanted to pay off old bonds by selling new bonds then paying those off as economy grew

Debating Hamilton’s Plan
Speculator- someone who invests in risky ventures in hopes making a profit
Speculators were buying up old Revolutionary bonds for pennies on the dollar. Hamilton felt in order to keep the nations trust, they must be paid in full. Congress agreed
James Madison was against Hamilton’s plan since it called for repaying state debt.
The problem is that by 1789 the southern states had repaid their Revolutionary debt.
North should do the same

Hamilton’s Compromise
South wanted the nation’s capital in the South
If they agreed with his plan it would move to Washington D.C.
They agreed
Moved from New York to Philadelphia then to Virginia in 1800

Plans to Build the Economy
Hamilton and Congress –
1791 Setup the Bank of the United States
Passed Tariff’s- taxes on foreign goods
The idea was to make foreign goods more expensive than domestic goods, promoting people buying American made goods
Northern states- industrial made most of the goods liked the plan
Southern states- imported a lot, did not

Whiskey Rebellion
To raise money for the Treasury, Hamilton and Congress approved a tax on liquor
Sparked a rebellion that would test the strength of the new government
Back country farmers often converted corn to whiskey for ease of transporting
They refused to pay and compared this tax to what British had done to the colonies
1794 tax collector in Penn. were tarred and feathered and marched and protests occurred
G. Washington responded quickly
Sends the militia, farmers heard they were coming and they fled and went home
Hamilton wants leaders of the rebellion executed
Washington disagrees and pardons them. Believed mercy was as important as strength
The rebellion showed that the government could respond quickly and firmly