George Washington faced two main obstacles as the first President of the United States: 1. Establishing precedents for the structure and powers of the presidency as the country's new system of government was still being formed. This included debates over what to call him and developing the first Cabinet. 2. Addressing the young nation's large national debt from the Revolutionary War through Treasury Secretary Alexander Hamilton's controversial financial plan, which involved taking on state debts and issuing new bonds. While Hamilton argued this was crucial to economic growth, it faced opposition from figures like James Madison.

1. What were two main
obstacles George Washington
faced as the Nation’s first
President
Do Now: Do you think you have
enough knowledge to run a country?
Why/Why not?

2. Setting the Scene:
• 1789 – congress meets to debate what to call
the new President by.
• "His Highness the President of the United
States and Protector of the Rights of the
Same.”
• Washington wanted to be simply called
“President of the United States.

3. Washington’s First Steps
• April 20th, 1780 in New York City the
inauguration (ceremony in which the
President officially takes the oath of office).
• Why might Washington be sad to take the
office of President?
• What does precedent mean: an act or a
decision that sets an example for others to
follow.

4. The First Cabinet
• President needed help understanding
everything.
• In 1789, the first Congress created five
executive departments.
1. State
2. Treasury
3. War
4. Attorney General
5. Postmaster General
The five heads of these
departments made up
the Members of the
Cabinet

5. The Cabinet
• Members of the Cabinet gave Washington
Advice and were responsible for directing
their departments.
• In his Cabinet he had:
-Secretary of State - Thomas Jefferson
-Secretary of the Treasury - Alexander
Hamilton

6. The Federal Court System
• The Constitution called for a supreme Court.
Congress however, had to set up the federal
court system.
• In 1789, Congress passed the Judiciary Act. It
called for the Supreme court to consist of one
Chief Justice and 5 Associate Justices* (Today,
the Supreme Court has a Chief Justice and 8
Associate Justices.)

7. What is the Highest Court in the land?
• The Supreme Court

8. Reducing the National Debt

9. • How Much was the Debt? $81,497,00
• How much income did the US Receive?
$4,419,000
• Why was America in Debt?
• They had just fought a war.
• What is the National Debt?
• The total amount of money that a government
owes to others.
• What is a bond?
• Certificate that promises to repay the money
loaned, plus interest, on certain date.

10. Hamilton’s Plan
• Hamilton called for the government to repay
both federal and state debates. He wanted the
government to buy up all the bonds issued by
both the national and state governments
before 1789.
• He then planned to issue new bonds to pay off
the old debts. As the economy improved, the
government would then be able to pay off the
new bonds.

11. Debating Hamilton’s Plan
• James Madison Led the opposition. Madison
argued that Hamilton's plan would reward
Speculators. A Speculator is someone who
invests in a risky venture in the hope of making a
large profit.
• During the revolution people could buy a bond
for 10 or 15 cents. If the government paid off the
old bonds in full, speculators stood to make
fortunes. Madison thought that speculators did
not deserve to make such profits.

12. Hamilton’s response
• Hamilton replied that the US must repay its
debts in full or risk losing the trust of
investors. The support of investors, he argued
was crucial to building the new nation's
economy.
• Congress approved full repayment of the
national debt

13. Hamilton’s Compromise:
• He moves the nation’s capital further south. If
Southerners agreed to his plan to repay state
debts.
• Madison an others accepted.
• In 1790, congress voted to repay state debts
and to build a new capital city.
• Today Washington D.C.

14. Plans to Build the Economy
• In 1791, Congress created the Bank of the United States.
• The Government deposited money from taxes in the Bank.
In turn, the Bank issued paper money to pay the
government's bills and to make loans to farmers and
businesses. Through these loans, the Bank encouraged
economic growth.
• To help American manufacturers, Hamilton asked Congress
to pass a Tariff, or tax, on foreign goods.
• The North had factories, and could buy American goods
but the South relied on imported goods.
• In the end, Congress did pass a tariff, but it was much
lower than the protective tariff Hamilton wanted.

15. The Whiskey Rebellion
• To raise money for the Treasury, Congress
approved a tax on all liquor made and sold in
the U.S.
• The new tax sparked a rebellion that tested
the strength of the new government.

16. A Hated Tax
• Many farmers grew corn and converted their corn
into whiskey. Barrels of whiskey could be shipped
more easily to markets in the East.
• Many farmers refused to pay tax. They compared
it to the taxes Britain had forced on the colonies.
• 1794, when tax collectors tried to carry out their
duties they were tarred and feathered.
• Thousands protest through the streets of
Pittsburgh

17. A Show of Strength
• Washington responded quickly.
• Militia called back to arms
• Dispatched to Pennsylvania
• Thousands of troops
• News gets out rebellion scatters
• Hamilton wanted the leaders executed,
Washington believed that the
government should show mercy