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182 C

HAPTER 6

Terms & Names

MAIN IDEA

One American's Story

Washington Heads

the New Government

WHY IT MATTERS NOW

George Washington had no desire to be president after the

Constitutional Convention. His dream was to settle down to

a quiet life at his Virginia estate, Mount Vernon. The

American people had other ideas, though. They wanted a

strong national leader of great authority as their ﬁrst presi-

dent. As the hero of the Revolution, Washington was the

unanimous choice in the ﬁrst presidential ballot. When the

news reached him on April 16, 1789, Washington reluctantly

accepted the call to duty. Two days later he set out for New

York City to take the oath of ofﬁce.

A PERSONAL VOICE GEORGE WASHINGTON

“ About ten o’clock I bade adieu [farewell] to Mount Vernon,

to private life, and to domestic felicity [happiness]; and with

a mind oppressed with more anxious and painful sensations

than I have words to express, set out for New York . . . with

the best dispositions [intentions] to render service to my

country in obedience to its call, but with less hope of

answering its expectations.

”

—The Diaries of George Washington

When Washington took ofﬁce as the ﬁrst president of the

United States under the Constitution, he and Congress faced a daunting task—to

create an entirely new government. The momentous decisions that these early

leaders made have resounded through American history.

The New Government Takes Shape

Washington took charge of a political system that was a bold experiment. Never

before had a nation tried to base a government on the Enlightenment ideals of

republican rule and individual rights. No one knew if a government based on the

will of the people could really work.

President Washington

transformed the ideas of

the Constitution into a

real government.

The Cabinet, an institution

Washington created, is still a

key element of every presidential

administration.

George Washington

•Judiciary Act

of 1789

•Alexander

Hamilton

•Cabinet

•Bank of the

United States

•Democratic-

Republicans

•two-party system

•protective tariff

•excise tax

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Page 1 of 6

Although the Constitution provided a strong foundation, it was not a

detailed blueprint for governing. To create a working government, Washington

and Congress had to make many practical decisions—such as how to raise rev-

enue and provide for defense—with no precedent, or prior example, for American

leaders to follow. Perhaps James Madison put it best: “We are in a wilderness with-

out a single footstep to guide us.”

JUDICIARY ACT OF 1789

One of the first tasks

Washington and Congress tackled was the creation of a

judicial system. The Constitution had authorized Congress

to set up a federal court system, headed by a Supreme Court,

but it failed to spell out the details. What type of addition-

al courts should there be and how many? What would hap-

pen if federal court decisions conﬂicted with state laws?

The Judiciary Act of 1789 answered these critical

questions, creating a judicial structure that has remained

essentially intact. This law provided for a Supreme Court

consisting of a chief justice and ﬁve associate justices. It also

set up 3 federal circuit courts and 13 federal district courts

throughout the country. (The numbers of justices and

courts increased over time.) Section 25 of the Judiciary Act,

one of the most important provisions of the law, allowed

state court decisions to be appealed to a federal court when

constitutional issues were raised. This section guaranteed

that federal laws remained “the supreme Law of the Land,”

as directed by Article 6 of the Constitution.

WASHINGTON SHAPES THE EXECUTIVE BRANCH

the same time that Congress shaped the judiciary,

Washington faced the task of building an executive branch

to help him make policies and carry out the laws passed by

Congress. In 1789, when Washington took ofﬁce, the exec-

utive branch of government consisted of only two

ofﬁcials, the president and the vice-president. To

help these leaders govern, Congress created three

executive departments: the Department of State,

to deal with foreign affairs; the Department of

War, to handle military matters; and the

Department of the Treasury, to manage ﬁnances.

To head these departments, Washington

chose capable leaders he knew and trusted. He

picked Thomas Jefferson as secretary of state,

Alexander Hamilton as secretary of the trea-

sury, and Henry Knox, who had served as

Washington’s general of artillery during the

Revolution, as secretary of war. Finally, he chose

Edmund Randolph as attorney general, the chief

lawyer of the federal government. These depart-

ment heads soon became the president’s chief

advisers, or Cabinet.

Launching the New Nation 183

THE CABINET

The Constitution provided

President Washington and his suc-

cessors the right to “require the

opinion, in writing, of the principal

ofﬁcer in each of the executive

departments.” Washington chose

to seek those opinions, in person,

on a regular basis. In 1793,

James Madison called the assem-

bled secretaries the Cabinet, a

term used in Britain for advisers

to the king.

Since Washington’s time the

number of departments has

increased to 14. In addition to the

secretaries of these 14 depart-

ments, Cabinet ofﬁcers also

include the director of the Central

Intelligence Agency, the adminis-

trator of the Environmental

Protection Agency, and the vice-

president. The Cabinet meets at

the request of the president and

frequency varies from administra-

tion to administration.

President Washington (far right) meets with his ﬁrst Cabinet:

(from left to right) Henry Knox, Thomas Jefferson, Edmund

Randolph (with back turned), and Alexander Hamilton.

▼

A. Answer If

states could

pass laws that

contradicted

federal law, the

authority of the

federal govern-

ment might be

undermined and

jeopardize the

stability of the

Union.

MAIN IDEA

Analyzing

Motives

Why did

federal law have to

be “the supreme

Law of the Land”

in the new nation?

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Page 2 of 6

Hamilton and Jefferson Debate

Hamilton and Jefferson were brilliant thinkers, but they had very different polit-

ical ideas. The differences between the two also caused bitter disagreements,

many of which centered on Hamilton’s plan for the economy.

HAMILTON AND JEFFERSON IN CONFLICT

Political divisions in the new

nation were great. No two men embodied these differences more than Hamilton

and Jefferson. Hamilton believed in a strong central government led by a pros-

perous, educated elite of upper-class citizens. Jefferson distrusted a strong central

government and the rich. He favored strong state and local governments rooted

in popular participation. Hamilton believed that commerce and industry were

the keys to a strong nation. Jefferson favored a society of farmer-citizens.

Overall, Hamilton’s vision of America was that of a country much like

Great Britain, with a strong central government, commerce, and industry. His

views found more support in the North, particularly New England, whereas

Jefferson’s views won endorsement in the South and the West.

HAMILTON’S ECONOMIC

PLAN

As secretary of the trea-

sury, Hamilton’s job was to set

in order the nation’s ﬁnances

and to put the nation’s econo-

my on a ﬁrm footing. To do

this, he proposed a plan to

manage the country’s debts and

a plan to establish a national

banking system.

According to Hamilton’s

calculations in his Report on the

Public Credit, the public debt of

the United States in 1790 (most

of it incurred during the

Revolution) was many millions

of dollars. The national govern-

ment was responsible for about

two-thirds of this debt, and

individual states were responsi-

ble for the rest. The new nation

owed some of the debt to for-

eign governments and some to

private citizens, including sol-

diers who had received bonds—

certiﬁcates that promised pay-

ment plus interest—as payment

for their service during the war.

Hamilton proposed to pay

off the foreign debt and to issue

new bonds to cover the old

ones. He also proposed that the

federal government assume the

debts of the states. Although

this would increase the federal

debt, Hamilton reasoned that

assuming state debts would

give creditors—the people who

184 C

HAPTER 6

MAIN IDEA

Contrasting

How did

Jefferson’s and

Hamilton’s views

of government

differ?

Skillbuilder

Answers

1. Hamilton’s,

because he

favored wealthy,

educated peo-

ple in govern-

ment positions

and favored the

national bank.

2. Jefferson:

Believed that

people were

basically good

and needed little

government.

Hamilton:

feared that gov-

ernment by the

people would

mean “mob

rule” and that a

strong central

government run

by an educated

elite was need-

ed to control the

“common”

people.

B. Answer

Jefferson

emphasized the

rights of states

and average cit-

izens. Hamilton

emphasized the

rights of the

national govern-

ment and the

ruling elite.

THOMAS JEFFERSON

1743–1826

The writer of the Declaration

of Independence, Thomas

Jefferson began his political

career at age 26, when he

was elected to Virginia’s colo-

nial legislature. In 1779 he

was elected governor of

Virginia, and in 1785 he was

appointed minister to France.

He served as secretar y of

state from 1790 to 1793.

A Southern planter, Jefferson

was also an accomplished

scholar, the architect of

Monticello (his Virginia house),

an inventor (of, among other

things, a machine that made

copies of letters), and the

founder of the University of

Virginia in 1819. Despite his

elite background and his own-

ership of slaves, he was a

strong ally of the small farmer

and average citizen.

ALEXANDER HAMILTON

1755–1804

Born into pover ty in the

British West Indies,

Alexander Hamilton was

orphaned at age 13 and went

to work as a shipping clerk.

He later made his way to

New York, where he attended

King’s College (now Columbia

University). He joined the

army during the Revolution

and became an aide to

General Washington.

Intensely ambitious, Hamilton

quickly moved up in society.

Although in his humble ori-

gins Hamilton was the oppo-

site of Jefferson, he had little

faith in the common citizen

and sided with the interests

of upper-class Americans.

Hamilton said of Jefferson’s

beloved common people:

“Your people, sir, your people

is a great beast!”

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Page 3 of 6

originally loaned the money—an incentive to support the new federal government.

If the government failed, these creditors would never get their money back.

However, this proposal made many people in the South furious. Some Southern

states had already paid off most of their debts. Southerners resented assumption of

state debts because they thought that they would be taxed to help pay the debts

incurred by the Northern states.

PLAN FOR A NATIONAL BANK

Hamilton’s line of reasoning also motivated his

proposal for a national bank that would be funded by both the federal govern-

ment and wealthy private investors. Hamilton hoped to tie wealthy investors to

the country’s welfare. The Bank of the United States would issue paper

money and handle tax receipts and other government funds.

Hamilton’s proposals aroused a storm of controversy. Opponents of a

national bank, including James Madison, claimed that the bank would forge an

unhealthy alliance between the government and wealthy business interests.

Madison also argued that since the Constitution made no provision for

a national bank, Congress had no right to authorize it. This argument began

the debate between those who favored a “strict” interpretation of the

Constitution, one in which the federal government has very limited powers,

and a “loose” interpretation, which favors greater federal powers. The latter

group appealed to the so-called elastic clause of the Constitution (Article 1,

Section 8, Clause 18), which gives Congress the authority to do whatever is “nec-

essary and proper” to carry out its speciﬁc enumerated powers, such as regulating

commerce. In the end, however, Hamilton convinced Washington and a major-

ity in Congress to accept his views, and the federal government established the

Bank of the United States.

THE DISTRICT OF COLUMBIA

To win support for his debt plan from

Southern states, Hamilton offered a suggestion: What if the nation’s capital

were moved from New York City to a new city in the South, on the banks of the

Potomac River? This idea pleased Southerners, particularly Virginians such as

Madison and Jefferson, who believed that a Southern site for the capital would

make the government more responsive to their interests. With this incentive,

Virginians agreed to back the debt plan. In 1790, the debt bill passed Congress,

along with authorization for the construction of a new national capital in the

District of Columbia, located between Maryland and Virginia.

Launching the New Nation 185

MAIN IDEA

Analyzing

Issues

Why did the

new nation need

to pay off its

debts?

Contrasting Views of the Federal Government

HAMILTON

• Concentrating power in federal

government

• Fear of mob rule

• Republic led by a well-educated elite

• Loose interpretation of the Constitution

• National bank constitutional

(loose interpretation)

• Economy based on shipping

and manufacturing

• Payment of national and state debts

(favoring creditors)

• Supporters: merchants, manufacturers,

landowners, investors, lawyers, clergy

JEFFERSON

• Sharing power with state and local

governments; limited national government

• Fear of absolute power or ruler

• Democracy of virtuous farmers

and tradespeople

• Strict interpretation of the Constitution

• National bank unconstitutional

(strict interpretation)

• Economy based on farming

• Payment of only the national debt

(favoring debtors)

• Supporters: the “plain people”

(farmers, tradespeople)

SKILLBUILDER

Interpreting Charts

Whose view of the federal government was a wealthy person more likely to favor? Why?

How do you think Jefferson differed from Hamilton in his view of people and human nature?

C. Answer

Demonstrating

that the new

government was

ﬁnancially

responsible

would make it

more credible

in the eyes of

creditors,

including foreign

governments,

and bolster the

government’s

reputation.

p0182-187aspe-0206s1 10/16/02 3:57 PM Page 185

Page 4 of 6

Pierre L’Enfant, a French engi-

neer, drew up plans for the new

capital. L’Enfant was later ﬁred by

George Washington for being obsti-

nate. He was replaced by Andrew

Ellicott, who redrew L’Enfant’s

plan, but kept much of the grand

vision. An African-American sur-

veyor, Benjamin Banneker, assisted

Ellicott with the surveying work.

They made their plan on a grand

scale, incorporating boulevards,

trafﬁc circles, and monuments rem-

iniscent of European capitals. By

1800, the capital had been moved

to its new site on the Potomac.

The First Political Parties and Rebellion

President Washington tried to remain above the arguments between Hamilton

and Jefferson and to encourage them to work together despite their basic differ-

ences. These differences were so great, however, that the two men continued to

clash over government policy. Their conﬂict divided the cabinet and fueled a

growing division in national politics.

FEDERALISTS AND DEMOCRATIC-REPUBLICANS

The split in Washington’s

cabinet helped give rise to the country’s ﬁrst political parties. The two parties

formed around one of the key issues in American history—the power and size of

the federal government in relation to state and local governments. Those who

shared Hamilton’s vision of a strong central government called themselves

Federalists. Those who supported Jefferson’s vision of strong state governments

called themselves Republicans. No relation to today’s Republican Party, Jefferson’s

Republicans—later called Democratic-Republicans—were in fact the ancestors

of today’s Democratic Party.

The very existence of political parties worried many leaders, including

Washington, who saw parties as a danger to national unity. At the close of his

presidency, Washington criticized what he called “the spirit of party.”

A PERSONAL VOICE GEORGE WASHINGTON

“ It serves always to distract the public councils and enfeeble the public adminis-

tration. It agitates the community with ill-founded jealousies and false alarms;

kindles the animosity of one part against another; foments [incites] occasionally

riot and insurrection. It opens the door to foreign inﬂuence and corruption. . . .

”

—“Farewell Address,” 1796

Despite criticism, the two parties continued to develop. The two-party sys-

tem was well established by the time Washington left ofﬁce.

THE WHISKEY REBELLION

During Washington’s second term, an incident

occurred that reﬂected the tension between federal and regional interests. In

1789, Congress had passed a protective tariff, an import tax on goods produced

in Europe. This tax, meant to encourage American production, brought in a great

deal of revenue, but Secretary Hamilton wanted more. So he pushed through an

excise tax—a tax on a product’s manufacture, sale, or distribution—to be levied

on the manufacture of whiskey.

186 C

HAPTER 6

Background

In addition to pro-

moting American

goods, the Tariff

Act of 1789, as

well as tariffs that

followed, provided

the majority of the

federal govern-

ment’s revenue

until the 20th

century.

MAIN IDEA

Contrasting

How did the

Federalists and

the Democratic-

Republicans differ

from each other?

D. Answer

Federalists

believed in a

strong central

government,

whereas

Democratic-

Republicans

believed in a

limited central

government.

▼

Pierre L’Enfant

proposed a

federal capital of

spacious, tree-

lined boulevards,

symbolizing the

freedom of the

young republic.

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Page 5 of 6

Most whiskey producers were small frontier farmers. Their major crop was

corn. Corn was too bulky to carry across the Appalachian Mountains and sell in

the settled areas along the Atlantic. Therefore, the farmers distilled the corn into

whiskey, which could be more easily sent to market on the backs of mules.

Since whiskey was the main source of cash for these frontier farmers,

Hamilton knew that the excise tax would make them furious. And it did. In 1794,

farmers in western Pennsylvania refused to pay the tax. They beat up federal mar-

shals in Pittsburgh, and they even threatened to secede from the Union.

Hamilton looked upon the Whiskey Rebellion as an opportunity for the

federal government to show that it could enforce the law along the western fron-

tier. Accordingly, some 15,000 militiamen were called up. Accompanied by

Washington part of the way and by Hamilton all the way, the federal troops hiked

over the Alleghenies and scattered the rebels without the loss of a single life.

The Whiskey Rebellion was a milestone in the consolidation of federal power

in domestic affairs. At the same time, the new government was also facing criti-

cal problems and challenges in foreign affairs—particularly in its relations with

Europe and with Native American peoples west of the Appalachians.

Launching the New Nation 187

•Judiciary Act of 1789

•Alexander Hamilton

•Cabinet

•Bank of the United States

•Democratic-Republicans

•two-party system

•protective tariff

•excise tax

1. TERMS & NAMES For each term or name, write a sentence explaining its signiﬁcance.

MAIN IDEA

2. TAKING NOTES

In a chart, list the leaders, beliefs,

and goals of the country’s ﬁrst

political parties.

If you had lived in that time, which

party would you have favored?

CRITICAL THINKING

3. EVALUATING DECISIONS

How would you judge President

Washington’s decision to put two

such opposed thinkers as Hamilton

and Jefferson on his Cabinet?

Think About:

• both men’s merits

• their philosophies

• the conﬂicts that developed

4. ANALYZING ISSUES

How was the Whiskey Rebellion an

opportunity for the federal

government to demonstrate its

authority?

5. ANALYZING

Would you have supported

Hamilton’s economic plan? Explain

why or why not. Think About:

• the money problems the

nation faced

• other problems the

nation faced

Federalists Democratic-

Republicans

A group of rebels

taking part in the

Whiskey Rebellion

tar and feather a

tax collector.

▼

p0182-187aspe-0206s1 10/16/02 3:57 PM Page 187

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