Bell RingerAnswer BOTH of the following:

a)What did Shay’s Rebellion prove?

b)What did Shay’s Rebellion lead to?

Objectives

1) Compare and contrast the political ideas of

Hamilton and Jefferson.

2) Explain how the differences created the

first 2 political parties (the 2 party system).

George Washington &

the New Government

In April of 1789, George Washington took the oath of office in NYC, as the first president of the United States of America.

Washington understood that he was undertaking a great responsibility in this great new experiment.

Washington’sFirst Year

Judiciary Act of 1789Created the federal court

system and set the number of supreme court justices

Established a Cabinet4 positions:

- Secretary of State- Secretary of Treasury- Secretary of War- Attorney General

Debate BeginsHamilton and Jefferson were

political opposites.

Hamilton favored a strong central government(federal/national/central government).

Jefferson supported state and local governments.

George Washington’s EconomicsThe nation is in

deep debt, mostly from the Revolutionary

war. States are in debt also,

however many Southern states

have paid off most of their

debt.

President Washington

Knox (Sec. of War)

Hamilton(Sec. of Treasury)

Jefferson(Sec. of State) Randolph

(Attorney Gen.)

Hamilton’s PlanAs Secretary of Treasury, Hamilton had a bold plan to issue new bonds to replace old ones, give wealthy individuals a stake in the success of the new government, and create a national bank.

Southerners hated this plan because they thought they would be over taxed to pay for the northern states’ debt.

*(Remember most of the Southern states had already paid off their debt)*

The Bank of the United StatesWould be funded by the federal government AND private investors.

Would issue money, handle tax receipts, and other funds.

Many people disliked the idea, but Hamilton felt Congress could still pass it under the “necessary & proper” statement of the

ELASTIC CLAUSE!!

The CompromiseIn order for the Southern states to approve of a B.U.S., the nation’s capital was moved from Philadelphia to an area between Maryland

and Delaware (a new “district” called the District of Columbia).

Despite the Compromise, arguments continued between Hamilton and Jefferson

The Rise of a 2 Party System

Federalists VS. Democratic-RepublicansContinued conflict between Hamilton and Jefferson divided the cabinet and the nation. The parties formed around key issues in American politics like…

- Power of the Federal Government- Size of the Federal Government

This 2-party system was established by the time George Washington’s presidency was over, even though Washington was nervous about political

parties.

Rebellion during Washington’s YearsIssue: Tariffs and Excise taxes.

Western farmers rebelled after an excise tax was passed on whiskey (their biggest $ maker). The Federal Gov’t stepped in.

In 1789, Congress passed a tax on goods produced in Europe. This was a good money maker for the Federal Government. To make more money, Hamilton decided to tax whiskey Whiskey was the major source of income for western frontier farmers. They refused to pay the tax and even

assaulted some federal tax marshalls Washington sent out the militia to end the rebellion. This worked!!!

This is important because it showed that the Federal Government could actually enforce their laws now!!