Ch. 6.

1 Washington Heads the New Government

1. The New Government Takes Shape

- Madison was saying that the United States had no previous example of a
government to follow. Therefore, they were in a wilderness without any direction
on how to run their government.
A. Judiciary Act of 1789
- The Judiciary Act of 1789 is a law that established the federal court system and
the number of Supreme Court justices and that provide for the appeal of certain
state court decisions to the federal courts.
- The Judiciary Act of 1789 was significant because it set up the court system.
B. Washington Shapes the Executive Branch
- Department of War, State, and Treasury made up the President’s first cabinet.
- Cabinet- President’s chief advisors.
- Alexander Hamilton- Secretary of the Treasury for George Washington.

2. Hamilton and Jefferson Debate

A. Hamilton and Jefferson in Conflict
- Hamilton- Believed in a strong central government, led by prosperous educated elite of
upper-class, and commerce and industry were the keys to a strong nation.
- Jefferson- Believed in strong state and local governments rooted in popular
participation, and he favored a society of farmer-citizens.
- Hamilton was supported in the North, Jefferson in the South.
B. Hamilton’s Economic Plan
- Hamilton wanted to pay of the debt from the American Revolution.
C. Plan for a National Bank
- Bank of the United States- A national bank funded by the federal government
and private investors, established by Congress in 1791.
- Hamilton wanted the bank to tie wealthy investors into the country’s welfare.
- The bank led to a strict and loose interpretation of the Constitution.
- Strict- One in which the federal government has limited powers.
- Loose- One in which favors greater federal powers.
D. The District of Columbia
- Hamilton proposed that the nation’s capital be moved from New York City to
Washington D.C. to gain support for his debt plan.

3. The First Political Parties and Rebellion

- Hamilton and Jefferson divided the cabinet.
A. Federalists and Democratic-Republicans
- Federalists believed in a strong central government (Hamilton)
- Democratic-Republicans believed in strong state governments and a limited
central government.
B. The Whiskey Rebellion
- protective tariff- Import tax on goods produced in Europe. Made to encourage
American production.
- excise tax- Tax on a product’s manufacture, sale, or distribution. (Whiskey
Rebellion)
- The excise tax prompted the Whiskey Rebellion. The rebellion ended when
Washington and Hamilton called up 15,000 militiamen and marched to
Pennsylvania, dispersed the rebels without a loss of life. This was significant
because it demonstrated the power of the federal government to handle domestic
affairs.