8 1 The First President2

The First President

Ch. 8 sec 1.

On April 30, 1789 Washington took the oath of office as the first President of the United States under the federal government. John Adams become the first vice President.

Precedents

• Washington had no one to go on or examples and he knew his decisions would shape the presidency.o Precedents

• “Mr. President”• The first cabinet raised many questions:

would they answer to the President or the Congress and once appointed if the President could dismiss them?

The Cabinet

• Secretary of Stateo Thomas Jefferson Secretary of Treasury -Alexander Hamilton Secretary of War -Henry Knox Attorney General -Edmond Randolph

• Today’s Cabineto 15 Departments

Judiciary Act of 1789

• Disagreements between state courts and Federal Courts

• A compromise allowing 13 district courts and three circuit courts with the Supreme Court having the final ruling over them all.

• State courts and laws would remain, but federal courts had power to reverse (?)

• Washington appointed John Jay to head the Supreme Court

Hamilton and the National Debt

• The U.S. was in debt.

Foreign debt – money owed to foreign nations such as Spain and France

Domestic debt – money owed to American citizens

• The U.S. had borrowed money from its’ citizens in order to pay for the Revolutionary War through the sale of bonds.

• Many citizens thought that the government would never be able to pay back their debt. Therefore, they sold their bonds to speculators at a loss.

Hamilton’s Economic Plan

Alexander Hamilton wanted to restore people’s faith in the U.S. economy by doing the following:

• pay back all federal and state bonds

• combine all state and federal debts into one huge national debt

Southerners such as James Madison hated this plan because:

• most Southern states had already paid their debts

• most speculators, who became rich, lived in the North

The South agreed to…

The North agreed to…

…allow the federal government to take

over the debts of the northern states.

…move the capital ofthe U.S. to the South.

(Washington, D.C.)

Hamilton’s Compromise

Washingtons Farewell

• After 2 terms in office Washington retired from the presidency, setting a precedent for future presidents

• In his Farewell speech he warned of The two party system Observe good faith and justice to all nations Stay away from permanent alliances.