Launching the New Ship of State
Chapter Ten
George Washington & his Cabinet
George Washington
• John Adams—Vice President
• Thomas Jefferson—Sec. of State
• Alexander Hamilton—Sec. of the Treasury
• Henry Knox—Sec. of War
• Edmund Randolph—Attorney General
First Job of the New Government:
• To add a Bill of Rights to the Constitution
 2/3 vote by Congress & ratified by ¾ of states
 Used George Mason’s bill of rights in VA as a
guide
 Key: provided safeguards for some of America’s
core principles
• Judiciary Act of 1789
 Organized the Supreme Court with a Chief
Justice (John Jay) and originally 5 associates
 KEY COURT CASE: Marbury v. Madison, 1803
Hamilton’s Financial Plan:
• BE FAT (yes, an acronym)
• B—the creation of the Bank of the United
States (BUS)
• E—Excise Tax on whiskey
• F—Funding at Par (key: increase national
credit)
• A—Assumption of State Debts; Hamilton
wanted the states to be more obligated to the
federal government
• T—Tariffs (custom duties) passed to help new
industries growing in the U.S.
Strict vs. Loose Constructionists
• Issue of the BUS:
 Strict constitution: strict interpretation of the
Constitution (Jefferson)
 Loose constitution: broad interpretation of the
Constitution (Hamilton)
 Jefferson opposed BUS b/c felt it was not
stipulated in the Constitution
 Hamilton argued the Constitution allowed for a
BUS b/c of “elastic clause” of Constitution
• Bank necessary to store tax revenue and regulate
trade
Whiskey Rebellion (1794)
• Who: sw PA backcountry folks hit hard by
excise tax
• What: challenged the new national gov;
Washington sent a militia to stop rebellion
• Significance: Federal government showed it
could ensure domestic tranquility
• Hamilton’s financial plan became a cornerstone
of America’s financial system
Birth of Political Parties
• Constitution never mentioned party system
• 2 well-defined groups emerged:
 Hamilton Federalists
 Jeffersonian Republicans
• 2 political party system started over a clash b/t
Hamilton and Jefferson
Hamilton’s Federalists
• Believed in gov by upper class
• Distrusted the common people
• Supported a strong central gov
• Gov to encourage business & not interfere with
it
• Pro-British in foreign policy
Jeffersonian Republicans
• Advocated the rule of the people; gov FOR the
people
• Biggest appeal was to the middle class & poor
• Democratic-Republicans believed the best gov
was one that governed least
• National debt was a curse to future generations
• Jeffersonians were primarily agrarians
• Believed in freedom of speech to expose
tyranny
• Pro-French in foreign policy