Warm Up: Journal Imagine that when you awoke today you discovered that all of the adults (18+) in Houston have vanished. You are responsible for running the city until help arrives. Explain how you will keep the city in order. Identify your first 3 decisions. Be specific as to which actions you will take and explain WHY. Ex. First I will __________________________________ __________________________________ __________because __________________________________ __________________________________ ____________________. This will be easy/difficult to accomplish because __________________________________ __________________________________ __________________________________ __________________________________ ___________________. Discussion Which were the most difficult tasks to take on? Why? What leadership skills are necessary to accomplish this task? The main problems faced by you in this task are the same problems GW faced as President of the New American Republic Establishing authority Creating a stable Economy Judicial equity-how should this branch of government work? *What Washington does sets a precedent for all other Presidents! The New Republic: problems of the young nation 1789-1800’s Problem #1: Establishing authority Establishing the Authority of the Federal Government…. Many states didn’t want to give up power to the federal gov’t under the new Constitution How to interpret the constitution… There are 2 ways to interpret the Constitution Strict Interpretation Loose interpretation Strict Interpretation vs Loose Interpretation Limits the power of the federal gov’t to those specifically listed in the Constitution Expanding power of the federal government using the elastic clause to increase federal power The Plan to fix problem #1 The PLAN…. Follow the Constitution, limiting the power of the federal government Make laws, declare war, coin $, make treaties State governments would have power in most other areas What actually happened…Establish Authority of the Feds…. Reality… Cabinet departments were created by GW Treasury, State, War, and Justice departments that reported directly to the President INCREASES EXECUTIVE POWER GW begins the National Bank INCREASES LEGISLATIVE POWER Supreme Court is established and the idea of judicial review INCREASES JUDICIAL POWER Practiced the principle of federalism Problem #2 The Court System Implementing a uniform court/justice system Article III of the Constitution has very little detail; no info n how the Supreme Court works nor the courts underneath it! The Plan to Fix Problem #2 Set up a uniform court system Congress wants to establish a court system that would work as a whole for the entire country but not infringe on the authority of the state courts What actually happened…Judiciary Reality Judiciary Act of 1789 Congress organized the federal courts Size of the Supreme Court set at 6 judges (now 9) US was divided into districts so there was a federal judge in each region of the country to preside over cases in that region. Problem #3: Creating a stable economy Problem: Economy Creating a stable economy and paying off debt States and Congress had borrowed money during the Am Rev from individuals and foreign countries New government needed $ for daily operations The estimated amount owed in 1789 was between $75-80 million dollars. Income for US was $4million NOTE** Factors that create a Stable Economy Money keeps it’s value Money borrowed is repaid Credit is available for future loans Economic Plan…. Alexander Hamilton-{Secretary of the Treasury} creates an economic recovery plan What Happened…Economic reality check • • Southern states do not agree with Hamilton’s plan to repay debts… Compromise reached between Jefferson (Southern Representative) and Hamilton..Southerners would approve the plan if the US Capitol was moved to the south. Solutions….. National Bank Established: The government deposited money from taxes in the Bank. The Bank issued paper money to pay the government’s bills and make loans to farmers and businesses. Tariff Created to make imported goods more expensive than American-made goods What Happened…Economic reality check To raise money for the Treasury, Congress approved a tax on all liquor made and sold in the United States. EXCISE TAX Backcountry farmers grew corn. It was easier to get their product to market if they turned their corn into whiskey first. They hated the tax on whiskey. They rebelled, marching in protest and tarring and feathering tax collectors. The WHISKEY REBELLION What Happened…Economic reality check Washington reacts to the Whiskey Rebellion.. Washington called up the militia and sent them to put down the rebellion. The rebels fled back to their farms. The national government had shown that it would act firmly in times of crisis. It also showed that violence/rebellion would not be tolerated. Proved the Federal Government has much more authority under the Constitution.