Challenges%20to%20the%20New%20Government

1
Challenges to the New Government

• What are the major problems with the United
  States?
• How does Washington try to solve this?
• How are Shays rebellion and the Whiskeys
  rebellion similar and different?

2
George Washington takes office

• April 30 George Washington inaugurated
• Inauguration ceremony in which president
  officially takes the oath of office
• Precedent an act or a decision that sets an
  example for others to follow

3
George Washington takes office

• Forms a cabinet
• Cabinet heads of departments
• 5 created State, Treasury War, Attorney
  General, Postmaster
• Advice the president
• Secretary of State Thomas Jefferson
• Secretary of Treasury Alexander Hamilton

4
George Washington takes office

• Federal Court System set up
• Judiciary Act Start of Supreme Court 1789
• John Jay 1st Chief Justice of the United States

5
Problems with new nation

• Huge national debts!
• National Debt amount of money the government
  owes to other
• During war the US borrowed lots of

6
Hamiltons Plan

• bond certificate that promises to repay money
  loaned, plus interest on a certain date.
• Hamilton wanted the government to repay federal
  and state debts and buy up bonds
• He then wanted to issue new bonds for debt
• He wanted a National Bank to give more
  crediability

Alexander Hamilton on a National Bank
7
Hamiltons Compromise

• James Madison hated Hamiltons plan
• He thought this would lead to speculations
• Speculator someone who invest in a risky venture
  in the hope of making a large profit

8
Hamiltons Compromise

• Agreed to build capital city in South
• States agreed to repay state debts
• Start of a national bank Bank of the United
  States
• Washington DC was built!

9
Rebuilding the Economy
10
Whiskey Rebellion

• To help pay off the war debt, Washington started
  to tax whiskey
• Whiskey is an alcoholic beverage
• The farmers who grew the grain to make the
  whiskey were angry.

11
Why whiskey?

• Farmers had a hard time getting their grain to
  market, so they turned their grain into whiskey,
  which was easier to transport.
• They got more money for the whiskey anyway.
• Farmers traded the whiskey for salt, sugar, and
  other goods.
• Farmers used whiskey as money to get whatever
  supplies they needed.
• Farmers did not have the money to pay for the
  tax.

12
The Rebellion

• In the summer of 1794, a group of farmers in
  Western Pennsylvania rebelled against the whiskey
  tax and staged the Whiskey Rebellion.
• One group beat up a tax collector and coated him
  with tar and feathers.

13
Why do you think tax collectors were tarred and
feathered?
14
The Government Responds

• Alexander Hamilton wanted the government to look
  strong. He encouraged President Washington to
  stop the revolt.
• Federal troops marched to Western Pennsylvania
  and put down the revolt.
• Washington had proved that the government would
  deal with people not obeying the law.

15
Why do you think Washington chose to lead the
troops himself?
16
Current issues
Does the US have debt?
U.S. Debt Too Big for National Debt Clock
How are we handling our debt issues?
Why is China buying more U.S. debt?
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