We should pay off our debts and build a stronger economy!
After Washington's inaguration, he made one important precedent that he would only serve two terms. He also created five executive departments: State, Treasury, War, the offices of the Attorney General and Postmaster General. The heads of these departments made up the first President's Cabinet, who help the President make descisions.
I have a plan that can work!
We don't agree! Most southern states already paid their debts!
The Constitution required a Supreme Court, so they created the federal court system. The Judiciary Act of 1789, made the Supreme Court have one Chief Justice and five Associate Justices. Washington named John Jay as the first Cheif Justice of the United States.
Here is your loan, sir! Make sure not to loose that bond!
Bank of the United States
Don't worry, I'll make sure not to loose it! Thank you, sir.
As the Secretary of Treasury, Hamilton felt it was his duty to build a stronger economy. Something that was preventing this was the national debt from the revolution. The government took out bonds to ensure that they would pay back the money.
Don't tax our whiskey!
Hamilton created a two-part plan to repay the national and state debts. He planned to buy all of the bonds that are isued by the national and state governments before 1789. He wanted to sell the new bonds the pay off the old debts.
Hamilton had Congress create a national bank. In 1791, Congress passed the bill that made the first Bank of the United States. The national government began to put money from taxes into it and it gave back paper money.
Hamilton also had Congress pass a bill that taxed all liquor that was made and sold in the United States. Backcountry farmers protested and compared it to the unfair tax that Britain put on their goods. When they tried to collect the tax, the farmers tarred and feathered tax officials.