Creating the Executive Branch Secretary of State Thomas Jefferson

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Creating the Executive BranchSecretary of
StateThomas Jefferson
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Secretary of the TreasuryAlexander Hamilton
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Secretary of WarHenry Knox
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• Washington established the precedent that cabinet
  heads could be removed only by the President
• Washington established precedent that he would
  confer with only the Cabinet heads, NOT WITH
  CONGRESS

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The Judicial Branch

• Judiciary Act of 1789
• 13 District Courts (one in each state)
• 3 Circuit Courts (appeals)
• Supreme Court

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Hamilton vs. Jefferson

• Hamilton
• Born in the West Indies
• Illegitimate/poor
• Came to the states when he was 16
• Went to Columbia
• Believed that people were not to be trusted
• The people are turbulent and changing (p. 163)

• Believed in strong central government

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Jefferson

• Born in Virginia
• Born into a wealthy planter family
• Educated at William and Mary
• Believed in the common man
• Believed that America should
• remain agricultural

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REPORT ON THE PUBLIC CREDIT

• US owed French and Dutch
• US owed American citizens (war bonds)
• ALL AGREED THE FOREIGN DEBT HAD TO BE PAID
  COMPLETELY, OR FOREIGN GOVERNMENTS WOULD NOT
  RESPECT THE US

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ASSMUMPTION OF STATE DEBTS

• Hamilton wanted the federal government to take
  the debts of all the states and have the federal
  government pay them
• Some states had already paid their debts
• Richard Henry Lee wanted VA to secede from the
  Union
• COMPROMISE Capital was to be put in the South

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FULL FUNDING

• Hamilton wanted all people that held the bonds to
  be paid the full value
• Many of these people were speculators and wealthy

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• If these people were not repaid, they would never
  invest in the United States again BIG PROBLEM
• Madison wanted the original holders to be paid in
  full, or at least a part of the value
• Hamilton wins

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NATIONAL BANK

• WOULD COLLECT TAXES, KEEP GOVERNMENTS MONEY,
  LEND GOVERNMENT MONEY
• PRINT MONEY
• LEND MONEY TO BUSINESSES

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JEFFERSONS POSITION ON BANK

• Does the Constitution allow for the government
  establishing a bank
• NO
• Madison said writers of Constitution had not
  wanted the government to set up corporations

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• JEFFERSON SAID A BANK WAS NOT NECESSARY,
  THEREFORE CONGRESS DIDNT HAVE THE POWER TO DO
  IT(Congress couldnt do what was desirable, only
  necessary)
• STRICT CONSTRUCTION

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LOOSE CONSTRUCTION

• Hamilton says Congress could do anything that was
  not forbidden in the Constitution
• If the end was constitutional and the means was
  not unconstitutional, then the means was
  constitutional

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PROTECTIVE TARIFF

• High tax meant to help young industries grow
• Revenue Tariff is a low tax to collect money for
  government
• Merchants said NOfear it would hurt
  international trade

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• Farmers afraid of higher prices for manufactured
  goods
• Congress votes NO to high protective tariff

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WHISKEY REBELLION

• EXCISE TAXTAX ON GOODS PRODUCED, SOLD, AND USED
  WITHIN THE COUNTRY
• WOULD RAISE MONEY
• ALSO DECREASE DRINKING

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• Farmers in west lost money
• Washington puts rebellion down with 13,000 troops