U.S.

History
Friday, November 10th
 Warm Up
Flashback Friday
You are a government official living during 1790. Are
you a loose constructionist or a strict
constructionist? Why? What steps will you take to
make your opinion heard?
 Today in History
1775 Birth of the U.S. Marine Corps
Launching a New Government
Hamiltons Financial Program War
debts and neglect left the countrys
finances a mess.
Alexander Hamilton, as the first
Secretary of the Treasury at 32-years old,
was tasked with putting the economy in
order before it collapsed.
Launching a New Government
Hamiltons Financial Program
In 4 reports, Hamilton outlined plans
for:
1. Resolving the national debt,
2. Establishing a national bank and
national mint, and
3. Encouraging manufacturing and
economic expansion.
Launching a New Government
Hamiltons Financial Program
Report on Public Credit Hamilton felt
that for the sake of national pride and
future credit, debt at the state and
national level had to be paid. There were
2 major aspects:
1. Funding
2. Assumption
Launching a New Government
Hamiltons Financial Program
Funding The federal government would
give bonds (IOU) paying 6% to everyone
owned for goods or services from the
war.
The bonds were recognized as currency,
which is called monetizing the debt.
 Launching a New Government
Hamiltons Financial Program
Assumption the national government would
take over the debt from the states.
The South, who had been paying off their debts,
rejected this. The North had been delinquent, which
seemed unfair to the South.
The issue was settled when it was agreed that a new
national capital would be established in the South.
 Launching a New Government
The capital of the nation was in New York City
until 1790, when it was moved back to
Philadelphia.
Washington, with his experience, surveyed the
land and chose the site of Washington, D.C. on
the Potomac River.
It was a wilderness until 1800 when President
John Adams moved there from Philadelphia.
 Launching a New Government
Both Maryland and Virginia gave up land for
the new federal capital.
French architect Pierre-Charles LEnfant
designed the city.
LEnfant planned a grand city with
boulevards and streets radiating out from
the Capitol Building and Presidents home
like a wheel.
 Launching a New Government
Hamiltons Financial Program
National Bank Hamilton wanted a central bank
that would be the foundation of a strong
economy.
It would issue currency and branches throughout
the country would provide business loans.
 Launching a New Government
Hamiltons Financial Program
National Bank Madison and Jefferson
challenged the constitutionality of a national
bank.
The framers of the Constitution left much to be
interpreted.
The question of how much flexibility would
become a divisive issue.
 Launching a New Government
Hamiltons Financial Program
Loose Constructionists Those who believed the
Constitution allowed more flexibility on issues.
Strict Constructionists Those who believed in less
flexibility in the Constitution.
 Launching a New Government
Hamiltons Financial Program
National Bank The Constitution doesnt
specifically state whether or not Congress can
create a national bank.
Jefferson and Madison argued that it was outside of
the governments authority.
 Launching a New Government
Hamiltons Financial Program
National Bank In response, Hamilton wrote
that Constitutionally specific ends (economic
growth, currency and financial stability) justify
any unspecified means (creating a national
bank).
Washington signed the bill creating the National
Bank.
President George Washington
Hamiltons Financial Program
Tariffs and Taxes in 1791, Congress passed
protective tariffs to keep foreign goods out of
the U.S. and help American manufacturing.
When that didnt raise enough money,
Congress passed an excise tax on products
produced, sold and consumed within the U.S.
President George Washington
Hamiltons Financial Program
Whiskey Rebellion The first excise tax was
placed on whiskey.
Western farmers grew a lot of corn which was hard
to transport, so it was made into whiskey.
They sold this as a part of their income.
In 1794, Pennsylvanian farmers rebelled, refusing to
pay the tax and threatening tax collectors.
President George Washington
Hamiltons Financial Program
Whiskey Rebellion Washington decided
to use force to put down the uprising,
and sent 15,000 troops to the area.
The rebellion collapsed and confidence
in the federal government grew.
President George Washington
Hamiltons Financial Program
National Bank and Mint Hamilton
wanted to create a national bank that
would keep the gold standard.
All paper money had to have silver and
gold to back it.
The national bank would regulate private
banks.
President George Washington
Hamiltons Financial Program
National Bank and Mint Hamilton also
convinced Congress to adopt the Mint
Act of 1792.
The federal government was in charge or
printing, or minting, bills and coins as a
dependable currency for the country.
 Activity
8.3