Washington took several steps to establish the new government. He was inaugurated as the first President in 1789. Congress established five cabinet departments to advise the President. Washington set a precedent by choosing well-known leaders for his cabinet. Congress also passed the Judiciary Act of 1789, establishing the federal court system and appointing John Jay as the first Chief Justice. Washington further set a precedent by deciding not to seek a third term. Hamilton proposed a plan to reduce the national debt and build the economy. His plan was to have the federal government assume both federal and state debts by issuing new bonds. This sparked debate between Hamilton and Madison. Hamilton's plan eventually passed as part of a compromise to locate the capital in

1. Chapter 9 SECTION 1 NOTES
What steps did Washington take to make the new government
work?
First Inauguration
Washington was inaugurated(ceremony in which the President takes the oath of
office) on April 30, 1789.
First Cabinet Congress created five departments to help the President. The heads of the
departments made up the Cabinet. Members of the Cabinet advised the President
and directed their departments.
*Washington set a precedent, or an example for others to follow, by choosing
well-known leaders to serve in the Cabinet.
The Judiciary Act In 1789, Congress passed the Judiciary Act, which set up the federal court system.
Washington named John Jay the first Chief Justice of the United States.
Time in Office Washington set another precedent when he decided not to run for a third term.
Not until 1940 did any President seek a third term.
What was Hamilton’s plan to reduce the nation’s debt and build
the economy?
Hamilton’s Plan for the ECONOMY
The problem
• The United States had a huge national debt—the total amount of money that a government owes
to others. The national government and state governments had borrowed by issuing bonds—
certificates that promise to repay the money loaned, plus interest, on a certain date.
The debate
• Hamilton—the federal government must repay both federal and state debts by buying up the old
bonds and issuing new ones. The United States must repay all debts so it won’t lose the trust of
investors.
• Madison—Hamilton’s plan would reward speculators—people who invest in a risky venture in
hopes of a large profit. They shouldn’t make a big profit on the war. Besides, most southern states
have already paid their debts. Other states should do the same.
The compromise
• Hamilton promised to support putting the nation’s capital in the South if southerners agreed to his
plan for repaying state debts.

2. What were the causes and results of the
Whiskey Rebellion?
Causes and Results of the WHISKEY REBELLION
Causes Results
• To raise money for the Treasury, Congress • Washington called up the militia and sent them
approved a tax on all liquor made and sold in to put down the rebellion. The rebels fled back
the United States. to their farms. The national government had
• Backcountry farmers grew corn. It was easier shown that it would act firmly in times of
to get their product to market if they turned crisis. It also showed that violence would not
their corn into whiskey first. They hated the tax be tolerated.
on whiskey. They rebelled, marching in protest
and tarring and feathering tax collectors.