THE NEW NATION
The first President under the new Constitution was George Washington, often called the Father of our Country. Washington took the oath of office on April 30, 1789. This hero of the Revolutionary War was chosen by all members of the Electoral College. The people admired the courage and leadership Washington provided in the Revolutionary War. They believed they could trust him as a politician. Washington believed it was important to unite the new nation, and to make sure the government ran smoothly. He did not try to gain power for himself. Americans celebrate Washington's birthday with a national holiday (called Presidents' day), remembering how his great leadership helped establish the United States.
He did not actively participate in cabinet meetings, leaving debate to his ministers, whose opinions he occasionally requested in writing.
Setting Up the Government The way Washington set up his government was very important. He established precedents that future Presidents followed. One precedent was the establishment of the Cabinet, a group of advisers for the President. The Cabinet had four men, each with a different responsibility: Title Person Responsible for Secretary of State Thomas Jefferson Foreign Policy Secretary of the TreasuryAlexander Hamilton Money Matters Secretary of War Henry Knox Army and Navy Attorney General Edmund Randolph Legal Matters President Lincoln's birthday also is celebrated on this day. Today's Cabinet has more members and additional functions. (See the U.S. Government Structure book, chapter II, for the listing of these areas.) A second important precedent was that Washington followed the loose interpretation of the Constitution. This can be seen in some of the controversial actions taken during Washington's term. , a large debt, worthless paper money, and, in effect, a
bankrupt and weak Union. Major problems, old and new, urgently required solutions.
An important problem of the new government was organizing its finances. Alexander Hamilton had a plan that would: establish the credit of the U.S. at home and in other countries; encourage manufacturing; and, provide a stable currency. Washington and the Congress agreed with Hamilton that the federal government assume the debts from the Revolutionary War. They also started tariffs and taxes on imports and some agricultural products to raise funds and encourage manufacturing in the U.S. The most
controversial issue was Hamilton's special project, the National Bank. The Constitution does not say that the federal government has the power to set up a National Bank. Hamilton believed a National Bank was necessary to stabilize the national currency and to provide loans for manufacturing and other businesses. The anti-Federalists were very angry. They saw this National Bank as exactly what they had feared from a strong federal government. They felt it could control the money supply, destroy state banks and claim all surplus government funds. Some of the anti-Federalists' fears have come to pass, but these policies and institutions are now viewed as indispensable to the smooth working of the national economy, regulation of trade and collection of taxes. BEGINNING OF POLITICAL PARTIES The disagreement over these issues, especially financial matters, divided politicians into two groups or parties: Federalists and Democratic-Republicans. The two parties were different in important ways:
Description Federalists Democratic-Republicans Type of people who Wealthy: bankers, Common people: farmers, belonged to the party merchants, large city workers, small landowners shopkeepers Part of country where North (New South and West party was popular England, especially) Type of government Feared too much Strongly believed in party favored democracy; strong democracy; weak federal or central federal government, government states' rights How Constitution Loose interpretation Strict interpretation should be interpreted Foreign Matters Neutrality Neutrality Favored England Favored France Party Leaders Alexander Hamilton Thomas- Jefferson John Adams James Madison
The Federalists and Democratic-Republicans formed the first political parties in the United States and the two-party system has provided the basis for the U.S. government. Two of today's parties have roots in these early parties. They are the Republicans (Federalists) and the Democrats (Democratic-Republicans). There are other political parties, also. Having more than one party keeps the political system open and balanced. Conduct of foreign policy was not as controversial an issue as financial matters in some ways. Both the Federalists and the Democratic-Republicans agreed that the United States should remain neutral, as much as possible, in its relationships with other countries. In those times, the two oceans which separated the United States from Europe and Asia took weeks or months to cross. The Americans liked it that way because they could keep out of the struggles and fights of other countries and develop the American way of life without interference. Neutrality meant staying out of European politics. It did not mean complete separation from Europe. The Americans still wanted very much to trade with Europe because it provided a large
market for U.S. agricultural goods. The United States often has worked to uphold neutral trade rights, even in time of war, as part of the belief that neutrality is to be honored by all nations. WASHINGTON RETIRES AFTER SECOND TERM George Washington was a very popular President, respected even by his opponents. He was, by nature, a quiet man who did not like the political struggles that grew during his second term. He decided to retire in 1796 and set an important precedent for the two-term Presidency. It showed that the republic was more important than the men who made it. No person would keep all the power; the authority was in the institutions. Washington's Farewell Address, written before he retired, gave advice to the nation for the future. It had a great influence on the country's foreign policy. Washington emphasized that the U.S. should stay neutral in its political relationships with other countries. This policy of isolation would be followed by the U.S. for more than 100 years. The peaceful change in government which followed Washington's retirement was a good sign of the commitment the people had for the government and making it work.
Washington's Proclamation of Neutrality said the U.S. would stay out of European affairs as much as possible. DEFINITIONS ASSUME To take over or take responsibility for. COMPROMISE To settle differences by agreeing to accept less than what was wanted. CONTROVERSIAL Relating to issues about which people have and express opposing views. DEBATE To discuss reasons for and against an issue or idea. FOREIGN POLICY The way a country treats and relates to the other countries of the world. INDEPENDENCE Freedom from control by others. INDISPENSABLE Essential; absolutely necessary. INTERFERENCE The act of getting in the way of or stopping something. ISOLATION The act of staying away from others. LEGISLATION The act or procedure of making laws; a law or laws made by such a procedure. NEGOTIATE To discuss to bring about a compromise on and to reach an agreement.
NEUTRAL Not taking sides with one country or another. PRECEDENT An action which serves as an example or rule for similar situations. PRINCIPLED According to right or good conduct; ethical. REPUTATION A person's standing among others. SEIZE To take by force; to take possession of. STABILIZE To put in balance; to hold steady. SURPLUS An amount beyond what is needed, such as a surplus of funds. TACTLESS Not having sensitivity and skill in relating to people. UNANIMOUS Having the agreement of all. VIOLATION Failure to fulfill or keep (a promise) or conform to a code or regulation.
