Unit Three Review Sheet - The Early RepublicUnwritten Constitution- the process of our government that is considered an essentialpart of the system yet are not actually written in the constitution-The cabinet- Washington’s first task as president was to appoint secretaries(heads) of the executive departments- Secretary of Treasury, Secretary of War,and Secretary of State-Judicial Review- The Constitution only mandated a Supreme court but congresswas given the power to create a national court system. The Judiciary Act of 1789established a federal district court in each state, circuit court appeals from thedistricts, with the Supreme Court having the final say.Hamilton Financial Plan (1791)- Alexander Hamilton, Secretary of Treasury, presented toCongress a plan for putting U.S. finances on a stable foundation.-(1) pay off the national debt at face value in order to get good credit andsecure loans from Dutch and British financiers (Funding bonds “at par”)-(2) Hamilton then proposed that the national gov’t further enhance public creditby assuming the war debts of the states-> ASSUMPTION OF STATE DEBTS. Somestates had already paid off their war debts, so Hamilton promisedreimbursement.-(3) National Bank- In 1790, Hamilton asked Congress to charter the Bank of theUnited States, which would be jointly owned by private stockholders and thefederal government. He argued that it would provide stability to the starvedAmerican economy by making loans to merchants, etc. Madison and Jeffersonopposed Hamilton’s financial initiatives, charging that Hamilton’s national bankwas unconstitutional = STRICT INTERPRETATION. However, Hamilton preferred aLOOSE INTERPRETATION and argued that the constitution’s “necessary andproper” clause (elastic clause) gave Congress the authority to do whateverneeded to carry out its enumerated powers.Opposition to Hamilton’s FInancial Plan-Opposed by states who already paid their war debt-Opposition to “funding at par” because it rewards speculators enormously-Opposition to National Bank as violation of ConstitutionWhiskey Rebellion- To fund state debt assumption, Hamilton got Congress to tax whiskeyproduction but this quickly sparked a domestic insurgency. Rebelling farmers couldbarely afford to pay a tax on the whiskey and rather than pay the tax, they defendedtheir liberties by attacking the revenue collectors.Neutrality Proclamation- In 1793, Washington issued a Proclamation of Neutrality,allowing U.S. citizens to trade with all belligerents. Washington proclaimed that U.S.
would not give any aid to the French in the war against Britain. As neutral carriers,