Launching the Nation: Washington Leads a New Nation & Hamilton and National Finances
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George Washington is Elected
In 1789 all 11 of that states that had agreed with the Constitution and passed it sent electors to decide who would be the president for the next few years. These men formed a group known as the electoral college in which these men would, based on the votes of the state which they represented, vote for who would be the next president. When they gathered in January, 1789 all those who were voting made George Washington the first president and John Adams became Washington's vice president. -
Judiciary Act of 1789
The Judiciary Act of 1789 was created by Congress to set up the federal court system to establish a more perfect balance of power within the government. This act made three levels of federal courts and decided their powers and relationship to the state courts. It made federal district courts and circuit courts of appeals. What this did in the long run was make a third branch of government that would interpret the Federal law. -
America's Population
During the year 1790, the United States had about 4 million people in it. About 95% of the US people were farmers and lived in rural areas. Most of the cities in the US were small in today's standards. The only cities that had populations greater than 25,000 were New York City and Philadelphia. New York City, despite the damage it had taken during the Revolutionary War, had reached a population of over 33,000 people and was still growing. -
Bond Exchange
At the end of the war in 1790, the government had made bonds to raise money. The problem was the government didn't currently have the money to pay off all these bonds. Hamilton wanted to replace these bonds with ones that would be paid off over time but Jefferson disagreed saying that some bondholders sold them for less then the original value. In the end though the bonds were replaced. -
Relocating the U.S. Capital
In June 1790 Alexander Hamilton, Thomas Jefferson, and James Madison met to discuss moving the capital from New York. Many southerners thought that having the capital up in New York gave the northern states too much influence over the government and they wanted it moved farther down. So in 1791 the capital was moved to Philadelphia for ten years and then it was moved to where it now is in Washington DC -
First National Bank is created
The first national bank of U.S. was made in February, 1791 but it wasn't easy creating the bank, here's why: Hamilton wanted to create a national bank were the U.S. government could safely store its money. This bank would also loan money to business and the government. He also wanted make a national mint. Jefferson and Madison both disagreed with this but compromise was reached when it was decided that in return for the bank, mint and such, the capital would be moved. -
Wall Street Stock Agreement
In 1792 24 stockbrokers signed an agreement under a buttonwood tree on Wall Street. This agreement formed a base for the New York Stock Exchange. Today the New York Stock exchange has become the largest in all of stock marketing. All this made Wall Street the economic hub of the United States.
