Chapter 8 Section 1
-In 1789, the American people had a new Constitution. They also had a new Congress and their first President. -The United States was one fourth of its size today. All thirteen states were in the East. -The nation’s western border followed the Mississippi River. In the North, the Great Lakes formed much of the border separating the United States from British-controlled Canada. -In the South, the United States bordered on Spanish-controlled Florida and Louisiana. -In April of 1789, George Washington traveled from Virginia to the nation’s capital, New York City, to be gin his term as the first President of the United States. -Washington’s journey along bumpy roads took eight days.
-Large crowds lined the streets.
-As one newspaper reported Americans greatly admired the tall, stately war hero. -The American Revolution had left the nation deeply in debt. -The federal government owed $52 million.
-That debt was mainly in the form of bonds.
-Both Americans and foreigners had invested in bonds to help the war efforts. -Would the government pay back this debt? The answer. NOT YET. -The person responsible for developing a plan to solve the country’s financial crisis was Alexander Hamilton, the secretary of treasury. -Hamilton’s program had three parts: (1) The U.S. government would fully assume, or agree to pay, all federal and state debts. (2) The U.S. government would charter a national bank for depositing government funds. (3) The government would impose a high tax on goods imported into the country. -In 1791, Congress imposed a tax on whiskey made and sold in the United States. -Hamilton hoped this tax would raise funds for the Treasury. -Instead, it led to revolt that tested the strength of the new government.
Chapter 8 Section 2
-The arguments over Hamilton’s financial plan reflected serious disagreements among the new nation’s leaders. -Americans also disagreed about the role of their nation’s government. -The Framers of the...
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