WASHINGTON'S ADMINISTRATION-1789-97

329. Inauguration. In that day, traveling was so difficult. that April 6th came before a sufficient number of congressmen had arrived at New York, the first capital, to form a quorum in both houses. It was found that every elector had voted for Washington, and that John Adams of Massachusetts had received the next highest number of votes. In accordance with the law then in force, Washington and Adams were declared respectively President and Vice President.1

A messenger was immediately sent to Mount Vernon to inform Washington of his election. The President traveled from Mount Vernon to New York in a coach, and the journey was a succession of feasts and entertainments. Cannons were fired, and the streets along which he rode were decorated with arches, flags, and flowers. On April 30, 1789, he took an oath to perform all the duties of his office. This ceremony is called "inauguration," because it is the first act of every new President.

April 30,

1789

330. The Cabinet. - The work of the executive is divided into a number of departments, and the President, with the consent of the Senate, appoints a head, or Secretary, to conduct the affairs of each department. These secretaries form the President's Cabinet, and they advise with him on important questions.

1 See Art. II, Sec. 2, of the Constitution.

There are now eight Cabinet officers: Secretary of State, Secretary of the Treasury, Secretary of War, Attorney-General, Postmaster-General, Secretary of the Navy, Secretary of the Interior, and Secretary of Agriculture. But in Washington's time there were only four departments. He chose for his Cabinet officers some of the ablest men of the country. Thomas Jefferson, as Secretary of State, took charge of foreign affairs; Alexander Hamilton, of New York, was made Secretary of the Treasury; General Henry Knox, a warm personal friend of the President, and a brave leader in the

Revolution, became Secretary of War; and Edmund Randolph, of Virginia, was appointed Attorney-General. These men differed widely in their opinions on questions of government, and were leaders of opposing political parties. Since that time each President has chosen the members of his Cabinet from the party which elected him.

331. The Tariff.-Money was needed for the expenses of the government, and the payment of the public debt incurred during the war. Therefore laws were passed fixing a tariff (schedule of taxes on imported goods) and an excise (internal

tax) on all distilled liquors. By this means, Congress was soon supplied with a large income. The tariff met with strong opposition on the ground that it decreased imports and injured trade; and a controversy was begun which has continued, at intervals, to the present time.

332. Hamilton's Financial Plan.

Knowing that a man's credit ceases when he fails to pay his debts, Hamilton felt the

importance of satisfying the creditors of the United States, and he proposed a plan for paying its whole war debt of about $80,000,000. There were three divisions of this debt: (1) a foreign debt consisting of money borrowed by Congress from Holland, Spain, and France; (2) a domestic debt due from Congress to creditors in America; (3) state debts incurred by the separate states.

As

ALEXANDER HAMILTON

these latter had been contracted for the common cause, Hamilton suggested that the United States should pay them. Hamilton's plan was to fund, or change, the whole debt into interest-bearing bonds, and to set aside annually a sum for the payment of the principal.

Everybody was willing that the foreign creditors should be paid in this way. But the assumption of the state debts met with bitter opposition. Many merchants and wealthy men of the North who had loaned money to the states, favored the secretary's scheme; but the planters in the South opposed it, because they feared that the government would be managed by its creditors.

Another

This matter was finally adjusted in a peculiar way. dispute arose about the location of the capital. The North wanted it, and the South was equally anxious to have it. Finally, at a dinner given by Jefferson, some Northern con

gressmen promised their votes for placing the capital in the South, on the condition that some Southern votes should be given for assumption. This made a small majority for each bill, and both were passed. It was agreed that Congress should meet in Philadelphia until 1800, and then remove to the city of Washington, on the banks of the Potomac.

Hamilton also urged the organization of a national bank, as an agent for securing loans and managing the finances. The decimal system of currency previously proposed by Jefferson was brought into use by the establishment of the mint.

333. Political Parties. During the controversy over the Constitution, those who were in favor of adopting it were called Federalists; those who opposed it, Anti-federalists. The Federalists believed that a strong central government was needed to bring harmony and prosperity. After the adoption of the Constitution, the Anti-federalists called themselves Republicans, or friends of popular government. Later they became known as Democratic-republicans, or Democrats. They feared that Congress might acquire too much power, and even accused the Federalists of trying to change the government into a monarchy. The Federalists believed that a state, after once ratifying the Constitution, was in the federal bond forever. The Republicans considered the Union a compact of sovereign states which had entered it of their own accord, and that each state continued to be independent as to all powers not expressly delegated to the federal government. They believed that Congress should be bound strictly by the Constitution, and considered the assumption of the state debts unconstitutional. They were called "strict constructionists," and the Federalists "loose constructionists," because the latter wished to give a very broad meaning to the requirements of the Constitution.1 Alexander Hamilton was the leader of the Federalists, who were in the majority in the North; Thomas Jefferson was at the head of the Republicans, who were strong in the South.

1 Especially Art. I, Sec. 8, Cl. 18 of the Constitution.