3. When and where did the Constitutional Convention meet?

4. What were the Virginia and New Jersey plans for national government? What was meant by the Connecticut Compromise? 5. What other compromises were adopted?

6. What is meant by the American Bill of Rights?

7. Who invented the cotton gin?

8. Who was the first successful cane grower in Louisiana?

9.

Who invented the first successful steamboat?

10. What was the ordinance of 1787?

II. Trace the voyage of a steamboat from Pittsburgh to New Orleans.

12. How did transportation by water help in the development of this country?

13. What means of transportation has largely taken the place of steamboats to-day?

14. In what occupations were the people of your state engaged in 1800? Describe the home life of people of that time.

REFERENCES

Hinsdale: American Government.

Coman: Industrial History of United States.

CHAPTER XII

NEW GOVERNMENT

Washington chosen President. When the new government went into effect, Washington was unanimously chosen President of the United States. John Adams was elected Vice Presi

tal, and special preparations were made for the new President's reception. Washington's trip from Virginia to New York was one of grand triumph. Town after town that he passed through made

every effort to honor him.

GEORGE WASHINGTON.

Arches of evergreen were

erected that he might pass under them, and flowers were strewn in his path. When he reached New York, the city was crowded to the utmost, and gay and festive decorations were seen on every hand. It was everywhere manifest

that the people were happy to have a national government and that they were satisfied with the selection of Washington as President.

Washington took the oath of office from the Federal Building in the presence of a vast concourse of people. Congress then prepared to begin the regular routine of government, and immediately provided for four executive departments to aid the President.

The First Cabinet. — Washington made the following appointments to fill these offices: Thomas Jefferson, Secretary of State; Henry Knox, Secretary of War; Alexander Hamilton, Secretary of the Treasury; and Samuel Osgood, Postmaster-General. These men took up the affairs of their respective departments, Washington had them confer with him from time to time, and thus there came to be formed what is known as the President's Cabinet. Regular federal courts were created, and John Jay was appointed first Supreme Justice of the United States.

First Work in Congress. National Debt. One of the — first questions taken up by Congress was the payment of the national debt. Hamilton in his report divided the debt into three sections: first, that due to foreign countries, France, Spain, and Holland; second, that due to private individuals; third, that due by the states. In the third case the debt represented certain amounts that the states had promised to carry during the American Revolution as their part of the expense.

National Capital. The first government was held in New York City, but later, through special invitation, it was transferred to Philadelphia, the seat of the old Continental Congress and the Constitutional Convention. There was a strong inclination to make this city the permanent capital, but the southern delegates, finding the site too far from their homes, urged a more central location. When the Constitution was framed a provision had been

inserted that gave the national government the right to select a site ten miles square in which to locate the capital, and provided that Congress should have complete control of this district. Virginia and Maryland offered a tract of land ten miles square on the Potomac and proceeded to urge the change of the capital.

About this time, there was much debate in Congress over the question of the national government's assuming the debts due the Revolutionary expenses by the states. New England favored the assumption and also approved of Philadelphia as the national capital. The southern states believed that each state should be responsible for this obligation. Because of this situation in Congress, Hamilton suggested that a compromise might be made whereby a settlement of the questions could be effected.

It was finally agreed that the government should assume all the state debts, that the new capital should be built on the Potomac, and that, in the meantime, while the new public buildings were in construction, the capital should continue at Philadelphia.

PAYMENT OF THE NATIONAL DEBT

Hamilton's Plan. The entire debt, interest and principal, amounted to upward of $75,000,000. Hamilton proposed to fund the whole into United States bonds bearing six per cent interest. The sale of these bonds would furnish money to pay the debt, and the interest could be provided for by a series of taxes upon imported goods.

Tariff. — This plan brought about the adoption of the Tariff Act of 1789, which was slightly protective, but was prepared solely with the idea of securing a definite revenue with which to carry on the expense of government. In 1790 Congress decided to levy a tax upon distilled liquors. This caused serious opposition. When an attempt was made to

collect the tax in western Pennsylvania, the farmers of that section raised so strong a protest that it was necessary for Washington to call out the militia to assist the revenue officers and put down the outbreak. This episode is known as the Whisky Rebellion.

Establishment of a Bank.

Hamilton made a third re

port to Congress in the following year, when he urged the

men.

establishment of a national bank. This met with marked opposition by Jefferson and other representative They believed that it would be unwise for the United States government to go on record as organizing an institution such as the bank when there was no authority for this organization in the Constitution. There seemed to be so great a need for the bank that Washington yielded to Hamilton's arguments; and, when Congress passed the bill, Washington signed it; and it became a law. The bank of North America in Philadelphia, which was one of the most reliable institutions in the country, was recognized and given a twenty-year charter from Congress under the title of the United States Bank. The government was to hold one fifth of the entire stock and have other advantages as well. The government funds were to be placed in deposit in this bank and the "bank was to make government exchanges, keep treasury balances, and on occasions to make advances to supply temporary public needs."

ALEXANDER HAMILTON.