CHAPTER XVIII
THE NEW GOVERNMENT
FIRST ACTS OF CONGRESS.—During Washington's first term of office as President (1789-93), the time of Congress was largely taken up with the passage of laws necessary to put the new government in operation, and to carry out the plan of the Constitution.
[Illustration: DESK USED BY WASHINGTON WHILE PRESIDENT. In the possession of the Pennsylvania Historical Society.]
Departments of State, Treasury, and War were established; a Supreme Court was organized with a Chief Justice [1] and five associates; three Circuits (one for each of the three groups of states, Eastern, Middle, and Southern) and thirteen District Courts (one for each state) were created, and provision was made for all the machinery of justice; and twelve amendments to the Constitution were sent out to the states, of which ten were ratified by the requisite number of states and became a part of the Constitution. [2]
At the second session of Congress provision was made, in the Funding Measure, for the assumption of the Continental and state debts incurred during the war for independence. [3] The District of Columbia as the permanent seat of government was located on the banks of the Potomac, [4] and the temporary seat of government was moved from New York to Philadelphia, there to remain for ten years.
NEW STATES.—The states of North Carolina and Rhode Island, having at last ratified the Constitution, sent representatives and senators to share in the work of Congress during this session.
The quarrel between New York and Vermont having been settled, Vermont was admitted in 1791; and Virginia having given her consent, the people of Kentucky were authorized to form a state constitution, and Kentucky entered the Union in 1792. [5]
THE NATIONAL BANK AND THE CURRENCY.—The funding of the debt (proposed by Hamilton) was the first great financial measure adopted by Congress. [6] The second (1791) was the charter of the Bank of the United States with power to establish branches in the states and to issue bank notes to be used as money. The third (1792) was the law providing for a national coinage and authorizing the establishment of a United States mint for making the coin. [7] It was ordered that whoever would bring gold or silver to the mint should receive for it the same weight of coins. This was free coinage of gold and silver, and made our standard of money bimetallic, or of two metals; for a debtor could choose which kind of money he would pay.
[Illustration: HAMILTON'S TOMB, NEW YORK CITY.]