4. Washington
appointed John
Jay the first Chief
Justice of the
Supreme Court
• Supreme Court with 6 Justices
• 3 Circuit Courts
• 13 District Courts
6. US pays debts for
both US and
states.
Create a national
bank for deposits.
Impose high taxes
on imports.
8. 1. PAYING STATE AND FEDERAL DEBT:
James Madison of
Virginia disagreed
that many
Southern states
should have to
help pay debts for
other states, since
they had already
paid their own.
Hamilton made a
compromise that
the capital of the
new nation would
move to
Washington, D.C.,
where it is today.
9. 2. FORMING A NATIONAL BANK
Jefferson said the new
bank was
unconstitutional. “It’s
not in there, so you
can’t do it,” is a strict
interpretation of the
Constitution.
Hamilton said that it
was necessary to do
this, and it fit the
Constitution loosely by
way of Article 1 Section
8’s “necessary and
proper” clause.