George Washington oversaw the creation of new federal departments and asked Alexander Hamilton to address the nation's debt problem. Hamilton proposed a financial plan for the US government to assume all federal and state debts, charter a national bank, and impose tariffs on imported goods. This plan proved controversial, with northern states favoring it and southern states opposing it. It established precedents for paying off debts, convincing others to invest in the country, and using tariffs to raise money and protect domestic manufacturers. However, Hamilton's whiskey tax to generate new federal revenues led to the Whiskey Rebellion by western Pennsylvania farmers, which Washington helped quell by sending troops.

1. Launching a New Nation George Washington oversaw the creation of new federal departments and asked Alexander Hamilton to tackle the nation’s debt problem.