Establishment of the Early United States Government

Background. The first year of the Washington administration saw the establishment of key executive and judicial institutions. Congress created executive departments in 1789, confirming Hamilton as Treasury Secretary. The Judiciary Act of 1789 organized the federal judiciary, setting the stage for the Supreme Court's first meetings in New York City, the provisional capital.

Financial Plan. Hamilton's First Report on the Public Credit, commissioned in 1789, was presented in January 1790. It recommended reorganizing national debt to establish public credit. The plan sparked controversy, with Madison criticizing it as benefiting speculators. The political stalemate led to the Compromise of 1790, which secured the passage of the Funding Act.

Judicial and Executive Developments. The Supreme Court held its inaugural session in February 1790 at the Merchants' Exchange in New York City. This marked the operational start of the new government's judicial branch in the provisional capital, alongside the executive institutions already functioning there.

Compromise and Capital. The Compromise of 1790 resolved disputes between Hamilton, Jefferson, and Madison. Hamilton secured the assumption of state debts, while Jefferson and Madison obtained the national capital for the South. This agreement facilitated the passage of the Residence Act and Funding Act in July and August 1790.