Washington was elected first President, his term beginning March 4,
1789. A census was taken in 1790. The largest city was Philadelphia,
with a population of 42,000--the others were New York, 33,000, and
Boston, 18,000. The total population of the United States was 4,000,000.
The slaves numbered 700,000; free negroes, 60,000, and the Indians,
80,000.

The Federalists, who believed in centralised government, were the most
influential men in Congress. Washington appointed Thomas Jefferson
Secretary of State, Knox Secretary of War, Hamilton Secretary of the
Treasury, Osgood Postmaster General, and Jay Chief Justice of the
Supreme Court.

The first tariff act was passed with a view of providing revenue and
protection, in 1789. The national debt amounted to $52,000,000.00--a
quarter of which was due abroad. The states had incurred an expense of
$25,000,000.00 more, in supporting the Revolution. The country suffered
from inflated currency. The genius of Hamilton saved the situation. He
persuaded Congress to assume the whole obligation of the national
government and of the states. Washington selected the site of the
capitol on the banks of the Potomac. But the government convened at
Philadelphia for ten years. Vermont and Kentucky were admitted as states
by the first Congress.

In Washington's administration, a number of American ships were captured
by British war vessels. England was at war with France and claimed the
right of stopping American vessels to look for possible deserters. War
was avoided by the Jay Treaty, November 19, 1794.