3. Presidency (1789–1797)

Cabinet and executive departments

Congress created executive departments in 1789, including the State Department in July, the Department of War in August, and the Treasury Department in September. Washington appointed fellow Virginian Edmund Randolph as Attorney General, Samuel Osgood as Postmaster General, Thomas Jefferson as Secretary of State, and Henry Knox as Secretary of War. Finally, he appointed Alexander Hamilton as Secretary of the Treasury. Washington's cabinet became a consulting and advisory body, not mandated by the Constitution.^[267]
Washington's cabinet members formed rival parties with sharply opposing views, most fiercely illustrated between Hamilton and Jefferson.^[268] Washington restricted cabinet discussions to topics of his choosing, without participating in the debate. He occasionally requested cabinet opinions in writing and expected department heads to agreeably carry out his decisions.^[264]

Domestic issues

Washington was apolitical and opposed the formation of parties, suspecting that conflict would undermine republicanism.^[269] He exercised great restraint in using his veto power, writing that “I give my Signature to many Bills with which my Judgment is at variance….”^[270]
His closest advisors formed two factions, portending the First Party System. Secretary of the Treasury Alexander Hamilton formed the Federalist Party to promote national credit and a financially powerful nation. Secretary of State Thomas Jefferson opposed Hamilton's agenda and founded the Jeffersonian Republicans. Washington favored Hamilton's agenda, however, and it ultimately went into effect—resulting in bitter controversy.^[271]
Washington proclaimed November 26 as a day of Thanksgiving to encourage national unity. "It is the duty of all nations to acknowledge the providence of Almighty God, to obey His will, to be grateful for His benefits, and humbly to implore His protection and favor." He spent that day fasting and visiting debtors in prison to provide them with food and beer.^[272]