The United States was a small nation when Washington took office, consisting of 11 states and approximately 4 million people, and there was no precedent for how the new president should conduct domestic or foreign business. Mindful that his actions would likely determine how future presidents were expected to govern, Washington worked hard to set an example of fairness, prudence and integrity. In foreign matters, he supported cordial relations with other countries but also favored a position of neutrality in foreign conflicts. Domestically, he nominated the first chief justice of the . Supreme Court, John Jay (1745-1829), signed a bill establishing the first national bank and set up his own presidential cabinet. His two most prominent cabinet appointees were Secretary of State Thomas Jefferson (1743-1826) and Secretary of the Treasury Alexander Hamilton (1755-1804), two men who disagreed strongly on the role of the federal government. Hamilton favored a strong central government, while Jefferson favored stronger states’ rights. Washington believed that divergent views were critical for the health of the new government, but he was distressed at what he saw as an emerging partisanship.
All obstructions to the execution of the laws, all combinations and associations, under whatever plausible character, with the real design to direct, control, counteract, or awe the regular deliberation and action of the constituted authorities, are destructive of this fundamental principle, and of fatal tendency. They serve to organize faction, to give it an artificial and extraordinary force; to put, in the place of the delegated will of the nation the will of a party, often a small but artful and enterprising minority of the community; and, according to the alternate triumphs of different parties, to make the public administration the mirror of the ill-concerted and incongruous projects of faction, rather than the organ of consistent and wholesome plans digested by common counsels and modified by mutual interests.