United States, 1789

The new government started with three departments and one lawyer, and paid for itself almost entirely with import duties. This is the model in your original sketch.

Why it matters: this is your four-function model in practice. It started with three departments and one lawyer.

Timeline of the first year

• 4 Mar 1789. Step: New government begins (GlobalSecurity)
• 30 Apr 1789. Step: Washington sworn in
• 1 Aug 1789. Step: First Tariff Act in force, setting import duties (IMF)
• 7 Aug 1789. Step: War Department created. Knox kept on from the old Congress for continuity (US House)
• 2 Sep 1789. Step: Treasury created. Hamilton sworn in on 11 Sep (Treasury)
• 24 Sep 1789. Step: Judiciary Act: Supreme Court, 3 circuit courts, 13 district courts, an Attorney General, and a federal attorney in each district (FJC)
• Jan 1790. Step: Hamilton's first report on public credit
• Jul 1790. Step: Federal government takes over state war debts
• Dec 1790. Step: Hamilton's national bank report

By function

• Foreign affairs: a Department of Foreign Affairs was debated first, then became the Department of State under Jefferson. Its secretary could be removed by the President. By 1824 it had only 13 staff in Washington. Brookings
• Defence: the War Secretary answered to the President, who could remove him. A House vote of 24 to 22 put that in the law. By 1824 War had 32 staff at headquarters. US House
• Treasury: the biggest office, with 152 staff by 1824. Tariffs gave about 90% of federal money. Hundreds of customs officials worked at the ports. A Revenue Cutter Service chased smugglers. IMF, Brookings
• Debt: in 1790 public debt was $79 million, about 40% of GDP. Debt payments alone were more than tax income. Hamilton swapped old notes for new ones at face value and cut the interest rate from 6% to 4%. Federal bonds traded above face value by 1791. Taking over state debts was won in a deal to move the capital to the Potomac. IMF
• Justice: the Attorney General argued the government's cases at the Supreme Court and advised the President and cabinet. He had no department and no staff. Early holders wrote by hand or paid for help themselves. A full Department of Justice came only in 1870. FJC
• Size: about 3,905 federal civilian employees in 1802, and 10,415 by 1826. Brookings

New system: a written federal constitution replaced the weak Articles of Confederation, and the debt deal gave the new state credit from day one.