The Electoral College elected Washington unanimously as the first president in 1789, and again in the 1792 election; he remains the only president to have received 100 percent of the electoral votes. John Adams, who received the next highest vote total, was elected Vice President. At his inauguration, Washington took the oath of office as the first President of the United States of America on April 30, 1789, on the balcony of Federal Hall in New York City.
The 1st United States Congress voted to pay Washington a salary of $25,000 a year—a large sum in 1789. Washington, already wealthy, declined the salary, since he valued his image as a selfless public servant. At the urging of Congress, however, he ultimately accepted the payment, to avoid setting a precedent whereby the presidency would be perceived as limited only to independently wealthy individuals who could serve without any salary. The president, aware that everything he did set a precedent, attended carefully to the pomp and ceremony of office, making sure that the titles and trappings were suitably republican and never emulated European royal courts. To that end, he preferred the title "Mr. President" to the more majestic names suggested.
Washington proved an able administrator. An excellent delegator and judge of talent and character, he talked regularly with department heads and listened to their advice before making a final decision. In handling routine tasks, he was "systematic, orderly, energetic, solicitous of the opinion of others ... but decisive, intent upon general goals and the consistency of particular actions with them".
Washington reluctantly served a second term. He refused to run for a third, establishing the customary policy of a maximum of two terms for a president.
Washington was not a member of any political party and hoped that they would not be formed, fearing conflict that would undermine republicanism. His closest advisors formed two factions, setting the framework for the future First Party System. Secretary of Treasury Alexander Hamilton had bold plans to establish the national credit and build a financially powerful nation, and formed the basis of the Federalist Party. Secretary of the State Thomas Jefferson, founder of the Jeffersonian Republicans, strenuously opposed Hamilton's agenda, but Washington typically favored Hamilton over Jefferson, and it was Hamilton's agenda that went into effect. Jefferson's political actions, his support of Philip Freneau's National Gazette,and his attempt to undermine Hamilton, nearly led George Washington to dismiss Jefferson from his cabinet. Though Jefferson left the cabinet voluntarily, Washington never forgave him, and never spoke to him again.
The Residence Act of 1790, which Washington signed, authorized the President to select the specific location of the permanent seat of the government, which would be located along the Potomac River. The Act authorized the President to appoint three commissioners to survey and acquire property for this seat. Washington personally oversaw this effort throughout his term in office. In 1791, the commissioners named the permanent seat of government "The City of Washington in the Territory of Columbia" to honor Washington. In 1800, the Territory of Columbia became the District of Columbia when the federal government moved to the site according to the provisions of the Residence Act.
In 1791, partly as a result of the Copper Panic of 1789, Congress imposed an excise tax on distilled spirits, which led to protests in frontier districts, especially Pennsylvania. By 1794, after Washington ordered the protesters to appear in U.S. district court, the protests turned into full-scale defiance of federal authority known as the Whiskey Rebellion. The federal army was too small to be used, so Washington invoked the Militia Act of 1792 to summon militias from Pennsylvania, Virginia, Maryland and New Jersey. The governors sent the troops and Washington took command, marching into the rebellious districts. The rebels dispersed and there was no fighting, as Washington's forceful action proved the new government could protect itself. These events marked the first time under the new constitution that the federal government used strong military force to exert authority over the states and citizens.