George Washington was elected the first President of the United States in 1789. He faced many challenges in establishing the new government, including a small army, threats from Native Americans and pirates, and no precedent for the presidency. Washington proved to be a capable leader. Alexander Hamilton proposed establishing a national bank and taking on the states' war debts to strengthen the new federal government, which was controversial but approved. The capital was located on the Potomac River in a compromise to gain Southern support.