Political Differences Emerge

Hamilton and the federalists• Strong federal government

over the states• Loose interpretation of the

Constitution– Implied powers

• Close ties with Britain

Jefferson and the democratic republicans

• States rights over the federal government

• Strict interpretation of the Constitution

• Supported French Revolution

Federalist Beliefs((former Anti-Federalists)

Democratic-Republicans

Leader

Appealed to

Alexander HamiltonJohn Adams

Thomas JeffersonJames Madison

Merchants, wealthy and educated, and city folk

Farmers , favored the South and West

Ideas of Government

Strong government over statesLoose ConstructionLoose Construction of Constitution

•Implied powersImplied powers

State’s rights over National Govt.Strict constructionStrict construction of Constitution

DomesticPolicy

Supported National BankSupported excise taxNational debt good for countryNational govt. assume state debtsTariffs should be high

Against National BankAgainst excise tax Against National debtStates pay their own debtsTariffs should be low

ForeignPolicy Favored the British

Supported French Revolution

politicalTwo Political Parties Emerge

Two views of the National Bank

Hamilton Safe place to deposit and

transfer money Create a national currency National debt is good for

the country- money in people’s pockets

Create loans

Jefferson• Creating a bank is not an

expressed power listed in Constitution

• State banks would collapse• Only wealthy could invest• Against a national debt