Hamilton v Jefferson

USH 1.6

I. Two partiesA. The two party system started

with Alexander Hamilton and Thomas Jefferson

1. Both supported ratifying the Constitution

2. Both served in Washington’s cabinet

a) Hamilton was Secretary of Treasury

b) Jefferson was Secretary of State3. Differences started

w/Hamilton’s economic plan, “Money Problems!”

II. $43 MillionA. Hamilton wanted to

honor bonds sold during the Revolution

1. Jefferson and James Madison didn’t want to pay off bondholders

a) Many original owners had sold them dirt cheap

b) Most of the people getting paid would be “cheating” the government

2. Congress approved Hamilton’s plan

II. $43 MillionB. Hamilton wanted the national

(federal) gov’t to assume the states’ debts

1. Having and paying on debt shows you are a good risk in the future (credit)

2. Northern states said yes b/c they owed a lot of money

3. Southern states said no b/c they had already paid off much of theirs

4. Compromise reached said federal gov’t would assume debts AND capital would move south (Washington DC)

5. North liked debt reduction and South liked national capital closer to them

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II. $43 MillionC. Hamilton wanted to start a

national bank to hold revenues and a source of loans to spur growth

1. Jefferson & Madison said the Constitution didn’t specificallyallow Congress to do so

2. Hamilton pointed to the “necessary and proper” clause

a) It allows Congress to do/create things to help them run the US

3. Congress and George Washington said yes to Hamilton

II. $43 MillionD. Hamilton wanted a

protective tariff1. Tax to raise the price of

imports to protect US industries

2. Jefferson thought US depended on farmers and didn’t want to promote industry

3. Congress agreed with Jefferson and did not pass the tariff

II. $43 MillionE. Hamilton wanted to tax

whiskey1. Raise revenue and control

drinking habits2. Jefferson supported farmers

turning grain into liquor for transport

3. Congress agreed w/ Hamilton and taxed whiskey

4. Whiskey Rebellion was western PA farmers attacking tax collectors

5. Washington led troops to stop rebellion

III. FederalistsA. Supported HamiltonB. Wanted strong federal gov’tC. Mostly wealthy northerners

w/few rich southern plantation owners

D. Loose interpretation of the Constitution

1. Could do things that were not specifically written down if they were helpful

E. Wanted to expand trade and industry

IV. Democratic-RepublicansA. Supported Jefferson and

James MadisonB. Limited federal gov’tC. Strong state gov’tD. Supported by “common

man”E. Strict interpretation of

Constitution1. Do only what the Const.

specifically saysF. Opposed industrialization

V. Foreign PolicyA. When French Revolution

turned violent, Jefferson still supported it

1. Thought Declaration of the Rights of Man was similar to the Declaration of Independence

2. Hamilton still supported England in their fighting of France

V. Foreign PolicyB. Alien and Sedition Acts

were designed to silence opposition of the Adams administration

1. John Adams was a Federalist

2. The Acts stopped Dem-Reps from speaking out.

3. The Acts were against the 1st Amendment and eventually overturned