President Washington Opposition to the Plan Original bond owners felt betrayed because they had lost money on their bonds while the new bond owners profited.

President Washington Opposition to the Plan Stronger opposition came from the Southern States because they acquired less debt and would have to pay more than their share under Hamilton’s plan.

President Washington Compromise To win support for Hamilton’s plan, he proposed a New capital in the South, a special district between VA and MD. To pay off the debts Washington DC would be built.

President Washington Building the Economy Alexander Hamilton made other proposals to build an economy including the creation of a national bank… The Bank of the United States

President Washington Building the Economy 1792-there were 8 other banks All 8 were established by states Jefferson & Madison opposed the national bank saying it was unconstitutional and would only benefit the wealthy

President Washington Building the Economy Jefferson & Madison opposed the national bank saying it was unconstitutional and would only benefit the wealthy Unconstitutional- Law or action that is inconsistent with the Articles & Amendments to the Constitution.

President Washington Building the Economy Eventually Washington agreed with Hamilton and signed a bill creating the national bank

President Washington Building the Economy In the 1790’s Americans made their income through farming. Hamilton thought that manufacturing would make the economy stronger.

President Washington Building the Economy To encourage people to buy American products, Hamilton proposed a Tariff- or tax on imports The theory was the tariff would protect the American industry from European competition.

President Washington Building the Economy In the 1790’s the South had few industries to protect by tariffs and opposed them.