Hamilton v Jefferson USH 1.6

I. Two parties The two party system started with Alexander Hamilton and Thomas Jefferson Both supported ratifying the Constitution Both served in Washington’s cabinet Hamilton was Secretary of Treasury Jefferson was Secretary of State Differences started w/Hamilton’s economic plan, “Money Problems!”

II. $43 Million Hamilton wanted to honor bonds sold during the Revolution Jefferson and James Madison didn’t want to pay off bondholders Many original owners had sold them dirt cheap Most of the people getting paid would be “cheating” the government Congress approved Hamilton’s plan

S II. $43 Million Hamilton wanted the national (federal) gov’t to assume the states’ debts Having and paying on debt shows you are a good risk in the future (credit) Northern states said yes b/c they owed a lot of money Southern states said no b/c they had already paid off much of theirs Compromise reached said federal gov’t would assume debts AND capital would move south (Washington DC) North liked debt reduction and South liked national capital closer to them

II. $43 Million Hamilton wanted to start a national bank to hold revenues and a source of loans to spur growth Jefferson & Madison said the Constitution didn’t specifically allow Congress to do so Hamilton pointed to the “necessary and proper” clause It allows Congress to do/create things to help them run the US Congress and George Washington said yes to Hamilton

II. $43 Million Hamilton wanted a protective tariff Tax to raise the price of imports to protect US industries Jefferson thought US depended on farmers and didn’t want to promote industry Congress agreed with Jefferson and did not pass the tariff

II. $43 Million Hamilton wanted to tax whiskey Raise revenue and control drinking habits Jefferson supported farmers turning grain into liquor for transport Congress agreed w/ Hamilton and taxed whiskey Whiskey Rebellion was western PA farmers attacking tax collectors Washington led troops to stop rebellion

III. Federalists Supported Hamilton Wanted strong federal gov’t Mostly wealthy northerners w/few rich southern plantation owners Loose interpretation of the Constitution Could do things that were not specifically written down if they were helpful Wanted to expand trade and industry

IV. Democratic-Republicans Supported Jefferson and James Madison Limited federal gov’t Strong state gov’t Supported by “common man” Strict interpretation of Constitution Do only what the Const. specifically says Opposed industrialization

V. Foreign Policy When French Revolution turned violent, Jefferson still supported it Thought Declaration of the Rights of Man was similar to the Declaration of Independence Hamilton still supported England in their fighting of France

V. Foreign Policy Alien and Sedition Acts were designed to silence opposition of the Adams administration John Adams was a Federalist The Acts stopped Dem-Reps from speaking out. The Acts were against the 1st Amendment and eventually overturned