Warm-Up (1/11)

Hamilton and National Finances

99 Problems and Economics is 1… The Debt Problem: The U.S. government borrowed millions from other countries to pay for the Revolutionary War. It owed more than $77 mil. to citizens, merchants and foreign countries This needed to be paid back, if not no country would ever loan US money again.

Alexander Hamilton

Hamilton’s Plan for Economy Hamilton’s Plan: 1. Pay all war debts 2. Raise government revenues though protective tariffs 3. Create a national bank 4. More manufacturing and industry 5. Establish capitol city in South

Creation of our Nation’s Capitol The South disagreed since they had already repaid their debt and did not want to pay off the North’s debts! In order to get their support a compromise would be reached to put the capitol in the South

Enter Washington D.C. http://www.smithsonianmag.com/videos/category/smithsonian-channel/the-reason-why-dc-is-between-maryland-and-vi/?no-ist%20b

https://www.youtube.com/watch?v=L1Wy_2wr2hI

Formation of Political Parties Which section of the United States did Hamilton’s plan favor? Jefferson disagreed with Hamilton. Why do you think he did?

Hamilton vs. Jefferson

Democratic-Republicans The two sides… Federalists (Hamilton) Democratic-Republicans (Jefferson) 1) Protective tariffs to encourage American growth 2) Manufacturing, business, cities 3) Loose interpretation of the Constitution 4) Strong national government 5) National Bank 6) British allies 1) Against protective tariffs 2) Agriculture, farming, country 3) Strict interpretation of the Constitution 4) Strong state government 5) State Bank 6) French allies