Chapter One: The Duel covers the deadly political and personal rivalry between Aaron Burr and Alexander Hamilton, which ultimately led to the Burr-Hamilton Chapter Two: The Dinner explores the secret conversations and negotiations leading to selection of the Potomac River site for construction of the new national capital, in exchange for Virginia's support of Hamilton's plan for assumption of state debts by the federal government. Chapter Three: The Silence describes the tacit agreement by the nation's founders to postpone discussion of regulation of Slavery in the United States, concluding that any early attempt at abolition would doom the union before it had a chance to become established. Chapter Four: The Farewell dissects the Farewell Address of President George Washington, and Washington's views on the best course for the new nation. Chapter Five: The Collaborators analyzes two important relationships; the one between John Adams and his wife Abigail during his presidency; and the other between Thomas Jefferson and James Madison during the same time period. Chapter Six: The Friendship is devoted to the extensive correspondence between Adams and Jefferson during the last fourteen years of their lives, reviving their lost friendship and expounding on their lives.

“If you owe the bank thousands, then you have a problem  “If you owe the bank thousands, then you have a problem. If you owe the bank millions, then the bank has a problem.”  What does Trump mean?

Hamilton’ Economic Plan: DEBT IS GOOD National debt, "if it is not excessive, will be to us a national blessing.“ How would a national debt, and “line of credit”, increase the power of the federal government?

“YEOMEN” (FARMERS), ARTISANS (MIDDLE CLASS) ISSUE HAMILTON (FEDERALISTS) JEFFERSON (DEMOCRAT-REPUBLICANS) Strong central (federal) government OR state governments? CENTRAL  STATES Nation should be led by what kind of people? (rich, educated elite OR average people- farmers, tradesmen, etc.) RICH, EDUCATED, ELITE “YEOMEN” (FARMERS), ARTISANS (MIDDLE CLASS) Economy: Commerce and industry OR farming?    COMMERCE (TRADE) INDUSTRY!!! AGRICULTURE  Support by rich and powerful OR “plain people” WEALTHY, NORTHERNERS TEND TO SUPPORT “PLAIN PEOPLE” (SOUTH, WEST) Assumption of state debt by the federal government? YES OR NO (the federal gov’t takes over all states’ debt)  ASSUMPTION OF DEBT AGAINST ASSUMPTION Creation of a National Bank? YES OR NO- why? YES- NATIONAL BANK NO!!!! (TOO MUCH POWER; NOT IN CONSTITUTION Following the Constitution- Strict construction OR loose construction (interpretation)? LOOSE CONSTRUCTION STRICT CONSTRUCTION

Hamilton’s Financial Plan Causes Controversy Goals of Hamilton’s Plan: Set the nation’s finances in order Put economy on firm footing Increase role/ power of the federal government in the economy

“ASSUMPTION”: Managing the nation’s debt What was the problem? Millions owed by states AND federal government from revolutionary war money owed to foreign nations and veterans of the Revolutionary War wealthy (northern) Americans had bought many of the veterans’ bonds

“ASSUMPTION”: Managing the nation’s debt Hamilton’s solution: ASSUMPTION PLAN- the national government will (assume) take over the states’ debt Pay off old debt by selling bonds to wealthy Americans

Why Is Assumption Controversial? Democrat Republicans:Assumption increases power of federal government Wealthy creditors would now be loyal to the FEDERAL GOV’T Unhealthy alliance between the government and businesses

Why Is Assumption Controversial? Southern States- Assumption is unfair Most Southern states had paid off their debt. It seemed unfair that they now had to share in paying off the NATIONAL debt

THE COMPROMISE- Jefferson and Madison agree to assumption in return for the new national capital being in the south. Washington DC is located in what had been part of VIRGINIA.

II. Create a National Bank Would be funded by the government and private wealthy investors Print paper money Handle tax receipts and other government funds Make loans to encourage business growth

Why Is the National Banck Controversial? IS IT CONSTITUTIONAL? Democrat-Republicans Strict construction of the Constitution: If the power is not given to the National government in the Constitution, it is UNconstitutional

Federalists- Loose construction of the Constitution: If the power is not denied in the Constitution, it is Constitutional Use of the elastic clause: a bank is “necessary and proper” to print money, fund the debt, collect taxes….

III. TAXES- needed to pay debt Protective Tariff- taxes on IMPORTED goods meant to encourage American industry Benefits industry in NORTH because they raise producers can charge for manufactured goods Hurts the SOUTH and WEST because they have to buy these goods Excise tax- tax on a specific product Tax placed on WHISKEY. Seen as unfair because only one region of the country THE WEST has to pay to benefit all.

Whiskey Rebellion 1794- Farmers in western Pennsylvania harass tax collectors George Washington leads militia out, quells “rebellion” Significance: Gov. can, and will, enforce the law

George Washington: Federalist or Democrat-Republican? George Washington sides with Hamilton on most issues and is considered a FEDERALIST Strengthens federal government during his term in office

Health care- Should the government guarantee health care to all citizens in the United States, or should this be left up to the states or private industry?   Government role in the economy: Should the government do more (spend more) to stimulate the economy and create jobs, EVEN IF this means higher taxes and increased debt? Agriculture: Should the government assist farmers by “subsidizing” crops (giving money to farmers to help them make a profit)? National Defense- Should the government be given increased powers to better defend the nation against terrorist attacks? Campaign Finance- Should there be stricter laws about how much money businesses can give to fund politicians’ campaigns to run for office?