The Federalist Era

Two Most Important People in the Era Alexander Hamilton Thomas Jefferson O Secretary of the Treasury O Secretary of State

Huge National Debt O When the American Revolution is over, the new nation is $81 million in debt split three ways… O $44 million National Debt (within the U.S.) O $25 million State Debt O $12 million Foreign Debt O Hamilton felt the U.S. needed to pay off the entire debt in order to establish a good credit rating.

Hamilton’s Financial Plan A four part plan for the Federal Government

Pay Off All Debt O Federal government would assume state debt. Federal government would assume state debt.

Excise Tax on Whiskey Whiskey and other items were taxed Led to the Whiskey Rebellion in Pennsylvania 1 st Test of Constitution

Protective Tariff A tax on imported goods from Europe that was designed to protect similar American products

1 st National Bank Some money went to the debt, some went to running the bank Private investors would own 80% of the Bank and the Government would own 20%.

Setting Up Americans First Political Parties Federalists vs. Democratic-Republicans

Jefferson Opposed the National Bank O He felt state banks would suffer O It favored wealthy people because they could buy stock in it O He felt it violated the Constitution and was not Necessary and Proper for the Country

This Argument creates the First Two Political Parties O Alexander Hamilton FEDERALISTS O Thomas Jefferson DEMOCRATIC-REPUBLICANS